Many countries require you to open a legal entity within the nation’s borders before you can do business there. When you work with Globalization Partners for Dominica subsidiary outsourcing, you can count on us to ensure your company is compliant. We simplify the expansion process, provide numerous benefits, and give you alternative solutions.
How to Set Up a Dominica Subsidiary
To lawfully set up your subsidiary, follow these steps:
- Hire a lawyer and apply for your work permit.
- Once you have your work permit, ensure your company name is unique and reserve it.
- Choose the kind of subsidiary you want to establish.
- Have your lawyer confirm the required paperwork, including the articles of association and a notice of directors.
- Register your company with the Commercial Registry.
- Register your company with the Inland Revenue Division (IRD) and obtain a Value Added Tax (VAT) registration number.
- Register with the social security office as an employer.
- Obtain applicable permits if necessary.
Dominica Subsidiary Laws
Instead of setting up a subsidiary, you can also purchase an already established company. Real estate purchases that equal $100,000 or more qualify you for direct citizenship. This caveat is the Citizenship-By-Investment program. Compared to other methods, this investment is the least expensive strategy to achieve direct citizenship.
The country has several treaties that prevent double taxation from other nations. The government also offers various tax incentives for companies that plan to invest in the country’s economy. However, the law requires companies to set a par value for their shares.
Benefits of Setting Up a Dominica Subsidiary
Setting up a subsidiary can provide some benefits. Certain companies may enjoy:
- Limited liability. Some subsidiary types remove legal responsibility from your company’s parent organization. Your subsidiary’s administration can also make creative decisions without affecting your company’s brand.
- Tax benefits. Often called a tax haven, Dominica offers companies freedom from the heavy taxation rates of other countries. Owning a subsidiary separates your parent company’s tax obligations from those of your separate entity.
Setting up your subsidiary has various drawbacks, too. Creating a subsidiary is a long, expensive process, and either your parent company or the branch entity holds legal responsibility for failure to comply with local laws.
Fortunately, subsidiary outsourcing with Globalization Partners solves these issues by offering you the benefits of a subsidiary without the cost and time involved in the setup process. Plus, Globalization Partners accepts full liability for any gaps in compliance.
Other Important Considerations
Before you begin the subsidiary setup process in Dominica, you need several things to complete the process, including:
- A lawyer. An experienced attorney is immensely valuable during the setup process. They know what you need and where to file specific documents.
- One director and one shareholder. These positions are open to anyone and do not have to go to residents. The same person can even fulfill both roles.
- Capital. For certain business entities, the minimum capital requirement may be as low as 2.70 East Caribbean Dollar (XCD)
- A registered agent. While the law does not require you to hire a company secretary, you will need a registered agent.
- A specific location: The Aliens Landholding Regulation Act prevents noncitizens from owning land. You must find an arrangement with a citizen to open a physical location.
- A work permit: If you’re working in-country while setting up your subsidiary, you need the appropriate work permit from the Division of Labor.
Let Globalization Partners Help With Your Expansion
Globalization Partners provides global PEO services to help you expand. We use our 187 business entities to onboard your employees without setting up your own subsidiary.
We hire, compensate, and manage your employees while maintaining total compliance throughout your expansion. Our team handles these administrative tasks so your company can focus on the things that matter, such as your company’s growth.
When you’re ready to expand, Globalization Partners can simplify the process with subsidiary outsourcing through our Employer of Record model. Contact us today to learn more!