Dominica does not have different classes of offshore banking licenses. It is granted only one type of banking license, which allows the licensee to provide all types of offshore banking services (ie it cannot provide its services to local companies and Dominica citizens). However, if the licensee wants to work as a resident bank, it will require obtaining an additional license.

Key Features

Offshore banking license is a subject of regulation of Dominica Financial Services Unit, which is a part of Ministry of Finance in Dominica. Financial Services Unit is responsible for granting, supervision and revocation of the licenses.

Offshore bank is typically a financial institution which is registered and licensed in the international financial centre and allowed to accept deposits and perform various transactions for clients domiciled abroad. Unlike domestic commercial banks, offshore bank normally renders services to international clients or corporations and does not offer day-to-day banking products.

Main services offered by a Dominica offshore bank includes:

  • Tailor-made investment solutions for HNWI
  • Real Estate and Trade Finance
  • Facilitation of e-commerce and custom-made payments solutions
  • Leverage on fund-raising capabilities for high-value development projects

Must transfer to reserve fund not less than 25% of profit in cases where the reserve fund is less than the issued paid up capital.

Legal Requirements

Requirements

Description

General

  • Corporate¬† vehicle permitted

Dominica Domestic Company

  • License application fee

USD 8,000

  • Annual license fee

USD 8,000

  • Local physical office required

Yes

Share capital or equivalent

  • Minimum paid up capital

USD 1,000,000

Directors

  • Minimum number

2

  • Corporate directorship allowed

Yes

  • Local director required

No

Shareholders

  • Minimum number

2

  • Corporate shareholder allowed

Yes

  • Local shareholder required

No

Service Providers Required

  • Company secretary

Yes

  • Auditor

Yes

  • Legal adviser

Yes

Tax Treatment

Licensed banks are exempt from tax on their net income.

Duration to Set Up

Around 3 to 6 months

Distinctive Benefits of Licence

One of the key features in the obtaining of the offshore banking license, according to the Dominica Offshore Banking Act, is the need to ensure that there must be absolute transparency in the respect of the shareholders and directors of each offshore bank. Therefore the applicant cannot be the International Business Company and bearer shares are not allowed, which serves to protect the integrity of the bank.

The Valsen Advantage

  • End to end comprehensive service
  • Speedy and efficient service
  • Expert advice on structuring options
  • Dedicated ongoing compliance support
  • Extensive network pool of service providers