Dominica is an English speaking country in the Eastern Caribbean with a population of nearly 72,500. The island is one of the largest in the Eastern Caribbean occupying some 289 square miles (749.59 kms). It is situated at the northern end of the Windward Chain of the Lesser Antilles, lying between the two French islands of Martinique and Guadeloupe. Dominica is easily accessible from Antigua, Barbados and San Juan.
Independence was achieved in 1978 and at that time the prior British Crown Colony was officially retitled the Commonwealth of Dominica. As a republic, Dominica enjoys a parliamentary democracy, with election of members of parliament every five years. Dominica is a member of the British Commonwealth with a President as Head of State, though executive power lies with the Prime Minister and his Cabinet of Ministers.
Dominica’s economy is mainly agricultural, with the banana as the main source of profits. However, the Government has boarded on a programme to diversify the economy by developing the island into a high quality offshore centre. The necessary legislative and administrative bases are succeeding well. For example, legislation has already been introduced for the registering of offshore banks, trust companies, and International Business Companies (IBCs), with a ship registration scheme also prepared. There is also the economic nationality plan which has been re-engineered to emphasise the mobilisation of capital for national development and geared for the financing of public sector capital projects.
The model of the Limited Liability Company (LLC) is relatively new and is possibly one of the most interesting developments in international corporate and trust work in recent years.
An LLC has corporate form and nature but is considered as a partnership under the Internal Revenue Code of the USA. As such, the LLC is not separately taxable but rather its income is taken to flow through to its members who are taxed according to US codes as though they had received the income directly. Non US persons are only taxed on US source income or income connected with the conduct of a US trade or business. If the LLC earns any income which falls outside this definition and the members of the LLC are non US persons with no US presence then no tax would be payable either by the LLC or by its members.
Therefore, a non taxable structure can be created by having non US individuals or companies as the members of the LLC. If the LLC had individual members, those members would most probably suffer taxation on profits received from the LLC in their country of residence, so the suggested structure is to have two offshore companies as the members of the LLC.
Delaware is a small state placed on the East Coast of the United States of America, often titled the “Gateway to the United States”. Distincted by few regulations and a lack of bureaucracy in seting its affairs up, and with the Delaware Corporation Law being considered throughout the US among the most attractive for organisation purposes, it is a valuable jurisdiction in which to organise new companies.
The policy of Delaware courts has always been to construe the Corporation Law liberally, to interpret any ambiguities or uncertainties in the working of the Statutes so as to reach a reasonable and just construction. This causes the careful saver to have confidence in the security of the investment.
Corporations not having any business in Delaware pay no Delaware Corporate income tax. Franchise tax compares favourably with other states and is payable on the authorised share capital of a company at a rate of 1%. Nonetheless it should be noted that Delaware corporations do fall within the Federal Tax System.
Cyprus is an island located in the north eastern Mediterranean Sea at the crossroads of Europe, Asia and Africa. The capital city is Nicosia.
Cyprus gained independence from Britain in 1960 and adopt a presidential system of Government with elections for the President taking place every 5 years. In 1974 Turkey invaded Cyprus and has since occupied the northern 40% of the island. In recent years, access was allowed from the southern Cyprio held area.
The official languages are Greek and Turkish but English is generally spoken and is the language mostly used in business, government and the courts. Laws are based on the English legal system and company law is modeled on the UK Companies Act 1948. Cyprus got full membership of the European Union in 2004.
Cyprus Companies characteristics:
- Local Requirements
As a matter of local company law the company must maintain a registered office address within Cyprus and must also appoint a company secretary which, for practical reasons, must be resident in Cyprus.
The Cayman Islands are a British colony located in the Caribbean sea, about 500 miles South of Miami, Florida.
There is no exchange control and no restrictions on the movement of funds to or from the Islands.
The Confidential Relationships (Preservations) Law 1976 makes it a criminal offence for any person to divulge confidential information to a third party and the Cayman Islands have no double taxation treaty with any other part of the world but have undertaken to assist foreign governments by giving them information where a Cayman Island Company has been used or involved in activities which are mutually considered as criminal. Tax offences would not be covered by this treaty, so no information would be revealed where allegations of tax offences are made.