The Commonwealth of Dominica continues to establish itself as a leading offshore financial centre through the ratification of the Exempt Insurance Act No. 14 of 1997, launching the business of offshore insurance. The Exempt Insurance Act is an all-inclusive legislation guaranteed to meet investor needs and interests, thereby creating an attractive environment for immediate and steady growth.
Key Features
Under the Commonwealth of Dominica Exempt Insurance Act 14, Exempt insurance business is the business of a registered company whose risks and premiums originate outside of Dominica (offshore) and on whose liquidation monies payable to shareholders are payable to or for the benefit of persons resident outside Dominica (offshore).
Under the Exempt Insurance Act of Dominica, unrestricted mutual insurance licenses are available for all or any of the following classes:
- Property insurance
- Accident and sickness (health) insurance
- Employers liability insurance
- Motor vehicle insurance
- Marine, aviation and transit insurance
- General liability
- Product liability
- Professional liability
As part of the application for a license to operate an Exempt insurance business in Dominica, it is necessary to make an application for each class of exempt insurance business the company will transact business in.
A full unrestricted Dominica offshore insurance license does not have any limit on its activities, allowing the company to offer a wide range of offshore insurance services including captive insurance, reinsurance, protected life insurance and annuities (that are free of attachment).
Legal Requirements
|
Requirements |
Description |
|
General |
|
|
Dominica International Business Company |
|
· License application fee |
USD 2,500 |
|
· Annual license fee |
USD 2,500 |
|
Yes |
|
Share capital or equivalent |
|
|
· Minimum paid up capital |
None |
|
Directors |
|
|
2 |
|
Yes |
|
No |
|
Shareholders |
|
|
2 |
|
Yes |
|
No |
|
Service Providers Required |
|
|
Yes |
|
Yes |
|
Yes |
Tax Treatment
An offshore exempt insurance company is tax exempt.
Duration to Set Up
Around 4 weeks
Distinctive Benefits of Licence
An offshore exempt insurance company is commonly utilized to conduct ‘captive’ insurance business, whereby the stake holder offers insurance within the parent company, thus saving external costs and generating profits in a low tax jurisdiction.
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