Starting a Business

STEPS REQUIRED TO ESTABLISH A BUSINESS IN DOMINICA:

1. 1. 1. Register/Incorporate the business with Companies and Intellectual Property Office
      2. Register with Inland Revenue Division and apply for a Value Added Tax (VAT) registration number
      3. Register with the Dominica Social Security
      4. Obtain Alien Land Holding Licence (if applicable)
      5. Apply for Work Permit( If applicable)
      6. Obtain Physical Planning Division permission for construction of building (if applicable)
      7. Obtain License from Fisheries Division (if applicable)
      8. Seek permission from other Government Agencies (if applicable)

INFORMATION ON THE INCOME TAX ACTS, RULES AND FORMS

All individuals who own or operate a business (of any kind or size) are reminded of their obligation to register this business with the Inland Revenue Division, this is obligated by law. The Inland Revenue Division registration forms must be duly completed and signed by the business’s owner.

• All businesses must register with the Inland Revenue Division, to obtain a tax number.
• The enterprise must inform the Inland Revenue Division in writing of the commencement date of operation and should submit returns annually in accordance with the Income Tax Act, even during the period of the tax holiday.
• The enterprise must present a copy of their business registration and Articles of Association and Incorporation.
• An enterprise involved in a taxable activity is required to apply for VAT registration at the Inland Revenue Division.

Further additional information regarding IRD can be sourced at www.ird.gov.dm

REGISTERING A NON-PROFIT ORGANISATION

When registering a Non-profit organizations/business it must be remembered that; the company has no share capital, and it has members rather than shareholders. Incorporating gives the business/organization legal status. If an organization decides to incorporate or not depends upon its activities, nature, or type of organization.

• A sample of the incorporation form must be collected from the Companies and Intellectual Property Office, edited and printed on deed paper.
• Statutory declaration must be prepared by an Attorney.
• Two copies of the document should be printed and submitted to the Ministry of Legal Affairs in order to obtain a Non Profit Licence.
• A registration fee of EC$150.00 (US$57.00) must be paid at the Companies and Intellectual Property Office. A postage stamp of EC$5.00 (US$2.00) must be submitted with the completed form to be placed on the statutory declaration
• Please note that all business names should be first checked with the Companies clerk to ensure availability
• In order to keep the business name on the register, an annual fee of EC$50.00 (US$19.00) must be paid.

THE LAW

The process of establishing a business in Dominica is guided by the following laws of the Commonwealth of Dominica:

• Companies Act (Act 21 of 1994)
• The Companies Regulations (SRO 22 of 1997 and SRO 57 of 2002)
• The International Business Act (Act 10 of 1996)
• The Business Names Act, Chapter 78:46

Further additional information regarding online registration can be obtained from Companies and Intellectual Properties Office: www.cipo.gov.dm

THE PROCESS

When setting up a business in Dominica, you must decide on the type of business entity you want to set up. If you have decided that you want to create a non-profit, a limited liability company, corporation, or a partnership, then you will have to register that business.

• A business name is a name used for a business which-
• in the case of an individual or partnership, is different from the name(s) of the proprietor(s), and
• in the case of a company, is different from the company’s corporate name.

All business names must be registered. It is an offence to operate a business under a business name which has not been registered.

The law regarding business names is set out in the Registration of Business Names Act [Chap. 78:46] and the Business Names Rules, 2011.

INCORPORATION REQUIREMENTS

• A sample of the incorporation form must be collected from the Companies and Intellectual Property Office, edited and printed on deed paper.
• Statutory declaration must be prepared by an Attorney.
• A registration fee of EC$750 (US$277.00) must be paid at the Companies and Intellectual Property Office. A postage stamp of EC$5.00 (US$2.00) must be submitted with the completed form to be placed on the statutory declaration.
• The name of the company must contain the words Limited, Corporation or incorporated or the abbreviated version.
• Please note that all business names should be first checked with the Companies clerk to ensure availability
• Company’s return should be file on or before the 2nd day of April each year.
• Also, in order to keep the business name on the register, an annual fee based on the stated share capital must be paid.

BUSINESS NAME

• A sample of the incorporation form must be collected from the Companies and Intellectual Property Office, edited and printed on deed paper.
• Statutory declaration must be signed before a Commissioner for Oaths in the Companies and Intellectual Property Office. Picture identification must be presented before signing.
• A registration fee of EC$90 (US$34.00) must be paid at the Companies and Intellectual Property Office. Each person signing as a proprietor of the business name must also present a postage stamp of EC$10.00 (US$4.00).
• The name of the business must not imply that is a company as registration can be denied due to the name being misleading. The business name cannot include the words Limited, Corporation, Incorporation or the abbreviations of these words.
• Please note that all business names should be first checked with the Companies clerk to ensure availability
• Also, in order to keep the business name on the register, an annual fee of EC$50.00 (US$19.00) must be paid. The business must file annual returns on or before the 2nd day of April each year. The fee for filing annual returns is EC$10.00 (US$4.00)

 PRICING

Registration	$70.00
Statement	$20.00
Annual Fee	$50.00
Filing of an Annual Return	$10.00

Please note that all business names should be first checked with the Companies clerk to ensure availability.

Also, in order to keep the business name on the register, an annual fee of EC$50.00 (US$19.00) must be paid. The business must file annual returns on or before the 2nd day of April each year. The fee for filing annual returns is EC$10.00 (US$4.00).

For further information visit website: www.cipo.gov.dm

WHY IT’S IMPORTANT TO REGISTER YOUR COMPANY & EMPLOYEES WITH THE DSS

In Dominica, the Social Security program is designed to partially replace or supplement income lost by Insured Persons during periods of sickness, maternity, employment injury, and old age. When an Insured Person dies, provision is also made to pay a pension to the eligible spouse and children. In the absence of an eligible spouse and children, surviving parents or grandparents over the age of 60 stand to qualify for such benefit. www.dss.dm

The Social Security Act provides that every employee between the ages of 16 and 65 who commences employment in Dominica, must be registered with the Dominica Social Security within 4 days of the commencement of employment.

All employers are required to register with the Dominica Social Security within seven days of hiring an employee.

Employee’s contribution to social security as of 2024 moved to 6.5% and employers are required to contribute 7.75%. Contributions will increase annually by 0.25% alternatingly between employee and employer until 2031, to arrive at a final contribution of 7.5% by employee and 8.5% by employer.