A company established in an offshore financial center may provide an unfair advantage for its beneficiary compared with traditional businesses incorporated onshore. To create a uniform corporate level playing field and enhance transparency, offshore financial centers are encouraged to limit and preferably exclude abuse of its local infrastructure. But that is not all. Foreign jurisdictions may impose tax levies for market entry and when the place of effective management is within their borders. As such, nominee services and the outsourcing of professional activities to the home state of incorporation contribute to the principles of local presence and, more important, its substance.
Nominee services are external services provided by professionals that enhance local presence of an international company. The nominee enters into a contract with the company to fulfil several duties. Prominent positions for nominees can be the corporate director or shareholder. Decision making for the company happens in collaboration between the company instructed by its beneficial owner and the nominee acting on behalf of the company by contract. The contractual agreement between the company and its nominee(s) defines the scope and limitations of the duties of the nominee. Yet, local company laws and global acceptable conduct can be enforced to protect the interests of the company.
The common law principle of the separated legal personality of companies with limited liability also applies to Dominica offshore companies and International Business Corporations. These offshore companies enter into various civil agreements with counterparts. Where nominee services are retained and external directors or shareholders act as the front of the company, beneficiaries can still act on behalf of the company via a power of attorney or employment contract.
Beneficial ownership can be visibly subordinated by nominees. As such, there are no public records that reveal the real ownership of offshore companies. Corporate registries and the novel beneficial owners register imposed on law tax jurisdictions and tax havens protect personal privacy of individuals and are not publicly available. These registers are accessible though after courts approve a subject related aperture, or for law enforcement. Fishing expeditions and random searches are impermissible.
Dominica offshore companies and International Business Corporations operate outside the jurisdiction. Local laws have applicability within its borders but cannot force foreign jurisdictions to accept these laws. Therefore, beneficiaries of Dominica offshore companies must consider the implications of operating such a legal entity.
Dominica Nominee Services
There can be various reasons for beneficiaries of offshore companies to use nominee services. The most common occasion is to strengthen the local position of the company and avoid additional yet unnecessary tax liabilities and administrative measures in host states where the company conducts business. Additionally, nominee services enforce further corporate substance and therefore provide for cost-efficient and professional additions to the corporate operation and structure.
More information on the establishment of nominee services for a Dominica offshore company or International Business Corporation can be obtained by completing the contact form below. One of our representatives will contact you to discuss your needs and incorporate your Dominica offshore company.