By Dominica News Online

Free movement of profit and dividends, opportunities for external advancement, and unrestricted business ownership are just some of the benefits available to businesspersons who wish to operate a business in Dominica.

Senior Investment Promotion Officer at Invest Dominica Authority (IDA), Hermina Augustine made the remarks while speaking during an event at Fort Young Hotel earlier this week.

IDA is taking on several initiatives as part of efforts to increase foreign direct investments. As part of these efforts, IDA is presently hosting an inward investment mission from June 12 – 17, 2022 comprising forty (40) businesspersons representing twelve (12) companies in Guadeloupe and ten (10).

“Why Dominica? We have free movement of profit and dividends when you do business in Dominica…,” Augustine said. “We are an English speaking country with an educated and trainable workforce with 95% literacy.”

She said it’s also a great opportunity to invest in Dominica which is a location which is not very crowded. And there are a lot of opportunities for external advancement.

She mentioned further that in Dominica there is unrestricted business ownership, so a foreign national doesn’t need an owner from Dominica in order to do business in Dominica.

“It can be entirely owned by you as a foreign national,” Augustine explained.

She added, “Also we have a diverse population of settlers with many nationalities inclusive of the Kalinago people.”

Augustine indicated that when persons do business in Dominica there is preferential access to international markets and agreements with Europe and CARICOM, “so doing business in Dominica opens you up to the OECS, to CARICOM which you would not have had previously. More reasons to choose Dominica for business.”

“Dominica is literally the only island known and branded as the Nature Island…,” she stated. “The island is focused on attracting sustainable direct foreign investments and the French West Indies is one of our primary targets and this is why each year we are reaching out to the French either through outgoing missions or incoming missions.”

Meantime, Senior Investor Services Officer, Patrickson Victor said any businessperson who wants to do business in Dominica must first be legally registered.

“Once you have started operating in Dominica it is important that the business is registered with the Dominica Social Security (DSS),” he explained. “You need to be registered as an employer and then you need to register your employees within 4 days of having contracted or hired someone to work for you here on the island. You would need to make monthly contributions.”

Victor continued, “The employer which is you will contribute 7.5% of the total wage and from the employees wage 6.5% which makes a total of 13.75% that will be contributed to the social security fund.”

He further explained that the fund caters for pension and also caters for when the individual is ill and needs to be compensated.

“You the employer will pay 40% of the wage while the person is on sick leave and social security will pay a further 60% which makes 100% which is the employee’s total pay during the sick period,” Victor noted.

These individuals are also being encouraged to register with the Inland Revenue Division, the government’s department responsible for collecting taxes.

“It is important to register with the Inland Revenue because you will be receiving what we call a tax ID [Identification],” he stated. “All business on island in the business of importing that importation is done and is verified using the individual’s tax ID.”

Victor added, “That tax ID becomes important because without it you won’t be able to conduct your processes and you won’t be able to receive the benefits through the customs department.”

In addition, he said all businesses are required to file their taxes annually and therefore you need to be registered.

He said the Fiscal Incentive Package provided by the government which may include a tax holiday.

“That is to say you will be exempted from the payment of the corporate income tax for a period of time,” Victor remarked. “That period of time is determined by the level of investment and the activity that you are involved in.”

He went on to state that foreigners who intend to work in Dominica are required to obtain a work permit.

“Persons from the OECS may use a skilled certificate and in your case because you are a French national you would require a work permit.”

He said the permit is granted on a one year basis and is renewed every year.

The IDA will be placing a strong focus on attracting investments in manufacturing and agro-processing, organic agriculture, creative, knowledge & digital sector as potential investment opportunities. Investments in eco-tourism accommodations and ancillary services will also be discussed during the June 12-17 mission. Invest Dominica Authority is also keen to listen to opportunities on possible new investment ventures that will be of mutual benefit to Dominica and the French West Indies.

Invest Dominica Authority is the Government’s agency responsible for promoting and facilitating both local and foreign investment into Dominica. It provides all the relevant information required to establish a business in Dominica and acts as the liaison between investors and other key agencies in Dominica. IDA is your one stop agency for information on doing business in Dominica.

  Caribbean, Dominica