Posted by: realestatecaribbean | April 18, 2013

Onshore Companies and the Alien Land Holding License

Although this Blog is primarily aimed at Real estate we do feel it is important that people coming to live here or thinking of residing here get a taste of island life and that is why our blog covers much more than real estate. We are also concerned to give information to those wanting to do business here because if you are thinking of coming to Dominica to live, unless you are retired, doing business may also have an impact on your decision to come and live here.

Having just posted a  blog about the Government’s new online company formation, we thought it important to address a  common misapprehension about company formation.

Some people  believe that if they form an onshore company they will not need an Alien Land Holding License. However,this is clearly not the case. Even if you form an onshore company it is still an alien company for the purposes of the Alien Land Holding License legislation unless it is 51% owned by a person who is  a citizen of the Organisation of Eastern Caribbean States ( OECS ). Do not be tempted to put some-one who is not a business partner  on the Deeds to avoid this tax. It may cost you more in the long- run because that person, as a majority share holder, can make decisions about the sale or other alienation of the property and you will not be able to do anything about. Should that person suddenly die his shares will go into his estate . Even if you have an Agreement that Agreement will be void as the shares cannot be transferred to you without breaching the legislation.

For reasons such as the above it may still be worth your while to consult a lawyer if you are establishing a company to purchase property  in Dominica and you are not familiar with the laws of Dominica.

 


Responses

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