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Captive Insurance - aboutus head

Offshore captive insurance may well be one of the most under-utilized areas in offshore financial services. They provide a substantial amount of benefits including:

  • Reduction in premiums
  • Improved risk management
  • offshore tax benefits – tax exemption
  • Securing insurance coverage where it would otherwise be uneconomically unavailable
  • Generation of tax-free offshore investment income
  • Direct access to the re-insurance offshore market

According to Dominica’s Exempt Insurance Act, offshore exempt insurance business is the insurance business of a company:

    • whose risks and premiums originate outside Dominica; and
    • On whose liquidation monies payable to shareholders are payable to or for the benefit of persons resident outside Dominica.

The benefits of establishing an offshore captive insurance company under the Exempt Insurance Act include the following:

  • Exemption from all taxes including income tax and withholding taxes
  • Exemption from exchange control requirements
  • Reasonable capital requirement (US$100,000.00)
  • Strict confidentiality for offshore asset protection
  • Special Income Tax and Exchange Control exemptions for certain employees
  • Reasonable Government annual fee (US$2,500.00)
  • Offshore Financial privacy – No requirement to publish financial information
  • Reasonable solvency requirements
  • Meetings need not be held in Dominica

In order to obtain an offshore exempt or captive insurance license in Dominica, the following requirements must be satisfied.

  • Provision of an outline business plan
  • Incorporation of a local company which will be the applicant
  • The company must have at least two directors, one of which must be a citizen of Dominica resident in Dominica
  • The company must have a minimum paid up capital of US$100,000.00. An irrevocable letter of credit is acceptable for this.
  • Personal and financial information in respect of each shareholder, director and senior officer
  • A registered office and resident representative in Dominica

The fees payable to the Government in respect of a license are as follows:

  • A registration fee of US$2,500.00. It is pro-rated in the year of registration and thereafter payable by 31st January in each year
  • A processing fee of US$100.00

If you have any questions on the application for an exempt insurance license or the operation of such insurance in Dominica, please feel free to contact us.