COMMERCIAL

DOMICILE
BY DIVYASHREE K S
COMMERCIAL DOMICILE

• The term commercial domicile is a misconception. It is a legal conception used in war to

test the enemy character.
• Foote called it QUASI DOMICILE
• It denotes any person nature or artificial who resides voluntary or carries on business in
an enemy territory.
• It includes a firm carrying out its business in a enemy territory.
• It has nothing to do with nationality of persons who resides or trades there.
FEATURES OF COMMERCIAL DOMICILE

• Domicile attaches to person all throughout his life while commercial domicile comes into
effect only during war.
• Animo et facto is essential case of commercial domicile i.e neither intention nor residence
is necessary for commercial domicile
• A person may not reside in enemy territory but if he trades there commercial domicile
attaches to him.
• A person can have any number of commercial domicile
• Commercial domicile is sine animo revertendi - without the intention of returning
DOMICILE OF COMPANIES OR CORPORATIONS

• The company is domiciled in the country where it is incorporated.

• The moment the company is brought into existence it gets domicile of origin. (Country of
incorporation)
• Domicile of choice is not possible in case of company.
• The company throughout its existence has only one domicile – the place of incorporation
• Each corporation has one, and only one, domicile.
• Generally, it is where the executive authority of the business is concentrated.
• However, if such authority is not centralized in one state, then the commercial domicile is
the place where the majority of the corporation's daily operational decisions are made.
FACTORS TO BE CONSIDERED IN DETERMINING
THE DOMICILE OF A CORPORATION
• The relative amount of revenue from sales in the various states
• The relative value of fixed assets in the various states
• The principal place of work of a majority of the employees
• The place where the corporate records are kept
• The principal place of work of the corporate executives
• The place where policy and investment decisions are made
• The relative amount of decision-making power held by various executives and employees
• The place where payments are made on intangibles held by the corporation
• Whether income from intangibles held by the corporation is taxable elsewhere
• The office from which the Federal income tax return is filed
• Information contained in the corporation's annual and quarterly reports
• The place where the board of directors meets.
NATIONALITY OF CORPORATION

• According to English law corporation is regarded as the national of the country where it
is incorporated.
RESIDENCE

• Residence of corporation is important for the basis of income tax.

• It becomes important to determine whether the foreign company is a resident or not.
• Residence depends on control.
• A company or corporation is regarded as resident in the country where the central control
exist.
• The place of incorporation is not at all decisive, it’s one of the factors taken for
consideration to determine where the control is located.
THANK YOU