Dominican Republic is one of the best countries to do business in the Caribbean, a place where you will find a flourishing real estate market and a thriving tourism industry.

That's why Dominican Republic has aroused as one of the principal sources of Foreign Direct Investment in the Americas. For foreigners who are looking for new ways to do investment, it is vital to have the proper advice when establishing a company in the Dominican Republic.

In a nutshell, why should you create a company in the Dominican Republic?

-A strategic position in the Caribbean. DR is equidistant from Miami and Panama.

-Free access to the American and the Central American market thanks to Free Trade Agreements.

-A friendly business environment, fostered by a democratic government which 

Dominican Republic is the main destination for FDI in the region. Thanks to our wide network of experts, we have created for you the ultimate guide for establishing a corporate structure in the Dominican Republic:

Corporate Structures in Dominican Republic

When entering to Dominican Republic, a foreign investor may have a dilemma when choosing what kind of commercial presence they want to have in the country. 

Depending on your case, you could select a joint stock company or an LLC. However, in order to clear doubts we will explain to you all types of companies that you can establish in Dominican Republic.

Limited Liability Company (LLC)

This type of company is popular when you create a small business because the minimum social capital is really low compared to other commercial entities. In spanish is called “Sociedad de Responsabilidad Limitada (SRL)” and is required to have between two (2) and fifty (50) shareholders which can be individuals or legal entities. 

It’s not required that the shareholders are based in Dominican Republic, so they can have local or foreign domicile. The minimum share of capital must be at least DOP 100,000 (1750 USD).

LLCs are required to be managed at least by one (1) director. Law stipulates that this type of company is required to file annual financial statements to Dominican authorities, as well to be subdued to an annual audit.

Ask for more information

Simplified Limited Company

This is translated from the spanish “Sociedad Anonima Simplificada (SAS)” and is commonly used when looking to raise capital. So on, it's one of the most used legal entities for company incorporation in DR. So if you are a startup which is looking to be the next unicorn in Latam, this is your optimal type of company.

Simplified Limited Companies require at least two shareholders, which can be national or foreigners and can be individual or legal entities. The liability of shareholders is limited for their capital contribution. SAS requires to be managed by at least one (1) director. 

However, establishing this type of company is more expensive, as it requires a minimum capital of DOP 3 million (52600 USD). Furthermore, law establishes to be paid a one-time fee of 10% of the initial share capital.

Joint Stock Company or Limited Company

In Spanish “Sociedad Anonima (SA)”, this type of company typically is used by larger sized businesses that would participate in the stock market, as it establish freely transferable shares which can be offered in the stock market

It requires a minimum of two (2) shareholders, who can be foreigners or national and individuals or legal entities. A SA needs at least three (3) directors who will manage and lead the company. The minimum capital is DOP 30 million (526,000 USD)

Simplified Joint Stock company

Among all these options, you may be asking which one fits the best for your needs. Well, that question may be better answered after a consultancy. Right now, we will tell you all you need to open a company in this country.

Branches

In Spanish called “Sucursal” and is a great option for multinational companies who want to establish in DR. This alternative has excellent benefits regarding reputation, engagement with third parties and banking. A branch needs to have at least one representative in the Dominican Republic 

Among all these options, you may be asking which one fits the best for your needs. Well, that question may be better answered after a consultancy. Right now, we will tell you all you need to open a company in this country.

Step by Step: How to Open a Company in Dominican Republic

The process of creating a company in Dominican Republic is pretty much the same for all types of legal entities. You must know that all the documents must have their certified translation. Below, you will find all the steps you need to follow in order to set up a company in the Dominican Republic.

1.First of all, you need to check at the National Office of Industrial Property (English for Oficina Nacional de la Propiedad Industrial) that the name you want to choose for the company is available. 

2.After that, the name must be purchased and published in the monthly publication of the office named above. The process can take up to 10 days.

3.Register the company at the Chamber of Commerce (Camara de Comercio). This process must be completed by a local resident. You have to pay an incorporation tax to the Internal Revenue Service of 1% of the initial social capital. After it is done, the identification number (RNC) will be yours.

4.The next step is to file for the national Taxpayers Registry at the DGII and apply for fiscal receipts, being those receipts indispensable to invoice clients. The DGII will check that the company is real and has a domicile in DR so it can allow the company to operate in the country.

5.In case your company has employees, you must register it at the Department of Labour. This step can be completed online or in person. Also you have to register your employees at Social Security.

The whole process for creating a company in Dominican Republic can be completed from 30 to 45 days, depending on the duration of each step.

What Can We Do for You?

In Mundo, we are on a permanent pursuit of financial freedom. That’s why we have created a wide network of experts who are always looking for new ways of investment around the world.

Dominican Republic has aroused as one of the main spots for FDI in the last years in the Caribbean. You can enter right now to this country that offers tons of opportunities for investment. With our expertise in corporate structures, we can advise you to create your own company in the Dominican Republic.

Set up your business in the Dominican Republic with Mundo. Contact us now!