What You Need To Know To Start A Business In The Dominican Republic
The Dominican Republic is the second largest country in the Caribbean region by area. Tourism, agriculture, mining and textiles are among the key sectors of the economy making it an attractive location to start your business. But, there can be challenges if you don't know the specifics of the local processes.
Types of entities
In the Dominican Republic, there are four types of entities that you may choose for your business, a Limited Liability company, Individual Enterprise of Limited Liability company, a Joint Stock company or a Simplified Joint Stock company.
The most common type of entity is a limited liability company (Sociedad de Responsabilidad Limitada, SRL). A SRL must have at least two members and at most 50 members. The liability of the members is limited to their capital contribution. A minimum capital of DOP 100,000 at least 1% of which must be paid-in at the time of incorporation.
Another type of entity is an Individual Enterprise of Limited Liability (Empresa Individual de Responsabilidad Limitada, EIRL). This is a limited liability company that can only be incorporated by one individual. There are no minimum or maximum capital requirements.
A Joint Stock Company (Sociedad Anónima, SA) requires at least two shareholders at the time of incorporation. The liability of the shareholders is limited to their capital contribution. The capital is represented by freely transferable shares of a nominal value of at least DOP 1 will a minimum capital of DOP 30 million.
Lastly, a Simplified Joint Stock company (Sociedad Anónima Simplificada, SAS) needs at least two shareholders. The liability of the shareholders is limited to their capital contribution. The capital is divided into nominative shares whose value is established by the bylaws. A minimum capital of DOP 3 million is required, at least 10% of which must be paid-in at the time of incorporation.
A foreign company can also establish branches in the Dominican Republic. They must register with the Mercantile Registry of the Chamber of Commerce and obtain a taxpayer ID.
The process for incorporation has many steps but they are the same for all types of businesses. It is important to know that all documentation must be in Spanish.
All limited liability companies must first check online or locally at the National Office of Industrial Property (Oficina Nacional de la Propiedad Industrial) to make sure that the company name is available and once the name is...
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