Dominican Republic is attractive jurisdiction in all purposes. It is sunny and friendly country that is really convenient for conducting of international business. The location of the Republic makes economic sense it is close to transnational sea lanes that have global value and to pivotal markets. It is world logistic, transport and investment center. Despite the fact that Dominican Republic is not typical offshore territory because it has quite high taxes (gross share of it can reach 42,5%, you will need to do about 10 payments per year) the business there is profitable and has great possibilities.
Here we can see some perfections of this jurisdiction:
- big chain of industrial areas with special regime of economic management;
- the most popular telecommunication systems (it is considered to be the best systems in Latin America) – this jurisdiction is really good for digital business organization;
- there are some helpful online services to check the name, tax payments for registration;
- top-class infrastructure, developed sea links and flight connection etc.
The primary focuses that attract investors to the Republic are firstly tourism but also telecommunications and infrastructure areas and property. The most popular form of incorporation is SRL. The jurisdiction is also chosen because of the following:
- offshore company has tax exemption for 20 years;
- there is no capital gain tax, percent and dividends;
- heritage/gifts don’t bare tax.
To set up a firm in Dominican Republic is a well-structured but long process that has a lot of pitfalls. To observe a formality and to be sure in accuracy of procedures you need to deal with the specialist of company “Prifinance”. They will check the accuracy of your documents and help to finish all the registration stages as soon as possible.
The procedure of setting up the company
Registration of company in Dominican Republic is available only after complete checking of the name. You can do this online on the official cite ONAPI and also you can buy the name if it isn’t taken (take out of bond).
National agency that deals with industrial property publishes messenger where you need to publish the name of the company. This bureau also deals with registration of firms.
The government agent must examine an application for five working days. If the decision is positive the applicant that paid his subscription will get certificate of registration. But if the decision is negative it is possible to submit an appeal during 60 days. After finishing the procedure the information about new legal body will be published in the leading paper ElNacional and in portal ONAPI. This stage takes about two weeks.
Also you need to pay registration tax using special receipt of relevant department. It will be1 % of the sum of registered capital of the firm. It is possible to pay it through the online services or directly to the tax bureau or through the bank. Then you will need to register in the Board of Trade, pay a fee and receive identify RNC-number.
The following documents will be required:
- application - if registration is carried out by a representative, a power of attorney is also required;
- a signed and sealed original of the articles of association;
- minutes of the general meeting, list of participants;
- confirmation of the amount of investment and distribution of parts between owners;
- copies of identification documents confirming the registration of the name in ONAPI;
- A partnership agreement and a tax receipt.
The procedure takes up to five days, after which the business owners receive all the documents. Further for the final opening of the company in the Dominican Republic, you need to register in:
- the taxpayer register - it issues a tax number;
- labor department – if you plan to hire local worker you need to fill special forms for them;
- social security department.
Employer needs to remember that employment and labor law of this country is totally different from Russian laws, and dispute resolutions are mostly in favor of employees. That’s why employers need to know the laws really good and follow them.
Check and reserve of the company name Obtaining approval from the registrar for the company name
