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Understand the Jurisdictions Setup Requirement Before Proceed Your Register Company in Dominican Republic
Foreign companies are given the opportunity to regularly perform trade acts within the borders of the Dominican Republic or establish a branch office or permanent establishment in the national territory. The process to register a company in the Dominican Republic is fairly simple and there are various benefits as well.
Register A Company in the Dominican Republic
There are different types of corporations that can be registered in the Dominican Republic. The first is a limited liability company (LLC). This requires at least one director and two shareholders. This is preferred by entrepreneurs setting up small businesses because of the low minimum level of paid-up share capital of US$2,300. Another option is a simplified limited company (SLC). This is a hybrid business entity used by entrepreneurs willing to raise capital in the country but doesn’t want complex regulations over the issuance of new shares. An SLC will require 1 director and 2 shareholders.
A minimum of US$6,800 is also required, 10% of which must be paid-in at Dominican Republic business setup. A minimum of two shareholders is required to set up a public limited company (PLC). A PLC must appoint a minimum of 3 directors. The authorized share capital of US$68,000 is required, 10%of which needs to be paid in at incorporation. The shares of can be transferred freely to third parties, however, it is mandatory for PLCs to appoint a statutory auditor.
The shareholder(s) and director(s) for LLC, SLC, and PLC can be individuals or corporate bodies and may be of any nationality. Branches can be established by foreign companies looking to establish permanent entities in the Dominican Republic. The branch office must appoint one individual of any nationality to be the representative in the Dominican Republic. On the other hand, foreign corporations that establish representative offices (RO) are not allowed to conduct any commercial activities. Similarly to the branch, an RO must appoint one resident representative of any nationality. An RO may only conduct market research and promotional activities of the parent company’s products and services. The time frame for incorporation is 4 to 9 weeks. A period of 3 to 4 weeks is required to open a company bank account.
Why Invest in the Dominican Republic?
Education is affordable in the Dominican Republic, unlike many other Latin American countries. Although education is not as accessible in the rural areas, the Dominican Republic does not lack talent. Besides the increasing growth of the talent pool available to the employers, the business environment is also favourable in the Dominican Republic. The Dominican Republic has the largest economy within the regions of the Caribbean and Central America. Not forgetting the free trade zone with North & Central America and Europe is also beneficial towards the Dominican Republic. This brings an even greater advantage because of its geological position. It is an ideal location between the United States and Europe makes it a strategic hub for trade.
Due to its many benefits, there are many business opportunities. Not forgetting the many talents of the locals that inhabit the island, they are hardworking and with their growing talent, the potential growth of the Dominican Republic is attractive to entrepreneurs and businessmen alike. The process to register a company in the Dominican Republic is fairly simple when broken down but it can also be quite tedious and complicated. We provide these services to simplify your integration into the economy in the Dominican Republic, should you require any assistance or services. Email us now!