Why Should Your Company Incorporate in the Dominican Republic by 3E Accounting
Wondering why should your company incorporate in the Dominican Republic? Here are a few factors to consider. The Dominican Republic is in the heart of the Caribbean Sea, surprising visitors with its breath-taking beaches of white sand and blue waters.
With the sea as its surroundings, it has a high level of tourist influx. Also, lush nature and historical landscapes are also natural factors that lead to business opportunities.
Besides that, real estate is another major sector with great business opportunities for those interested in the booming tourism and travel business. However, it can be challenging if you don’t know the local procedures. Averaging 5.3% annually, the Dominican Republic has enjoyed strong economic growth.
Why Invest in Dominican Republic?
With one of the largest economies among the Caribbean nations, the Dominican Republic is well known for its tourism and agricultural sector. Due to its beautiful and breath-taking regions, such as Punta Cana, not forgetting its hills and wildlife, drawing the attention of tourists all over the world every year. Not only that, the Dominican Republic’s agricultural sector is also very outstanding for its export of coffee, sugarcane, tomatoes, and rice.
With its stable political scene and peaceful country, it is considered a good environment for the development and growth of businesses. Four key sectors are tourism, agriculture, mining and textiles of the economy making it an attractive location to start your business.
Education is affordable in Dominican Republic, unlike many other Latin American countries. Though not as accessible in the rural areas, talent isn’t something they lack. Besides the increasing growth of the talent pool available to the employers, the business environment is also favourable in 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 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.
How to Incorporate a Company in the Dominican Republic
There are different types of corporations that can be registered in Dominican Republic.
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.
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.
Public Limited Company (PLC)
A minimum of two shareholders is required to set up a public limited company (PLC). A PLC must appoint a minimum of 3 directors. An authorized share capital of US$68,000 is required, 10%of which needs to be paid before incorporation.
The shares 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.
Can be established by foreign companies looking to establish permanent entities in Dominican Republic. The branch office must appoint one individual of any nationality to be the representative in Dominican Republic.
Representative Offices (RO)
Not allowed to conduct any commercial activities. A RO must appoint one resident representative of any nationality. A 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.
Should Your Company Incorporate in the Dominican Republic? Definitely!
Due to its advantages, business opportunities are abundant in the Dominican Republic making it a good environment for company incorporations. 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 incorporate your company in the Dominican Republic is simple. However, it can also be quite tedious and complicated. We provide these services to simplify your integration into the economy in Dominican Republic, should you require any assistance or services. Contact us today!