business opportunities in the dominican republic

Business Opportunities in the Dominican Republic and how to invest

  • By:Vianela Morillo
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How good are the Business opportunities in the Dominican Republic?

The profitability of investment in the Dominican Republic is one of the most discussed topics among foreign nationals wishing to invest in the strongest economy in Latin America.

This is especially true for Venezuelan citizens, due to the volatile situation in their country. Venezuelans are looking for a stable and prosperous economy and an option may be to invest in the Dominican Republic.

Additionally, we will attempt to answer the most frequent questions foreign investors ask when deciding on investing in our country, as well as business opportunities in the Dominican Republic.

  1. Can a foreign national of Venezuelan nationality invest in the Dominican Republic?

Dominican laws do not present limitations to foreign nationals – regardless of nationality – who wish to conduct transactions or commercial activities in our country. One important recommendation is to ensure that your passport is included, as an identity document, in every contract. We will provide all the details so that foreign nationals are able to lawfully perform the following:

  • Becoming a partner of a business entity in the Dominican Republic.
  • Establish a business entity in the Dominican Republic.
  • Invest in a business entity in the Dominican Republic.
  • Explore the best business opportunities in the Dominican Republic.
  1. Precautions to take into account before investing in the Dominican Republic

If you plan to invest in the Dominican Republic you must take the following into account:

A) What is or would be the profitability of the project in which you plan to invest.

B) Gather all the facts before investing.

C) Consider the risk versus benefits ratio.

D) Research the references of the project developers and promoters.

  1. Can I make investments as an individual and as a national or foreign company as well?

Yes, you are able to do it in all three (3) ways; under your name (as an individual), and in the name of national or foreign companies or corporations (legal persons).

In the Dominican Republic, the establishment of various types of companies or corporations is admitted, everything will depend on your need and business projection. The most common types are:

A)- Public limited companies.

B)- Simplified Public limited companies.

C)- Limited Liability Corporations (LLC).

D)- Foreign Corporations.

E)- Individual Limited Liability Companies.

  1. Why is the Dominican Republic an option to invest or develop an important project?

The Dominican Republic is one of the most vibrant economies in Latin America and the Caribbean, with an average GDP growth rate of 5.4% between 1992 and 2014, which reached around 7.2% in 2014 and 2015.

The Dominican Republic is one of the countries that have presented one of the highest growth rates in recent years, as established by the statistics. In the last 10 years, our economy has shown sustainable growth and one of the highest levels of confidence in the world.

Business opportunities in Dominican Republic

Reasons to invest and benefit from the various business opportunities in the Dominican Republic

Its natural resources.

There are mines of gold, nickel, bauxite, amber, silver, titanium, copper, salt and plaster in the country. We also exploit Larimar, which is a blue pectolite found only in the Dominican Republic and used in jewelry.

It’s location

The geographical location of the Dominican Republic has countless benefits for trade. Some of those benefits are:

Maritime communication, which creates easy access to neighboring countries. This access is a direct added value in transportation costs. It serves as a link between Central American and South American countries, in addition to North America.

The location creates a tourist and commercial, air and sea bridge, which is made possible by having effective and fluid communication with the other countries of the American Continent; this, in turn, makes it one of the most important in the Caribbean.

It’s weather

Given that it is the second-largest country in the Greater Antilles and it has a tropical climate, it is a prosperous country for the cultivation of a wide variety of vegetables, fruit trees, and agricultural plants. We are one of the countries with the highest and best quality of organic cocoa production in the world.

Its natural attractions.

Beaches, mountains, and others.

Benefits and incentives for foreign nationals who invest in the Dominican Republic.

As we mentioned before, the country offers foreign investment tax and financial incentives, as well as granting the benefit of obtaining Dominican Residence as an investor.

Sectors with greater incidence in foreign investment

The Dominican State offers great facilities for incorporation and foreign investment with fiscal and financial incentives. One example is Free Zones in the Dominican Republic, which have special customs and fiscal controls established by law. The establishment of companies in these free zones allows them to allocate their products or services to the external market, by granting the necessary incentives that encourage their development. Below, we list several sectors in which you can find some of the best business opportunities in the Dominican Republic.

Free Zones

They were initially established in the Dominican Republic in 1969. More than 40 years later, there are around 57 parks and 565 companies around the country, providing more than 160,000 jobs.

The most developed activity in Free Zones has been:

–      Garment manufacturing.

–      Footwear production.

–      Jewelry manufacturing.

–      Assembly of electronic components.

–      Medical devices.

–      Tobacco processing.

–      Telecommunications.

–      Heavy Materials.

The Tourism Industry

Due to the distinctive climate of the Dominican Republic and its beach attractions, this has been one of our fastest growing industries in recent years. It is currently one of the main sources of the country’s economy, and it is based on the construction of facilities and private housing with single-family homes, apartments, golf courses, and the well-known construction of resorts-type hotels. The main areas in which this industry is developed is:

  • Bávaro – Punta Cana.
  • La Romana.
  • Samaná.
  • Puerto Plata – Sosúa.
  • Juan Dolio.

Telecommunications

The communications industry has proven to be one of the most dynamic in Dominican economy, with sustained growth in recent years. The statistics shown by the Central Bank, place it among the highest weighted in gross domestic product (GDP).

Construction Industry

This area remains invariable since 2014. At the end of 2014, its growth was 14% and for New Year 2015, the upswing was 18.1%, according to data from the Central Bank of the Dominican Republic. This data demonstrated that the construction of homes, offices, commercial premises, and hotels in some cases tripled the national gross domestic product, whose leadership has stood out in the region for four years as the Economic Commission for Latin America (ECLAC) points out.

In summary, the construction industry is a pivotal driving force for economic development in the Dominican Republic. There is a close relationship between the behavior of this activity and the rest of the economy, so much so that it is used as an indicator of economic development by public and private financial entities.

This industry has control of the economy in general, which makes it one of the most important sectors of the Dominican Republic.

Not only are these industries an investment option, but you can also see others in Investment Opportunities in the Dominican Republic.

In conclusion, the Dominican Republic may be one of the best options for any foreign national who wishes to invest. In the case of Venezuelan citizens, investing in our country could be one of your best options, due to many factors that favor them. Some examples of these factors are:

  • We are located quite close to Venezuela.
  • The weather is very similar to theirs.
  • Both cultures have a lot of similarities. In regards to this topic, you might be interested in this article: How to do Business in the Dominican Republic.
The latter is vital when doing business, given that understanding each other is a key to success in the business world.

Personalized and specialized advice

Morillo Suriel Attorneys at law is a law firm specialized in the following areas in the Dominican Republic:

– Corporate Law.

– Business law.

– Foreign investment.

–  Commercial law.  

We are available

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Posted in: Companies and Corporations, Foreigners in the Dominican Republic

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