Cost to establish a company in the Dominican Republic.

  • By:Vianela Morillo

In a previous article, we detailed the different types of Companies in the Dominican Republic. If you are interested in establishing a company and wish to know the estimated costs or budget, we will define the amount that you should have available in order to do so in the Dominican Republic.

Based on the Dominican Corporations Law 479-08, modified by Law 31-11, dated February 11, 2011, in the Dominican Republic, there are currently six (6) recognized and regulated types of corporations, these are the following: General Partnerships, Limited Partnerships, Limited Joint Stock Companies, Limited Liability Companies (LLC), Individual Limited Liability Companies (ILLC) and Public Limited Companies (PLC).

What are the requirements for establishing a Company?

The following must be taken into account when establishing any type of Company:

  • Identify the name you want for the company.
  • Identify the purpose of the company.
  • Copy of your Dominican ID (known in Spanish as Cédula) or passport of each of the shareholders.
  • Management of the Company.

What are the costs and duration?

It is important to note that in order to determine the costs related to establishing a company in the country, the parameter we will use is the base investment needed to create the most common type of company in the country, which is a LLC.

Process Processing Time (days) Cost
 

 

Request the registration of the Trade Name in the National Office of Industrial Property (known in Spanish as ONAPI).

 

5 working days (approximately) RD$4,755.00
Pay the constitution tax at the General Directorate of Internal Taxes (known in Spanish as DGII) this tax is paid at Banco de Reservas of the Dominican Republic.

 

1 day (simultaneous with the previous step)  1% of the authorized capital.
Register the company in the Commercial Registry of the Chamber of Commerce and Production. 5 working days (approximately) RD$2,500.00
 

Request to be registered in the National Taxpayer Registry (known in Spanish as RNC) to the Internal Tax Office (DGII) and request tax receipts.

7 working days (approximately) Free

What are the documents that will be provided?

In general, the following documents will be provided to you immediately after establishing your company:

  • Trade Name Certificate.
  • Trade Registry Certificate.
  • Bylaws.
  • Receipt of Capital Tax Payment.
  • Constitutive Assembly.
  • Certificate of attendance (Members List).
  • Subscription List of Partnership Interest.
  • Registration Certificate in the National Taxpayers Registry.
  • Trade Name Registration.
  • Trade Registry.
  • Registration of Documents in the Chamber of Commerce.
  • Constitution tax.
  • User and Password for the DGII Virtual Office.
  • Ten ready to use Tax Receipt Numbers.

These are other documents which are often delivered only at the request of the client or at an additional cost:

  • Inspection request to the DGII.
  • Pre-stamped seal.
  • Bank Account Opening Assembly (upon client’s request).
  • National Registry of State Suppliers (known in Spanish as RNP).

What is a Company allowed to do once it is established?

Your company will be legally ready and will be able to operate in a short time in order to perform the following:

  • Opening bank accounts (see the steps here to open a bank account in the country).
  • Buy real estate.
  • Import and export merchandise.
  • Commercialize.
  • Apply for corporate credits in banking institutions.
  • Issue invoices with Tax Receipt Number and Taxpayer Registration Number.

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