10
Mar

Foundations carry out activities for the common good and social welfare; gaining monetary benefits or profit from their members is not their purpose. In the Dominican Republic, Nonprofit Associations (known in Spanish as ASFL) are governed in accordance with Law 122-05 with the implementing regulation 40-08. They are also commonly called:

• Non-Governmental Organization (known in Spanish as ONG)
• Organizations
• Foundations

The law establishes them as Nonprofit Associations (NPA).

NPAs have great significance in this Caribbean island, due to how they can promote common development and strengthening, by focusing on the fulfillment of objectives of public interest or that benefit society as a whole.

What is a Nonprofit Foundation or Association in the Dominican Republic?

A foundation or association in the Dominican Republic, as in many other parts of the world, is considered a legal entity with the goal and capability to perform its functions. Its main feature is not being a for-profit entity, although this does not prevent them from conducting lucrative activities and commerce. These organizations will always pursue enrichment or benefit for the fulfillment of their purpose, not the enrichment of its members.

Requirements to establish a Foundation or Nonprofit Organization (NPO) in the Dominican Republic are:

• Original and a single copy of the instance request, addressed to the Attorney General of the Republic or the Attorney General of the Court of Appeals in the corresponding Judicial Department, signed by the President of the association or, if not available, by an appointed representative.

• Original and a single copy of the Commercial Name Certificate, issued by the National Office of Industrial Property (known in Spanish as ONAPI). To determine how to obtain this certification, you can access our previous article on how to register a commercial name.

• Original and single copy of the Bylaws, signed by the managing partners and proof of registration in the corresponding Civil Registry. These bylaws must comply with the requirements established by law.

• Original and a single copy of the Minutes of the Constitutive Assembly, which must comply with the requirements established by law.

• Relation of the membership including the general information (names, nationality, profession, marital status, physical address, Dominican ID (known in Spanish as Cédula) or passport), with proof of registration in the corresponding Civil Registry.

• Original and a single copy of the Cedula (or Passport for foreign nationals) for each executive member.

• Proof of administrative fee payment referred to as “NPO Incorporation” for RD$2,500.00.

• In addition to complying with all the requirements above, National or foreign Religious associations and institutions that are part of the Catholic Church must be formally authorized by the corresponding national ecclesiastic authority. For their incorporation, other religious entities will require an authorization granted by their superior authority or an agreement, signed before a notary, approved by the majority of their members and legalized before the Attorney General’s Office.

Upon reading the requirements, we might think that it is extremely easy to obtain the incorporation of an NPO, and thus its status as a legal entity; however, in practice, it can become a bit more complicated.

One of the benefits of NPOs is that once the authorization of incorporation is issued, they are assigned a National Taxpayers Registry Number (known in Spanish as RNC). Through the RNC, they can request tax exemptions for the purchase and sale of the activity desired.

Important points to note:

1. The minimum number of members required to establish a Nonprofit Organization (NPO) is five (5).
2. To achieve the registration of the incorporation, a request needs to be submitted to the Attorney General Office, for the Judicial Department of Santo Domingo or the Attorney General Office of the Court of Appeals of the corresponding Department, if the domicile is inland.

How long does it take to receive a response after requesting incorporation?

Within sixty (60) days following the request.

An important point to take into account due to its importance in the process is that after the authorization for the incorporation of the Nonprofit Association (NPA) is issued, you are given one (1) month to complete the advertising process. If the process is not completed within that time frame, the NPA will not be considered a legal entity.

What are the benefits of creating a Nonprofit Foundation or Association in the Dominican Republic?

There are several benefits; but in simple terms its essence is its greatest benefit: making an important contribution to society, positively impacting itself.

There are many Nonprofit Associations (NPAs) in the Dominican Republic with varied objectives. As we stated at the beginning of the article, the country promotes the establishment of these associations, due to the positive impact they have on society. The Dominican Republic encourages their creation so much that they can receive public funds (which we will talk about in a different article, as it is an extensive and interesting topic).

If you have any questions or need any additional information, you may contact us through the form located here and we will answer you as soon as possible.