13
Nov

In this article, we will delineate the requirements and steps needed to establish a subsidiary in the Dominican Republic. Our laws allow businesses, companies and corporations created abroad to be established in the Dominican Republic.

When a subsidiary or branch of a foreign entity is established, it is recognized in the Dominican Republic under the same:

• Business purpose.
• Trade name.
• Partners or shareholders.
• Share capital.

“This process is known as registration and granting of National Taxpayer Registry (known is Spanish as RNC)”

For economic groups; the option to establish a subsidiary in the Dominican Republic can be very advantageous. The reason for that is that their credit status and international references contribute to globalization and commercial recognition both locally and internationally.

The requirements for its registration with the Chamber of Commerce and granting of the National Taxpayer Registry (known in Spanish as RNC) of a foreign subsidiary or branch in the Dominican Republic are:

1. Certified copies of all the constituent documents of the company, according to their legislation of origin.
2. Certified copy of Commercial Registry Certificate, Incorporation Certificate or its equivalent, issued by the country of origin.
3. Certificate of Validity, if the validity of the company is not established in the certificate of commercial registration or equivalent from the country of origin.
4. Photocopies of passports from the administrators and representatives of the applicant company.
5. Minutes of the competent Corporate Body by means of which the address of choosing by the company is specified, for the purposes of its operations in the country, and by which jurisdiction is granted to the corresponding Chamber of Commerce and Production.
6. Appointment of the legal representative in the Dominican Republic. 

These documents must be:

A) Legalized by the institution or agency of the issuing country.

B) Apostilled.

C) Translated to Spanish if it is in any other language.

Time / Term

This process can take from 10 to 30 days (even though it can be more or less than that). The origin of the company or corporation will be taken into account, for the purpose of making it easier to validate the documents and their currency.

The branches of your local or foreign company are admitted, accepted and authorized by law for all types of commercial objects. Some examples of highly regulated and admitted objects are:

A) Financial intermediation institutions (Banks).

B) Stockbroker.

C) Insurance institutions.

These institutions and companies are regulated by the Dominican state; its regulations accept subsidiaries and branches of foreign companies to operate under these corporate objects. The regulatory entities are:  

• The Dominican Republic Superintendency of Banks..
• The Dominican Republic Superintendence of Stock Market.
• The Dominican Republic Superintendence of Insurance .

 Important points to take into account with foreign companies in the Dominican Republic:

1. They are explicitly recognized by the Law on full-fledged companies, in accordance with their jurisdiction of origin. Their legal existence will be verified, as per the jurisdiction of origin requirements. Equal rights and obligations with national corporations.
2. To conduct business in the Dominican Republic,it is a requirement to be registered with the Commercial Registry and the National Taxpayers Registry, in order to establish a permanent branch or establishment. It is not required to register in order to perform an isolated or occasional act, i.e., the registration process is required if the goal is to perform commercial activities.
3. They are governed by their existence, capacity, operation and dissolution, according to the law of their jurisdiction.
4. When it comes to their local activities and operations, they are governed by Dominican law.
5. Equal tax treatment to nationals.
6. You are required to establish a legal physical address in the Dominican Republic.
7. You are required to appoint a legal representative in the Dominican Republic. Said representative, can be a Dominican citizen or a foreign national.

In essence, as long as you have the advice and support of a firm or lawyer specialized in Corporate Law in the Dominican Republic, this is a quick and easy process.