How to Register a Company in the Dominican Republic

The Dominican Republic has many types of companies and legal structures to fit the needs of each business. The government has worked to simplify the process of registering a company, and many of the steps can be completed online. However, to properly register a company in the Dominican Republic it is necessary to have the support of a local lawyer and a legal representative, in order to comply with all laws and requirements.

The Dominican Republic is a country known worldwide as a perfect destination for traveling, vacationing, and tourism. However, this Caribbean country is also a great destination for investors and entrepreneurs from around the world.

According to Doing Business, the Dominican Republic is considered a country in the Upper Middle-income category, with a population of 10 million people. Some of the most successful industries in the Dominican Republic are manufacturing, export, real estate, and tourism. All of these businesses are always in growth and support the development of all sectors of the country.

What are the steps to incorporate a business in the Dominican Republic? Would you like to open a company in 2022? At Easyco, we give you a step-by-step guide on how you can successfully register a company in the Dominican Republic.

1. Decide which type of company suits your business needs the best

   To decide which type of company is the best for your business, it is important to keep in mind the number of members or shareholders, the capital available, and the size of the company. These are some of the most popular types of companies in the Dominican Republic:

   • Corporation or Sociedad Anónima (S.A.): A Corporation only requires 2 shareholders for the incorporation and a minimum capital of 1.00 Dominican Peso (DOP).

   • Foreign Branch Office: For bigger international companies, a foreign branch is ideal since it only requires 1 member to act as a Legal Representative.

   • Limited Liability Company (SRL): This is the most common type of company in the Dominican Republic. An SRL requires at least 2 members and there’s a maximum of 50 members allowed.

2. Appoint a Legal Representative and sign the Power of Attorney

   If your shareholders are not present in the Dominican Republic, a Power of Attorney will be required that allows your legal representative to carry out the process locally. This Power of Attorney has to be signed by the corresponding party.

   Also, consider that for foreign shareholders, additional documentation will be required.

   All documentation that comes from abroad must be duly legalized and apostilled (if applicable). These hard-copy documents must be sent to the Dominican Republic. Finally, consider that documentation that is not in Spanish, will require translations to be accepted by the local agencies.

3. Check for the company’s name availability at the Mercantile Registry

   Once you decide on the right structure for your company and appoint a Legal Representative, it’s time to check for the availability of the company’s name at the Mercantile Registry or Registro Mercantil. This government agency has a database that allows searching for similar names to assure the company name chosen is unique and distinguishable.

   The Mercantile Registry is a service offered by the Chamber of Commerce and Production of Santo Domingo. Its goal is to make it easier for companies in the registration process to promote the formalization of businesses.

4. Draft the company’s bylaws

   The bylaws documentation allows for the constitution of the company in the Dominican Republic. This document is going to work as the backbone of the company and rule the way it is managed. Consider that this document has to include:

   • Company name

   • Information about the Legal Representative

   • Information on the share capital

   • Registered office address

   • Management structure

   • Extinction and liquidation detail plans

   All this information needs to be reviewed by a local lawyer and notarized by a public notary in the Dominican Republic.

5. Payment of the incorporation fees

   To submit all the documents to the Commercial Registry, one is required to pay a couple of fees and taxes. This fee must be paid at the Internal Revenue Service Office (Dirección General de Impuestos Internos) and the Banco de Reservas de la República Dominicana.

6. Submit the documents to the Chamber of Commerce

   The payment of the incorporation fees will allow the company to submit the required documents to the Chamber of Commerce for revision and approval.

   This is the list of documents needed:

   • Signed and notarized bylaws

   • General Constitutive Assembly

   • List of shareholders and their contribution to the company

   • Application Form

   • Receipt of payment of the incorporation fees

   • Copy of business name registration

   It is important that a lawyer prepares and reviews all the documents so they can be approved fast and without any problems. Once approved, your company officially exists.

7. Submit the registration documents to the National Taxpayers Registry

   The company also has to be registered as a tax contributor, the government agency in charge of this is the National Taxpayers Registry or Dirección General de Impuestos Internos (DGII). The DGII will assign a taxpayer ID in the way of a unique identification code, called Registro Nacional de Contribuyentes or RNC for the company according to the nature of the business.

   This process can be done online at the DGII platform and then the physical documents and files have to be sent to their offices. The required documents change according to the type of company that is going to be registered.

8. Open a corporate bank account

   Finally, It is important to choose the right bank according to the company’s needs. Each bank offers different types of accounts with many benefits depending on the agreement and goals of the company. It is recommended that the bank offers good pricing structures for international transactions.

   Also, it is important to consider that some banks may have foreign transaction restrictions for companies that have foreign shareholders. It is crucial to take this into account as part of your company establishment strategy, as identifying a bank that has flexible policies will determine when your new company can start its operations.

At Easyco we can help you successfully register your business!

The Dominican Republic is a country full of opportunities and always looking for foreign investments and companies to continue with economic growth. To make sure you register your company in the right way, you can get in touch with us. Our team of experts is going to make sure you comply with all laws and requirements.

At Easyco, we make company formation in the Dominican Republic easy; our team of corporate experts has vast experience helping companies and individuals register their business in the Dominican Republic, with a proven track record of success across all of our services. Easyco aims to tackle the complex company formation processes across LATAM. We make business registration easy by providing a hassle-free online company registration experience. Start your company in the Dominican Republic today!

Easyco also provides additional services to guarantee your company’s compliance, which include:

• Appointment of legal representation,

• Providing a registered office address

• Handling tax and accounting

• Hassle-free Payroll Services

• Opening of Corporate Bank Accounts

• Manage your Trademark Registration

• Corporate Legal Services

• Talent Acquisition