Since 2003, Healy Consultants Group has assisted our Clients with starting their company in the Dominican Republic. Our services include i) Dominican Republic business registration ii) government license registration iii) business bank account opening iv) employee recruitment strategies v) visa strategies and vi) office rental solutions.

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Dominican Republic business setup summary

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• Advantages and disadvantages

  Advantages of Dominican Republic company registration

  

  1. A Dominican Republic limited liability company can be incorporated with 1 director and 2 shareholders, who can be of any nationality and can be individuals or corporate bodies. The minimum paid-up capital required is only US$2,300 and our Clients do not need to travel to complete registration of their company in the Dominican Republic;
  2. Foreigners investing in a new Dominican Republic business for an amount over US$200,000 are eligible to the Center for Export and Investment’s Investor Program, granting them residency visa. The application is usually processed within two months;
  3. The Dominican Republic is geographically well-placed and has strong relationships with its fellow neighboring nation of Haiti. The nation is located in between the Eastern and Western Caribbean, as a result, it can serve the huge markets of Central, South, and North for trade and transport. Moreover, the country has over 400kms of coastline which further enhances its trading opportunities.

  Disadvantages of Dominican Republic company registration

  1. The Dominican Republic is a small market, with only 10 million inhabitants. The average GDP only reaches US$6,000 per person in 2014, meaning that our Clients’ sales will be low within the country;
  2. English speaking entrepreneurs can encounter difficulties dealing with their Clients and employees in the Dominican Republic. Locals are indeed Spanish-speaking and have a low proficiency in English, placed at position 33 out of 44 countries according to the English proficiency index by Education First;
  3. Outside of the free zones, Dominican Republic is not a low tax country: registered businesses are subject to i) a corporate tax levied at a standard rate of 27% ii) withholding tax on dividends remitted outside of the country levied at 10% and iii) VAT at a standard rate of 16%, and VAT registration is mandatory;
  4. Only two countries have signed a double taxation avoidance agreement with the Dominican Republic, namely Spain and Canada;
  5. The Dominican Republic has been ranked 98 out of 140 countries on the Global Competitiveness Index of 2018. This is due to the nation’s poor i) institutions, ii) health and primary education, iii) innovation and iv) labour market efficiency.

• Best uses for a Dominican Republic company

  1. The Dominican Republic is an interesting choice for entrepreneurs relocating manufacturing and services operations, because:
     • Our Clients can register their Dominican Republic company in a free zone to benefit during up to 16 years from generous tax advantages including: i) reduced or waived corporate tax, ii) exoneration of VAT and iii) no custom duties on imported raw material and equipment;
     • Labor costs will be low for companies registered in the Dominican Republic: i) average salaries are only US$300 per month and ii) the minimum monthly wage is in between US$170 and US$320 according to the employee’s occupation;
     • The Dominican Republic being a member of the Central American Free Trade Agreement, products manufactured locally can be sold free of custom duties to consumers in the United States, as well as other Central American markets including: i) El Salvador, ii) Guatemala, iii) Honduras, iv) Nicaragua and v) Costa Rica;
     • It is easy to export from the Dominican Republic: the country’s custom procedures are indeed ranked as the 24^th best in the world by the World Bank. The country also benefits from easy maritime access and good port infrastructure.
  2. Our Clients often consider starting a tourism business in the Dominican Republic, because:
     • The Dominican Republic is the top tourism destination amongst Caribbean countries, with 5 million visitors recorded in 2014. Most of them are affluent foreigners coming from the United States and European countries;
     • The government grants up to 10 years of tax holidays to new businesses established in Dominica Republic in the tourism industry. Acquisition of land property can also be done free of government taxes;
     • Unlike neighboring Haiti, the Dominican Republic is a politically stable country, henceforth with little risk of major events destabilizing tourist arrivals in the island.