Business entities in Dominican Republic in 2023

Since 2003, Healy Consultants provides our Clients with the best corporate vehicles for business in the Dominican Republic. There are several ways of doing business in the Dominican Republic, the most common being the setting up of a Dominican Republic limited liability company (SRL). Alternatively, entrepreneurs may establish a simplified limited company in the Dominican Republic (SAS) or a public limited company (SA). Foreign legal entities may also set up a branch in the Dominican Republic, or a Representative Office if they do not plan to pursue any commercial operations in the Island.

In addition to the summaries below, visit our blog for more information on Dominican company law and business entities.

The Dominican Republic limited liability company (SRL)

• Limited liabilities companies are the most preferred corporate vehicle used by entrepreneurs setting up small-sized businesses in the Dominican Republic, thanks to their low minimum level of paid-up share capital of US$2,300 (DR$100,000). Dominican Republic company setup requires at least 1 director, who must an individual, and 2 shareholders of any nationality. The shareholders may be individuals or corporate bodies and are not required to be ordinarily residing in the Dominican Republic;
• Dominican Republic LLCs have to submit annual financial statements to the local tax authorities. They do not require the appointment of a statutory auditor but the company’s accounts must be annually audited.

The Dominican Republic simplified limited company (SAS)

The Dominican Republic SAS is a hybrid business entity used by entrepreneurs willing to raise capital in the country as regulations over the issuance of new shares are less restrictive than those applying on limited liability companies. A SAS requires at least 1 director and 2 shareholders who can either be individuals or legal entities. The director and shareholders can be of any nationality and can be resident in any country. An authorized share capital of US$6,800 (DOP300,000) is also required, 10% of which must be paid-in at Dominican Republic business setup.

The Dominican Republic public limited company (SA)

• The Dominican Republic public limited company requires at least 2 shareholder who can either be individuals or corporate bodies to be incorporated. An SA must also appoint at least 3 directors who may be individuals or legal entities and can be of any nationality and must not be resident in Dominican Republic. A SA requires an authorized share capital of US$68,000 (DOP3 million), 10% of which must be paid in at incorporation;
• The shares of the company can be transferred freely to third parties. However, the Dominican Republic PLC is always required to appoint a statutory auditor.

The Dominican Republic branch (sucursal)

The Dominican law allows foreign companies looking to establish permanent entities in Dominican Republic to open branches in the country. This entity’s scope of operations in the Dominican is defined by the parent company. The branch must appoint at least one individual of any nationality to be the representative in Dominican Republic.

The Dominican Republic representative office (oficina de representacion)

Foreign corporations are permitted to establish representative offices in the Dominican Republic but are not allowed to conduct any commercial activities in Dominican Republic. Similarly to a branch, a representative office must appoint at least one resident representative of any nationality. This entity may conduct i) market research and ii) promotional activities of the parent company’s products and services.

Comparison table between Dominican Republic business entities