Business entities in Dominican Republic in 2022

pay fee by instalmentsbusiness setup without travelGuaranteed solutions

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

  LLC SLC PLC Branch office Rep office
Also known as: SRL SAS SA Sucursal Oficina de representacion
How long to set the company up? 4 weeks 8 weeks 9 weeks 7 weeks 6 weeks
How long to open company bank account? 3 weeks 4 weeks 4 weeks 4 weeks 4 weeks
Legal liability? Limited Limited Limited Unlimited Unlimited
Wholly foreign owned? Yes Yes Yes Yes Yes
Minimum paid-up share capital? US$2,300 US$6,800 US$68,000 US$1 US$1
File annual tax return? Yes Yes Yes Yes No
Tax registration certificate required? Yes Yes Yes Yes No
Recommended corporate bank account? Scotia Bank Leon Bank Promerica Bank Popular Bank BHD Leone Bank
Does our Client need to travel? No No No No No
Resident director required? No No No No No
Resident shareholder required? No No No No No
Minimum directors allowed? 1 1 3 1 1
Minimum shareholders? 2 2 2 1 1
Tax identification code (TIN) needed? Yes Yes Yes Yes No
Dominican Republic resident company secretary required? No No No No No
Corporate shareholders allowed? Yes Yes Yes Yes Yes
Corporate director(s) allowed? No Yes Yes Yes Yes
Dominican Republic corporate tax rate? 27% 27% 27% 27% 0%
Annual financial statements required? Yes Yes Yes Yes No
Statutory audit required? No No Yes Yes No
Allowed to issue sales invoices? Yes Yes Yes Yes No
Allowed to sign contracts? Yes Yes Yes Yes No
Allowed to import and export goods? Yes Yes Yes Yes No
Can rent an office space in Dominican Republic? Yes Yes Yes Yes Yes
Can buy Dominican Republic property? Yes Yes Yes Yes No
Can own equity in other Dominican Republic companies? Yes Yes Yes Yes No
Total Dominican Republic business setup costs in Yr. 1 US$17,300 US$16,500 US$18,000 US$15,950 US$16,250
Subsequent annual costs (incl. accounting and tax fee) US$6,200 US$6,200 US$6,200 US$6,200 US$6,200
Sample engagement invoice View invoice PDF View invoice PDF View invoice PDF View invoice PDF View invoice PDF

Contact us

For additional information on our business setup services in Dominican Republic, please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
dominican-tax domonivan-mof dominican-gov dominican-coc domincan-bank