The Private Company in the Dominican Republic
Creation, Investment, Catalog and Services
The National Development Strategy and Dominican Digital Agenda promote as a priority the development of Corporate Entrepreneurship, private companies
The Single Window for the formalization of Private Companies helps in the creation of a new company and reduces the time and paperwork of the process. This is the link to the facility:
- Formalization of Private Companies
The services of the Dominican State dedicated to the private sector are listed here:
- Public services for private companies
A catalog by category and geographic location of Dominican companies can be found here:
You can find a catalog of companies created in free zones for the purpose of developing employment in depressed localities here:
- Catalog of free zone companies
The SMEs (SMEs for its acronym in English) in the Dominican Republic are an important part of the sustainable development plan of the country as established by the National Development Strategy (END). You will find the portal dedicated to this important sector of the economy here:
- Micro, Small and Medium Enterprises (MiPYMES)
| THE PRIVATE INVESTMENT IN REP. SUN. IS ENCOURAGED WITH: Single Investment Window (VUI) | ||
| components | meaning | purpose |
| Private property | You control what you earn and / or get | Production incentive |
| Free market | Flexible pricing, competition, consumer rules | Effective use of scarce resources |
| Opportunity Environment | Adding value always pays off | Reward efficiency and limit waste |
| Government Regulation | Establish an egalitarian environment, level the playing field | Individual responsibility |
Link: Formalization of Private Companies (Single window for the formalization of Private Companies)
Link: Dominican Business ICT Statistics
Link: Ministry of Industry and Commerce (MIC)
Important information:
(for businessmen, entrepreneurs and MSMEs)
A commercial company is a company whose objective is to carry out one or more commercial acts or, in general, an activity subject to commercial law.
Among the benefits that it can offer you as a SME entrepreneur are: protection of your Assets, growth, financing, limitation of your liability, that is to say that when creating a company, each partner will have a limited liability to the capital they have contributed to the company, thus avoiding putting at risk and safeguarding your personal assets.
It also allows you to obtain the maximum protection against personal liability in the event of possible conflicts with your employees, it gives you continuity in commercial activities, it will allow you to project an image associated with prestige and seriousness, organization and attraction to third parties (clients, suppliers or investors). Investors, that is, by projecting a serious, stable image of commercial credibility, will increase the possibilities of achieving capital investments in your company.
The Dominican Law of Companies recognizes the types of companies enshrined in the Commercial Code, but in turn, introduces two new ones: Limited Liability Companies (SRL) and Limited Liability Individual Companies (EIRL). Thus, in the Dominican Republic to date six (6) types of companies are recognized and regulated :
- Companies in Collective Name: It is an external company that carries out commercial or civil activities under a unified company name, the partners responding to debts that could not be covered with the capital stock. It is a type of society in which a partner does not contribute capital, only work and is called an industrial partner.
- Simple Limited Partnerships: it is a personal-type partnership that is characterized by the coexistence of general partners, who are unlimitedly liable for corporate debts and participate in the management of the partnership, and limited partners who do not participate in the management and whose responsibility is limited to capital or committed to limited partnership
- Limited Partnerships by Shares: They are those that are made up of one or more limited partners who will have the quality of merchants and will be liable indefinitely and jointly for the social debts, and limited partners, who will have the quality of shareholders and will only bear the losses in the proportion of your contributions.
- Limited Liability Companies (SRL): It is a type of commercial company in which the liability is limited to the capital contributed, and therefore, in the event that debts are contracted, it is not answered with the personal assets of the partners.
- Individual Limited Liability Company (EIRL) It originated in the Dominican Republic with the enactment of Law No. 479-08 on December 11, 2008. The purpose of creating this legal figure is twofold: Promote the development of new small business initiatives. Put an end to the old national practice of “shell companies”, which consisted in forming a company in which one of the partners has 94% and the other partners only 1%.
- Sociedades Anónimas (SA) Of the six categories of companies mentioned, the first three are distinguished because their partners or a part of them, depending on the type of company, respond in a subsidiary, joint and several and unlimited manner for the obligations contracted by the company.
Limited liability companies and public limited companies are distinguished because the responsibility of their partners is limited to their respective social contributions.
Link: Formalization of Private Companies
Investment Climate
The Dominican Republic has a highly diversified, vibrant and modern economy. It offers an extraordinary opportunity for profitable and successful businesses, including a solid judicial system, political, social and economic stability.
In addition, it has a highly productive and highly competitive infrastructure, attractive government incentives, and excellent human resources.
The Dominican Republic is one of the SIX COUNTRIES in the world with free trade agreements and preferential entry to the markets of the United States (DR-CAFTA) and the European Union (EPA), with very flexible rules of origin. It has preferential access to more than 876 million consumers worldwide. It has laws that offer attractive incentives for foreign investment in the country, within the framework of the Foreign Investment Law, No. 16-95 , which offers national treatment to foreign investors, free repatriation of capital and the transfer of technology considered as an investment.
Stock Exchange (e-investment)
The Superintendency of Securities is an autonomous institution of the State of the Dominican Republic , created through the Securities Market Law No. 19-00 . Its main functions are to promote, regulate and supervise the domestic securities market, seeking a concurrent, organized, equitable, transparent and efficient market that favors the development and economic and social cohesion of the country and to promote the price formation of financial instruments. based on a concurrent supply and demand, establishing the necessary mechanisms that guarantee market agents have access to truthful, timely, sufficient information and under equal conditions.
The Single Investment Window (VUI) is a project of the Presidency of the Republic under the Executive Directorate of the Center for Export and Investment of the Dominican Republic (CEI-RD), which seeks the integration and interconnection of the different public institutions, providing the investor a centralized point where to request and process the different permits and / or certifications required to carry out an investment project in the country.
The objective is to have an inter-institutional interconnection system that allows the management and granting of permits, certifications and / or licenses for the execution of an investment project in any of the productive sectors of goods and services in the country in a transparent, reliable and integral; which allows investors, nationals and foreigners, to install and start their operations processes in an expeditious manner, guaranteeing them a high level of security and transparency in the Dominican State.
Link: Superintendency of Securities of the Dominican Republic
Investment in free zones
As of December 2014, exports from free zones reached $ 5,242 million, equivalent to 53% of the total exported by the country. a 6% growth compared to the previous year.
The sectors that reported the most exports are medical and pharmaceutical products with 25%, textile sector with 24%; electrical products, with 14%; tobacco and derivatives, with 11%; footwear and its components, with 9%.
