Starting a Business in Dominican Republic : Guide
Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Dominican Republic. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Check company name and purchase it on-line | 1 day | DOP 4747 |
| 2 | Arrange for the publication of the company name in the monthly publication of the National Office of Industrial Property (Oficina Nacional de la Propiedad Industrial) | 10 days | DOP 971 |
| * 3 | Payment of Incorporation tax | 1 day (simultaneous with previous procedure) | 1% of the capital |
| 4 | Register the company in the Chamber of Commerce and obtain the identification number (RNC) on-line | 5 days | DOP 8,800 |
| 5 | File for the National Taxpayers Registry at the Internal Revenue Service (DGII) and apply for fiscal receipts. | 2 days | no charge |
| * 6 | Register local employees with the Department of Labor | 2 days (simultaneous with previous procedure) | DOP 250 |
| * 7 | Register employees at the main social security office (Consejo Nacional de Seguridad Social, CNSS) | 1 day (simultaneous with previous procedure) | no charge |
