Spanish and Dominican Creole
10,847,910 (as of 2019)
FAQ for Company Formation in Dominican Republic:
Q: What are the types of companies that can be formed in the Dominican Republic?
A: The following are the types of companies that can be formed in the Dominican Republic: Individual Limited Liability Company (EIRL), Limited Liability Company (SRL), Simplified Share Company (SSC), Public Limited Company (SA), and Simplified Corporation (SAS).
Q: What is the minimum capital required to form a company in the Dominican Republic?
A: The minimum capital required to form a company in the Dominican Republic depends on the type of company. The minimum capital for an EIRL is RD$100,000 (approximately USD$1,700), for an SRL is RD$100,000, for an SSC is RD$10,000 (approximately USD$170), for an SA is RD$30,000,000 (approximately USD$510,000), and for an SAS is RD$1,000,000 (approximately USD$17,000).
Q: What is the process of company formation in the Dominican Republic?
A: The process of company formation in the Dominican Republic involves the following steps:
1. Reserve the company name with the Mercantile Registry
2. Draft and sign the articles of incorporation before a notary public
3. Register the company with the Mercantile Registry
4. Obtain a Taxpayer Identification Number (RNC) from the Internal Revenue Service
5. Obtain a Commercial Registry certificate
6. Register with the Social Security Office
7. Obtain a municipal business license
Q: How long does it take to form a company in the Dominican Republic?
A: The timeframe to form a company in the Dominican Republic can range from one to two months, depending on the type of company and the efficiency of completing the required steps.
Q: What are the tax obligations for companies in the Dominican Republic?
A: Companies in the Dominican Republic are subject to corporate income tax, which is currently set at a rate of 27% of taxable income. In addition, there are other taxes such as value-added tax (VAT), social security contributions, and municipal taxes.
Q: What are the accounting and reporting requirements for companies in the Dominican Republic?
A: Companies in the Dominican Republic are required to keep accounting records and prepare financial statements in accordance with the Generally Accepted Accounting Principles (GAAP). They are also required to file annual tax returns and other reports with the tax authorities and regulatory agencies.
The Dominican Republic has seen a steady increase in its economy over the past few years. According to the World Bank, the country’s GDP grew by 5.2% in 2019, and is projected to grow by 5.3% in 2020. This growth is largely driven by the country’s tourism industry, which accounts for nearly 20% of the country’s GDP. The Dominican Republic also has a strong manufacturing sector, which accounts for around 15% of the country’s GDP. The country’s unemployment rate is currently at 6.2%, which is lower than the regional average of 8.2%. The country’s inflation rate is also relatively low, at 2.7%. The Dominican Republic has also seen an increase in foreign direct investment, with a total of $3.2 billion in 2019. This is a significant increase from the $2.3 billion in 2018. Overall, the Dominican Republic’s economy is showing signs of steady growth, and is well-positioned to continue to grow in the future.
Taxation in the Dominican Republic is regulated by the General Directorate of Internal Revenue (DGII). Both individuals and corporations are subject to taxation on their income in the Dominican Republic.
Personal Income Tax:
In the Dominican Republic, individuals are required to pay taxes on their income, including salaries, wages, and other sources of income. The tax rate is based on a progressive tax system, where the tax rate increases as the income increases. The tax rates for individuals range from 0% to 25%, depending on the income level. The tax year in the Dominican Republic runs from January 1st to December 31st.
Corporate Income Tax:
Corporations in the Dominican Republic are also required to pay taxes on their income. The corporate income tax rate in the Dominican Republic is a flat rate of 27%. However, there are some tax incentives available to companies in certain industries and regions. The tax year for corporations in the Dominican Republic is also from January 1st to December 31st.
Process and Calendar for payments:
In the Dominican Republic, the tax payment process involves filing a tax return and paying the tax due within a specific deadline. For individuals, tax returns are due on March 31st of the following year. For corporations, tax returns are due within 120 days of the end of the tax year.
In addition to income taxes, there are other taxes and fees that individuals and corporations are required to pay in the Dominican Republic. These include value-added tax (VAT), real estate transfer tax, and social security contributions.
It's also worth noting that the Dominican Republic has signed tax treaties with many countries to avoid double taxation on foreign companies that do business in the Dominican Republic.
In summary, the Dominican Republic requires both individuals and corporations to pay taxes on their income. The tax rates are based on a progressive tax system for individuals and a flat tax rate for corporations. Tax returns are due within specific deadlines, and there are other taxes and fees that individuals and corporations are required to pay.
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