Five centuries after Christopher Colombus, Seedstars set up foot on Santo Domingo for the very first time, adding the Caribbean to its map of emerging tech hubs. Great news!
Traveling to a paradisiac island to look for promising startups across beaches, coconut and colorful fishes sounded like a dream.
And while we were very excited to go to the Dominican Republic for its incredible bio-ecosystem and fairytale landscapes, we never expected to find an El Dorado of opportunities for innovation and entrepreneurship as well.
This article gives an overview of key recent developments affecting doing business in Dominican Republic as well as an introduction to the legal system; foreign investment, including restrictions, currency regulations and incentives and business vehicles and their relevant restrictions and liabilities. The article also summarizes the laws regulating employment relationships, including redundancies and mass layoffs, and provides short overviews on competition law, data protection, and product liability and safety. In addition, there are comprehensive summaries on taxation and tax residency, and intellectual property rights over patents, trade marks, registered and unregistered designs.
The Dominican Republic is the second largest country in the Caribbean region by area. Tourism, agriculture, mining and textiles are among the key sectors of the economy making it an attractive location to start your business. But, there can be challenges if you don’t know the specifics of the local processes.
In the Dominican Republic, there are four types of entities that you may choose for your business, a Limited Liability company, Individual Enterprise of Limited Liability company, a Joint Stock company or a Simplified Joint Stock company.
Mortgage loans are quickly available to US - Canada - Europaen and Dominican citizens with any Bank, our local financial partners for real estate transactions. If you are looking at a built property or if you want to buy a land and build a house on top of it, in both cases they will help finance your project.
The first thing to do when looking to buy a property in the DR (with a loan) is to verify if you can actually apply for a loan. It will makes things move faster if you are decided on a specific property and also help your negotiation with the seller. The documents required by the Banks are the following:
- Copy of your passport plus other identification
- The two last tax returns
- Employment letter if employed
- A bank reference from your main bank
Tax resident business
A business entity is considered tax resident, in relation to Dominican-source income, when it qualifies as a permanent establishment. According to the tax laws, a "permanent establishment" is a fixed place of business in which a foreign undertaking, person or entity carries out all or a portion of its activities. This includes management seats, offices, branches and enterprise consulting services, if and when they are present in the Dominican Republic for more than six months within a 12-month period.
It hasn't just been the tourism and travel sector but also the establishment of free trade zones that have given the economy a significant boost. The latter have attracted foreign investors, who have contributed to economic growth and created new jobs for locals and foreigners working in the Dominican Republic. These zones mostly focus on production in the fields of textiles, electronics, pharmaceuticals, and tobacco products.
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