Doing Business in the Dominican Republic

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    The economic growth of a country is only meant to grow and develop with the support of a private sector where the businesses can invest and create new jobs. Supporting the private sector’s growth, driven     by a higher productivity requires improved competitiveness, including a business climate that facilitates energetic and innovative entrepreneurs, regardless of where they come from, the creation of their own companies, and so, generating more jobs.

    According to the study “Doing Business in Central America and the Dominican Republic 2015” backed up by the World Bank Group, which establishes that Santo Domingo, Dominican Republic, after comparing  regulations for businesses and local companies of 22 cities and 10 ports in 7 countries, is the third best city in Central America to create a business because of less quantities of procedures compared to the average city in Central America and because of its incredible promptness at completing each step.

    It is convenient for you to have businesses in the Dominican Republic due to the fact that in the Dominican Republic the 7 step procedure to create a company and develop a business are identical in every city and the difference in the total time of the process does not exceed 5 days. The inscription in the mercantile registry of the chambers of commerce, legislated under the 3-02 Law regarding the Mercantile Registry and the Law 479-08, of commercial companies, and its modifications; it lasts 5 days in Santo Domingo and Higüey and 3 in Santiago de los Caballeros. Other procedures include the registry of the commercial name in the National Office of Industrial Property and its publication in a national Newspaper, ruled by law 20-00 of Industrial Property. In Higüey and Santiago de los Caballeros, the inscription in the national registry of contributors and the obtaining of fiscal receipts in the General Direction of Internal Taxes, a procedure that only last 2 days in Santo Domingo.

    In every country referred in the study, except the Dominican Republic, law obligates the participation of a Notary Public. You have to pay their professional fees which usually average a 62% of the total cost of creating a company, but this cost varies from 1% in Panamá all the way to 84% in Nicaragua. In the Dominican Republic, nonetheless, you have to pay an incorporation tax equal to the 1% of the company’s capital stock to be created.

    It is true though that the Dominican Republic has the highest registry cost in the whole region with a 17% of the income per capita comparing it to other countries of Central America but this is compensated by the promptness in which the procedures are executed and let’s remember that they are less procedures than the average country in Central America except in Panamá and Guatemala city and at the same time avoiding the cost of paying a Notary Public.

    A valid way to improve the performance of creating businesses and making the procedure much faster as well as cutting most costs prices is using the Dominican Republic’s example where the Notary Public´s participation in creating a company contract is optional as well as creating web pages such as the one of the Chambers of Commerce have or the portal “Formalízate”, where you can find all the corresponding requirements for each department and download all the forms for all the procedures. This way you can win a lot of time and do everything so easily and conveniently that when you deposit you have everything ready.

    In conclusion, Santo Domingo, Dominican Republic, is one of the best cities  to make business in and create companies in actuality because of its low number of procedures, the promptness in with the institutions work each step, the price reduction thanks to the lack of the Notary in the whole process and the facility to the entrepreneurs and/or law firms that make the procedures for them using the web pages of each institution competent for the creation of a company.

    For more information o consults do not doubt in communicating with Dr. Marcos Bisonó Haza (mbisono@oficinabisono.com), the Lic. Mariel Taveras A.  (mtaveras@oficinabisono.com) or info@oficinabisono.com.

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