|Company Type||Time to Incorporate||Cost|
|SRL / EIRL||3 weeks||£1260|
Advantages of a Dominican company
Dominican companies are useful and we can often recommend these, because:
- They are the vehicle that is required to hold Dominican real estate investments
- They can be completely anonymous; as the sole owner could be a company based in a placer where anonymity was assured.
- Companies are not required to have a resident administrator or a resident shareholder
- Companies are relatively inexpensive to maintain.
- The Dominican Republic is not considered to be a tax haven, however, foreign income may be exempt from taxation, and interest earned on deposits are not taxed within the Dominican Republic. In some countries in Europe, where transactions with tax havens are penalised, it is useful to use use a Dominican company instead of a classic tax-haven company.
- There is likely to be an exemption from all dividend income earned by a Dominican company which has subsidiaries outside the State.
Corporate Banking in the Dominican Republic
Our experience to date is that there is a certain amount of reticence by banks to open corporate bank accounts in the Dominican Republic, without a visit on behalf of company representatives.
We believe that we can open accounts relatively easily, provided that the purpose of the company is known, and that we can get records from the beneficiaries and directors of the company.
Lodging of Books of Account
Dominican companies do need to lodge books of account with the provincial Chamber of Commerce every year.
Accounting books could consist of:
- The Journal (el Diario)
- The General Ledger (el Mayor)
- Annual Accounts- with the Profit and Loss Account and Balance Sheet (Los Estados Financieros Anuales- el Balance y la Cuenta de Pérdidas y Ganancias)
- The lodging needs to be done by the end of April, and accounts drawn up for the calendar year just ended.
- Only one shareholder required with no restriction placed upon nationality or residency
- Foreign shareholders must obtain tax identification number. We do the application for you on your behalf.
- As we will be filling documents on behalf of the shareholders, a Power of Attorney will be required.
- All shares are nominal
- There is a shareholders’ register, recording all shareholdings; and we can produce share certificates to record all holdings.
Presiding Officers of the Company
One or more Presiding Officers must be elected in the by the board that incorporates the company (Asamblea General Constitutiva). As part of the new, simpler structure, this may well not be necessary, as the board may consist of just one single director. This appointment will need to be renewed every by the company in general meeting.
The Vigilance Officer supervises the management of the Company.
The company during an annual general meeting will vote to adopt the accounts, before the accounts are lodged with the Chamber of Commerce for the Province
In practice, we deal with non-resident companies: this means that companies are dealt with in the office of our agent, who will effectively act as custodian of the company.
Copies of Company Documents
Should you require company documents for any tasks outside the Dominican Republic, the equivalent of the Certificate of Good Standing or Existence, would be the Regional Chamber of Commerce’s extract on the state of the company.
Some zones provide incentives for the potential investor- they are generally in the west of the country. We can advise on this, and employ professionals who can submit business plans to assist with any grants you may apply for.