Question About C. Por A. Corporation Selling Apartment...

Is it possible for a C. Por A. Corporation to still do business transactions in DR? I read that these type of corporations were made invalid a year or so back and were required to transform into an SA, SRL or EIRL. I believe there was some 18 month extension that expires in February, 2011?

My situation is the sellers have an apartment under a C. Por A. and a lawyer advised me that it is not a good idea to be involved in purchasing the apartment because the corporate structure needs to be revised to the new law before they can make the transaction.

Anybody now more about this?

Thanks.

rubio_higuey said:

Until the end of February 2011, even if they do not transform or adjust to the new laws, they are still 100% legally operating as C x A

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Talked with another lawyer and they told me it is possible, but in a country that doesn't use an escrow account-title companies for transactions, it doesn't sound very encouraging. Think I will pass on this until the party can correct their corporation status.

Fabio J. Guzman said:

The current deadline is February 11, 2011.

I say "current" because it has been postponed several times and it might be postponed again. However, act as if it is the real deadline, just in case.

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Thank you for your response, Sr. Guzman. I gather that when the corporation does the transformation from the C. Por A. to SA, SRL or EIRL, they will also have to revise the name on the title of the property as well. How does that work? A simple title change at the Jurisdiccion?