questions about incorporating ..and import taxes on clothing.. renting a location

Someone is going to tell you to do a search any minute now, so I'll just give you some quick and general answers based on my experience:

rent - 3 months deposit is standard for commercial property.

taxes - depends how much you make, get a good accountant and you won't have to pay much.

import fees - complicated. You will never pay the official tax anyway. ( for clothing I do not know what it is, but it is at least 2% import tax plus 4.75% exchange commission plus 12% sales tax and there may be another 20% or so called GRAVAMEN but I don't know because I don't import clothes, just computers and Inverters.) Get a broker, you need some experience before you try to do this yourself unless you are very lucky or have money to throw away.

VA809 said:

Hello
I am interested in opening a clothing store in DR and would like to know what is the process of incorporating how long does it take and what are the average fees also how much taxes a business has to be pay a year. Also if anyone knows how much does customs charge for imports of clothing. My final question is in renting a business location what is the common procedures such as paying the first 3 months in advance or are you given a one month grace period to set up your business etc. if anyone can help me with this info please reply asap

Thanks!!!

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Have you visited the DR, stayed here at least for six months in the location where you consider opening your shop? Have you visited your competitors in the area? Your customs agent will be crucial to your business, unless you plan to bring in your clothes illegally -- posing as a tourist, for instance. On the other hand, with the FTA with the US expected to be signed this year, taxes on clothing imports should be at least lowest by the end of the year. Right now there is a 10% charge on dollar transactions (recargo cambiario), plus a 2% tax on imports, plus whatever customs may charge you depending on the type of clothing item. Incorporation is the least of your worries. You can buy an already formed company and be ready to go in less than a month. The deal you get on your business location will depend on the owner. Usually they will request at least two months downpayment and will request that a known Dominican person or company be the guarantor of your rent. Have never heard of anyone giving a one month grace period.

Dolores, I thought the recargo cambiario is only for Free Zone companies, is it for everybody?

I heard the 3 month deposit was actually law, dating back to when the government was trying to open a new bank and needed cash for startup. The landlord is supposed to deposit YOUR deposit in the bank and then the government gives it back to you at the end of your rental period (not this this actually ever happens) I got a two week grace period once for setup time, but this was negociated before we signed the rent contract.

Maybe there is some old fashioned law about the money being deposited at the Banco Agricola, but I doubt anyone follows it anymore. Far as I know, people only deposit there when the owner of the property will not receive the rent money, as proof the payment was offered.

Three months downpayment -- have never heard that being law.

As far as my knowledge, the recargo cambiario is law for exchange transactions regarding all imports. But I would think free zone imports are exempt from this requirement as they are exempt from taxes.

[B]Dolores[/B] said:

As far as my knowledge, the recargo cambiario is law for exchange transactions regarding all imports. But I would think free zone imports are exempt from this requirement as they are exempt from taxes.

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Exactly.