A Free Zone company cannot operate unless it is located in a Free Zone.
If you do not want to locate in an existing Zona Franca, you can create a "Special Free Zone" for your company. Currently to register a new company in an existing Free Zone, the company pays a fee of RD$53,000 to the DR Free Zone Council. To create a "Special Free Zone" (which may or may not consist of only one company), the fee is RD$153,000.
To create the Special Free Zone, one must also provide to the council for their permission:
1. 20 copies of the technical plans for the company
2. Company's constitution and supporting documents
3. A copy of the property title and/or Agreement to Purchase
4. All building plans
5. The academic history and business history of the company's executives
6. A check for the permission
The company does not have to be a Dominican corporation, and can be a Foreign Corporation, registered in the DR. I do not believe that it is possible for a business to operate under an individual's name only - it must be a company. (besides, it is does fail, do you really want them to come after everything you own to satisfy outstanding debts???)
The reason that ALL Free Zone companies are located in one type or other of Free Zone is that each Free Zone has its own Customs employees located on site. The companies inside pay the costs of these Customs officials and their associated costs. All customs documents for import or export are processed onsite before anything moves in or out of the Free Zone.