I have read of a seven shareholder corporation in the DR..But I already have a personal corp. out of Panama..I see many companies in the DR ending in S.A. So my question is am I able to title my home/buisness and cars in this S.A. corp? I was told yes but mabye Mr. Guzman can answer it for sure...
- Thread starter zak023
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Is a Panama Corp.S.A. accepted in the DR ?
Not a problem zak023. Actually, I higly recommend it due to this whole 7 shareholder situation with a DR. company. I never feel confortable having partners I don't know under any circumstances... All you will need to do is get an RNC number and your Panama company will be as effective as a national company. Unless Sr. Guzman can point out any down sides to using a Panama corp rather then a DR corp. I personally only see advantages...
Cons...
I am not sure if your Panama corp. needs to sue someone if they would have to put up bond, since it's a foreign company.
You will need a specific Assemble Generale with the description of the property to transfer, buy or sell. This assemble needs to be registered in Panama and notarized by the Dominican Consulate. Basically, a bit more paper work and leg work. If you have a good registry firm in Panama that should not be an inconvinience.
I am not sure if your Panama corp. needs to sue someone if they would have to put up bond, since it's a foreign company.
You will need a specific Assemble Generale with the description of the property to transfer, buy or sell. This assemble needs to be registered in Panama and notarized by the Dominican Consulate. Basically, a bit more paper work and leg work. If you have a good registry firm in Panama that should not be an inconvinience.
Disadvantages of Using an Offshore Corp.
1) Contribution in kind without paying transfer tax not possible.
2) Extra expense to obtain a tax number (RNC).
3) Need a bond to sue in the DR.
4) Need for "domiciliation" (an expensive process) if seeking incentives of Law #158-01.
5) 25% tax withholding on any payments made to the offshore.
6) Annual maintenance more expensive than for a DR Company
Mr Guzman
Ok now that I have the disadvantages. What are the advantages? surely there must be some or people would not be useing them....
Disadvantages of Using an Offshore Corp.
1) Contribution in kind without paying transfer tax not possible.
2) Extra expense to obtain a tax number (RNC).
3) Need a bond to sue in the DR.
4) Need for "domiciliation" (an expensive process) if seeking incentives of Law #158-01.
5) 25% tax withholding on any payments made to the offshore.
6) Annual maintenance more expensive than for a DR Company
Ok now that I have the disadvantages. What are the advantages? surely there must be some or people would not be useing them....
Not that I am an expert on the subject by any means, but I am told the advantage is for tax purposes for foriegn property owners in their 'home' countries. I am reliabily informed that in turn if your Panama corp is owned by a BVI corp, it is quite difficult to audit. Particularly in the case of capital gains or income.
Of course, this comes at a cost and the property (s) in question must be worth a few $$$$.
I am sure there are other advantages related to banking / delclared income etc..
You need to figure out your income on the DR property / activity and off-set the running costs against points 1-6. Can't think what other advantages there would be.
Of course, this comes at a cost and the property (s) in question must be worth a few $$$$.
I am sure there are other advantages related to banking / delclared income etc..
You need to figure out your income on the DR property / activity and off-set the running costs against points 1-6. Can't think what other advantages there would be.