Business: So there are SA and SxA, is there an "Inc." too?

J D Sauser

J D Sauser

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Nov 20, 2004
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Here, in the DR, SA (anonymous share holder corp.) and SxA (simple share holder corp) seem to be the standard.
But just recently, I have seen two businesses who show their company name followed by "Inc." (incorporated?).
Is this a real alternative legal entity? And if so, could some please share the details and the differences as opposed to SA and SxA?

... J-D.
 
C

Chip

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Jul 25, 2007
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I think you mean CxA. I have talked with a friend who has more than one business here in the DR and he said those are the only two real options, and they are basically for all intents and purposes the same. It is based on the French system as is the law if that is any help. It basically operates like a corporation, with the officers receiving "acciones" (shares). Another nuance is that I was told a minimum of 7 officers are needed, the good thing is anybody can be used, incl. children. To form a corporation here in the Dr wil typically run you around RD20k.
 
M

miguel

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Jul 2, 2003
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Creo.....

CxA= Compania por Acciones.
SA= Sociedad Anonima
 
Hillbilly

Hillbilly

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Inc. is usually reserved for non-profic concerns, like sports federations and associations and NGOs in general.

HB
 
J D Sauser

J D Sauser

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Hillbilly said:
Inc. is usually reserved for non-profic concerns, like sports federations and associations and NGOs in general.

HB
Click to expand...

Thanks for the answer, Sir.
Yes, one of the Inc's is indeed an association... the other one seemed to be a plumber biz (small truck with a bunch of pipes ans such on top)... but maybe the later one was a Nueba Yol sentimentalist... what do I know.
Anyway, you state "usually" is that exclusively or just usually, meaning that companies for profit may indeed form an "Inc.". How are they set up?

Thanks! ... J-D.
 
G

GringoCArlos

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"Inc." and "Ltd." may both also appear in the company's name if the corporation is registered/formed in another country, and then registers with Hacienda and is doing business here in the DR.

Instead of going through the entire process of starting a new company, one only needs to bring their business documents from the country of registration and obtain an RNC and a few other things, not the entire package.There is no need to form a separate Dominican business entity.
 
F

Fabio J. Guzman

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Jan 1, 2002
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Any Dominican entity with Inc. at the end of its name is a non-profit organization.

S.A. ("sociedad an?nima) and C. por A. (compa??a por acciones) are both the same: for-profit limited liability entities.

A bill presently in Congress may radically change Dominican corporation law. If passed, you won't need 7 shareholders anymore: one will be sufficient.
 
J D Sauser

J D Sauser

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Fabio J. Guzman said:
Any Dominican entity with Inc. at the end of its name is a non-profit organization.

S.A. ("sociedad an?nima) and C. por A. (compa??a por acciones) are both the same: for-profit limited liability entities.

A bill presently in Congress may radically change Dominican corporation law. If passed, you won't need 7 shareholders anymore: one will be sufficient.
Click to expand...

Thanks Sr. Guzman.
Can one and would it make sense to put a property in an Inc's name?
Is an Inc cheaper and/or easier to set up and maintain?

Thanks! ... J-D.
 
F

Fabio J. Guzman

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An non-profit is harder to set up and cheaper to maintain than a for-profit entity. Choosing between one and the other is not a question of which one is cheaper, however. It depends on the nature of what you are doing.
 
J

johnsantodomingo

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May 13, 2006
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I have an Inc. company because it is a foreign company operating here. I dont make any profit yet but I hope I will. My company is registred in the Registro Mercantil and I have an RNC no. I report to the tax authorties on a monthly basis. I choose this form so I did not have to have 7 shareholders.
 
J

johnsantodomingo

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May 13, 2006
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I send you a PM. I have heard from different lawyers that a new law is being discussed in congress where it will be possible to set up a SA with just one shareholdeer. I think that will help a lot for foreing investment and help companies not getting into the pocket of dishonest lawyers.
 
F

Fabio J. Guzman

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A foreign for-profit company with Inc. in its name may operate in the Dominican Republic after it's "domiciled" in the Dominican Republic.

All Dominican entities with Inc. in their names are non-profit organizations.
 
J

johnsantodomingo

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May 13, 2006
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What does domiciled exactly mean? Is it domiciled after being registred in the Registro Mercantil and at the Impuesto Interno?
 
G

GringoCArlos

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Yes that is what "domiciled" means. Another advantage of using a foreign corporation which is domiciled in the DR is that the DR government cannot "look under the sheets" at anything the company has which is not in the DR, without a long, drawn-out process in the home country of the foreign corporation. It's none of their business, as long as the company is doing legal business, and no bureaucrat can play games or make problems this way.
 
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