10 Major Reasons Why Most Dominican Abroad and Foreign Investors Will not Invest In Dominican Republic

[pinonuevo]

1) Too many steps to start and Business:

Solution:
The formation of a company can be done in One Hour Online.
Allow payments to be done online and filing all the documents online
Only One Location to do all the filing

2) Taxation of Initial Investment of a corporation.

Solution: Tax the Net Income from Operation not the investment

3) Fees here there and every where to start a business

Solution: Collect Taxes keep fees under 300 dollars just like other advanced countries in the region like the US

4) Limits on Employees origin

Solution:

Let the companies bring into the country the specialized employees from wherever they want; that allows for transfer of technology.
These employees become consumers in the local market: Buy houses, hire nannies, and other employees etc

5) Judicial system is dysfunctional when there are legal disputes

Solution: a)Setup a business or commercial court to deliberate expeditiously; including the setup of low cost local arbitrage.
b) Make government officials liable both at the civil level and criminal level when caught profiting from their government work
c) Universal Income tax and declaration of properties annually

6) Hard to find well trained and ethical labor force

Solution: Add more technical School, setup training standards and inspections at the local level and national level

7) Lack of Respect for private property

Solution:

The government should pay fair market price for properties take by eminent domain and tax properties at the same rate that they pay when taking properties by eminent domain
Empower local authorities to defend property owners from invasions and get the criminals out of peoples private properties within seven days.

8) Noise and Trash Pollution

Solution: Require all business to pay for trash privately and to have trash disposals containers as well as a clean publish bathroom before getting a business certificate at the local level.

Do not allow load speakers on the street

Business are not allow their big noisy music period; they can do it indoors with sound proofing walls

9) Poor Infrastructure

Water/Sewage/Roads

Solution: Allow more foreign concessions to invest in those area and tax them at 15 percent for 10 years

10) Lack of Local Financing at fixed rates for both commercial and Personal Loans

Solution: Setup a Sovereign bond and T bills in dollars to finance the secondary market at 10 yrs, 15yrs, 20,yrs and 30 yrs
That will make Real Estate Investment faster and will create more jobs in the financial sector and Real Estate Sector.
Makes it easier for banks to finance their clients and easier for the government of tax the mortgage owners.
Easier for the Registry of Deeds to allow the banks to register the mortgages online.

 

[CristoRey]

Coming from someone who prefers to see the glass half full...
we've a better chance of seeing hell freeze over first.

 

[Gadfly]

and they all lived happier ever after!

 

[cavok]

All great, common sense ideas - which is why they will never happen here.

 

[NALs]

The first one is a moot point. Many business law firms in Santo Domingo sell compañías de carpeta for around US$1,000. They went through all the steps for setting a company except the last ones. You buy the company and within 24 to 48 hours you are in formal business with all papers in order. Otherwise it takes about s month to fully register a company and is aboe to start business.

The DR is also the country that is receiving the most foreign investment in Central America and the Caribbean. Right now about half of all foreign investment in the Caribbean is going to the DR. I say the "feoreign investors" part of this thread is better suited to countries like El Salvador or Nicaragua, even Jamaica and of course Haiti among others. The DR is at a different bsll gsme regarding this.

 

[NALs]

In the Central America and Catibbean region only Costa Rica and Panama receive foreign investments within the range the DR receives on a yearly basis. Everywhere else in the subregion is at a lower range.

When you look at other factors such as oil, gas and gasoline consumption; the DR consumes more thsn most of the countires in Central America. There is simply more money to be made in the DR.

The owner of the Bravo supermarkets calls the DR the land of opportunity. Already they have more stores thsn is possible in most of those Central Americsn countries and they are not done expanding. This is a company that started with one supermarket on Churchill Ave in the 1980's, the founders are immigrants from Spain. Look how much it has grown. Before the founding family created this business, the head of the family worked as an employee in other SD supermarkets and when he first arrived from Spain he worked in a colmado for quite some time.

Olé is another supermarket chain created by in part Spaniards in 1996 or 1997 and they are concentrated mostly in SD. They too started with one simple store and now theyhave something like 20 stores and they still have much expansion in SD and not to mention in the rest of the DR. Having that many supermarket stores is basically unheard of in most countries in Central America.

Ego is a Dominican sjoe store and they are everywhere there is a sizable middle class in the DR. All they do is sell shoes.

A Mexican started a buy through catalog business in SD in the 90's or early 2000's. Today that is still the number one buy through catalog business in the DR, the largest of its kind in the Caribbean.

A couple of years ago Rosa Ng was commenting how the DR is receiving a new wave of Chinese immigration (before the diplomatic change towards supporting China) and she said that many of these new Chinese arrive to the DR thinking they will become rich very fast, because they have seen other Chinese that within 3 to 5 years in the DR already have a lifestyle unheard of for them back in China. Then she commented how the Chinese have tsken over the pica pollo business and explain that most are simply simple restaurants that she wonders why is it that Dominicans aren't doing that, given how much money is being made by the Chinese in that sector alone. Despite she is only part Chinese born in Santiago (I think her mother was the Dominican one), she is basically the voice of the Dominican-Chinese community. The Dominicans don't see a gold mine where in this case the Chinese do in the DR and they are taking advantage of seeing business opportunities where others are too blind to see them.

 

[El Hijo de Manolo]

In the Central America and Catibbean region only Costa Rica and Panama receive foreign investments within the range the DR receives on a yearly basis. Everywhere else in the subregion is at a lower range.

View attachment 5195

When you look at other factors such as oil, gas and gasoline consumption; the DR consumes more thsn most of the countires in Central America. There is simply more money to be made in the DR.

The owner of the Bravo supermarkets calls the DR the land of opportunity. Already they have more stores thsn is possible in most of those Central Americsn countries and they are not done expanding. This is a company that started with one supermarket on Churchill Ave in the 1980's, the founders are immigrants from Spain. Look how much it has grown. Before the founding family created this business, the head of the family worked as an employee in other SD supermarkets and when he first arrived from Spain he worked in a colmado for quite some time.

Olé is another supermarket chain created by in part Spaniards in 1996 or 1997 and they are concentrated mostly in SD. They too started with one simple store and now theyhave something like 20 stores and they still have much expansion in SD and not to mention in the rest of the DR. Having that many supermarket stores is basically unheard of in most countries in Central America.

Ego is a Dominican sjoe store and they are everywhere there is a sizable middle class in the DR. All they do is sell shoes.

A Mexican started a buy through catalog business in SD in the 90's or early 2000's. Today that is still the number one buy through catalog business in the DR, the largest of its kind in the Caribbean.

A couple of years ago Rosa Ng was commenting how the DR is receiving a new wave of Chinese immigration (before the diplomatic change towards supporting China) and she said that many of these new Chinese arrive to the DR thinking they will become rich very fast, because they have seen other Chinese that within 3 to 5 years in the DR already have a lifestyle unheard of for them back in China. Then she commented how the Chinese have tsken over the pica pollo business and explain that most are simply simple restaurants that she wonders why is it that Dominicans aren't doing that, given how much money is being made by the Chinese in that sector alone. Despite she is only part Chinese born in Santiago (I think her mother was the Dominican one), she is basically the voice of the Dominican-Chinese community. The Dominicans don't see a gold mine where in this case the Chinese do in the DR and they are taking advantage of seeing business opportunities where others are too blind to see them.

This is brilliant. Now flash over to the Yola folks risking life and literally dying to get out. Those Chinese came here and they bust their butts. That's how they acheive. Most don't want to hear about hard work and fore thought. Sad.

 

[CristoRey]

In the Central America and Catibbean region only Costa Rica and Panama receive foreign investments within the range the DR receives on a yearly basis. Everywhere else in the subregion is at a lower range.

View attachment 5195

When you look at other factors such as oil, gas and gasoline consumption; the DR consumes more thsn most of the countires in Central America. There is simply more money to be made in the DR.

The owner of the Bravo supermarkets calls the DR the land of opportunity. Already they have more stores thsn is possible in most of those Central Americsn countries and they are not done expanding. This is a company that started with one supermarket on Churchill Ave in the 1980's, the founders are immigrants from Spain. Look how much it has grown. Before the founding family created this business, the head of the family worked as an employee in other SD supermarkets and when he first arrived from Spain he worked in a colmado for quite some time.

Olé is another supermarket chain created by in part Spaniards in 1996 or 1997 and they are concentrated mostly in SD. They too started with one simple store and now theyhave something like 20 stores and they still have much expansion in SD and not to mention in the rest of the DR. Having that many supermarket stores is basically unheard of in most countries in Central America.

Ego is a Dominican sjoe store and they are everywhere there is a sizable middle class in the DR. All they do is sell shoes.

A Mexican started a buy through catalog business in SD in the 90's or early 2000's. Today that is still the number one buy through catalog business in the DR, the largest of its kind in the Caribbean.

A couple of years ago Rosa Ng was commenting how the DR is receiving a new wave of Chinese immigration (before the diplomatic change towards supporting China) and she said that many of these new Chinese arrive to the DR thinking they will become rich very fast, because they have seen other Chinese that within 3 to 5 years in the DR already have a lifestyle unheard of for them back in China. Then she commented how the Chinese have tsken over the pica pollo business and explain that most are simply simple restaurants that she wonders why is it that Dominicans aren't doing that, given how much money is being made by the Chinese in that sector alone. Despite she is only part Chinese born in Santiago (I think her mother was the Dominican one), she is basically the voice of the Dominican-Chinese community. The Dominicans don't see a gold mine where in this case the Chinese do in the DR and they are taking advantage of seeing business opportunities where others are too blind to see them.

Amazing what a proper education does for one's ability to become a productive member of society and in the case of the Chinese, prosperous business owners abroad.

 

[bob saunders]

Amazing what a proper education does for one's ability to become a productive member of society and in the case of the Chinese, prosperous business owners abroad.

More the work ethic and ability to sacrifice that make the Chinese successful.

 

[NALs]

I was about to say something similar to Bob Saunders. The typical Chinese in the DR arrives not knowing a word of Spanish in any form and yet, somehow many make it. The thing is they are making it in sectors that doesn't require much education to start with, just the ability to see the opportunity and put in the necessary work.

 

[Liberator]

I was about to say something similar to Bob Saunders. The typical Chinese in the DR arrives not knowing a word of Spanish in any form and yet, somehow many make it. The thing is they are making it in sectors that doesn't require much education to start with, just the ability to see the opportunity and put in the necessary work.

Almost the same here in The Netherlands.

 

[windeguy]

The initial post appears to be nonsense if it is true that the DR gets as much investment as mentioned further on.
(Where that investment money comes from, on the other hand. )

In any event, those requests to change the system in the DR will fall on deaf ears. Such advise as in the OP is not the tail that is going to wag that dog.
Far better to work the system as is than to try and change it.

 

[pinonuevo]

In the Central America and Catibbean region only Costa Rica and Panama receive foreign investments within the range the DR receives on a yearly basis. Everywhere else in the subregion is at a lower range.

View attachment 5195

When you look at other factors such as oil, gas and gasoline consumption; the DR consumes more thsn most of the countires in Central America. There is simply more money to be made in the DR.

The owner of the Bravo supermarkets calls the DR the land of opportunity. Already they have more stores thsn is possible in most of those Central Americsn countries and they are not done expanding. This is a company that started with one supermarket on Churchill Ave in the 1980's, the founders are immigrants from Spain. Look how much it has grown. Before the founding family created this business, the head of the family worked as an employee in other SD supermarkets and when he first arrived from Spain he worked in a colmado for quite some time.

Olé is another supermarket chain created by in part Spaniards in 1996 or 1997 and they are concentrated mostly in SD. They too started with one simple store and now theyhave something like 20 stores and they still have much expansion in SD and not to mention in the rest of the DR. Having that many supermarket stores is basically unheard of in most countries in Central America.

Ego is a Dominican sjoe store and they are everywhere there is a sizable middle class in the DR. All they do is sell shoes.

A Mexican started a buy through catalog business in SD in the 90's or early 2000's. Today that is still the number one buy through catalog business in the DR, the largest of its kind in the Caribbean.

A couple of years ago Rosa Ng was commenting how the DR is receiving a new wave of Chinese immigration (before the diplomatic change towards supporting China) and she said that many of these new Chinese arrive to the DR thinking they will become rich very fast, because they have seen other Chinese that within 3 to 5 years in the DR already have a lifestyle unheard of for them back in China. Then she commented how the Chinese have tsken over the pica pollo business and explain that most are simply simple restaurants that she wonders why is it that Dominicans aren't doing that, given how much money is being made by the Chinese in that sector alone. Despite she is only part Chinese born in Santiago (I think her mother was the Dominican one), she is basically the voice of the Dominican-Chinese community. The Dominicans don't see a gold mine where in this case the Chinese do in the DR and they are taking advantage of seeing business opportunities where others are too blind to see them.

Dominican Republic - United States Department of State

www.state.gov

In year 2020, the World Bank’s “Doing Business” report gave the Dominican Republic a score of 6.5 out of 18 in the quality of its judicial processes. In the 2020 Global Innovations Index, the Dominican Republic ranked 86 out of 131 countries for rule of law.


There is a Commercial Code and a wide variety of laws governing business formation and activity. The main laws governing commercial disputes are the Commercial Code; Law No. 479-08, the Commercial Societies Law; Law No. 3-02, concerning Business Registration; Commercial Arbitration Law No. 489-08; Law No. 141-15 concerning Restructuring and Liquidation of Business Entities; and Law No. 126-02, concerning e-Commerce and Digital Documents and Signatures.


Some investors complain of long wait times for a decision by the judiciary. While Dominican law mandates overall time standards for the completion of key events in a civil case, these standards frequently are not met. The World Bank’s 2020 “Doing Business” report noted that resolving complaints raised during the award and execution of a contract can take more than four years in the Dominican Republic, although some take longer. Dominican nationals and foreigners alike have the constitutional right to present their cases to an appeal court and to the Supreme Court to review (recurso de casación in Spanish) the ruling of the lower court. If a violation of fundamental rights is alleged, the Constitutional Court might also review the case. Notwithstanding, foreign investors have complained that the local court system is unreliable, is biased against them, and that special interests and powerful individuals are able to use the legal system in their favor. Others that have successfully won in courts, have struggled to get their ruling enforced.


While the law provides for an independent judiciary, businesses and other external groups have noted that in practice, the government does not respect judicial independence or impartiality, and improper influence on judicial decisions is widespread. Several large U.S. firms cite the improper and disruptive use of lower court injunctions as a way for local distributors to obtain more beneficial settlements at the end of contract periods. To engage effectively in the Dominican market, many U.S. companies seek local partners that are well-connected and understand the local business environment.

 

[windeguy]

pinonuevo, I heartily recommend you don't invest in the DR.
Perhaps something secure like Bitcoin is better investment for you?

 

[pinonuevo]

Dominican Republic - United States Department of State

www.state.gov

There is a Commercial Code and a wide variety of laws governing business formation and activity. The main laws governing commercial disputes are the Commercial Code; Law No. 479-08, the Commercial Societies Law; Law No. 3-02, concerning Business Registration; Commercial Arbitration Law No. 489-08; Law No. 141-15 concerning Restructuring and Liquidation of Business Entities; and Law No. 126-02, concerning e-Commerce and Digital Documents and Signatures.
Some investors complain of long wait times for a decision by the judiciary. While Dominican law mandates overall time standards for the completion of key events in a civil case, these standards frequently are not met. The World Bank’s 2020 “Doing Business” report noted that resolving complaints raised during the award and execution of a contract can take more than four years in the Dominican Republic, although some take longer. Dominican nationals and foreigners alike have the constitutional right to present their cases to an appeal court and to the Supreme Court to review (recurso de casación in Spanish) the ruling of the lower court. If a violation of fundamental rights is alleged, the Constitutional Court might also review the case. Notwithstanding, foreign investors have complained that the local court system is unreliable, is biased against them, and that special interests and powerful individuals are able to use the legal system in their favor. Others that have successfully won in courts, have struggled to get their ruling enforced.
While the law provides for an independent judiciary, businesses and other external groups have noted that in practice, the government does not respect judicial independence or impartiality, and improper influence on judicial decisions is widespread. Several large U.S. firms cite the improper and disruptive use of lower court injunctions as a way for local distributors to obtain more beneficial settlements at the end of contract periods. To engage effectively in the Dominican market, many U.S. companies seek local partners that are well-connected and understand the local business environment.

 

[pinonuevo]

I am not against investing in DR. Just be aware of the risks: Do not put All your Eggs in One basket.

 

[pinonuevo]

pinonuevo, I heartily recommend you don't invest in the DR.
Perhaps something secure like Bitcoin is better investment for you?

I am not against investing in DR. Just be aware of the risks: Do not put All your Eggs in One basket.

 

[NALs]

I am not against investing in DR. Just be aware of the risks: Do not put All your Eggs in One basket.

I'm sure anyone investing in the DR knows that before they find this thread. Case in point, this is from over a decade ago of a Peruvian economist invited to Santo Domingo to analyze the Dominican economy and give a long speech about her findings. It's long (and in Spanish), but starting from about 15:04 touches on foreign investments in the DR. Keep in mind this was from 10 to 12 years before this thread was created.

In the mean time:

https://cincodias.elpais.com/cincodias/2021/10/21/companias/1634808767_864251.html (Spanish Hotel Companies Will Invest Over 500 Million Until 2024 In The Dominican Republic)

In billions of US dollars.

In millions of US dollars. 5,000 million equals 5 billion.

This is in 2018. The Cayman Islnds and British Virgin Islands are offshore heavens. Despite their flows are included, they sort of doesn't count when in most countries the figures represent actual investment that creates new jobs, etc vs money going to a bank account and staying there.

2016 (yellow) and 2017 (purple) figures in the Caribbean.

You can continue to think that all the foreign investors putting billions of dollars into the Dominican Republic, more than any other country in the Caribbean, are not aware of several of the things presented there; but, I beg to differ. Plus, as has been stated already, there are things they take into account, such as the time it takes to register a company, and rank the DR based on that while ignoring that most foreign investors simply buy a compañía de carpeta and are ready to do business before mid-week.

 

[pinonuevo]

In the Central America and Catibbean region only Costa Rica and Panama receive foreign investments within the range the DR receives on a yearly basis. Everywhere else in the subregion is at a lower range.

View attachment 5195

When you look at other factors such as oil, gas and gasoline consumption; the DR consumes more thsn most of the countires in Central America. There is simply more money to be made in the DR.

The owner of the Bravo supermarkets calls the DR the land of opportunity. Already they have more stores thsn is possible in most of those Central Americsn countries and they are not done expanding. This is a company that started with one supermarket on Churchill Ave in the 1980's, the founders are immigrants from Spain. Look how much it has grown. Before the founding family created this business, the head of the family worked as an employee in other SD supermarkets and when he first arrived from Spain he worked in a colmado for quite some time.

Olé is another supermarket chain created by in part Spaniards in 1996 or 1997 and they are concentrated mostly in SD. They too started with one simple store and now theyhave something like 20 stores and they still have much expansion in SD and not to mention in the rest of the DR. Having that many supermarket stores is basically unheard of in most countries in Central America.

Ego is a Dominican sjoe store and they are everywhere there is a sizable middle class in the DR. All they do is sell shoes.

A Mexican started a buy through catalog business in SD in the 90's or early 2000's. Today that is still the number one buy through catalog business in the DR, the largest of its kind in the Caribbean.

A couple of years ago Rosa Ng was commenting how the DR is receiving a new wave of Chinese immigration (before the diplomatic change towards supporting China) and she said that many of these new Chinese arrive to the DR thinking they will become rich very fast, because they have seen other Chinese that within 3 to 5 years in the DR already have a lifestyle unheard of for them back in China. Then she commented how the Chinese have tsken over the pica pollo business and explain that most are simply simple restaurants that she wonders why is it that Dominicans aren't doing that, given how much money is being made by the Chinese in that sector alone. Despite she is only part Chinese born in Santiago (I think her mother was the Dominican one), she is basically the voice of the Dominican-Chinese community. The Dominicans don't see a gold mine where in this case the Chinese do in the DR and they are taking advantage of seeing business opportunities where others are too blind to see them.

Small Business Represent close to 70% of the economy and those are the ones that make any economy stable just like a health middle class; these are the business that would benefit from an open market and clean healthy government institutions.

 

[pinonuevo]

I loved the video so much; very well researched and explained.

Open Markets are so important to growth, but like the speaker said being able to have savings, or hard currency reserves is very important.

When a foreigner or a Dominican abroad opens a Bank Account in Domican Republic; they will close it if " there is not activity" for a short period of time. One would come back the account balance is sent to the superintendencia de banco. No respect for people assets.