Forming A Company in The DR

[Buffness]

I know that there is a well written guide on how to form a company in DR here in DR1 ...but can someone please share their ACTUAL experience of doing this...( in particular registering a Dominican branch of a foreign company) ...is it straightforward? ......which attorney would you recommend?....any hidden costs to be aware of ? ....is it better to use an attorney or accountant.? ... and indeed , was it really all worth it for you?

 

[Russell]

Our Company formed a DR branch years ago and indeed it was painless....quite elementary...we used a Lawyer.
One benefit it gave us was one ''Residency position''.

At present I am retired in DR and My Espossa and me have a joint owned Agricultural Company.... it also was painless.
I think the key element of the latter is the Dominican content.
Russell

 

[cobraboy]

I've got three corporations.

It's a small pain, so have a lawyer do it for you. No need for an accountant initially, although one is helpful for the annual returns and monthly tax statements.

I use a smart, local young guy who does a fine job, but Spanish only. PM me and I'll send his number. We do all our correspondence online, so that is also helpful.

I also have a lawyer in Santo Domingo who does an excellent job. Fully fluent in English and totally honest.

 

[JD Jones]

Registering a company is simple. Yes, use a trusted DR attorney. Its paper work and some nominal fees.

RUNNING a company here is a horse of a completely different color depending on what you are doing and the size of the business.

Truer words were never spoken.

What used to be a very simple undertaking is now much more complicated. Just the Gov't required statistics is a handful.

 

[RepDom]

If you want to learn how it all works yourself, you could visit the Camara de Comercio / Registro Mercantil.

It actually does not require being a DR Attorney to form a corp I don't believe.

The CdC/RM has legal consultants that you can take a number and wait to talk to.

Depends how much local Attorneys are quoting for formation. If the prices are fair/reasonable, a local Attorney could be worthwhile.

You also need to deal with the DGII for an RNC (Tax ID) for your Corporation.

 

[CaribeDigital]

You don't need a lawyer for a simple SRL. You might need one for a publicly listed company, but then you wouldn't be asking is this forum. One of the institutions which work smoothly and with an impressive degree of competence in this country are chambers of commerce.

My customers are sometimes asking me to form a company for them but my answer is: if you have done it yourself you have proven that you can start running a business in the DR.

 

[Buffness]

My customers are sometimes asking me to form a company for them but my answer is: if you have done it yourself you have proven that you can start running a business in the DR.

Great answer.

 

[rubio_higuey]

No need for a lawyer. You can do it yourself from in fornt of your computer screen
www.formalizate.gob.do

Though one caveat - register business name through ONAPI website
http://www.onapi.gob.do/
instead of through Formalizate. As silly as it sounds, you get electronic name certificate through ONAPI website which you can just print, but you need to pick up a physical certificate at ONAPI when done through Formalizate.

Because on Formalizate website you enter ONAPI certificate number, you can register it through ONAPI website and then enter it in Formalizate, it will save you one trip to ONAPI offices.

Before submitting your name, check name availability at
http://www.onapi.gob.do:8081/
and also read rule son names... do check with partial and similar sounding names, and also marks. Plus do a name search to see if your intended name does not whow up on internet as a global/international company, also your name must not be generic - those are all reasons names get denied
(for example Refrescos Dominicanos would get denied, but Refrescos Dominicanos Rodriguez would get approved, if it does not exist in one way or another - for example if Rodriguez Refrescos Dominicanos exists, Refrescos Dominicanos Rodriguez would not get approved; also if Refripartes Rodriguez is registered, Refrigeracion y Partes Rodriguez would get denied). You must do a very very extensive search on ONAPI website here http://www.onapi.gob.do:8081/ you get one chance, then two more make-up strikes to modify if your initial attempt gets denied. For modification, a personal trip to ONAPI is required)

Good luck.

 

[Fabio J. Guzman]

I believe that a company should be customized to fit your particular circumstances, and only a good company lawyer can do that. You should choose carefully a particular company structure, and then the bylaws that are right for you. For example, here are just a few items that should be discussed and decided upon: restrictions on transfers of shares to third parties, restrictions of transfers of shares upon death of a shareholder to spouse or children, restrictions of transfers of shares upon divorce of a shareholder, management compensation and dismissal, dispute resolution (arbitration). Dominican company law allows shareholders many options to choose from, which a good lawyer will present to you; you shouldn't just copy a random company template.

 

[elbronco718]

No need for a lawyer. You can do it yourself from in fornt of your computer screen
www.formalizate.gob.do

Though one caveat - register business name through ONAPI website
http://www.onapi.gob.do/
instead of through Formalizate. As silly as it sounds, you get electronic name certificate through ONAPI website which you can just print, but you need to pick up a physical certificate at ONAPI when done through Formalizate.

Because on Formalizate website you enter ONAPI certificate number, you can register it through ONAPI website and then enter it in Formalizate, it will save you one trip to ONAPI offices.

Before submitting your name, check name availability at
http://www.onapi.gob.do:8081/
and also read rule son names... do check with partial and similar sounding names, and also marks. Plus do a name search to see if your intended name does not whow up on internet as a global/international company, also your name must not be generic - those are all reasons names get denied
(for example Refrescos Dominicanos would get denied, but Refrescos Dominicanos Rodriguez would get approved, if it does not exist in one way or another - for example if Rodriguez Refrescos Dominicanos exists, Refrescos Dominicanos Rodriguez would not get approved; also if Refripartes Rodriguez is registered, Refrigeracion y Partes Rodriguez would get denied). You must do a very very extensive search on ONAPI website here http://www.onapi.gob.do:8081/ you get one chance, then two more make-up strikes to modify if your initial attempt gets denied. For modification, a personal trip to ONAPI is required)

Good luck.

Should the business be registered first thru onapi? Im just trying to understand the exact order in which I should do it. Register first thru onapi or begin with formalizate website?

 

[rubio_higuey]

Should the business be registered first thru onapi? Im just trying to understand the exact order in which I should do it. Register first thru onapi or begin with formalizate website?

You can start in ONAPI and continue with Formalizate, or do it straight via Formalizate, which links with ONAPI. Last year you had to go get the name certificate in person in ONAPI when name registered via Formalizate as opposed electronic certificate if registered via ONAPI site direct. Now with Covid and everything basically done electronically I don't know. But it's a safer bet to start with ONAPI page and then continue on Formalizate.

 

[rubio_higuey]

Most companies can use very well the default template bylaws and most do (simple businesses for micro entrepreneur). If you have other business partners than you can either modify the bylaws yourself if you know how, or use a lawyer. You can use lawyer only for the specific part of brakes modification from default template, no need to pay for anything you can do yourself online. It's not the same to pay 200 or 300 dollars for bylaws modification than it is to pay 1000 or more for the whole formation. Also you can modify and file new bylaws anytime during the company existence via an extraordinary shareholder meeting. So you can just register a generic bylaws and if/when business activity gets serious and you need new partners or investors, you modify the bylaws then. It's usually a smal filling fee no more than 500 pesos.