USA incorporated Company

Norteman

New member
Dec 15, 2008
115
6
0
For a USA Incorporated company to conduct business in the DR, I see it is mandatory by law to have an RNC#, which is necessarry to open a bank account anyway.

Does this (RNC) meet the minimum or necessary requirements? I would assume it is not completely necessary to also re incorporate in the DR?
This is a small business that will have no local employees per se.
Any accurate feedback on this would be greatly appreciated.
 

Expat13

Silver
Jun 7, 2008
3,255
50
48
For a USA Incorporated company to conduct business in the DR, I see it is mandatory by law to have an RNC#, which is necessarry to open a bank account anyway.

Does this (RNC) meet the minimum or necessary requirements? I would assume it is not completely necessary to also re incorporate in the DR?
This is a small business that will have no local employees per se.
Any accurate feedback on this would be greatly appreciated.

I believe the RNC satisfies minimum legal business here if an outside incorporated company.Obviously with different laws in the DR, and handling of local employees it could be confusing.
Im no lawyer, just an opinion that could be wrong so hopefully you receive some feedback from Guzman or other legal experienced posters. Goodluck!
 

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
40,964
936
113
It's almost as easy setting up a Dominican corporation than getting a US company an RNC.
 

DMV123

Bronze
Mar 31, 2010
1,211
114
0
But I think it is way less expensive to just register the US company and get the RNC.....
 

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
40,964
936
113
But I think it is way less expensive to just register the US company and get the RNC.....
You'd miss the protection a DR corporation gives you. Filing against a DR corporation is a whole lot more difficult than against a US corporation.

Just one person's opinion.
 

DMV123

Bronze
Mar 31, 2010
1,211
114
0
You'd miss the protection a DR corporation gives you. Filing against a DR corporation is a whole lot more difficult than against a US corporation.

Just one person's opinion.

Do you mean filing against a US company here in the DR OR filing against a US company over there????

If you mean here I was not aware there was a difference! Lets get those lawyers to help us out!!!!

If that is correct cobraboy then that is a hugely valid point!
 

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
40,964
936
113
Do you mean filing against a US company here in the DR OR filing against a US company over there????

If you mean here I was not aware there was a difference! Lets get those lawyers to help us out!!!!

If that is correct cobraboy then that is a hugely valid point!
Anyone can file against a US corporation. Happens all the time.

As was explained by one of Dr. Guzman's fine colleagues, unless I heard it incorrectly, filing against a Dominican corporation is much more difficult, especially for a non-resident. Just the complexity is a barrier of protection.

Additionally, there are no punitive damages under Dominican law. That by itself is worth the $2000 or less it takes to incorporate here. Not to mention basic corporate liability insurance is very inexpensive here.

We looked both ways. The cost is not that much different, really, all-in.
 

DMV123

Bronze
Mar 31, 2010
1,211
114
0
Great post Cobraboy - with the whole picture - you are absolutely right. Much better protection at a low low price.
 

Norteman

New member
Dec 15, 2008
115
6
0
USA company of course is already incorped in USA, its plan was to do limited business here hence needing a bank account therefore an RNC#. No plans to hire locals here.

This said and now having an RNC, is spending the additional funds to incorporate in the DR necessary, and if so any ideas what that additional cost would be now that the RNC portion is complete.
 

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
40,964
936
113
USA company of course is already incorped in USA, its plan was to do limited business here hence needing a bank account therefore an RNC#. No plans to hire locals here.

This said and now having an RNC, is spending the additional funds to incorporate in the DR necessary, and if so any ideas what that additional cost would be now that the RNC portion is complete.
An RNC# just allows you to pay taxes. It doesn't shield you from any liability.

If you are doing business in the DR, I can still sue you and you have little protection in the DR.

I'm not just referring to upside. I refer to downside as well.
 

Fabio J. Guzman

DR1 Expert
Jan 1, 2002
2,367
265
83
www.drlawyer.com
The cost of obtaining an RNC number for a foreign corporation has risen appreciably this year. Internal Revenue requires that the company be registered first with the C?mara de Comercio (Mercantile Registry) and the price of doing so has gone through the roof.
 

PJT

Silver
Jan 8, 2002
3,592
325
83
The C?mara de Comercio is located in the Colonial Zone on Arzobispo Nouel #206.

The phone for the Registro Mercantil is: 809 682 2688, x238, 305 and 221.

Website is: C?mara de Comercio y Producci?n de Santo Domingo.

Note: Anyone going there using their own transportation the area is very congested and the streets are narrow and parking is limited. Arzobispo Nouel runs one-way parallel to El Conde on the shore side. Access is from Parque Independencia.

Regards,
PJT
 

Norteman

New member
Dec 15, 2008
115
6
0
Yes the USA company ha already completed the time consuming costly process, eluded by Mr. Guzman above.

So that is done and in the books. My un answered question was, is this sufficient for basic operations that do not consist of hiring local employees.

Would appreciate any input on this.
 

Oche

Member
Jan 6, 2004
336
4
18
48
If you have an RNC, Mercantile Registry Certificate and you have established legal domicile throughout the process executed via the Ministry of Police of obtaining formal authorization from the government i don't see any other obstacle for basic operations.