May I use BVI corporation to Buy property, if i can, are the benefits in taxes stay the same when using DR company
- Thread starter kinddenson
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using BVI corporation as buyer
Same and even better then a DR company! You simply will need to register your BVI company in the DR and you will receive a RNC .
Before you can do that, the BVI corporate documents are problably in English, you will need to get them officially translated and stamped by the Dominican Consulate there.
If it's only to buy property, I would strongly suggest a Panamaian company. Off course , there could be numerous reason why someone would prefer the BVI.
By the way, if you don't mind me asking, who are you using in the BVI to create your company? Doing something similar, looking for a good reference.
Good Luck!
Before you can do that, the BVI corporate documents are problably in English, you will need to get them officially translated and stamped by the Dominican Consulate there.
If it's only to buy property, I would strongly suggest a Panamaian company. Off course , there could be numerous reason why someone would prefer the BVI.
By the way, if you don't mind me asking, who are you using in the BVI to create your company? Doing something similar, looking for a good reference.
Good Luck!
Same and even better then a DR company! You simply will need to register your BVI company in the DR and you will receive a RNC .
Before you can do that, the BVI corporate documents are problably in English, you will need to get them officially translated and stamped by the Dominican Consulate there.
If it's only to buy property, I would strongly suggest a Panamaian company. Off course , there could be numerous reason why someone would prefer the BVI.
By the way, if you don't mind me asking, who are you using in the BVI to create your company? Doing something similar, looking for a good reference.
Good Luck!
A Panamanian Foundation is even better, and for more insulation the Panamanian Foundatrion could be owned by an Isle of Man Corporation or the Cook Islands in the pacific
Never buy a shelf corporation
Bvi
I used
Trident Trust Company (BVI) Ltd
Trident Chambers, Wickhams Cay,
P O Box 146, Road Town Tortola, BVI Telephone
+1 284 494 42434 Fax
+1 284 494 43754
I used
Trident Trust Company (BVI) Ltd
Trident Chambers, Wickhams Cay,
P O Box 146, Road Town Tortola, BVI Telephone
+1 284 494 42434 Fax
+1 284 494 43754
This is just not true. For investments in projects benefiting from the tax incentives granted by Law #158-01, it is advisable to have a Domininican holding ocompany instead.
I respectfully disagree...
I respectfully disagree with Dr. Guzman. I don?t know what are the tax incentives granted by law #158-01, but I am not sure the OP is intending to invest in a project that can benefit from those tax incentives... Would you care to clear this issue for us?
Other then this particular case, I have found the Dominican law about corporations needing at all times a minimum of 7 shareholders quite challenging!
Please be careful about law firms assigning you nominate shareholders or even you assigning friends or relatives as shareholders. I have had quite a bad surprise there.
I have been thru this several times with numerous attorneys and there is simply no way to secure yourself totally from one of these shareholders making a claim in the future...It just doesn't work!!!
For this reason alone, in my opinion, it is far more advantages to register a Panamanian corporation or a BVI corporation. (Unless off course there is some kind of tax incentives involved?)
"One Shareholder", the director could also be the secretary, it's that simple.
Dr Guzman, with the DR encouraging foreign investment, should they not change this law? Foreign investors are not very happy about this, and it is quite unusual for them. What is the thru benefit of imposing a minimum of 7 shareholders?
Please forgive my arrogance
This is just not true. For investments in projects benefiting from the tax incentives granted by Law #158-01, it is advisable to have a Domininican holding ocompany instead.
I respectfully disagree with Dr. Guzman. I don?t know what are the tax incentives granted by law #158-01, but I am not sure the OP is intending to invest in a project that can benefit from those tax incentives... Would you care to clear this issue for us?
Other then this particular case, I have found the Dominican law about corporations needing at all times a minimum of 7 shareholders quite challenging!
Please be careful about law firms assigning you nominate shareholders or even you assigning friends or relatives as shareholders. I have had quite a bad surprise there.
I have been thru this several times with numerous attorneys and there is simply no way to secure yourself totally from one of these shareholders making a claim in the future...It just doesn't work!!!
For this reason alone, in my opinion, it is far more advantages to register a Panamanian corporation or a BVI corporation. (Unless off course there is some kind of tax incentives involved?)
"One Shareholder", the director could also be the secretary, it's that simple.
Dr Guzman, with the DR encouraging foreign investment, should they not change this law? Foreign investors are not very happy about this, and it is quite unusual for them. What is the thru benefit of imposing a minimum of 7 shareholders?
Please forgive my arrogance
BVI corporation registration
First Listen to Mr. Guzman, a foreign corporation can not register and receive a RNC with out a presidential proclamation.
That is as per Mr. Guzman back in 2004, and as I found out is 100% correct.
Now I Have the power of attorney for a ah BVI corporation, that did buy property here, but the titles could not be transferred without, RNC or No. de Cedula, so a new corporation was formed similar to a franchise of the the BVI corp, showing the BVI Corp as the owner.
Although the Stock holders had to be declared, they were later transferred to the name of the Dominican Corporation, and the Stocks of the Dominican Corporation are owned by the BVI corporation.
Each corp owns the other, with me as the sole Power of attorney to conduct business for either.
Yes there are officers, their duties and powers are limited as per the Corporate Charter.
The benefits Corporate property ownership is somewhat less now than it was before, I would think if it were for the ownership of a single home that is your domicile, personal ownership is better up to a certain ceiling of value.
If your home is valued at 30 million plus pesos, with multiple employee, etc, I would think that would be best owned by a corporation and even rented to you personally, for a nominal sum.
Multi properties and with multi incomes and possibly multi transaction increase ones exposure, then Corporate ownership is the wise choice.
I ain't no lawerthes are my observation from experiance, ask Mr. Guzman whom will answer for free here, if it is not a question he has not already answered, he has answered many.
If I went off topic sorry, it all seems realvent to the OP needs to know.
First Listen to Mr. Guzman, a foreign corporation can not register and receive a RNC with out a presidential proclamation.
That is as per Mr. Guzman back in 2004, and as I found out is 100% correct.
Now I Have the power of attorney for a ah BVI corporation, that did buy property here, but the titles could not be transferred without, RNC or No. de Cedula, so a new corporation was formed similar to a franchise of the the BVI corp, showing the BVI Corp as the owner.
Although the Stock holders had to be declared, they were later transferred to the name of the Dominican Corporation, and the Stocks of the Dominican Corporation are owned by the BVI corporation.
Each corp owns the other, with me as the sole Power of attorney to conduct business for either.
Yes there are officers, their duties and powers are limited as per the Corporate Charter.
The benefits Corporate property ownership is somewhat less now than it was before, I would think if it were for the ownership of a single home that is your domicile, personal ownership is better up to a certain ceiling of value.
If your home is valued at 30 million plus pesos, with multiple employee, etc, I would think that would be best owned by a corporation and even rented to you personally, for a nominal sum.
Multi properties and with multi incomes and possibly multi transaction increase ones exposure, then Corporate ownership is the wise choice.
I ain't no lawerthes are my observation from experiance, ask Mr. Guzman whom will answer for free here, if it is not a question he has not already answered, he has answered many.
If I went off topic sorry, it all seems realvent to the OP needs to know.
First Listen to Mr. Guzman, a foreign corporation can not register and receive a RNC with out a presidential proclamation..
I have no idea of this. I personally own two Panamanian corporations with Dominican RNC's, they where set up by my Dominican lawyers here. I am unaware of then applying for any Presidential proclamation????
If it where the case, witch I doubt, it must have been a very simple process...
Your setup sound all too complicated, and you do seem a bit out of date on some of the topics on this board. Dr. Guzman's latest recommendation was actually to buy property thru a corporation.
The discussion here seems to be; should the OP use a foreign corporation or a Dominican corporation? Feel free to jump in if you have an opinion on the matter...
?In the land of the blind, the one-eyed man is king.?
There is a bill in Congress updating Dominican company law and doing away with most of the anachronisms such as the 7-shareholder requirement.
A nominee shareholder who legally assigns the stock to the real owner just after incorporation has no way of having aclaim against the company or the real owner.
The main disadvantages of a foreign company vs. a Dominican company are the following:
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. (Many projects in the East Coast, like Cap Cana, etc. have these incentives, which include no taxes for 10 years, etc.)
5. 25% tax withholding on any payments made to the offshore, for example, for a sale, unless the offshore is domiciled in the DR. (This could be a shocker to many people. The fact that it is no being enforced at this time does not mean it won't be in the near future. Remember Verizon!).
6. Annual maintenance more expensive than for a DR Company.
I realize that many law firms, including big ones, push offshores on their clients without telling them about the above. For law firms, it's a lot easier to order an offshore from their correspondent in Panama or BVI, than incorporating in the DR. There is practically no work to be done and the markup is usually good.
A nominee shareholder who legally assigns the stock to the real owner just after incorporation has no way of having aclaim against the company or the real owner.
The main disadvantages of a foreign company vs. a Dominican company are the following:
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. (Many projects in the East Coast, like Cap Cana, etc. have these incentives, which include no taxes for 10 years, etc.)
5. 25% tax withholding on any payments made to the offshore, for example, for a sale, unless the offshore is domiciled in the DR. (This could be a shocker to many people. The fact that it is no being enforced at this time does not mean it won't be in the near future. Remember Verizon!).
6. Annual maintenance more expensive than for a DR Company.
I realize that many law firms, including big ones, push offshores on their clients without telling them about the above. For law firms, it's a lot easier to order an offshore from their correspondent in Panama or BVI, than incorporating in the DR. There is practically no work to be done and the markup is usually good.