Doing Business in Paradise.
As an emerging economy, Dominican Republic is filled with endless opportunities. Whether you're starting a new business or relocating as a Nomad or Remote workers, we help you with this process.
As an emerging economy, Dominican Republic is filled with endless opportunities. Whether you're starting a new business or relocating as a Nomad or Remote workers, we help you with this process.
As one of the fastest-growing economies in the Caribbean and Latin America, the Dominican Republic is becoming a prime destination for entrepreneurs and investors looking to establish a business, or simply expand their own. With strong economic stability, a strategic location, and an investor-friendly legal framework, the country offers numerous opportunities in every industry imaginable like real estate, sports, tourism, film making, finance, trade, IT, and manufacturing.
If you are considering starting a business in the Dominican Republic, this article will walk you through company registration, tax structures, legal requirements, and investment incentives to ensure a smooth and compliant business launch.
Let's start!
✅ Strategic Location & Free Trade Access
The Dominican Republic is the #1 economy in the Caribbean, with direct trade routes to the U.S., Latin America, and Europe through agreements like DR-CAFTA (Dominican Republic-Central America Free Trade Agreement).
✅ Foreign Investor-Friendly Regulations
Unlike some countries with strict restrictions on foreign ownership, the Dominican Republic allows 100% foreign ownership of businesses, making it an attractive destination for international entrepreneurs.
✅ Tax Incentives & Free Zones
Investors can benefit from CONFOTUR tax exemptions (for tourism-related businesses), free trade zones and incentives to produce movies, where companies enjoy 0% corporate tax, duty-free imports and other tax benefits.
✅ Affordable Labor & Operating Costs
The country has a low cost of labor (minimum wage is around $300 US dollars), making it more affordable to run a business compared to the U.S. or Europe while still offering a skilled and bilingual workforce.
✅ Booming Tourism Industry
Sectors like real estate, film industry, hospitality, and tourism are experiencing massive growth, providing lucrative investment opportunities for business owners.
Step 1: Choose a Unique Business Name
Before registering, we need to check the availability of your business name at the National Office of Industrial Property (ONAPI). This is crucial before any entrepreneurship, you don't want a start operating under a business name and later find out it's registered, or worse, get sued for it!
✅ Once approved, obtain a Name Registration Certificate.
📌 Pro Tip: Use ONAPI’s online search tool to ensure your business name is unique.
Step 2: Draft & Notarize Articles of Incorporation
Your business must have a legal document outlining company objectives, ownership structure, and operational guidelines. These documents are known as "Documentos Constitutivos" or constitution documents, the foundation papers that states all the rules for the company. Clients should work with a lawyer to draft the legal documents correctly and avoid common issues or mistakes.
✅ Articles of Incorporation must include:
• Business name & purpose
• Company address
• Shareholders & capital contributions
• Management structure
Step 3: Register the Company with the Chamber of Commerce
Submit the Articles of Incorporation and other documents to the local Chamber of Commerce to obtain your Mercantile Registration (Registro Mercantil).
🔹 Processing Time: 7-10 business days
🔹 Cost: Varies based on capital investment
Step 4: Obtain a Tax ID (RNC) from the DGII
Once registered, you must obtain an RNC (Registro Nacional de Contribuyentes) from the General Directorate of Internal Taxes (DGII) to start operations legally.
✅ Tax Obligations:
• Income Tax: 27% (corporate tax rate)
• ITBIS (VAT/Sales Tax): 18%
• Annual Business Renewal Fees
Step 5: Open a Corporate Bank Account
To operate financially, businesses must open a corporate bank account at a Dominican financial institution and comply with Anti-Money Laundering (AML) and Know Your Clients (KYC) policies. These extensive due diligence are necessary to operate within the country, participate in commerce, and file your taxes.
✅ Required Documents:
• RNC & company registration documents
• Shareholder and legal representative identification
• Initial deposit (varies by bank)
Step 6: Obtain Business Permits & Licenses
Certain industries require additional permits before starting operations and offering products or services, such as:
• Tourism Businesses: Need approval from the Ministry of Tourism.
• Construction & Real Estate: Require municipal zoning permits.
• Retail & Restaurants: Need health and sanitation permits.
• Trade zones: to manufacture products in free trade zones you'll also need permits.
• And many more!
The Dominican Republic offers several tax incentives designed to attract foreign investors, entrepreneurs, and film production companies. These incentives significantly reduce operational costs, increase profitability, and provide a business-friendly environment for both local and international companies.
✅ CONFOTUR Tax Exemptions (For Real Estate & Tourism Businesses)
The CONFOTUR (Ley de Fomento al Desarrollo Turístico, Law No. 158-01) provides major tax breaks for investments in tourism-related real estate and hospitality businesses.
💰 Benefits:
• 0% Property Tax (IPI) for up to 15 years
• No Transfer Tax (3%) on the purchase of properties
• Exemption from corporate income tax for eligible tourism businesses
• Duty-free importation of construction materials and equipment
🏝 Who Qualifies?
Hotels, resorts, and residential projects in tourist-designated zones
Eco-tourism developments
Marinas, golf courses, and leisure businesses
This law makes real estate investment in the Dominican Republic more lucrative, reducing tax burdens for developers and investors.
✅ Free Trade Zones (Zona Franca) – Tax-Free Business Operations
Businesses operating in Free Trade Zones benefit from corporate tax exemptions and import/export advantages, making it a prime choice for manufacturers, logistics companies, and exporters.
📌 Key Benefits:
• 0% Corporate Income Tax (exemption for up to 30 years)
• No VAT or Sales Tax on goods and services within the Free Trade Zone
• Duty-free importation of machinery, equipment, and raw materials
• 100% repatriation of profits
🏭 Who Can Benefit?
• Manufacturing & assembly industries
• Export-focused businesses
• Logistics & distribution hubs
• Call centers & BPOs (Business Process Outsourcing)
The Dominican Republic has over 70 Free Trade Zones, making it one of the best locations in Latin America for industrial and export businesses.
✅ Film Industry Incentives
The Dominican Republic Film Law (Ley de Cine, Law No. 108-10) was created to position the country as a leading film production hub in Latin America.
🎬 Benefits for Film & Media Production:
• 25% Tax Credit on eligible production expenses for local and foreign films
• 100% Exemption from VAT (ITBIS) on film-related services and goods
• Customs Duty Exemptions on imported equipment and filming materials
• Access to a diverse range of filming locations (beaches, mountains, colonial cities)
🌎 Why Film in the Dominican Republic?
• World-class film production infrastructure (Pinewood Dominican Republic Studios)
• Diverse landscapes, allowing tropical, urban, and historic settings
• Competitive production costs compared to the U.S. and Europe
• Established film industry with local talent and production crews
📢 Hollywood productions, Netflix originals, and major studio films have increasingly chosen the DR as a preferred filming destination, thanks to these tax incentives and world-class facilities.
The tax benefits provided by CONFOTUR, Free Trade Zones, and Ley de Cine make the Dominican Republic one of the most attractive destinations for business investment in the Caribbean. Whether you're an entrepreneur, investor, developer, or filmmaker, these laws create significant cost savings and high-profit potential for your business ventures.
Navigating the business registration process and legal framework in the Dominican Republic can be complex. This is where working with seasoned legal and corporate professionals like us can make all the difference.
From assisting entrepreneurs with company formation to guiding investors through tax incentives and Free Trade Zone benefits, our legal experts ensure a smooth, compliant, and efficient business setup.
Whether you need help with LLC incorporation, CONFOTUR tax exemptions, or Ley de Cine applications, we provide comprehensive legal support to help your business thrive in the Dominican Republic.
As specialized lawyers, we understand the intricacies of commercial laws and incorporation requirements.
We work closely with founders and shareholders to align their vision and goal with their entrepreneurship.
From initial due diligence to approval, we handle the process efficiently, saving you time and money.
