Expand Business in Dominican Republic

Dominican Republic

Global Upside helps businesses expand into Dominican Republic by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with laws and regulations of Dominican Republic.

The hiring and incorporation processes in Dominican Republic are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in Dominican Republic. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.

Capital City

Santo Domingo


Dominican Peso (DOP)


Dominican Spanish, Samana English, Haitian Creole


Representative Democracy

Country Overview

The Dominican Republic is mostly known for its history as a primary exporter of tobacco, coffee, and sugar. The nation has an open-market economy and free trade zones. Since late 2012, the mining sector has played a vital role with the Dominican Republic having one of the biggest gold mines in the world.

  • The Dominican Republic ranks as the 67th largest economy in the world in terms of nominal GDP.
  • The Dominican Republic ranks as the 5th largest economy in Northern America.
  • The Dominican Republic ranks as the 9th biggest economy in Latin America.

The Dominican Republic is one of the biggest exports of knit and crochet clothing in the world.

Options for setting up a legal entity in the Dominican Republic include:

Limited Liability Company (SRL)

A limited liability company, also known as Sociedad de Responsabilidad Limitada (SRL) is the most common form of an entity set up for small-sized businesses. There has to be a minimum of 2 investors who can either be legal entities or individuals.

Public Limited Company (SA)

A public limited company also referred to as Sociedad Anonima (SA) needs at least 2 investors who can either be legal entities or individuals. The company’s shares can be transferred to any third party. The Dominican Republic public limited company has to appoint a statutory auditor.

Branch (Sucursal)

A branch (sucursal) a form of an entity set up whose scope of operations is determined by the parent company. An individual needs to be appointed as the company’s representative, regardless of their nationality.

Representative Office (Oficina de Representacion)

A representative office (oficina de representacion) is an establishment that is a part of the parent company but cannot engage in commercial activities. Their operations include – i) market research and ii) advertising the business of the parent company.

It takes a minimum of one to two months to establish a legal entity set up in the Dominican Republic.

The Dominican Labor Code (Law 16-92) governs employment relationships in the Dominican Republic.

The minimum terms that need to be stipulated in the employment contract are:

  • Employee nationality
  • Remuneration
  • Working hours
  • Leaves and holidays
  • Termination

The payroll frequency, in the Dominican Republic, is monthly.

There is a standard practice to give a Christmas bonus which is equal to one-month salary. It is usually paid by December 20.

The Instituto de Contadores Públicos Autorizados de la República Dominicana (ICPARD) establishes all auditing standards for the preparation of financial reports and audits.

The ICPARD endorsed the IFRS and ISA since 1999, IFRS for small to medium-sized entities (SMEs) since 2014.

Corporate Tax

The corporate tax rate in the Dominican Republic is 27%.

Value Added Tax (VAT)

The VAT rate in the Dominican Republic is 18%. There is a reduced rate of 16%.

Section 44 of the Dominican Constitution regulates citizens’ authority to get access to their personal data stored in private or public databases, including their right to information regarding the purpose and use of the same.

The accumulation, storage, and protection of personal information, as well as usage and authorization rights regarding the personal data, are regulated under the arrangement of the Protection of Personal Data, Law No. 172-13, enacted December 13, 2013 (DPL).

Anti-Bribery & Anti-Corruption Law

The laws that govern bribery and corruption in the Dominican Republic are the Criminal Code and Law No. 41-08 on Public Service, Article 146 of the Constitution, and Law No. 448-06 on Bribery in Trade and Investment.

Bribery of Public Officials:

For Individuals:
i) Imprisonment from 4 to 10 years
ii) Monetary fine

Bribery of Private Officials:

For Individuals
i) Imprisonment from 4 to 10 years
ii) Monetary fine

For Businesses:
i) Monetary fine
ii) Dissolution of the entity
iii) Ban on commercial activities for 2 to 5 years