Creating a technology company in the Dominican Republic involves following certain detailed steps and legal requirements. From choosing the recommended legal form to obtaining mandatory insurance, it is important to understand the types of technology companies existing in the country.
Steps to Register a Technology Company in the Dominican Republic
Registration with the Chamber of Commerce
The first step to register a technology company in the Dominican Republic is completing the registration with the Chamber of Commerce by submitting the required documentation and paying the corresponding fees.
Obtaining Name Registration with ONAPI
After registering with the Chamber of Commerce, it is necessary to obtain the name registration of the company with the National Office of Industrial Property (ONAPI), ensuring compliance with the established requirements.
Submitting Requirements to the Chamber of Commerce
Subsequently, all the requirements requested by the Chamber of Commerce must be submitted, including the legal documentation, company bylaws, and any other information necessary to formalize the company’s registration.
Obtaining a Tax Identification Number from the National Taxpayers Registry (RNC)
Another necessary requirement for creating a technology company in the Dominican Republic is obtaining a tax identification number. This number is indispensable for conducting legal commercial operations in the country and is required during the company’s registration process.
Drafting Company Bylaws
It is essential to draft the company’s bylaws clearly and concisely, defining its structure and operation in accordance with the prevailing legislation in the Dominican Republic.
Recommended Legal Forms for Creating a Technology Company in the Dominican Republic
Limited Liability Company (SRL)
A Limited Liability Company (SRL) is a recommended legal form for creating technology companies in the Dominican Republic. This structure offers shareholders protection of their personal assets in case of debts or litigation.
Individual Limited Liability Company (EIRL)
Another option to consider is the Individual Limited Liability Company (EIRL). This legal form allows an individual to start a technology business without exposing personal assets to potential adverse situations.
Laws Regulating Technology-Based Companies (EBTs) in the Dominican Republic
National Regulatory Framework
In the Dominican Republic, Technology-Based Companies (EBTs) are subject to a national regulatory framework that governs their creation and operation process. This framework sets out the norms and procedures to ensure compliance with technology-related legislation.
Legislation Related to the Creation and Operation of EBTs
Dominican legislation related to EBTs covers aspects such as intellectual property, data protection, cybersecurity, and technology transfer. These laws aim to promote innovation and technological development in the country, ensuring a favorable environment for companies in the sector.
Types of Technology Companies
Scientific Spin-offs
Scientific spin-offs are companies that emerge from universities and research centers with the goal of transferring scientific knowledge to the market. These companies are characterized by their focus on innovation and the practical application of technology developed in the academic field.
Business Start-ups
Business start-ups are emerging companies created from the productive environment to exploit new technologies in the market in an agile and innovative way. These companies usually have a disruptive and fast-growing approach, aiming to meet unmet market needs through innovative technological solutions.
Recommendations
From my personal opinion and experience, I have seen many technology companies develop in the Dominican Republic as it is a productive chain link that benefits both the state and the technology company itself.
The state benefits because technology companies, in addition to bringing innovation and technological advancement to the country, generate thousands of jobs that significantly reduce the unemployment rate while strengthening the local workforce by making them experts in creating new technologies. This, not to mention that their innovative nature attracts foreign investments that drive the country’s economy.
Aware of this impact, the Dominican State has created conditions to attract such companies to the Dominican Republic and has therefore devised tax exemptions that make the presence of these companies in the country very attractive.
This is why hundreds of foreign companies dedicated to the technology sector have already established their operations on the island, which means abundant human talent or experienced labor and a very solid telecommunications infrastructure.
There are certain steps and requirements for which you might need professional legal and tax expert help when opening a technology company. At Contadores Dominicanos, we can help you create your company or corporation.
