Creating an insurance brokerage company in the Dominican Republic requires following certain steps and meeting specific legal requirements. First, it is necessary to register the company, selecting the type of legal entity and registering its name with the National Office of Industrial Property (ONAPI).
How to Create an Insurance Agency? In this article, we outline the main steps and requirements for opening an insurance agency in the Dominican Republic.
Type of Company for an Insurance Brokerage Firm
It must be established as a joint-stock company or anonymous society, with a required minimum capital of RD $8,500,000. At least 51% of the capital and shares must be owned by Dominicans, and the majority of directors must reside in the country.
Additionally, projected business plans must be submitted and regulations for local and foreign insurers must be complied with. The Superintendence of Insurance will evaluate and approve the proposed rates.
Steps to Open an Insurance Brokerage Company
Company Registration
Key aspects related to this process are detailed below:
- Register the name with the National Office of Industrial Property (ONAPI).
- Payment of taxes at the General Directorate of Internal Taxes (DGII).
- Submission of requirements to the Chamber of Commerce and Production.
Requirements to be an Insurance Broker in the Dominican Republic
Requirements to be an insurance broker in the Dominican Republic include:
- Obtaining certificates of no criminal record.
- Constitutional documents of the company.
- Property title or lease agreement.
- Civil liability policies and guarantee bonds.
Fiscal and Tax Aspects:
- Tax for the establishment of the company.
- Registration with the General Directorate of Internal Taxes (DGII).
- Taxes and fiscal obligations.
Regulation and Operation of Insurance Companies in the Dominican Republic
The regulation and operation of insurance companies in the Dominican Republic are subject to specific requirements. These requirements vary depending on whether they are local or foreign insurers.
Requirements for Local Insurers
Local insurers must be exclusively engaged in insurance, reinsurance, and related activities. Additionally, they must have a minimum subscribed and paid-up capital of RD $8,500,000 or its equivalent in US$500,000 Dominican pesos. Moreover, at least 51% of the subscribed and paid-up capital and the majority of shares must be owned by Dominicans.
Requirements for Foreign Insurers
Foreign insurers wishing to operate in the Dominican Republic must meet the same requirements as local insurers. Additionally, they must have operated in their country of origin for more than five years, present a certificate issued by the competent authorities indicating compliance with the necessary requirements to operate as insurers in their country of origin, and demonstrate that at least 51% of their subscribed and paid-up capital was contributed by non-Dominicans.
Provisions in Insurance Policies
The law stipulates that insurance policies must comply with certain provisions. These policies must be written in Spanish or accompanied by an official translation if written in another language.
Furthermore, it specifies the content, coverage, and conditions that insurers may establish when issuing policies, as well as permissible exclusions. It is established that the insurer issues insurance based on statements and descriptions made by the insured in the application or other documents, and the insured must not omit any circumstances related to the risks.There are certain requirements for which you may need professional assistance when opening an insurance brokerage company; at Contadores Dominicanos, we can help you establish your company or corporation.
