Population
The Dominican Republic is one of the most populous nations in the Caribbean. According to the latest data from the National Statistics Office ("ONE", for its acronym in Spanish), by the end of 2023, the country's estimated population was approximately 11 million people, with a nearly even distribution of 50.5% women and 49.5% men. Over the past decade, the population experienced a growth rate of 1.10%.

Location
The Dominican Republic is located on the island of Hispaniola in the Caribbean region. It shares the island with Haiti to the west and is bordered by the Atlantic Ocean to the north and the Caribbean Sea to the south. The country spans an area of about 48,671 square kilometers (18,792 sq. mi), making it the second-largest country in the Caribbean by area.

Climate and Ecosystems
The Dominican Republic enjoys a tropical maritime climate, with temperatures averaging around 25°C (77°F) year-round. The country is known for its diverse ecosystems, ranging from tropical rainforests and savannas to mountainous regions like the Cordillera Central, where the highest peak in the Caribbean, Pico Duarte, is located. The coastal areas feature beautiful beaches, coral reefs, and mangroves.

Infrastructure
The Dominican Republic has been investing heavily in infrastructure development to support its growing economy. The government has launched several road and highway projects to improve connectivity across the country such as the National Connectivity and Road Infrastructure Transformation Plan ("PLANACOVIAL"), focusing on rehabilitating and expanding key highways, including 19 km of the Duarte Highway and a 67.9 km road connecting San Pedro de Macorís to Miches, one of the emerging tourist destinations at the moment. Additionally, the Santo Domingo Metro Expansion Project will add new lines and stations, while Santiago's monorail will cover 13.2 km with 14 stations, improving urban transit and reducing travel times.

Ports and Waterways
The Dominican Republic has 10 maritime ports, including the Port of Haina, the Port of Caucedo, and the Port of Santo Domingo, which are among the most important for facilitating trade and tourism. The country’s strategic location in the Caribbean makes it a key hub for maritime shipping routes between North America, Europe, and Latin America. The government has been promoting public-private partnerships to modernize port infrastructure and enhance its capacity.

Airports
The Dominican Republic has eight international airports, with Punta Cana International Airport being the busiest. In the first six months of 2024, Punta Cana Airport dominated, handling 68.8% of foreign passengers, while Las Américas International Airport in Santo Domingo accounted for 18.0% of foreign arrivals. These airports are key gateways for millions of tourists each year. Recent investments have been directed toward expanding and upgrading airport facilities to accommodate the growing number of visitors.

Water and Sanitation
In recent years, the Dominican Republic has significantly advanced its water and sewage infrastructure. The government has prioritized upgrading both the coverage and quality of these essential services, addressing challenges such as outdated technology and inefficient management practices. As part of these efforts, the country has embraced public-private partnerships to bolster the construction, operation, and maintenance of modern water treatment plants. These collaborations aim to enhance service delivery and efficiency. The Dominican Republic remains dedicated to achieving the Sustainable Development Goals, with a particular focus on providing universal access to clean water and improved sanitation for all its residents.

Electricity
The Dominican Republic has an installed electricity capacity of approximately 4,200 MW. The country’s electric energy sector is undergoing a significant transformation, shifting from a reliance on fossil fuels to a more diversified energy matrix. Historically, most of the electricity was generated from thermal sources, but recent efforts are focusing on increasing the share of renewable energy. By 2025, the Dominican Republic aims to achieve at least 25% of its energy from renewable sources, including solar and wind power, as part of its commitment to a more sustainable energy future.

Tourism
In 2023, the Dominican Republic recorded 10 million international arrivals, reflecting a robust recovery in its tourism sector. The majority of visitors came from the United States, accounting for around 30% of the total arrivals. Notable increases in foreign visitors were seen in Canada (up 50%), Germany (up 40%), and Brazil (up 30%). Compared to 2022, the number of foreign tourists surged by 25%, marking a continued strong rebound following the impacts of the pandemic.

The legal requirements for the establishment of a company in the Dominican Republic are established in Law 479-08 on Limited Liability Companies and Single Person Limited Liability Entities, dated as of December 11, 2008, as amended (the “Corporate Law”). In this regard, to carry out its operations locally, will need to establish domicile in the Dominican Republic, which can be done by the (i) incorporation of a local entity (Dominican subsidiary); or (ii) establishment of a local branch of a foreign company.

Incorporation of a Company/Registration of a Foreign Company

Incorporation of a Company
In the Dominican Republic, businesses can be structured under different legal entities, each with its own specific characteristics and requirements. Among these, the most common forms are the Simplified Corporation (Sociedad Anónima Simplificada - "S.A.S."), the Limited Liability Company (Sociedad de Responsabilidad Limitada - "S.R.L."), and the Corporation (Sociedad Anónima - "S.A.").

For the Simplified Corporation ("S.A.S."), a minimum of two shareholders is required for incorporation, with no maximum limit on the number of shareholders. The capital of an S.A.S. is divided into shares, which are negotiable among individuals and do not have a minimum issuance value. The minimum authorized capital must be at least RD$ 3,000,000.00, with 10% of this amount paid in at the time of incorporation. The administration of a S.A.S. can vary according to its by-laws and may include a President Administrator, a Joint Council, or a Board of Directors, similar to that of a corporation. Supervision requirements are minimal unless private debt certificates are issued.

The Limited Liability Company ("S.R.L.") requires a minimum of two partners for incorporation and allows up to a maximum of fifty partners. If the number of partners exceeds this limit, the entity must either reduce the number of partners or convert into a corporation or a S.A.S. The capital of an S.R.L. is represented by social quotas, which are generally non-negotiable, and the minimum value of these quotas is RD$ 100.00. Administration is typically handled by one or several managers who may act individually or jointly. These managers do not need to be partners, nor residents or citizens of the Dominican Republic. Unlike other forms, there is no mandatory requirement to appoint a Comptroller, but financial statements must be audited under certain conditions, such as obtaining financing from financial entities or having significant earnings.

For the Corporation ("S.A."), the structure is like a S.A.S. in terms of shareholder requirements, with a minimum of two and no maximum number. The capital is also divided into shares with no minimum issuance value, but the minimum authorized capital must be at least RD$ 30,000,000.00, with 10% paid in at incorporation. The management of a corporation is handled by a Board of Directors consisting of at least three members, including a President, Vice-president, and Secretary. It is mandatory for Corporations to appoint a Comptroller who meets specific qualifications, including holding a degree in accounting, business administration, finance, or economics, and having at least three years of experience. Unlike S.A.S. shares, those of a corporation can be publicly traded on the Stock Market if the company complies with relevant laws and is duly registered.

These different structures offer varying levels of flexibility, control, and legal requirements, allowing businesses to choose the form that best suits their operational needs and growth strategies within the Dominican Republic.

For the purpose of choosing one of the previously described corporate vehicles, the usual criteria considered are (i) the minimum requirements for social capital: considering the initial investment at the time of incorporation(1) and the taxable base for the asset tax(2) would be less; (ii) the requirements regarding supervision: since less legal obligations would have to be complied with; and, (iii) the internal governance requirements: considering that the most flexible entities are easier to manage. This is because there is no difference between the tax regimes applicable to either corporate vehicle.

Registration of a Foreign Company
According to our Corporate Law, foreign entities duly incorporated abroad may undertake commercial operations in the Dominican Republic on a regular basis, after their registration as a branch in the Mercantile Registry of the Chamber of Commerce corresponding to the domicile chosen in the Dominican Republic. Also, since a branch will be considered by our Tax Laws as a permanent establishment(3), the branch will be required to matriculate in the Registry of Taxpayers (Registro Nacional de Contribuyentes) of the Tax Authorities and pay the taxes applicable to its local activities.

When establishing a business presence in the Dominican Republic, companies can choose between setting up a branch or a subsidiary, each with distinct legal and operational implications:

• Branches
  Are governed by the corporate laws of their jurisdiction of incorporation. However, for their operations within the Dominican Republic, branches must comply with local regulations, including obtaining a Mercantile Registration from the relevant Chamber of Commerce and a Tax Identification Number (RNC) from the Tax Authorities. Although the corporate requirements are largely dictated by the laws of the parent company’s jurisdiction—meaning that shareholders’ resolutions do not need to be registered locally—branches must still renew their Mercantile Certificate every two years. Establishing a domicile in the Dominican Republic requires either authorization from the Executive Power or registration at the Mercantile Registry. Importantly, the parent company is liable for all legal responsibilities, including labor, tax, civil, and criminal liabilities, arising from the branch's operations. The branch is subject to the same tax regime as local subsidiaries, but its taxable base is limited to the operations conducted in the Dominican Republic. Additionally, any profits repatriated to the parent company are subject to a 10% withholding tax. Branches are not subject to capital tax.
• Subsidiaries
  On the other hand, are fully governed by Dominican law. This means they must comply with all local corporate requirements, such as having at least two shareholders and registering all shareholders’ meetings with the Chamber of Commerce. The subsidiary's local domicile, indicated in its incorporation documents, is registered as part of the incorporation process. Unlike branches, subsidiaries are independently responsible for their liabilities, with no direct recourse to the parent company for labor, tax, civil, or criminal matters arising from their operations in the Dominican Republic. Subsidiaries are subject to the general tax obligations outlined in Dominican law, including any applicable capital taxes.

These distinctions between branches and subsidiaries highlight the importance of understanding the legal and operational frameworks when deciding on the most appropriate structure for business activities in the Dominican Republic. To summarize the similarities and differences detailed in the chart above, basically, the only two advantages of establishing a branch in the Dominican Republic over incorporating a local subsidiary are (i) having fewer corporate obligations to comply with locally; and (ii) possibly paying fewer taxes. Note that we say possibly because the taxes applicable would depend on the profits reported in the accounting of the branch. However, these advantages must be weighed against the benefit of the reduced liability for the parent company that is offered by the incorporation of a local subsidiary, as all labor, tax, civil, criminal and/or any other liabilities that may arise from the company’s operations in the Dominican Republic shall rest in principle, only on the subsidiary.

(1) Note that there is no mandatory provision in our Corporate Law that requires the social capital of an entity to be deposited in any bank account; however, now of incorporation, one percent (1%) of the social capital must be paid as incorporation tax. Also, the service fee to be paid at the Mercantile Registry of the Chamber of Commerce at the time of the incorporation is based on the social capital chosen for the company. Furthermore, although the authorities do not verify the actual deposit of the social capital in any bank account, our Corporate Law does provide that every time a local entity closes its fiscal year with profits it needs to reserve five percent (5%) of the amount earned until the amount reserved reaches a ten percent (10%) of the capital of the company.

(2) The asset tax is one of the taxes applicable to entities established in the Dominican Republic.

(3) According to our Tax Laws, a ‘permanent establishment’ refers to a fixed place of business in which a foreign undertaking, person or entity carries all or a portion of its activities, such as: management seat, office, branch, enterprise consulting services, if and when they exceed six (6) months within a yearly period, and representatives, dependent and independent agents, when they are conducting all or almost all of their activities in the name of the company.

Income Tax
Income tax is currently at a rate of 27% on all income from Dominican sources, after deducting costs, expenses, and any allowable tax deductions. It is payable once a year, within 120 days after the company's fiscal year-end. However, starting from the first tax return filed, the company must file and pay income tax advances by the 15th of each month. In case of non-compliance with these obligations, the standard penalty for delay is 10% of the amount due for the first month or fraction thereof, and another 4% for each subsequent month or fraction thereof, in addition to a monthly interest of 1.10% as compensation.

Dividends Payment Withholding
If the company distributes dividends in any form of cash, it must withhold 10% of that amount as an advance payment towards the shareholders' income tax.

Value-Added Tax (“VAT”)
The general Transfer Tax on Industrialized Goods and Services ("ITBIS") like VAT, the rate is currently 18% of the cost of the good or service, though some products may be subject to a different rate. This tax is paid at the time of purchase of any good or service. However, companies have the obligation to act as withholding agents for third parties, and in this case, withheld taxes are payable monthly by the 20th of the month following the transaction's occurrence and invoicing.

Asset Tax
The Asset Tax is currently at a rate of 1% of the value of the taxpayer's assets. However, this tax is only payable if the company has no operations, or if the amount payable for income tax is less than 1% of the entity's asset value. The Asset Tax is paid once a year, within 120 days after the company's fiscal year-end. Note that tax declaration is an obligation for all local entities, regardless of whether they had operations in a particular fiscal year.

Real Estate Transfer Tax
The current rate is 3% of the property's value, payable only at the time of property transfer. This transfer must be completed within six months following the date of the sale contract. Note that penalties for non-payment or delay are only applicable if this obligation is not met within the indicated six-month period.

Territoriality Principle
The Fourth Principle under the Dominican Labor Code consecrates the principle of territoriality of the labor laws, which govern Dominicans and foreigners without distinction, except for the repeals admitted in international conventions. The lack of special provisions for relations between individuals is supplied by the rules of common law.

Employment Agreements
In principle, it is not necessary for employment contracts to be in writing, as the existence of an employment contract is presumed in all personal relationships. However, in some cases, employment contracts must be executed in writing (i.e., temporary employees), as required in the case of foreign employees. Nevertheless, all written employment contracts must be submitted to the Ministry of Labor within three days following their execution.

The nature of the contract can vary depending on the work required. The different modalities are as follows:

• Indefinite-Term Employment Contract
  When the nature of the work is permanent. It is presumed that all employment contracts are for an indefinite term unless otherwise indicated.
• Fixed-Term Employment Contract: These can only be executed in the following cases: (a) when the nature of the work requires it; (b) when the employee is hired with the specific purpose of replacing another employee who is on leave, vacation, or has any other temporary impediment; or (c) when it is in the interest of the employee.
• Employment Contract for a Specific Job or Service
  This type of contract is only executed for the completion of specific tasks that are not of a permanent nature, and once the task in question is completed, it terminates without any liability for either party. It is important to mention that because this type of agreement is used by some employers to evade their labor obligations without assuming responsibility, our jurisprudence has indicated that if an employee works for the same employer successively in more than one particular job, and there is no period greater than two (2) months between each job, it will be considered that said worker and their corresponding employer have an indefinite-term employment contract.
• Seasonal Work
  This type of agreement is related to work that only lasts for a season or part of the year, such as some jobs in the agricultural industry. These agreements can also be terminated without liability for the parties, but if the work extends for a period longer than four (4) months, the worker is entitled to receive an amount as "economic assistance," as provided by Article 82 of the Labor Code.

Workforce
In terms of personnel composition, any company operating in the Dominican Republic must maintain at least 80% of its total number of employees as Dominicans. Additionally, the salaries earned by Dominican personnel must amount to at least 80% of the total payroll value of all employees. These provisions have corresponding exceptions, which include employees performing technical tasks and other administrative or executive personnel. However, note that the applicability of any exception must be approved by the Ministry of Labor (Ministerio de Trabajo – "MIT").

Labor Obligations Arising From the Employment Agreement:

• Work Hours
  Every worker is entitled to a continuous weekly rest period of 36 hours; in the absence of an express agreement at the beginning of this period, it is understood to start at noon on Saturday. If the worker agrees, they can provide services during their weekly rest period, having the right to choose between receiving the ordinary salary increased by 100% or enjoying a compensatory rest period equal in time to the weekly rest in the following week.
  
  Regarding daily rest, note that every employee is entitled to mandatory breaks during the daily shift: after four hours of uninterrupted work, a one-hour break; and after five hours of uninterrupted work, a one-and-a-half-hour break. This period is set by the parties based on company practices and the nature of the work and does not apply to companies that are continuously open.
  
  By agreement of the parties, a continuous work shift of up to ten hours can be called for commercial activities. In no case shall the weekly work hours exceed the 44-hour limit, as previously indicated for the purposes of registration with the Ministry of Labor, regardless of whether the worker works longer shifts due to the nature of the job, provided that overtime is paid as applicable.
• Leave
  The types of leave permitted with the right to receive salary payment are:
  1. Five days of leave in case of marriage;
  2. Three days of leave in case of the death of an immediate family member, spouse or partner;
  3. Two days of leave in case the wife or registered partner gives birth;
  4. For female employees, six weeks before the probable date of delivery and six weeks after delivery. This constitutes prenatal and postnatal leave granted to employees for childbirth, as part of maternity protection measures. When the employee does not use all prenatal leave, the unused time is accumulated for the postnatal rest period. It shall never be less than 14 weeks in total.
  5. In case of employee illness, in accordance with Article 51 of the Labor Code, the employer is released from paying the salary while the worker is exempt from performing their work, and the salary will be covered by the corresponding entity of the Dominican Social Security System. If the employer fails to comply with social security obligations, they are required to cover all medical expenses and/or benefits the worker is deprived of.
• Public Holidays
  Days declared as holidays by the Constitution or the law are considered part of salary payment. However, if the worker agrees to work on a legally declared holiday, they will be paid an increment of 100% of the usual hourly wage.
• Christmas Bonus
  The employer is required to pay the employee, no later than December 20th of each year, 1/12 of the salary earned by the employee during the calendar year, without prejudice to other company practices. Workers who have not worked a full year by the specified date are entitled to a proportional payment based on the number of days worked. This benefit is not considered salary for the purposes of dismissal benefits and economic assistance under the Labor Code. This salary is not subject to any tax withholding, seizure, transfer, or sale, nor is it subject to income tax.
• Vacation Period
  After one year of continuous work, employees are entitled to 14 working days of paid vacation, according to the following scale: (i) 14 days of ordinary salary for continuous work from one to five years; (ii) 18 days of ordinary salary for continuous work of not less than five years. If the employment relationship ends before completing a full year of service, employees must be compensated according to the special scale provided in Article 180 of the Labor Code.
• Affiliation to the Dominican Social Security System
  In accordance with Law 87-01, it is mandatory for all workers to be affiliated with the Dominican Social Security System, regardless of their income or functions. Employers who do not comply must reimburse the full salary during the worker's absence, cover medical expenses due to illness or accident, or provide the pension not received due to the employer's violation...Moreover, non-compliance by the employer with obligations under Law 87-01 is considered a criminal offense punishable by correctional imprisonment and/or fines, in addition to a monthly surcharge of 5% on the amount involved in undue retention, when the violation is related to non-enrollment of an affiliate or non-payment of contributions within the legal deadline, without prejudice to the employer's liability to workers as outlined above.
• Family Health Insurance and Pension Funds
  These are provided by private institutions, and employees have the right to choose freely.
• Occupational Risk Insurance
  This is a public institution, and thus employees do not have the right to choose. It is financed by an average contribution of 1.2% of applicable salaries, fully covered by the employer. The employer's total contribution consists of (i) a fixed basic rate of 1%, uniformly applied to all employers; and (ii) a variable rate of up to 0.6%, set according to the field of activity and risk factor of each company. In both cases, these percentages are applied based on applicable salaries. The maximum contribution in this insurance is four minimum wages.
• Family Health Insurance
  The maximum contributable salary is equivalent to ten minimum wages. The financing of this insurance consists of joint contributions from employees and employers as follows: (i) Employee Contribution: 3.04%, (ii) Employer Contribution: 7.09%.
• Old Age, Disability, and Survivorship Insurance
  The maximum applicable salary is equivalent to 20 minimum wages. This insurance is financed by joint contributions from workers and employers as follows: (i) Employee Contributions: 2.87%, (ii) Employer Contributions: 7.10%.
• Foreigners Legally Established in the Country
  They are beneficiaries of the Social Security System, excluding (i) foreign diplomatic missions and international organizations, and (ii) expatriate personnel of foreign companies already included in their home country's social security systems, particularly for pension contributions. However, in practice, once a person is registered in the Dominican Social Security System, pension fund deductions are automatically made along with other contributions, as Social Security issues a bill for the payment of the three insurances mentioned above.

Principle of Foreign Exchange Freedom
In the Dominican Republic, the legal currency is the Dominican Peso. However, as established by Law No. 183-02, there are no general restrictions on the currency used for transactions, except for certain regulated sectors that may require specific authorization from local regulators. For International Public Projects ("IPP Projects"), there are no restrictions on the currency used in such projects.

The regulatory framework governing foreign exchange ("FX") in the Dominican Republic allows for free negotiation and convertibility of currencies, and transactions are not subject to prior authorization by any authority. This framework supports the unrestricted holding of assets both within the country and abroad, aligning with international investment procedures.

Foreign Investment
Dominican law ensures equal treatment for both domestic and foreign investments. However, certain restrictions or regulations are imposed on foreign investment in specific sectors deemed sensitive or strategic. These sectors include (i) mining, where investments from other sovereign states are prohibited; (ii) aviation; (iii) the handling of toxic waste; (iv) radio transmissions, which require a minimum level of Dominican capital and mandate that public media managers be Dominican; and (v) activities affecting public health and environmental balance, the production of materials and equipment related to national defense and security, and other sector-specific restrictions, all of which require special authorization from the Executive Power or are provided by law.

To foster foreign investment and develop the export sector, the Dominican Republic established the Center for Export and Investment ("CEI-RD"), known today as ProDominicana. While registration with the CEI-RD is not mandatory, foreign investors can remit profits and repatriate capital without prior authorization, provided they adhere to local tax regulations, which are equivalent to those for domestic investors. This includes remittances of royalties, capital gains, and capital upon the liquidation of the investment, up to the amount of the original investment. Registration with the CEI-RD, however, offers access to a preferential regime and expedited residence options for investors and management personnel.

The Dominican Republic actively engages in multilateral trade relations, having signed numerous free trade agreements and bilateral investment treaties with countries including Argentina, Chile, South Korea, Spain, Finland, France, Italy, Morocco, Panama, the Republic of China, the Kingdom of the Netherlands, and Switzerland. Additionally, it has entered treaties to avoid double taxation with Canada and Spain.

Registration Obligations of Foreign Currency
As mentioned above, the laws of the Dominican Republic do not impose restrictions on currency, foreign exchange, or interest rates for offshore transactions. Such transactions can occur in any currency and with any agreed-upon interest rate. However, it is essential that transaction details are accurately documented to prevent misinterpretations.

According to Article 63 of the Exchange Regulation ("Reglamento Cambiario"), individuals or entities making commitments in foreign currency are required to report these transactions to the Central Bank for statistical purposes. This reporting obligation applies to local counterparties in the Dominican Republic but does not extend to foreign companies without a permanent establishment in the country.

Law 168-21 on Customs of the Dominican Republic, enacted on August 9, 2021, is crucial legislation for the modernization and optimization of foreign trade in the country. This law replaces the previous Law No. 3489 of 1953 and addresses the need to align customs regulations with contemporary economic, legal, and technological trends, while also fulfilling international agreements. Its main purpose is to simplify bureaucratic procedures, eliminate legislative gaps, and strengthen legal certainty to encourage both local and foreign investment.

The implementation of this law is a significant step towards positioning the Dominican Republic as a regional logistics hub in the Caribbean. Through the National Freight Logistics Plan 2020-2032 ("PNLOG"), supported by the Inter-American Development Bank ("IDB") and various sectors of the country, the goal is to capitalize on the nation's strategic location in international transportation. The Customs Law also introduces the Logistics Community System ("SLC"), an electronic platform that facilitates the integration of logistics services and connects with the Single Window for Foreign Trade ("VUCE"), thereby streamlining the fulfillment of customs obligations.

Another notable aspect is the creation of the National Trade Facilitation Committee ("CNFC"), chaired by the General Directorate of Customs ("DGA"). This committee acts as a permanent dialogue table to promote trade facilitation in the country and ensure the implementation of the provisions of the World Trade Organization's ("WTO") Trade Facilitation Agreement. Additionally, the Authorized Economic Operator ("AEO") figure is recognized, contributing to ensuring security in the logistics chain and expediting international trade operations.

The law also establishes a clear legal framework for customs inspection and control, including various types of controls ranging from pre-clearance to immediate and post-clearance. This ensures that goods are adequately monitored at each stage of their transit through the customs territory. Moreover, it defines customs tax obligations, providing precise procedures for the settlement, clearance, and extinction of such obligations, which increases transparency and efficiency in customs operations.

In summary, Law 168-21 on Customs is fundamental for the development of trade in the Dominican Republic, providing a modern and efficient framework that facilitates international trade, strengthens legal security, and promotes investment, all in line with the country's international commitments.

When considering residence or work opportunities in the country, it is essential to understand the various visa and permit options available. Below is a summary of key visas and permits that cater to different purposes, including labor and investment. Each type has specific requirements and processing times that are important to review to ensure compliance and successful application:

• Multiple Business Visa for Labor Purposes ("NM1")
  This visa is for individuals who need to stay in the country for up to a year for work without leaving. It requires a contract with a local company, various supporting documents such as a certificate of no criminal record and medical certification, and compliance with labor regulations. Processing can take from one to ten working days, and you must finalize your residence within 30 days of entry.
• Residence Visa for Investment
  Designed for those looking to reside permanently for investment reasons, this visa requires similar documentation to the NM1 visa, including proof of foreign investment and compliance with labor regulations. It also has a processing time of one to ten working days, with residency formalization required within 30 days of entry.
• Temporary Residence ("RT-3")
  This permit is for foreigners coming to the country for work under an employment contract. It requires a valid passport, employment contract, and several other documents, with a processing time of 90 calendar days and a one-year validity. Applicants must formalize their residence within 30 days of entry.
• Investment Residence for Foreign Managerial or Technical Personnel
  This visa is for foreign management or technical staff working for a foreign company. The application process involves an application form, employment contract, and several other documents, with a processing time of 45 working days and a one-year validity. Residency must be formalized within 30 days of entry.

Each type of visa or permit has specific requirements and processing times, so it's important to prepare all necessary documents and adhere to the deadlines to ensure a smooth application process.

The environmental legal framework in the Dominican Republic is primarily based on the Constitution, which establishes the duty of the State to prevent contamination and to protect the environment for the benefit of current and future generations. Moreover, environmental protection represents a collective right of every citizen of the country.

In this regard, Law No. 64-00 enacted in 2000 represented the initiation of the Environmental Law in our country. This Law is the main regulation of environmental policies, which created the institution in charge of the management of the environment and natural resources (the "MENR") and the prosecutor for the environment and natural resources defense.

Also, the environmental legal framework in our country is composed of (i) multiple international convene regarding environmental protection, (ii) Resolution No. 03-2014, the Compendium of Rules and Procedures applicable for Environmental Authorizations of the Dominican Republic (which contains, among other, the environmental impact assessment procedure), (iii) the resolution and regulations issued by the MENR from time to time, and (iv) applicable jurisprudence.

The MENR is the State entity in charge of applying environmental regulation, to assure the protection of the environment, ecosystems and natural resources in our country.

In general terms, the Dominican Republic's legal framework states that any activity, work or project with a potential impact on the environment and natural resources must count with an environmental authorization prior to the initiation of works. In view of the foregoing, the Ministry of Environment and Natural Resources (“MENR”) issued, by means of Resolution No. 03-2014, the Compendium of Rules and Procedures applicable for Environmental Authorizations in the Dominican Republic, which sets forth the following classifications in connection with environmental authorizations:

• Environmental License
  Is the environmental authorization granted to high-impact projects which require an Environmental Impact Study
• Environmental Permit
  Is the environmental authorization granted to moderate impact projects with potential environmental impact, which require an Environmental Impact Statement
• Environmental Record
  Is the environmental authorization granted to projects with low environmental impact (compliance with the current environmental regulation is required for its execution)
• Minimal Impact Certificate
  This is granted to minimal-impact projects subject to compliance with applicable environmental regulations

Under Law No. 64-00, projects operating without the required authorization may be sanctioned with fines or may face the suspension or shutdown of their operations. Additionally, project sponsors can be held civil and criminally liable for damages caused to the environment.

Also, depending on the scope of the project, other authorizations may be required, such as tree-cutting permits.

The legal framework governing real estate property in the Dominican Republic primarily revolves around Law No. 108-05, enacted on February 22, 2005, and its amendments, which focus on Real Estate Registration. Additionally, the Dominican Constitution and Civil Code provide overarching legal principles. The legal system follows Civil Law, with the Civil Code complementing Law 108-05 regarding property transactions and rights.

The Dominican Republic utilizes the Torrens System for real estate registration, which aims to ensure all properties are officially recorded. Law 108-05 establishes that the Dominican government is the default owner of unclaimed land. Most real estate is thus registered as either private or government property.

The real estate jurisdiction is exclusively responsible for property rights and includes the following entities:

• Superior Land Courts
  Handle appeals and jurisdictional resources
• Courts of Original Jurisdiction
  Serve as the initial level for real estate matters
• National Title Deed Registry Directorate
  Manages the Title Registry Offices nationwide
• National Directorate of Cadastral Measurements
  Oversees technical measurement and cadaster operations
• State Attorney
  Represents the government in real estate matters

For freehold title, ownership is evidenced by a Title Certificate issued by Title Registry Offices. This certificate details property specifics and ownership. The original Title Certificate is safeguarded, while duplicate certificates are issued to owners. In case of loss or destruction of a duplicate, a new one can be requested. Annotations and inscriptions are made upon request and must be supported by approved plans.

Regarding leases, the Dominican Civil Code, Presidential Decree No. 4807, and Law 4314 govern the terms and conditions. Lease agreements should ideally be written, specifying the lease terms.

Before acquiring or leasing property, thorough due diligence is recommended. This includes obtaining copies of the Title Certificate, property tax receipts, and corporate documentation if applicable. Key aspects of due diligence involve:

• Technical Information Report
  Verify property compliance with technical requirements
• Title Registry Verification
• Ensure the property is appropriately registered and check for any restrictions
• Real Estate Legal Status Certification
  Confirm the property’s legal status and encumbrances
• Tax Certifications
  Verify that property taxes are paid or not applicable

Consulting a specialized attorney is advised to navigate these legal requirements and ensure the property's legal status and ownership are clear.

The Dominican Republic is one of the countries that grants one of the highest levels of protection to intellectual property in the region, being a signatory of the Agreement on Trade-Related Aspects of Intellectual Property Rights ("TRIPS") of the World Trade Organization, the Paris Convention for the Protection of Industrial Property, the Cooperation Treaty in Patents ("PCT"), Chapter 15 of DR-CAFTA and other international agreements.

The government agency responsible for granting patents and registering industrial property rights is the National Office of Industrial Property ("ONAPI"). The National Copyright Office ("ONDA") is the national authority in charge of the registration and organization of applications related to copyright. Both agencies are dependent on the Ministry of Industry and Commerce.

Civil and criminal penalties may be applied in case of infringement of intellectual property rights by the courts and these include payment of damages and fines and/or imprisonment.

Patents and Industrial Designs
Patents may be obtained to protect inventions and utility models. An invention is defined as any idea or creation of the human intellect related to products or procedures, capable of being applied in industry. Dominican regulation contemplates essential requirements for registration, such as possessing an innovative nature, it must be unknown given the current state of scientific development and it must have an inventive character, (i.e. it must not be able to be deduced by a person with technical knowledge). Any changes that present novelty or uniqueness in aesthetic components of a product, without changing the character or function of the product, must be registered as industrial designs.

Applications for patents and industrial designs should be directed to ONAPI and must comply with the requirements stated by law.

Patents of invention have a validity of 20 years, with no extension possible, counted from the date of submission of the application in the Dominican Republic; for its part, the registration of a utility model grants protection of 15 non-extendable years counted from its filing date. Meanwhile, the granting of an industrial design registration gives the holder a protection of five years, extendable or extensive for two additional periods of five years each.

Trademarks
Dominican law protects different kinds of trademarks, which include collective trademarks, certification trademarks and sound and scent trademarks. The registration of a trademark grants exclusive rights over the same. On the other hand, the period of use of those trademarks that have been registered (more than 6 months) determines the priority for the registration. Dominican law also recognizes certain rights of priority for trademarks registered abroad. New trademarks are registered in favor of the person who first requests them. Registration is granted for a period of 10 years, renewable for consecutive periods of 10 years.

Among the distinctive signs that may not be registered are some prohibitions relative to the sign itself, such as:

• Signs that may be used commercially to describe the product.
• Generic or scientific denominations of products, and colors, among others.
• Signs that are contrary to public order or moral standards.
• Signs that ridicule persons, religions, countries, or others.
• Signs that may deceive the public in terms of the nature or the qualities of the product, among others.

Copyrights
The main objective of the Dominican copyright law is to provide a legal and institutional framework in accordance with the provisions of the Aspects of Intellectual Property Rights Agreement related to Commerce ("TRIPS"), which allows for the effective protection of copyrights in the Dominican Republic, considering the national interest.

For these purposes, the country has ratified the following international conventions regarding this matter:

• Berne Convention for the Protection of Literary and Artistic Works from 1886.
• Universal Copyright Convention from 1952.
• Rome Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations from 1961.
• Treaty of the Intellectual Property World Organization (OMPI) for the Rights of Authors and Interpreters and Phonograms of 1996.

Dominican copyright law protects all kinds of original intellectual creations that may be fixed, transmitted, or reproduced by any existing means or are existing in print, reproduction, or dissemination. It also protects the independent creations derived from original works, such as those resulting from the adaptation, translation, or in another manner transformed from its original version.

Tradenames
Names, brands, emblems, slogans and other elements that identify a company or establishment are protected by the law. The right to the exclusive use of a commercial name comes from its first commercial use. Protection should be granted even before registration and ease with the abandonment of the name. Only in cases of commercial slogans, the right of exclusive use is granted by registering.

Tradenames may not be composed of indications or signs that are contrary to public order or moral standards, or that may create confusion in the public in terms of the nature, activities, or any other aspect related to the company or business associated with the same or its products and services.

Protection of Consumer Rights
In consumer rights protection matters, even when the law allows contractual freedom, the general framework of consumer law still applies. It has constitutional status to avoid situations like draconian clauses in adhesion contracts, or false advertising, selling defective products, etc. Likewise, all contests open to the public must submit their bases to the Institute for the Protection of Consumer Rights ("Pro-consumer") prior to their celebration.

The legal regime that regulates the protection of consumer rights is mainly consecrated in the Constitution of 2015, which grants to the consumer protection provisions the rank of fundamental rights ratifying the establishment of a regime for the protection, guarantee, security and defense of consumers in their relations with suppliers of goods and services; and, in the General Law on the Protection of Consumer or User Rights No. 358-05.

The main objective of said law is to establish a system for the defense of consumers' and users’ rights that guarantees fairness and legal certainty in relations between suppliers, consumers of goods and users of services, may them public or private, national or foreign, in harmony with the provisions to that effect contained in the sectorial laws.

The law has a public order nature and creates the National Institute for the Protection of Consumer Rights ("ProConsumidor") whose main objective is to define, establish and regulate the policies, rules and procedures necessary for the application of said law. According to the provisions thereunder, suppliers of products and services may incur civil and criminal liability. Regarding civil liability, all members of the commercialization chain will be liable for injuries or losses caused. On another hand, the agent guilty of the offense will be criminally liable, according to the classification established by Law 358-05, the Criminal Code and other special laws. In addition to the above, the Executive Direction of ProConsumidor may impose administrative sanctions.

Another important aspect of Law No. 358-05 is that it provides consumers a free procedure for an out-of-court settlement of their disputes, prior to completing the administrative procedure established by the Law or going to court, in which case, the competent jurisdiction would be the local courts of peace. The statute of limitations to exercise the corresponding action is two years from the date the infringement was committed.

Compliance: Money Laundering and Terrorism Financing
To align the Dominican Republic's legal framework with international standards for combating money laundering and terrorism financing, Law No. 155-17 was enacted on June 1, 2017. This legislation replaces Law No. 72-02, which addressed money laundering related to illicit drug trafficking. Law No. 155-17 represents a significant advancement by incorporating updated international standards based on the recommendations from the Financial Action Task Force ("FATF"), as outlined in their February 2012 report and revised in 2016.

Law No. 155-17 aims to:

• Define money laundering and terrorism financing offenses, including associated crimes and penalties.
• Establish special investigative techniques, cooperation mechanisms, international judicial assistance, and precautionary measures for tackling these crimes.
• Outline a comprehensive prevention and detection regime for money laundering, terrorism financing, and the proliferation of weapons of mass destruction, detailing the responsibilities and prohibitions for obligated parties and specifying administrative sanctions for non-compliance.
• Develop an institutional framework to prevent the misuse of the national economic system for these illicit activities.

Key provisions of Law No. 155-17 include:

• Regulatory Bodies
  It establishes the Committee against Money Laundering and Terrorism Financing and the Financial Analysis Unit ("UAF") as regulatory authorities, alongside supervisory entities like the Superintendence of Banks, the Superintendence of Securities, the Superintendence of Insurance, the Tax Administration, and the Directorate of Casinos and Gambling ("DGII").
• Expanded Definitions
  The law broadens the scope of "precedent or determinant infractions" related to money laundering, encompassing offenses that generate assets subject to money laundering, independent of the laundering process itself.
• New Obligations for Entities
  Financial and non-financial entities are required to:
  • Implement a risk-based compliance program tailored to their organization, structure, resources, and operational complexity.
  • Develop and enforce due diligence policies and procedures, continuously monitoring their effectiveness.
  • Maintain transaction records for at least 10 years following the end of the business relationship or transaction.
  • Appoint a senior executive responsible for overseeing the compliance program and liaising with supervisory bodies.
  • Report transactions of $15,000 or more (or equivalent) to the UAF, with casinos reporting transactions of $3,000 or more.
  • Report suspicious transactions to the UAF within five business days.
• Bearer Shares
  The law amends Law No. 479-08 on Commercial Entities and Individual Companies with Limited Liability to prohibit the issuance of bearer shares, requiring conversion to registered shares within one year of the law's enactment.
• Tax Code Amendments
  The law revises the Tax Code to enhance reporting requirements for taxpayers, responsible persons, and third parties when registering with the National Registry of Taxpayers.

This comprehensive legislation marks a crucial step forward in enhancing the Dominican Republic's legal and institutional framework against money laundering and terrorism financing.

In the Dominican Republic, the Constitution enshrines the fundamental right to privacy and personal honor. This right covers the protection of an individual’s reputation, personal image, and access to information about themselves and their assets recorded in public or private registers. It also includes the right to be informed about how such data is used and its destination, within the limits established by law.

Law No. 172-13, the Comprehensive Protection of Personal Data Law, governs the exercise of this fundamental right. It provides a legal framework for the protection of personal data held in public records, data centers, or through any technical means used for data processing. The Law aims to ensure that individuals’ rights are protected while facilitating their access to personal information and regulating the operations of Credit Information Companies ("SICs"). It promotes the accuracy, confidentiality, and proper use of data, and ensures respect for individuals' privacy.
Key principles of the Law include:

• Consent Requirement
  The processing and transfer of personal data are considered unlawful unless the data subject has provided explicit, written consent, or consent given through similar formal means. This consent must be clear and prominently communicated, with prior notification to the data owner.
• Habeas Data Remedy
  To uphold their right to access and protect their personal information, individuals can utilize the habeas data remedy. This allows them to verify their data, and request corrections, updates, or deletions if inaccuracies are found.
• Civil Liability
  Claims for damages resulting from violations of the Law are governed by general principles of civil liability.

This legislation is designed to enhance the protection of individual privacy and data rights in the Dominican Republic, ensuring that personal information is handled with respect and accuracy.

Competition matters in the Dominican Republic are governed by Law No. 42-08 on the Defense of Competition, enacted on January 16, 2008 ("Competition Law"). The primary objective of this law is to promote and defend effective competition across all industries, thereby enhancing the economic efficiency of markets for goods and services and generating benefits for consumers within the Dominican territory. The law regulates and restricts agreements, actions, and practices that may hinder competition within the country.

However, the current Competition Law does not explicitly regulate or impose limits and sanctions on market concentrations, nor does it require merger clearance or prior authorization for such activities. Instead, concentrations and undertakings are regulated by the specific laws and authorities relevant to regulated activities and sectors, such as the electric power market. For instance, antitrust and concentration issues within the energy sector are governed by the Electricity Law.

Regarding unfair competition, Law No. 42-08 stipulates that any act or conduct within the commercial or business sphere that contravenes good faith and commercial ethics, with the intent to unlawfully divert consumer demand, will be deemed unfair, unlawful, and prohibited. Additionally, Article 11 of Law 42-08 provides a non-exhaustive list of acts that are considered unfair competition, including a) acts of deception; b) acts of confusion; c) imitation acts; d) acts of denigration; and e) acts of improper comparison.

This framework seeks to ensure a fair and competitive market environment, safeguarding both businesses and consumers from practices that could distort market dynamics.

The government procurement process in the Dominican Republic is governed by Law No. 340-06 and its implementing Regulation No. 543-12. These regulations establish comprehensive policies aimed at ensuring transparency and efficiency in the acquisition of assets, services, and public works by various public sector bodies, including the Central Government, decentralized institutions, autonomous bodies, and municipal governments.

Law 340-06 outlines seven procurement procedures: public bidding, restricted bidding, raffle, direct purchase, price comparison, minor purchases, and reverse auction. These procedures are chosen based on the contract value and are designed to ensure fair competition and equal treatment of participants. Public bidding is generally required for significant contracts and projects, although there are exceptions for national emergencies and other specific cases.

The Law impacts major infrastructure projects and public utilities by setting forth transparent processes for their procurement, ensuring that essential services and public works are managed effectively. Although the Law is in place, its specific applications are yet to be fully detailed in the pending Regulation, which will provide further guidance on executing contracts.

Contractors wishing to engage with the Dominican government must register with the Dirección General de Contrataciones Públicas, with requirements varying for domestic and foreign entities. Foreign contractors need to register only if awarded a contract. Certain contracts, such as those involving foreign loans or national security, are exempt from the standard procedures outlined in Law 340-06. The Rector Body publishes annual thresholds for procurement procedures, adjusted according to international agreements.

Liquidation can be initiated voluntarily by shareholders under Corporate Law. This process involves holding two extraordinary general meetings to approve the liquidation and appoint a liquidator. The minutes from these meetings must be registered with the Chamber of Commerce and DGII to finalize the dissolution.

Insolvency and bankruptcy proceedings in the Dominican Republic are primarily governed by the Restructuration Law. This law outlines the procedures for both reorganization and liquidation, allowing financially distressed entities to either continue operations while addressing creditor and employee rights or to liquidate their assets if reorganization is not feasible:

• Voluntary Administration
  Liquidation can be initiated voluntarily by shareholders under Corporate Law. This process involves holding two extraordinary general meetings to approve the liquidation and appoint a liquidator. The minutes from these meetings must be registered with the Chamber of Commerce and DGII to finalize the dissolution.
• Deed of Company Arrangement
  The Restructuring Law permits the creation of a formal agreement between creditors and debtors to restructure debt and manage the company. This agreement must be judicially approved and accepted by creditors holding at least 60% of the claims within the relevant classes.
• Liquidation
  Liquidation can occur voluntarily or through judicial proceedings. A debtor, creditor, or court can initiate judicial liquidation. A court-appointed liquidator manages the process, prioritizing employee wages and tax claims over other debts. The liquidator must submit a liquidation plan within 45 days of the court's judgment. Liquidation concludes when all liabilities are settled, or assets are insufficient.
• Receivership
  The Restructuring Law allows for the appointment of an administrator to manage perishable or depreciating assets temporarily, ensuring their preservation.
• Bankruptcy
  Although not explicitly defined in the Restructuring Law, bankruptcy is generally understood as a situation where a company’s debts exceed its financial resources. Companies in such situations may seek restructuring or liquidation under the law.
• Liquidation Order
  In liquidation, the payment hierarchy is as follows: (i) tax obligations, (ii) employee payments, (iii) preferential creditors, (iv) secured creditors, (v) unsecured creditors, and (vi) subordinated creditors.
• Concerns for Foreign Investors
  Foreign entities have the same rights under the Restructuring Law as national entities. However, if a foreign investor initiates a liquidation abroad for a debtor in the Dominican Republic, they must seek validation of that procedure from Dominican courts for it to be recognized locally.