Types of Companies in the Dominican Republic (2026): S.R.L., S.A., S.A.S., E.I.R.L.
The Dominican Republic is home to a diverse range of businesses, from small sole proprietorships to large corporations. Each type of company has its own unique benefits and requirements, making it important for entrepreneurs to understand the differences between them. In this blog post, we’ll dive into the most common types of companies in the Dominican Republic, including their requirements and benefits, to help you make an informed decision when starting a business or investing in the country.
In short: most foreign founders use an S.R.L. (the Dominican LLC); the S.A.S. and S.A. suit companies that plan to raise investment; and the E.I.R.L. is for a single owner. Ready to start? Follow our guide on how to set up a company in the Dominican Republic.
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Sociedad de Responsabilidad Limitada (SRL) or Limited Liability Company
A Sociedad de Responsabilidad Limitada is a type of limited liability company that is commonly used for small to medium-sized businesses in the Dominican Republic. This type of company requires 2 to 50 partners, and its partners are only liable for the amount of capital they have contributed. The benefits of an SRL include limited liability for partners, flexibility in management structure, and ease of incorporation. Requirements for an SRL include registering with the Commercial Registry, obtaining a tax identification number, and obtaining a business license.
Capital: No legal minimum capital since 2019 (Law 68-19). In practice most SRLs are registered with around DOP 100,000, and a 1% incorporation tax on the authorized capital is paid to the DGII. The S.R.L. is the structure we recommend for foreigners.
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Sociedad Anónima Simplificada (S.A.S.) or Simplified Corporation
A hybrid between the SRL and the SA, popular with growing companies and tech ventures that plan to bring in investors. It requires at least 2 shareholders, whose liability is limited to their contributions, and it can issue shares. Capital: minimum authorized capital of RD$3,000,000, of which at least 10% must be subscribed and paid in.
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Sociedad Anonima (SA) or Corporation
A Sociedad Anonima is a type of corporation that is commonly used for large businesses in the Dominican Republic. This type of company requires a minimum of two shareholders and is managed by a board of at least 3 members. Its shareholders are only liable for the amount of capital they have contributed. The benefits of an SA include limited liability for shareholders, ease of transferability of shares, and a more formal structure for the company. Requirements for an SA include registering with the Commercial Registry, obtaining a tax identification number, and obtaining a business license.
Capital: minimum authorized capital of RD$30,000,000, of which at least 10% must be subscribed and paid in.
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Empresa Individual de Responsabilidad Limitada (E.I.R.L.)
A one-person business structure: a single individual owns the company, which has its own legal personality, and the owner’s liability is limited to the capital contributed. It suits freelancers, consultants and small solo businesses. Capital: set by the owner in the incorporation document.
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Cooperativa
A Cooperativa is a type of cooperative that is commonly used for agricultural and financial businesses in the Dominican Republic. This type of company is owned and operated by its members. They share in the profits and decision-making of the business. The benefits of a Cooperativa include shared risk and decision-making, tax benefits, and access to capital. Requirements for a Cooperativa include registering with the Cooperatives Directorate, obtaining a tax identification number, and obtaining a business license.
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Sucursal or Foreign Branch Company
A Sucursal is a type of branch office that is commonly used for foreign businesses operating in the Dominican Republic. A branch is not a separate legal entity: it is part of its parent company, which remains liable for its obligations, but it is subject to the regulations and requirements of the Dominican Republic. The benefits of a Sucursal include access to the Dominican Republic market, reduced risk, and the ability to expand operations. Requirements for a Sucursal include registering with the Commercial Registry, obtaining a tax identification number, as well as obtaining a business license.
Which one should you choose?
It depends on your capital and investor profile, the number of partners or shareholders, whether you plan to raise funding, your industry (some regulated activities require an S.A. or S.A.S.), and how much compliance you can handle.
In conclusion, understanding the most common types of companies in the Dominican Republic can be crucial for entrepreneurs looking to start a business or for individuals looking to invest or work with a particular type of company. Each type of company has its own requirements and benefits, and choosing the right type of company can depend on the size of the business, the industry, and the goals of the company. By understanding the differences between each type of company, entrepreneurs and investors can make informed decisions that will help them succeed in the Dominican Republic market.
How to set up a company in the Dominican Republic?
- Decide which type of company best suits your business needs
- Appoint a Legal Representative
- Register the trade name with ONAPI
- Draft the company’s bylaws
- Pay the 1% incorporation tax to the DGII
- Submit the documents to the Chamber of Commerce
- Obtain an RNC
- Finally, open a corporate bank account
Get Assistance from Easyco Experts!
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- Appointment of legal representation,
- Providing a registered office address
- Handling tax and accounting
- Hassle-free Payroll Services
- Manage your company bank account opening
- Manage your Trademark Registration
- Recruiting and Hiring Talent