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The employer’s guide to company registration in the Dominican Republic

Grow your team in Dominican Republic
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Thrive in the Caribbean by starting in the Dominican Republic

The Dominican Republic offers a strategic gateway to the Caribbean and Latin American markets, thanks to its pro-investment policies, attractive tax incentives, and prime geographic location. The country’s Foreign Investment Law (Law No. 16-95) ensures equal treatment for foreign investors, facilitating a straightforward path to business expansion.

Additionally, the Dominican Republic’s participation in free trade agreements, such as the Central America—Dominican Republic Free Trade Agreement (CAFTA-DR), enhances access to global markets.

Supported by transparent processes and robust local infrastructure, the Dominican Republic presents a compelling environment for business growth.

The business benefits of registering your company in the Dominican Republic 

Here’s why the Dominican Republic is an attractive choice for business expansion:

  • Benefit from tax exemptions in special economic zones to boost profitability.
  • Easily access the Caribbean and Central American markets for trade.
  • Utilize competitive labor costs and a skilled workforce for operational efficiency.
  • Secure trade advantages through free trade agreements like CAFTA-DR.
  • Navigate business incorporation with clear local regulations.
  • Leverage its location for strategic entry into global markets.

The Dominican Republic combines accessibility with growth opportunities, making it a promising destination for businesses seeking expansion in the Americas.

Next, we’ll explore the available options—legal entity registration, working with an Employer of Record (EOR), or obtaining the necessary permits—to help you determine the best approach for establishing your business in the Dominican Republic.

What are the business pathways in the Dominican Republic?

The Dominican Republic provides several ways for businesses to establish a presence, depending on your goals and operational needs. These include legal entity registration and leveraging an Employer of Record (EOR).

Aspect

Legal Entity Registration

Employer of Record (EOR)

Purpose

Establishes a full legal entity with control over all operations and finances.

Enables immediate hiring and operations without setting up a legal entity.

Control

Provides complete autonomy to manage operations under local laws.

Offers operational control over employees, while the EOR manages administrative and legal compliance.

Compliance

Requires full adherence to Dominican Republic business permits, tax laws, and other regulations.

EOR ensures compliance with local labor laws, tax codes, and reporting requirements.

Setup Time

Longer due to documentation and legal procedures.

Quick, enabling operations to start almost immediately.

Cost

Involves initial setup expenses, legal fees, and ongoing operational costs.

Predictable monthly fees that simplify budgeting.

Scalability

Suitable for long-term, large-scale operations.

Highly flexible, allowing workforce expansion without a physical entity.

While setting up a legal entity grants full operational independence, an Employer of Record offers a faster and low-risk route for businesses needing quick entry into the Dominican Republic.

Let’s examine how an Employer of Record (EOR) simplifies the process of business registration and hiring.

How an EOR simplifies business registration in the Dominican Republic

Working with an EOR offers a quick and seamless solution for launching operations, recruiting top talent, and staying compliant—all without requiring a formal legal entity. 

Here’s how an Employer of Record (EOR) makes it easy for your business’ expansion into Dominican Republic:

  • Accelerates setup by managing all registrations as your legal employer.
  • Handles payroll, tax filings, and compliance tasks, freeing your team to focus on core activities.
  • Ensures alignment with local labor laws and tax codes through expert knowledge.
  • Reduces costs by eliminating the need for entity setup and ongoing administrative expenses.
  • Offers flexibility to scale your workforce based on business needs without long-term commitments.
  • Attracts top talent with competitive, locally compliant benefits packages.
  • Minimizes legal and compliance risks, providing comprehensive support for smooth operations.

With an EOR, businesses can confidently navigate the Dominican Republic’s regulations and establish a presence effortlessly without setting up a legal entity.

In the next section, let’s see how to actually register a company in the Dominican Republic.

A step-by-step guide to business registration in the Dominican Republic

A clear roadmap makes entering a new market simpler. Here’s a step-by-step direction to help you register your business in the Dominican Republic with ease.

Step 1: Determine the appropriate business structure

Setting up a local entity in the Dominican Republic can be challenging, risky and time-consuming. With an Employer of Record (EOR), however, you can bypass the complexities and start operating right away.

An EOR serves as your legal employer, managing everything from hiring and onboarding to payroll, tax filings, and full compliance with the Dominican Republic’s labor laws. This means you can focus on growing your business while leaving the paperwork and regulatory details to the experts.

If establishing your local entity is still part of your plan, choosing the right business structure is a critical step. It determines your legal responsibilities, tax obligations, and the level of operational flexibility available to your organization.

  • Limited Liability Company (SRL): Ideal for small to medium-sized businesses, with limited liability for shareholders.
  • Corporation (SA): Suitable for larger enterprises requiring substantial capital or looking to go public.
  • Simplified Stock Company (SAS): Offers flexibility and limited liability, designed for growing businesses.

Naming your company: Ensure the chosen name is unique and complies with local regulations. Conduct a name search through the National Office of Industrial Property (ONAPI).

Step 2: Obtain a Dominican Republic business permit and register with DGII

To legally operate, you must obtain a business permit and register your company with the General Directorate of Internal Taxes (DGII) for tax compliance.

  • Business Permit: Apply through the local city council or municipality where your business will operate.
  • Tax Identification Number (RNC): Register with the DGII to secure your RNC, which is essential for handling taxes and invoices.

Step 3: Draft and notarize incorporation documents

Prepare the required legal documentation, which includes:

  • Articles of Incorporation
  • Company bylaws
  • Identification of shareholders and directors
  • Proof of registered office address

These documents must be notarized and filed with the Chamber of Commerce in the corresponding jurisdiction.

Step 4: Open a local business bank account

A corporate bank account is essential for managing financial transactions, payroll, and expenses. Most local banks require the following:

  • Certificate of incorporation
  • RNC or Tax Identification Number
  • Articles of Incorporation
  • Identification of company representatives

Managing payroll through a local bank in the Dominican Republic is complex, with challenges like strict tax compliance and labor regulations. An Employer of Record (EOR) simplifies this process by combining advanced platforms and local expertise.

EOR eliminates the need for a bank account, ensures compliant payments in Dominican Pesos (DOP), automates tax filings, and handles all administrative requirements. With the right mix of technology and people, an EOR makes payroll effortless, allowing you to focus on scaling your business.

Step 5: Register employees and comply with labor regulations

If you plan to hire employees, register them with the Ministry of Labor and the Social Security Treasury (TSS). This ensures compliance with local labor laws, including contributions for health insurance and pensions.

  • Ensure employment contracts align with Dominican labor laws.
  • Comply with mandatory benefits, such as vacation days and severance pay.

An Employer of Record (EOR) navigates compliance for you, managing employee registrations, aligning contracts with legal standards, and seamlessly handling contributions and benefits. This lightens your expansion workload, letting you focus on building a successful presence in the Dominican Republic.

The real cost of registering a business in the Dominican Republic

For entrepreneurs planning to establish a company in the Dominican Republic, understanding the costs involved is essential. Here’s a detailed breakdown to help you prepare:

1. Registration costs

  • Business incorporation fees: Filing fees with the Chamber of Commerce typically range between $100 and $300, depending on the business structure.
  • Legal and notary fees: Drafting and notarizing incorporation documents may cost between $500 and $1,000.
  • Tax Identification Number (RNC): Registration with the General Directorate of Internal Taxes (DGII) is mandatory but usually free.
  • Business permit: Local permits from municipalities may cost between $200 and $500 annually.

2. Annual maintenance costs

  • Accounting services: Basic accounting services start at $50 per month, depending on the complexity of your business operations.
  • Compliance filings: Annual financial statement filings cost approximately $300 to $500.
  • Taxes: Corporate income tax is 27%, and value-added tax (VAT) is 18% on applicable goods and services.
  • Social Security contributions: Employers must contribute to employee benefits, averaging 15% to 20% of salaries.

3. Additional considerations

  • Banking fees: Opening a corporate bank account may require an initial deposit and monthly service fees ranging from $20 to $100.
  • Registered office services: Non-residents may need to pay for a local registered address, starting at $100 per year.
  • Legal retainer fees: Engaging a legal advisor for ongoing support could cost $1,000 to $3,000 annually, depending on the scope of services.

An EOR offers a cost-efficient alternative by managing most administrative and compliance expenses. With a predictable monthly fee, an EOR can help you:

  • Avoid high incorporation costs.
  • Skip the need for a legal address or notary services.
  • Eliminate ongoing payroll and compliance management expenses.

The EOR approach saves you time and resources, offering a low-risk, low-strain entry into the Dominican Republic market.

Let’s explore how the cost of standard registration compares to partnering with an EOR.

Before establishing a presence in the Dominican Republic in 2025, it’s essential to consider the financial and operational differences between legal entity registration and an Employer of Record (EOR). Here’s a comparative breakdown:

Cost Comparison: Standard Registration vs. EOR

While registering a legal entity provides full control, it demands higher costs and ongoing management efforts. On the other hand, an EOR offers a more streamlined, predictable solution, covering all compliance and administrative needs without the burden of entity setup.

Next, we’ll dive into how partnering with an EOR like Multiplier can simplify your expansion into the Dominican Republic.

Simplify your Dominican Republic expansion with Multiplier

Expanding into the Dominican Republic presents a wealth of opportunities, but navigating local employment laws and administrative tasks can be challenging. Partnering with an Employer of Record (EOR) like Multiplier streamlines this process, allowing you to concentrate on your core business objectives.

With Multiplier you can:

  • Hire locally, expand globally
    Easily access the Dominican Republic’s skilled workforce with the confidence of full compliance. Our local HR experts manage everything from employment contracts to onboarding, empowering your business to scale seamlessly across borders.
  • Streamlined payroll management
    Handle payroll with real-time precision. Multiplier ensures that taxes, benefits, and contributions comply with Dominican regulations, keeping your payroll operations smooth and stress-free.
  • Integrated HR solutions
    Manage everything from onboarding and expense approvals to time-off tracking with Multiplier’s all-in-one platform. Gain complete visibility and control over your distributed teams in the Dominican Republic.
  • Compliance made simple
    Navigate the Dominican Republic’s labor laws and tax codes with our expert-led compliance solutions. From local tax filings to labor protections, we ensure your operations remain hassle-free and legally secure.
  • Tailored employee benefits
    Attract and retain top Dominican talent with competitive and locally compliant benefits packages. Multiplier handles the complexities, ensuring your team gets the best while you focus on strategic growth.
  • Responsive support you can count on
    Our human-first support team is available 24/5 to assist you and your employees at every step. With robust security measures like GDPR compliance, SOC 2 certifications, and AWS-backed infrastructure, your operations are always in safe hands.

Multiplier is your strategic partner for unlocking growth in the Dominican Republic. By taking on payroll, compliance, and HR management, Multiplier removes the operational burdens that slow businesses down, allowing you to focus entirely on scaling, innovating, and achieving your goals in a competitive market.

Book a Demo today with Multiplier’s experts.

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