Set Up Business in the Dominican Republic – Country Information
The country of the Dominican Republic is on the island of Hispaniola in the Caribbean region. It is the second-largest Caribbean nation by area (after Cuba) and has a population of approximately 10.2 million people. The official language is Spanish while the majority ethnic group is Dominican. To set up business in Dominican Republic is easier because of its location.
It also has the largest economy in the Central American region and has had rapid growth over the past two decades while being the most visited destination in the Caribbean.
A major exporter of sugar, coffee, and tobacco — the Dominican Republic has had a vibrant economy driven by strong growth, low inflation, and a stable external position. Diversification from traditional exports and into sectors such as tourism and finance have been greatly successful, with tourism bringing in more than 6 million visitors annually.
The gross domestic product also grew by 7% in 2018, a good sign that the business climate is dynamic and robust. Companies looking to set up business in the Dominican Republic will benefit from the high openness to global trade and strengthened policy framework. The country receives preferential and tariff-free treatment to the United States through the Caribbean Basin Trade Partnership Act (CBTPA), and also preferential access without quantitative restrictions to the European Union through the Cotonou Agreement.
It is also a member of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Dominican Republic (CAFTA-DR) agreement enjoy tariff-free trade with CAFTA-DR countries.
Companies are encouraged to set up business in the Dominican Republic free trade zones in order to enjoy benefits such as:
- National treatment for foreign investors
- Free access to international currency through local banks and the central bank
- 100% repatriation of benefits
- Free convertibility of funds
- No major restrictions on foreign investment
- Investors can repatriate their profits and capital
To summarize, major reasons to set up business in the Dominican Republic are:
- Political and economic stability
- Attractive incentives and special regimes
- Strategic location with access to major markets (the US and Europe) and all other Central American countries
- Ranked 2nd in Latin America for connectivity (transport, logistics and telecommunications infrastructure)
- Preferential access to a market with more than 900 million consumers throughout Central and North America
- The lowest rate of inflation in Latin America and the Caribbean
- Competitive and qualified workforce
If you are interested to set up business in the Dominican Republic, 3E Accounting is the best choice for you. Our global connections and high-quality services ensure quick and thorough results that will boost your business.