The benefits of doing business in the Dominican Republic attract prospective businesses from all over the world. The country is located in the heart of the Caribbean, in the Hispaniola island, where Eastern and Western values meet. It creates an ideal climate for business development.
As a country with a unique culture, history, and business climate, the Dominican Republic has a lot to offer. As part of the Caribbean Community (CARICOM), the Central American Free Trade Agreement (CAFTA), and other treaties with North America and the European Union, the country has opened its market to foreign businesses and new development opportunities.
The Dominican Republic receives one of the largest pools of European funding for infrastructure and development which shows great potential for facilitating future business.
Find out the benefits of doing business in the Dominican Republic, and why you should consider expanding to the developing Caribbean region.
Doing business in the Dominican Republic: strategic geographical location
Located on the crossroads between Eastern and Western Caribbean, the Dominican Republic is a trade link between the large markets of Central, South, and North America for trade and transport. The country shares only the border with Haiti, is close to US hub Miami and developing Central American economies, offering wide trade opportunities.
The Dominican Republic also benefits from a free flow of goods and services as a member of CARICOM and DR-CAFTA. The CARICOM is made up of 15 Member countries and an additional 5 Associate Members based in the region, and aims to develop regional economic integration and deepen trade ties. The CAFTA comprises of the United States, Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua, and is the United States’ third-largest export market in Latin America.
Businesses setting up in the Dominican Republic can explore their trade opportunities with minimal barriers to trade among fellow members of these groups. They may also explore their prospects further afield in the developing, highly accessible Southern American markets.
Educated talent pool
Education is affordable in the Dominican Republic compared to other countries in Latin America and the Caribbean. The education of its people is one of the benefits of doing business in the Dominican Republic. The country’s labor market holds a healthy population of talented programmers, webmasters, and designers from well-known tech institutions.
Favorable business environment
The Dominican Republic is the second-largest economy in the Caribbean by GDP, reporting a GDP of US$85 billion in 2018 (an increase of 7% from the previous year). Its local market has a strong appetite for imported goods and technology.
The country works to promote inward foreign direct investment and business through its legal framework and promotion initiatives such as ProDominica, launched in 2017. Foreign business and investment is allowed in almost all sectors, with few exceptions.
The country also offers specific tax incentives for businesses operating in:
- renewable energy
- the industrial sector
- film production
- Haiti-Dominican Republic border development.
The tax rate is about 42.2% which is slightly lower than the continent’s average (45.3%). Additionally, on average it takes 30 days to open a business in Latin America. In the Dominican Republic, this process only takes about 14.5 days. Moreover, the country has a strong appetite for imported goods and technology.
The Dominican Republic also supports foreign executives and investors doing business through its institutions such as the National Council of Free Trade Zones for Export, and the Export and Investment Center of the Dominican Republic.
Foreign executives have the support and incentive to do business in the Dominican Republic in a number of key sectors and in its many available free trade zones. This minimizes costs for exporters and other businesses, and can facilitate long-term success.
Doing business in the Dominican Republic implies expanding to a market of over 10 million consumers.
Additionally, there is a thriving export market for products made in the Dominican Republic. Thanks to relatively low operating and labor costs, companies from the Dominican Republic can achieve economies of scale. This gives them a significant competitive advantage over CARICOM counterparts.
Do business in the Dominican Republic with local legal experts
The Dominican Republic offers a lot of benefits for entrepreneurs and investors looking to do business in the Caribbean and Central America. While the country’s business potential is still largely undiscovered, now is the perfect time to expand your business in a growing market.
At Biz Latin Hub, we provide expert corporate legal and accounting advice to foreign businesses expanding into Central and South America, and the South Pacific. Our multilingual team of local and ex-pat professionals provides in-depth guidance and comprehensive business solutions for all market entry and back-office needs. This includes company formation, corporate compliance, due diligence, hiring and PEO services, and visa processing.
Reach out to us today at [email protected] to find out how we can be your single point of contact for doing business in the Dominican Republic.
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