Forming a Company in the Dominican Republic
One of the best options for protecting assets can be achieved by forming an offshore company. Forming a company varies from country to country, so do your research before taking any actions. Taxation, annual company minute meeting, choosing the right type of company to set up and then properly structuring the company are all key points of discussion that should be taken into account before committing to anything.
A couple of other notes I’d like to bring to your attention are as follows. Be sure to ask questions regarding how do wills probates and inheritances function in the Dominican Republic. Just because you own something and want to pass it on to a particular person upon your death, doesn’t mean that you’ll be able to, unless it was properly structured beforehand.
Unless your personal assets are properly structured and protected by a corporate “veil”, the Government will get involved in how it’s disbursed. If assets are solely in your personal names you may not have complete control.
If choosing to invest in the DR, I would almost always suggest owning a company. By doing this you’ll be protecting your personal assets from seizure, should you be sued for any reason. This includes bankruptcy, default and traffic accidents where someone has been injured.
It’s rather easy for an attorney to lock bank accounts registered in personal names, but the opposite holds true if they fall under the protection of a company. In general the country is a stable democracy with a foreign investment friendly outlook, so the DR is one of several worth looking into, if relocation and or investing are possibly part of the plan. The DR does boast the largest economy of the Caribbean.
I’d like to mention one last item of caution before closing off this page. The example below has stood the test of time and held true for most of my expat experience. Seems folks often get confused between price and value. What I’m saying is folks seem confused about what actually is the difference between price and value, and they are two completely different attributes.
I’d like you to consider what I’ve deemed to be “the two out of three rule”. Think of these three words: Good Fast and Cheap. Experience has taught me most often in any deal, purchase of goods or services, just about any negotiation or undertaking you only get to pick two out of three.
Sure mix them up any way you choose, but two out of three is what the laws of business will allow. If you choose good and fast then it won’t be cheapest. Decide on good and cheap then odds are it won’t be the fastest. Even choosing fast and cheap tends to leave you with a job that’s half done, so in the end it’s not good.
In the event someone tells you that they’re the best fastest and cheapest RUN AWAY! That defies the natural laws of business. Just a little tidbit you may want to consider when shopping around for just about anything and that includes accountants, surgeons, mechanics and attorneys. You almost always get what you pay for. For several years I have been using what I know is one of the most respected Law firms in the country. If interested in a free consultation to address your questions and concerns, just click on the button below.
Barry in DR