How To Start A Business In The Dominican Republic

Entrepreneurs planning to open a business in the Dominican Republic must complete several registrations before beginning formal operations. The process can include obtaining a commercial name, registering with the tax authority, securing a Commercial Registry, enrolling employees in the social-security system and meeting labor obligations.

The government’s Formalízate platform groups several of these procedures and identifies the commercial name, Commercial Registry, Taxpayer Identification Number (RNC), employer registration with the Social Security Treasury and employee registration with the Ministry of Labor as key components of business formalization.

Start With The Business Name And Legal Structure

A commercial name is issued by the National Office of Industrial Property (ONAPI). The current government business-registration calculator lists a fixed RD$4,755 charge for the commercial-name certificate. Registering the name, however, does not by itself mean that a business is fully formalized.

Entrepreneurs must also determine whether they will operate as an individual or through a legal entity. That choice affects registration requirements, tax treatment and the way the business interacts with banks, government agencies and other institutions.

For an individual entrepreneur, the RNC is linked to the person’s identification number. A legal entity receives its own RNC after completing the corresponding incorporation and tax-registration procedures.

The Dominican government’s Formalízate platform allows entrepreneurs to establish their commercial activity and legal structure and complete several formalization steps through a centralized process.

Companies Need Additional Corporate Registrations

When the business is established as a legal entity, the entrepreneur must complete the applicable incorporation documents and obtain a Commercial Registry through the relevant Chamber of Commerce and Production. The registry serves as a fundamental corporate identification document for banking transactions and dealings with public institutions.

Companies with employees must also register as employers with the Treasury of Social Security (TSS) and enroll their workers in the Dominican Social Security System. Employee information must also be registered with the Ministry of Labor, creating additional compliance responsibilities for the employer.

Businesses that intend to sell goods or services to the Dominican government need a State Supplier Registration (RPE) issued through the General Directorate of Public Procurement. The government registration platform identifies the RPE as a requirement for companies seeking to participate as state suppliers.

Taxes Depend On The Business Structure

Tax obligations are another central part of formalization. The Directorate General of Internal Revenue (DGII) administers the country’s principal tax requirements, including the corporate income tax and the tax on assets.

For legal entities, the standard corporate income-tax rate is currently 27% of net taxable income. A temporary 30% rate applies during fiscal years 2026 through 2028 to taxpayers with annual income of at least RD$1 billion, under the tax changes introduced in 2026.

Legal entities are also subject to an 1% tax on taxable assets, although the applicable tax treatment depends on the taxpayer’s circumstances and exemptions established under Dominican law. Entrepreneurs should therefore determine their specific obligations with the DGII rather than assume that every business will pay the same combination of taxes.

Labor Costs And Employee Obligations Matter

Once a business hires workers, labor compliance becomes an ongoing obligation. Minimum wages in the Dominican Republic vary according to the sector and, in several cases, the size of the employer, so entrepreneurs should verify the current rate applicable to their activity before setting compensation.

For example, a 2025 resolution from the Ministry of Labor established new minimum wages for hotels and casinos beginning June 1, 2026, ranging from RD$18,409.30 to RD$21,840 depending on the employer’s size. Other sectors have separate wage schedules.

Employees may also have statutory rights that generate additional costs for employers. These include severance obligations under Article 80 of the Labor Code when the legal conditions for severance apply, as well as other labor benefits and social-security contributions.

How Dominican Law Classifies MIPYMES

Dominican law classifies micro, small and medium-sized businesses according to employment and annual gross sales. Law 187-17 establishes the framework for this classification, which is used in government policies and programs aimed at MIPYMES.

The thresholds are periodically indexed to inflation. The latest figures should therefore be checked against the current classification issued by the Ministry of Industry, Commerce and Mipymes (MICM) rather than relying on older amounts that may still appear in business guides.

Under the indexed framework published by the MICM, a microenterprise has up to 10 workers, while small businesses have 11 to 50 and medium-sized businesses have 51 to 150 employees. The applicable sales thresholds are also adjusted over time, making current government figures important when determining a company’s classification.

Formalization is consequently more than a single registration. The appropriate legal structure, tax obligations, corporate records, labor requirements and social-security responsibilities all depend on the characteristics of the business. For entrepreneurs entering the Dominican market, completing those steps before beginning operations can help establish the legal and administrative foundation needed to grow, while choosing the right location can be equally important; these are some of the best cities in the Dominican Republic to start a business.