Dominican Republic Free Trade Zone: The Ideal Place for Starting a Business
Just think about starting a business in the Dominican Republic...
The Dominican Republic Free Zone was created to attract foreign investment. It offers a number of major incentives through tax, tariff and cost savings to those starting a business or setting up new operations or facilities in the Dominican Republic.
Typically a Free Zone would attract businesses involved in light manufacturing or assembly of 'hard goods'. It is also more frequently becoming the case that service operations such as call-centres and other administrative activities are recognising the considerable tax benefits offered by the Dominican Republic Free Zone.
One of the World's Top Five!
The Dominican Republic Free Zone offers particular advantages to those starting a business compared with other similar Zones. In fact it has been identified as being one of the world's top five current Free Zone opportunities.
This accolade has been awarded not only because the Dominican Republic is geographically close to the USA, but also because it has trade agreements with both the US and the European Union. This means, for instance, that on goods exported to European markets duties are reduced or even zero.
A summary of advantages offered by Free Zones:
Easy access to transport and shipping
Low labour and production costs
Less red-tape and bureaucracy
Reduced/Zero Tariffs or Duties on Imports and Exports
Reduced/Zero taxes on profits
In the case of the Dominican Republic Free Zone some of the particular benefits for anyone starting a business include exemption from:
Municipal Taxes and Export Duties
Incorporation and Capital Gains Taxes
Property, construction and mortgage title transfer taxes
Business and Value Added Taxes
Corporate Income Taxes
This exemption operates from the day that production/operation commences and applies for a 15 year, renewable, period!
If the business need to import:
Any vehicles, including trucks, vans, buses (for transporting workers)
Production Equipment and materials required for production
Equipment or materials required for providing facilities for workers (such as catering, medical care, crèche/child care)
Import duties on all these items are also waived for operations established in the Dominican Republic Free Zone.
Even More Reasons to Start a Business in the D.R.!
It is also the case that the day-to-day running costs of an operation within the Free Zone will be much more economical than in many a company's 'home country'. If you are interested in setting up a Free Zone operation you will find leasehold costs, for example, (especially within Government owned compounds) are very reasonable. Utility and power charges and other running costs are also economical.
Another attractive aspect for many people considering starting a business operation within the Dominican Republic Free Zone are the relatively low labour costs. Even though there are minimum wage levels for Free Zone workers that have been established by the Government they are still well below those in the more developed countries of the western world.
We have prepared some useful summary sheets about starting business in the Dominican Republic. They are available to download onto your desktop as pdf ebook format. If you would like these please complete the form below:
Once you have claimed your copies of the Starting in Business in the DR info pack - if it does not include the information you want, feel free to
contact us
with your query and we will try to provide any additional information we have within 72 hours*.
Ruth, Al & Esther
(* - NOTE: July 2009: Due to an increasing number of queries/demands there may be a longer delay before we can get back to you. If your query is of a time limited nature let us know when you send the queey so that we can prioritise it appropriately, thank you.)
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