Posted by: Anni Orekh | April 25, 2010

The Dominican Republic Free Zone: The Ideal Place for Starting a Business

Dominican Republic Free Trade Zone:  The Ideal Place for Starting a Business

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 North America (US/Canada/Mexico) , but also because it has trade agreements with both the US, Central America 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.

Ideal advantages  and the Ideal Place for Starting a Business!

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. or though our Cross Cultural Seminars. If you would like these please complete the form below:

Please send me the info for Starting Business in the DR information

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