Investment law and incentives

Key Laws

Investment law and incentives

Dominican State recognizes that foreign investment and transfer of technology contribute to economic growth and social development. These statements are contained in Law 16-95 on foreign investment. The State recognizes that foreign investment generates employment and foreign exchange, promotes the process of capitalization and provides efficient methods of production, marketing and administration. Within 90 days of making an investment, every investor or foreign company must

According to Law No. 16-95 foreign investment may take the following forms:

• Contributions in freely convertible currency, exchanged at a bank authorized by the Central Bank (www.bancentral.gov.do).
 
• Contributions in nature, such as industrial plants, new and reconditioned machinery, new and reconditioned equipment, spare parts, parts and pieces, raw materials, intermediate products and finished goods, as well as intangible technological contributions (trademarks, patents, technical assistance, management assistance and franchise).
 
• Financial instruments to which the Monetary Board attributed the category of foreign investment, excluding those, which are the product of contributions or internment of an operation of conversion of Dominican foreign debt.
 

Benefits

 
The Act establishes the applicability of the following fundamental to foreign investment in the Dominican Republic principles:
 
1. National and non-discriminatory treatment for foreign investors, that is, that investments have the same rights and obligations as national investors.
 
2. Possibility to repatriate abroad, in freely convertible currency, one hundred percent (100%) of the capital invested and the perceived benefits of the investment.
 
3. They can also repatriate, under the same conditions, the obligations resulting from technical service contracts where fees are established on the basis of technology transfer and /or contracts for local production of foreign brands which include clauses of royalty payments, provided that such contracts and procedures involved amounts or payments have been previously approved by the Central Bank of the Dominican Republic.
 
4. Simplified registration of foreign investment in the Central Bank of the Dominican Republic and the Export and Investment Center of the Dominican Republic (CEI-RD).
 
5. Foreign investment in the Dominican Republic also benefits from the possibility of obtaining protection through the Multilateral Investment Guarantee Agency of the World Bank (MIGA) and the Overseas Private Investment Corporation (OPIC) of the United States.
 
6. Free access to the international currency through local banks and the Central Bank of the Dominican Republic.
 
7. Fast and simple registration procedure in CEI-RD. Agencies that administer the benefit system: the Central Bank of the Dominican Republic and the Export and Investment Center of the Dominican Republic (CEI-RD).

 

CEI-RD Support

The Export and Investment Center of the Dominican Republic (CEI-RD) is the Dominican government agency responsible for promoting exports and foreign direct inv estment (FDI).
 
Offer: Technical Assistance, Promotion, Incentive Grant, Commercial Information, Legal Advice, Training and Logistics Support, always meeting the highest quality standards, attached to the Laws and Regulations. The service also features the “One Stop Investment of the Dominican Republic (VUI-RD)” which is a project that seeks to promote and make the processes of domestic and foreign investment, in any sector of goods and services in the country, more efficient. The VUI-RD brings together at a central point the main public institutions, which allocate the permits, licenses and certifications necessary to carry out an investment project in the country.
 
The main goal of this window is to improve investment flows, removing obstacles and overcoming bureaucratic delays of the various institutions, providing an efficient and transparent service.
 
To do this, the VUI-RD validates all requirements for each institution and regularly monitors the progress of the projects submitted.
 
As an added bonus, the VUI-RD accompanies the investor in all the administrative and regulatory process, through a qualified staff that provides support and guidance, at any level of the process of establishment of an investment.
 

Objectives of the VUI-RD

 
• Reduce time and therefore costs while respecting policies and objectives of the participating institutions.
 
• Simplify processes for obtaining approvals of investment projects.
 
• Maintain a policy of zero tolerance f or corruption. • Provide transparency through an efficient record monitoring system.
 
• Provide investors timely information and assistance.
 
• Maintain a close working relationship with the institutions involved in the investment process for the benefit of VUI-RD users.