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The Dominican Republic is a nation in the Caribbean area situated on the island of Hispaniola in the Greater Antilles archipelago. It occupies the eastern five-eighths of the island, which it shares with Haiti, making Hispaniola, along with Saint Martin, one of only two Caribbean islands shared by two sovereign governments. The Dominican Republic is the second-largest country in the Antilles by land (after Cuba), and the third-largest by population, with around 10.8 million inhabitants (2020 estimate), 3.3 million of whom reside in the metropolitan area of Santo Domingo, the capital city. The country's official language is Spanish.
Before Europeans arrived, the original Tano people occupied Hispaniola, dividing it into five chiefdoms. They had built a sophisticated agricultural and hunting community and were on their way to establishing an organized civilization. The Tanos was also found in Cuba, Jamaica, Puerto Rico, and the Bahamas. Christopher Columbus, a Genoese mariner, explored and claimed the island for Castile on his first expedition in 1492. Santo Domingo became the first permanent European settlement in the Americas, as well as the first seat of Spanish colonial administration in the New World. Spain accepted French control over the western portion of the island in 1697, and Haiti became an independent state in 1804.
In November 1821, the Dominicans proclaimed independence from Spain after more than 300 years of domination. The leader of the independence movement, José Nez de Cáceres, hoped to merge the Dominican nation with Gran Colombia, but the newly independent Dominicans were annexed by Haiti in February 1822. Independence occurred 22 years later, in 1844 when the Dominican War of Independence was won. The Dominican Republic underwent largely internal conflicts (funded by loans from European merchants), multiple unsuccessful invasions by its neighbor, Haiti, and a temporary restoration to Spanish colonial status until ultimately removing the Spanish during the Dominican War of Restoration of 1863–1865. Three presidents were murdered during this time period: José Antonio Salcedo in 1864, Ulises Heureaux in 1899, and Ramón Cáceres in 1911.
The United States invaded the Dominican Republic (1916–1924) in response to concerns of international debt default; a subsequent tranquil and successful six-year era under Horacio Vásquez followed. Rafael Leónidas Trujillo's dictatorship governed from 1930 until his murder in 1961. Juan Bosch was elected president in 1962 but overthrown in a military coup in 1963. The country's last civil war, in 1965, was halted by US military involvement and was followed by the authoritarian leadership of Joaquin Balaguer (1966–1978 and 1986–1996). Since 1978, the Dominican Republic has progressed toward representative democracy, with Leonel Fernández serving as President for the majority of the period since 1996. Danilo Medina replaced Fernández in 2012, defeating ex-President Hipólito Meja with 51 percent of the vote. In the 2020 presidential election, he was replaced by Luis Abinader.
According to the US State Department and the World Bank, the Dominican Republic has the biggest economy in the Caribbean and Central America area, and is the seventh-largest in Latin America. The Dominican Republic has had the fastest-growing economy in the Western Hemisphere for the previous 25 years, with an average real GDP growth rate of 5.3 percent between 1992 and 2018. GDP growth rates in 2014 and 2015 were the highest in the Western Hemisphere, at 7.3 and 7.0 percent, respectively. The Dominican economy increased 7.4 percent in the first half of 2016, maintaining its history of high economic expansion. Construction, manufacturing, tourism, and mining have all contributed to recent prosperity. The nation is home to the world's third-biggest gold mine, the Pueblo Viejo mine. Because of low inflation (under 1% on average in 2015), job creation, and a high level of remittances, private spending has been solid. Illegal Haitian immigration is a major issue in the Dominican Republic, straining the Dominican economy and heightening tensions between Dominicans and Haitians. The Dominican Republic also has 114,050 illegal Venezuelan immigrants.
The Dominican Republic is the Caribbean's most popular tourist destination. The golf courses are quite popular all year. The Dominican Republic, a physically diversified country, is home to both the Caribbean's highest mountain peak, Pico Duarte, and the Caribbean's biggest lake and lowest point, Lake Enriquillo. The island has a high climatic and ecological variety, with an average temperature of 26 °C (78.8 °F). The nation is also home to the first cathedral, castle, monastery, and fortification erected in the Americas, which can be found in Santo Domingo's Colonial Zone, a UNESCO World Heritage Site. Baseball is the undisputed national sport.
14 days, beginning after one year of employment. Within five years, the number of holiday days increases to 18.
There are currently no provisions in the Dominican Republic regarding sick leave.
New mothers in the Dominican Republic are entitled to 14 weeks of paid leave.
New fathers in the Dominican Republic are entitled to a paternity leave of up to 2 days.
Employees in the Dominican Republic receive paid leave for both marriage and bereavement. A marriage leave is worth 5 days of paid leave while the death of a family member entitles the employee to 3 days of paid leave.
Termination "for cause" needs proof of misconduct and 48 hours' notice. If the employer fails to give the requisite proof or notification, he will be subject to severance.
Termination "at will" needs a lengthier notice period and severance payout.
The length of notice required for at-will termination is determined by the employee's seniority. The employee is given seven days' notice after three months. The employee is given 14 days' notice after six months. It will be 28 days' notice after a year.
The probation period must not be longer than 3 months.
Severance pay is determined by seniority. Six days' salary is earned for every three to six months of service. For Every six to twelve months of service, an employee earns 13 days' compensation. Service between one and five years entitles an employee to 21 days' pay. 23 days' compensation is paid to an employee who has worked for the company for more than five years.
A typical workweek is 44 hours, or eight hours per day. Part-time employment is limited to 29 hours per week. Following an assessment by the State Labor office, employees in managerial positions may work up to ten hours per day. After midnight, work is considered to be a night shift.
Overtime is compensated at 135% of the standard rate of pay and is limited to 68 hours. Any work hour over 68 is compensated at twice the standard rate. Weekend and public holiday overtime is compensated at 200 percent of the basic rate, while evening work is compensated at 115 percent.
The Dominican Republic's compensation laws include a monthly minimum wage of 8,310 Dominican pesos in free trade zones and between 7,843 and 12,873 Dominican pesos outside of free trade zones. The monthly minimum wage for public sector employees is 5,884 pesos. The minimum wage for farm workers is 234 pesos per day for a 10-hour workday. The minimum wage for sugar cane workers is 146 pesos per day for an eight-hour workday.
Farm workers are paid 234 pesos per day (based on a 10-hour day)
Sugar cane workers earn 146 pesos per day (based on an eight-hour workday)
The Dominican Republic celebrates 12 national holidays, and employers should give employees those days off. Employees should also receive 14 working days of paid vacation annually, starting on their first anniversary. After five years with your company, they should get 18 days off.
Other paid leaves of absence include marriage (five days off), death of a close family member (three days off), paternity leave (two days off), and maternity leave (three months off).
Companies in the Dominican Republic are subject to a corporate tax rate of 27 percent.
Individuals in the Dominican Republic are imposed an income tax rate that ranges from 0 percent to 25 percent. The actual percentage varies depending on the income tax bracket the individual belongs to.
The standard rate for the value-added tax (VAT) or goods and sales tax (GST) in the Dominican Republic is set at 18 percent.
To do business in the Dominican Republic, foreign nationals must obtain a business visa. Business visas are awarded for either a single entrance of 60 days or multiple entries of one year. The permissible term of stay is provided at the discretion of the admitting officer and corresponds to the duration of the activity, although it is normally limited to 30 consecutive days. Business visa holders may petition for a stay extension, which is normally granted for a maximum of 30 days.
Foreign citizens intending to work in the Dominican Republic must obtain either a business visa for employment purposes for assignments of one year or less (granted by consular post with Ministry of Foreign Affairs authorisation) or a Temporary Residence Permit for assignments of more than one year.
Employment contracts must be in writing and include the working location, remuneration, personal information for both parties, duties, a notice period, a trial period, the kind of contract, work hours, yearly leave, bonuses, and a start and finish date, if applicable.
Fixed-term contracts may also be used by employers. These must mention a start and end date, and the contract expires when the job is finished. When an employee is out for an extended period of time, such as maternity leave, these contracts might be used in its place.
Indefinite employment contracts may also be used by employers. These must provide a start date. Apprentices might be hired on a contract basis.
Dominican Peso (DOP)
United States Dollar (USD)
Because of the Dominican Republic's social, political, and economic stability, many corporations prefer to establish a subsidiary there. Its strategic position in the Caribbean, as well as its robust transportation and telecommunications infrastructure, will enable you to link with other Latin American and Caribbean nations. You'll also have access to a competitive and qualified staff that can assist you in growing your business.
When it comes to establishing a Dominican Republic subsidiary, you must first choose which sort of organization is ideal for your purposes. The majority of businesses opt to form a limited liability corporation (LLC) or Sociedad de Responsabilidad Limitada (SRL) (S.R.L.). This form offers the greatest advantages and convenience of incorporation, but you may also create a simplified limited company, public limited company, branch, or representative office.
The Dominican Republic subsidiary establishment procedure consists of the following steps:
(1) Creating and submitting a registration request to the Dominican Trademark Office in order to secure a trade name for your business.
(2) Creating by-laws and other incorporation paperwork
(3) Paying a 1% incorporation tax on the registered capital of the firm
(4) Creating a business registration application and submitting it together with your company's formation paperwork
(5) Creating and submitting a request for a Tax Identification Number
(6) Enrolling workers in the social security system and registering them with the Ministry of Labor
To create an LLC in the Dominican Republic, a minimum share capital of $2,300 is required. The formation procedure requires the appointment of at least one director, who must be a person, as well as two shareholders of any nationality. Shareholders may be persons or corporations, and they are not required to reside in the Dominican Republic.
You must submit yearly financial statements to the local tax authorities as an LLC. While you are not required to employ a statutory auditor, you must have your accounts audited yearly.