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With its tropical weather, white sand beaches, Spanish colonial architecture and friendly investment climate, it’s no surprise that many companies and entrepreneurs see the Dominican Republic as an attractive jurisdiction. Foreign investors, corporations seeking to incorporate, and companies hoping to set up a local branch will all have to do the same thing at one time or another – open a corporate bank account in the Dominican Republic.
SEE ALSO: Steps to Incorporate a Company in the Dominican Republic
What do you need to open a corporate bank account in the Dominican Republic?
What follows is a list of the essential documents your organization will need in order to open a corporate bank account in the Dominican Republic:
- A certificate of incorporation from the company’s country of origin
- A list of the business’s partners and shareholders
- A certificate from the Dominican National Taxpayers Registry (RNC)
- A tax number assigned to your business, issued by the General Directorate of Internal Taxes (DGII) authority
- A commercial or industrial license (issued by the Ministry of Industry and Commerce)
The above is a general overview of what is needed to open a corporate bank account in the Dominican Republic, but it should not be considered an exhaustive list. Some banks may require additional documentation depending on the structure of the business entity, its size, and the type of business it intends to conduct in the country.
What to keep in mind before you open a corporate bank account in the Dominican Republic?
Even before walking into a brick-and-mortar bank to open an account in the Dominican Republic, your business must ensure that:
- Any documents in a language other than Spanish need to be translated by a certified translator
- Documents issued outside the Dominican Republic (i.e., from the business’s country of origin) must be apostilled
- In cases where a company’s on-the-ground legal representative holds 10 percent or more of the company’s shares, additional documentation could be required. Such documents may include:
- Board meeting minutes where the representative was appointed to the position
- A copy of the business entity’s bylaws
- Identity documents of all partners, shareholders, and managers
- Banking records from the business’s country of origin
- (In some cases, depending on the bank) commercial references from the company’s clients and/or suppliers
Getting all the documentation and approval needed to open a corporate bank account in the Dominican Republic is very similar to the procedures that a business must go through to incorporate in the country. For that reason, many business entities – both small start-ups and large companies – plan things in such a way where they can set up shop in the Dominican Republic and activate a business bank account at the same time.
Opening a corporate bank account in the Dominican Republic: Top banks to consider
What follows are some of the most established banks in the island nation:
- BanReservas – This is the largest bank in the Dominican in terms of assets under management, and the most branches/ATM locations across the island.
- Banco Popular Dominicano – This bank offers a full range of personal and corporate banking services, and even offers personal accident and life insurance plans.
- Banco Multiple BHD Leon – This is another large bank in the Dominican Republic, holding 19 percent of the retail banking market share on the island.
- Banco BDI – This bank was instrumental in the development of the agri-business and industrial sectors in the late 20th century. It now offers a full range of personal banking services.
- Banco Vimenca – Like all banks in the Dominican Republic, it offers personal banking services, but it’s the smallest bank in the country in terms of locations and market share.
- Banco Unión – This niche bank focuses on making it easy for accountholders to receive remittances from abroad. It operates through a network of correspondents in the US, Latin America, Spain, and other European countries.
- Scotiabank República Dominicana – This bank is a subsidiary of the Canadian banking giant Scotiabank Group and is one of only two foreign banks operating in the country. Its focus is providing personal and corporate services to small- and medium-sized enterprises (SMEs) as well as large corporations.
- Citi Dominican Republic – Citigroup has had a presence in the country for more than 50 years. Citi Dominican Republic offers a wide range of banking products and services to individuals and large corporations.
It is important to choose a bank that is most aligned with your business objectives in the country. Also, it’s crucial to know whether a bank imposes restrictions on foreign transactions if, for example, the company has foreign shareholders.
Such things must be carefully considered by an organization’s upper-level management, so they don’t end up opening an account with a bank that doesn’t have their best interests in mind.
Common Questions when opening a corporate bank account in the Dominican Republic?
Based on our extensive experience these are the common questions and doubts from our clients when looking to open a company bank account in the Dominican Republic.
No. However, you can open a bank account from abroad with the support of a local attorney empowered through a power of attorney (POA), however, the original bank application forms will need to be sent to the Dominican Republic.
The following documents are required to open the company bank account:
– Copy of the articles of incorporation of the company;
– An up to date copy of the company’s bylaws
– Banking reference letter
– Certificate of good standing of the company;
– An up to date financial statement for the company
– Passport copy of all shareholders and members of the company
– US$500 initial deposit for US$ accounts or RD$500 for accounts in local currency.
Any member of the company that is authorized by company shareholders can have access to the bank account.
We recommend the following banks for foreign companies: Banco Popular Dominicano, Banco BHD León, Banesco, and Scotiabank.
Companies choose to open bank accounts in the Dominican Republic due to economic and political stability; the ability to hold currency in US Dollars, the national taxation system, and banking privacy.
Yes, the Monetary and Financial Act, article 56, section b, states that the information obtained by a Financial entity must be kept strictly confidential and may only be provided to third parties by order of the competent judicial or governmental authority.
Biz Latin Hub can help you with accounting and taxation in the Dominican Republic
At Biz Latin Hub, we provide integrated market entry and back-office services throughout Latin America and the Caribbean, with offices in Bogota and Cartagena, as well as over a dozen other major cities in the region. We also have trusted partners in many other markets.
Our unrivalled reach means we are ideally placed to support multi-jurisdiction market entries and cross border operations.
As well as knowledge about how to open a corporate bank account in the Dominican Republic, our portfolio of services includes hiring & PEO accounting & taxation, company formation, bank account opening, and corporate legal services.
Contact us today to find out more about how we can assist you in finding top talent or otherwise doing business in Latin America and the Caribbean.
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The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.