With its tropical weather, white sand beaches, Spanish colonial architecture, and friendly investment climate, it’s not surprising that many companies and entrepreneurs find the Dominican Republic appealing. Whether you are a foreign investor, a corporation seeking to incorporate, or a company hoping to set up a local branch, opening a corporate bank account in the Dominican Republic is a necessary step. In this article, we will outline the essential documents required to open a corporate bank account in the Dominican Republic.
Here is a list of the essential documents needed:
1. Certificate of incorporation from the company’s country of origin
2. List of business partners and shareholders
3. Certificate from the Dominican National Taxpayers Registry (RNC)
4. Tax number assigned to your business, issued by the General Directorate of Internal Taxes (DGII) authority
5. Commercial or industrial license issued by the Ministry of Industry and Commerce
Please note that this is a general overview and additional documentation may be required depending on the bank and the nature of your business.
Before opening a corporate bank account, there are a few important considerations:
1. Documents in a language other than Spanish must be translated by a certified translator.
2. Documents issued outside the Dominican Republic must be apostilled.
3. Additional documentation may be required if the on-the-ground legal representative holds 10% or more of the company’s shares. This may include board meeting minutes, copies of bylaws, and identity documents of partners, shareholders, and managers.
4. In some cases, the bank may request banking records from the company’s country of origin as well as commercial references from clients and/or suppliers.
In terms of selecting a bank, there are several options to consider:
1. BanReservas – the largest bank in the Dominican Republic with the most branches and ATM locations.
2. Banco Popular Dominicano – offers a range of personal and corporate banking services, including insurance plans.
3. Banco Multiple BHD Leon – holds a significant market share in retail banking.
4. Banco BDI – originally focused on agri-business and industrial sectors but now offers personal banking services.
5. Banco Vimenca – the smallest bank in the country but still provides personal banking services.
6. Banco Unión – specializes in facilitating remittances from abroad.
7. Scotiabank República Dominicana – a subsidiary of Canadian banking giant Scotiabank Group, catering to SMEs and large corporations.
8. Citi Dominican Republic – offers a wide range of banking products and services to individuals and large corporations.
When choosing a bank, it is important to consider factors such as alignment with your business objectives, restrictions on foreign transactions, and the bank’s reputation.
Here are some common questions when opening a corporate bank account in the Dominican Republic:
1. Can I open a corporate bank account online? No, but you can open an account from abroad with the support of a local attorney empowered through a power of attorney (POA).
2. What documents do I need to open a company bank account? You will need various documents such as articles of incorporation, banking reference letters, good standing certificates, financial statements, and passport copies.
3. Who can have access to a company bank account? Any authorized member of the company can have access to the bank account.
4. What is the best bank for foreign companies? Recommended banks for foreign companies include Banco Popular Dominicano, Banco BHD León, Banesco, and Scotiabank.
5. Why do companies open bank accounts in the Dominican Republic? Companies choose the Dominican Republic for reasons such as economic and political stability, the ability to hold currency in US Dollars, the national taxation system, and banking privacy.
6. Does the Dominican Republic have bank secrecy? Yes, according to the Monetary and Financial Act, the information obtained by financial entities must be kept strictly confidential and can only be provided to third parties by order of the competent judicial or governmental authority.
For assistance with accounting and taxation in the Dominican Republic, Biz Latin Hub offers integrated market entry and back-office services in Latin America and the Caribbean. Whether you need help opening a corporate bank account, company formation, or legal services, contact us to learn more about how we can assist you.
