You will need to open a corporate bank account in the Dominican Republic before you can begin doing business in the Dominican Republic. Having a company account allows companies to complete financial transactions and store their funds. This is crucial for ensuring smooth commercial operations and compliance with tax regulations.
The process to open a corporate bank account in the Dominican Republic, with all the documentation and approvals that are required, is very similar to the process of incorporating a business in the country. For that reason, many business entities – small start-ups and large companies alike – plan things in such a way that they can set up shop in the country and activate a business bank account at the same time.
Biz Latin Hub can help you through every stage of the process, as well as provide a range of back-office services to support your business throughout its life cycle. We know how to open a corporate bank account in the Dominican Republic as we have extensive knowledge of business needs across Latin America and the Caribbean.
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What do you need to open a corporate bank account in the Dominican Republic?
The most complicated part of opening a corporate bank account in the Dominican Republic is providing all the required documentation. Any documents in a language other than Spanish need to be translated by a certified translator. And documents issued outside the Dominican Republic (i.e., from the business’s country of origin) must be apostilled.
Internal policies at each bank determine the exact list of documents that are required when opening a corporate account. What follows is a general list that most banks require:
- 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).
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.
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 are the best corporate banks in the Dominican Republic?
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.
What follows are some of the most established banks in the island nation:
- BanReservas – This is the largest bank in the Dominican Republic in terms of assets under management, and it has the most branches/ATM locations across the island.
- Banco Popular Dominicano – This bank offers a full range of personal and corporate banking services. It 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, this one 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.
Based on our experience, we often recommend Banco Popular Dominicano or Scotiabank or foreign companies. This is based on the ease of doing business as a foreigner in the Dominican Republic.
4 Steps to open a corporate bank account in the Dominican Republic
To open a corporate bank account in the Dominican Republic:
- Step 1: Choose the provider and bank account type that will best suit your business needs. Feel free to discuss the options available at the local branch.
- Step 2: Prepare all the required documentation and complete the bank account application form. Note that you may be required to complete an in-person interview.
- Step 3: Once you have been accepted as a customer you might be asked to make an initial deposit.
- Step 4: Activate your account. You are now ready to begin using your company account.
FAQs on how to open a corporate bank account in the Dominican Republic
Based on our extensive experience, these are the common questions and doubts of our clients on opening a company bank account in the Dominican Republic:
1. Can I open a corporate bank account online in 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.
2. What documents do I need for banking in 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.
3. Who can have access to a company bank account in the Dominican Republic?
Any member of the company that is authorized by company shareholders can have access to the bank account.
4. What is the best bank in the Dominican Republic for foreign companies?
We recommend the following banks for foreign companies: Banco Popular Dominicano, Banco BHD León, Banesco, and Scotiabank.
5. Why do companies open bank accounts in the Dominican Republic?
Companies choose to open bank accounts in the Dominican Republic due to the 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. 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 open a corporate bank account 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 unrivaled 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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