Cost to formalize companies in the Dominican Republic is among the lowest in Latin America
46.7% of the country's MSMEs belong to the commerce sector,
According to figures from the World Bank Group, the average cost of formalizing a business in Latin America is US$652. In contrast, in the Dominican Republic, the figure is less than half, and US$233 is needed to start a micro, small and medium-sized enterprise (MSME).
According to Encuesta Nacional de Hogares de Propósitos Múltiples, there are almost 1.5 million MSMEs in the Dominican Republic; they represent 98% of the total number of companies and generate up to two million jobs that contribute 38.6% of the nation’s GDP.
Likewise, 46.7% of these companies belong to the commerce sector, followed by the services sector with 38.4% and the industry sector with 14.9%. The traditional activities in which they are engaged are stores and grocery stores, beauty salons and barbershops, textiles and footwear, restaurants, bars and canteens, and repair of personal effects.
Haydée Cabrera, strategic leader of Alegra.com, the accounting, administration, and electronic invoicing platform for MSMEs, explained that opening a business in the Dominican Republic, as in most Latin American countries, involves significant work, both financially and in terms of time and effort, registration, administrative procedures, investment, etc., as well as being prepared for possible external events such as uncertainty and political instability.
Before starting the procedures, he explained that the type of company to be created must be identified and then proceed to register the Commercial Name and the legal documents.
Cabrera urged the companies to keep an orderly accounting to manage their finances in the best way.
To have correct management.
Cabrera pointed out that they recommend to entrepreneurs: “Complying with the steps before the formation of a company is as necessary as its correct management and administration. Having a strategic vision and tools that allow the business to be run in order, controlling income and expenses, is the key to guaranteeing a return on the money invested in the company.”