Business: So there are SA and SxA, is there an "Inc." too?

[J D Sauser]

Here, in the DR, SA (anonymous share holder corp.) and SxA (simple share holder corp) seem to be the standard.
But just recently, I have seen two businesses who show their company name followed by "Inc." (incorporated?).
Is this a real alternative legal entity? And if so, could some please share the details and the differences as opposed to SA and SxA?

... J-D.

[Chip]

I think you mean CxA. I have talked with a friend who has more than one business here in the DR and he said those are the only two real options, and they are basically for all intents and purposes the same. It is based on the French system as is the law if that is any help. It basically operates like a corporation, with the officers receiving "acciones" (shares). Another nuance is that I was told a minimum of 7 officers are needed, the good thing is anybody can be used, incl. children. To form a corporation here in the Dr wil typically run you around RD20k.

[miguel]

CxA= Compania por Acciones.
SA= Sociedad Anonima

[Hillbilly]

Inc. is usually reserved for non-profic concerns, like sports federations and associations and NGOs in general.

HB

[J D Sauser]

Originally Posted by Hillbilly

Inc. is usually reserved for non-profic concerns, like sports federations and associations and NGOs in general.

HB

Thanks for the answer, Sir.
Yes, one of the Inc's is indeed an association... the other one seemed to be a plumber biz (small truck with a bunch of pipes ans such on top)... but maybe the later one was a Nueba Yol sentimentalist... what do I know.
Anyway, you state "usually" is that exclusively or just usually, meaning that companies for profit may indeed form an "Inc.". How are they set up?

Thanks! ... J-D.

[GringoCArlos]

"Inc." and "Ltd." may both also appear in the company's name if the corporation is registered/formed in another country, and then registers with Hacienda and is doing business here in the DR.

Instead of going through the entire process of starting a new company, one only needs to bring their business documents from the country of registration and obtain an RNC and a few other things, not the entire package.There is no need to form a separate Dominican business entity.

[Fabio J. Guzman]

Any Dominican entity with Inc. at the end of its name is a non-profit organization.

S.A. ("sociedad anónima) and C. por A. (compañía por acciones) are both the same: for-profit limited liability entities.

A bill presently in Congress may radically change Dominican corporation law. If passed, you won't need 7 shareholders anymore: one will be sufficient.

[J D Sauser]

Originally Posted by Fabio J. Guzman

Any Dominican entity with Inc. at the end of its name is a non-profit organization.

S.A. ("sociedad anónima) and C. por A. (compañía por acciones) are both the same: for-profit limited liability entities.

A bill presently in Congress may radically change Dominican corporation law. If passed, you won't need 7 shareholders anymore: one will be sufficient.

Thanks Sr. Guzman.
Can one and would it make sense to put a property in an Inc's name?
Is an Inc cheaper and/or easier to set up and maintain?

Thanks! ... J-D.

[Fabio J. Guzman]

An non-profit is harder to set up and cheaper to maintain than a for-profit entity. Choosing between one and the other is not a question of which one is cheaper, however. It depends on the nature of what you are doing.

[johnsantodomingo]

I have an Inc. company because it is a foreign company operating here. I dont make any profit yet but I hope I will. My company is registred in the Registro Mercantil and I have an RNC no. I report to the tax authorties on a monthly basis. I choose this form so I did not have to have 7 shareholders.