Formalize? This is a question that several entrepreneurs ask themselves after they start their businesses, many entrepreneurs at the time of starting their business proceed to do this step, others prefer to have a certain stability to do it and some never do it.
Regardless of which entrepreneur you are, formalizing your company will help you in the future for the growth of your business. So you must analyze where you want to grow your business, so you can take this step.
- How do I formalize?
To carry out this process, you must follow a series of steps, in various state institutions:
- Register your name in ONAPI, making the corresponding payments
- Draft and deposit the legal documents of your company; Articles of Association, Minutes of the Constitutive Assembly and List of attendance. You must make the corresponding tax payments at the DGII.
- Request your commercial registration (RNC)
- Create your list of employees, and complete the employee registration process in the Ministry of Labor and the TSS
You can help yourself from a professional in the legal area or do the process digitally at:
https://www.formalizate.gob.do/
- What would be the cost to formalize?
If you do it through formalizate, it would cost from RD$7500
If you do it with the support of a professional in the legal area, around RD$25,000.
- What is this for?
Formalizing helps your company to exist at a legal level, that is, we will be able to access benefits offered by the government and financial tools offered by banks, but we will also acquire fiscal responsibilities that we must comply with.
- What would be these advantages?
- We will have access to growth and development plans for MSMEs offered by the government.
- We can access financial credit from banks, but for our companies and not on a commercial level. In many cases they allow you better rates.
- You can make sales to the state as a supplier.
- You can carry out larger projects for corporate clients.
- You will be able to report the credit you currently pay on local purchases and payments.
- You can offer security to your employees, with health plans and AFPs.
- And the disadvantages?
- You must comply with your tax responsibilities: advances, income taxes, ITBIS, etc.
- You will require a lawyer and an accountant, to give you assistance in the legal issues of the company.
- You must make the payment of the TSS and Infotep, which is proportional to the salaries of your employees. (Approximately 15.29% by the employer).
Are you ready to formalize?
We can only answer this question ourselves, since formalization has many benefits, but at the same time you will acquire a series of responsibilities that you must fulfill to avoid any type of reprimand or fine.
It is important to know that declaring our company helps us to have visibility to grow to the next level. So it's up to you to decide; Do you want your business to be a hobby? Do you prefer to save yourself the inconvenience of declarations and payments? Do you want to be able to formalize and access financial tools? Do you want to have everything organized before the law?