How to Register a Sole Proprietorship (Persona Física) in the Dominican Republic

Setting up as a sole proprietor/independent contractor in the Dominican Republic is attractive because you can start quickly, test your business idea with low overhead, and invoice local or international clients in pesos or foreign currency.

Most filings are now digital, which makes the process faster than it used to be, though you will still interact with several agencies. The biggest challenges are understanding when you must register a trade name or Registro Mercantil, keeping up with monthly VAT (ITBIS) filings if you sell taxable goods or services, and learning how e-invoicing works and when it becomes mandatory. The benefits are flexibility, full control over your work, and a straightforward tax path as an individual.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in the Dominican Republic?

In the Dominican Republic, a sole proprietorship is commonly called persona física (also “negocio de único dueño” or “comerciante individual”). You operate in your own name or under a registered trade name without forming a separate company. Taxes are assessed to you personally, and unless you choose a limited-liability form, you’re fully responsible for business debts. For identification and tax purposes, you obtain or update your RNC (tax ID) with the Dirección General de Impuestos Internos (DGII) through its Oficina Virtual.

How does a sole proprietorship (persona física) work in the Dominican Republic?

Here’s a quick overview of what it means to operate as a persona física in the Dominican Republic, from the agencies you’ll deal with to the taxes you’ll pay.

Persona Física vs. EIRL vs. Limited Company (S.R.L.)

When you’re deciding how to structure your business, you’ll want to balance cost, liability, and flexibility. This table highlights the main differences between registering as a persona física, an EIRL, or an SRL.

*Note on minimum capital for S.R.L.: The MICM confirms that Law 68-19 eliminated the fixed RD$100,000 minimum for SRLs; capital is set in the bylaws.

Step-by-step guide: How to register a sole proprietorship in the Dominican Republic

Step 1: Confirm your eligibility

Dominican citizens and legal residents can register or update their RNC as individuals with the DGII through the Oficina Virtual. Foreign nationals can appear in the DGII system and obtain an RNC; however, the ability to operate and invoice depends on your migratory status and the type of tax registration you secure.

Social security affiliation generally covers Dominican citizens and legal residents, and independents can join the appropriate SDSS regime; details and eligibility are set by the CNSS.

Step 2: Choose your business name

You may operate under your personal legal name. If you want a trade name, register it with ONAPI. ONAPI accepts online filings through E-SERPI and regularly publishes 2025 bulletins of accepted trade names; check availability and file before you print invoices or signage.

Step 3: Gather your documents

Prepare your national ID (cédula) or passport and proof of address. If you registered a trade name, download or save the certificate from ONAPI. For mercantile activities that require it, download the Registro Mercantil forms from the Chamber of Santo Domingo (or your local chamber) under “Persona Física.” If you will operate only under your own name with no mercantile registration requirement, you can proceed with tax registration online.

Step 4: Register with the DGII

Create or sign in to your Oficina Virtual account and request RNC registration/activation as a persona física. The process is online; the DGII confirms your tax obligations and your filing periods (e.g., monthly ITBIS if you carry out taxable operations). Keep your RNC confirmation handy for banks, clients, and any registration with chambers or social security.

Step 5: Pay the fees and set up contributions.

There is no DGII fee to obtain your RNC. If you filed a trade name, ONAPI charges service fees; amounts depend on the procedure and are paid online. Chamber fees for the Registro Mercantil vary by chamber and, for companies, by capital—check the current tariff published by the Cámara de Santo Domingo.

Social security contributions through the TSS apply when you have employees; the owner alone cannot be the only worker on the payroll. For 2025, TSS has published the contribution caps and the monthly payment calendar.

Step 6: Complete your post-registration obligations

Issue tax receipts (NCF) and transition to e-CF (electronic invoicing) within the national rollout; the DGII’s 2025 notices confirm a final general deadline of May 15, 2026. File monthly ITBIS returns and any withholding returns according to the 2025 DGII Calendar.

File your annual ISR return as an individual using the current 2025 brackets. Keep your books and supporting documents and, if you maintain a Registro Mercantil, follow your chamber’s instructions for corporate books and record keeping.

Financial and tax obligations for sole proprietors

• Income tax (ISR). In 2025, income up to RD$540,095 is tax-free. Earnings between RD$540,095 and RD$810,071 are taxed at 15%, income up to RD$1,121,786 at 20%, and anything above that at 25%.

  For example, someone earning RD$700,000 pays about RD$24,000, while RD$1,000,000 in income results in roughly RD$78,500 in tax.

• VAT/ITBIS. If your activity is taxable, you charge ITBIS at the standard rate and file monthly. The DGII’s 2025 calendar lists ITBIS filing/payment days each month. Professional-services invoices can be subject to withholding by your client (e.g., 30% of the ITBIS on certain services), which affects how much you pay in your monthly return.

• E-invoicing (e-CF). Electronic invoicing is being phased in. DGII’s 2025 notices confirm a final adoption deadline of May 15, 2026; some taxpayers are obliged earlier. Plan your onboarding and certify your solution ahead of time.

• Social security. If you hire employees, you must register as an employer with the TSS and pay monthly contributions following the 2025 TSS calendar. The CNSS confirms affiliation rights for Dominican citizens and legal residents; independent workers participate through the SDSS regimes defined by law.

• Record-keeping. Keep your invoices (NCF/e-CF), contracts, and accounting records organized. Where your activity requires a Registro Mercantil, your local chamber provides online services and templates to maintain corporate records.

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FAQs

What is the minimum capital required to start a persona física in the Dominican Republic?
None. A persona física has no capital requirement. For companies, note that SRLs have no fixed legal minimum after Law 68-19; capital is set in the bylaws.

Do personas físicas need to register for VAT/ITBIS?
Yes, if you make taxable supplies. You must charge ITBIS and file monthly returns on the DGII schedule.

How much are the standard monthly or annual contributions?
Tax payments depend on your actual revenue and expenses. As a simple illustration, with RD$700,000 in net taxable income for 2025, your ISR would be RD$23,985.75; if you billed RD$100,000 + ITBIS in a month for a service subject to retention, a client might withhold 30% of the ITBIS (RD$5,400), and you would remit the net RD$12,600 ITBIS that month. Always check your own figures in the DGII forms.

Can a persona física hire employees?
Yes. Once you have staff, you must register as an employer with the TSS and make monthly contributions; the owner cannot be listed as the only employee.

How long does it take to register as a persona física?
It can be quick once your documents are ready. The RNC process is online and chambers increasingly provide online services for mercantile filings, so many entrepreneurs complete the essentials in a few days.

Can foreign nationals register as personas físicas in the Dominican Republic?
Foreigners can be registered in the DGII system and obtain an RNC; operating as an independent professional requires the proper migratory status and the correct tax classification. Legal residents are eligible for Social Security affiliation.

Do personas físicas need a separate business bank account?
It is not legally mandatory for a persona física, but a dedicated account is strongly recommended for clean bookkeeping and proof of income/expenses.

What happens if I stop working as a persona física?
You should update your RNC status with the DGII through the Oficina Virtual and close any chamber or ONAPI registrations as needed. Follow DGII guidance for final returns and outstanding obligations, using the 2025 calendar for timing.

Are there any government incentives or reduced rates for new personas físicas?
Dominican incentives tend to target sectors and MiPymes certification, not the legal form itself. The MICM maintains 2025 data and resolutions for MiPymes classification; check if you qualify for programs linked to your sector or size.

Can I use Deel as a persona física to get paid by international clients?
Yes. Deel lets personas físicas and freelancers receive cross-border payments in multiple currencies with low fees and transparent FX.

Does Deel generate compliant invoices for personas físicas?
Absolutely. Deel issues invoices with the details clients expect and helps you retain records you can reconcile with DGII filings.

Can Deel help me with taxes as a sole proprietor in the Dominican Republic?
Yes. Deel provides downloadable tax reports and payment records you can use when filing returns. Deel doesn’t replace your accountant, but it simplifies compliance.

Does Deel offer contracts for freelancers and personas físicas?
Yes. Deel includes contract templates aligned with local norms so you can work with clients professionally.

Can I access benefits through Deel as a persona física?
Yes. Deel offers optional perks like health insurance and retirement plans in many regions, giving independents more security.