Insights
Operating in the Dominican Republic Without a Company
Insights · By Chen ChunJie · Published 8 November 2026
Many foreign companies start in the Dominican Republic with no local entity. This guide explains what you can do without a Dominican company, when you need one and how to move from one stage to the next.
Last reviewed in November 2026 against Labour Code Law 16-92, Law 87-01, the February 2026 minimum wage resolution and DGII guidance. Rates change, so we confirm them for each engagement.
What you can do without a Dominican company
| Activity | Company needed? |
|---|---|
| Employing staff | Yes, or an employer of record |
| Engaging independent contractors | No, if they are genuinely independent |
| Selling from abroad | Not for hiring, but check the tax position |
| Free-zone operations or a local office | Yes |
Why you cannot employ directly from abroad
A Dominican employer registers with the TSS and the DGII, reports payroll monthly and files the annual staff roster with the Ministry of Labour. These steps need a local legal presence.
No Dominican company yet? Our Local Team can be the legal employer while you manage the work. See Employer of Record in the Dominican Republic.
When a Dominican company makes sense
Once the team is large and long-term, or you want free-zone incentives for a service centre, an SRL or branch is usually the next step.
Permanent establishment risk
An employer of record does not by itself create a permanent establishment, but employees who habitually conclude contracts for you can. Review revenue-generating roles with your tax adviser.
Moving to your own company
When your company is registered, we agree a transfer date and the employee joins your company, usually with service recognised.
FAQ: operating without a company
Can a foreign company employ people in the Dominican Republic directly?
Not without registering locally. An employer of record handles it.
Can I hire contractors without a company?
Yes, for genuinely independent work. See On-Demand Talent in the Dominican Republic.
Does an EOR create a permanent establishment?
Not by itself.
Hiring your first employee in the Dominican Republic?
Our Local Team employs the person, runs payroll with TSS, income tax and the salario de Navidad, and handles the paperwork, while you manage the day-to-day work.
Related
How we employ your team in the Dominican Republic.
Contracts, leave, termination and more.