The Republica Dominicana (RD) provides licensing for a Limited Capitalization Bank (LCB). The purpose of the bank license is to stimulate the domestic economy by making capital available for housing, construction, small businesses, personal loans, etc.
Your bank is not restricted to domestic investing. There are no restrictions against International investing or lending. There are no restrictions against paying earnings to foreign investors or returning their capital. Attracting foreign investments is a priority of the RD Government.
Cost USD$20,000.00
Complete government fees and Dominican Attorney fees for the bank license establishment are USD$20,000.00. Our Dominican associate law firm completes all licensing requirements. The license application fee includes your first month of hosting by the office of our Dominican associate Law Firm immediately upon approval of your license. You may continue with hosting provided by the Dominican law firm, or, establish your own physical presence. Start to finish your license can be approved within ninety days.
Capitalization:
Currently the capitalization requirement is only RD$600,000.00 (approximately USD$30,000.00). Upon approval of the bank license these funds are available to be spent in any manner your bank chooses: pay rent, hire people, buy equipment, make loans, hold as reserves, etc.
The initial capitalization must be deposited with a commercial bank within Republicana Dominicana (RD), and earns interest. Interest rates are currently 14 to 16% on RD$ (pesos), or, 6 to 8% on USD term savings accounts. Your capitalization account will be established in a large national bank, fully guaranteed by the government.
All earnings on assets held as bank reserves are tax-exempt! The earnings may be spent any way the bank chooses and still retain the tax exemption.
After being in business for at least six months the LCB may apply to become licensed as a full commercial bank. Under this option the bank could issue checking accounts, make change, etc. These additional options may not be attractive to International investors who prefer the low-overhead of electronic banking. Remaining a LCB may be the most desirable option.
Allowed Transactions:
Ø Sale of shares in your bank;
Ø Accept deposits, pay interest;
Ø Domestic investments;
Ø International investments;
Ø Domestic lending;
Ø International lending;
Ø Joint Venture Partnerships;
Ø Almost everything a commercial bank does except checking accounts!
Offer Government Guaranteed Savings Accounts!
All deposits are guaranteed by the Central Bank (CB). Yes, your bank can offer government backed savings accounts!
Offer Tax-exempt Savings Accounts!
The Government has legislated that savings accounts held by foreigners are exempt from all taxation. There are no exchange controls prohibiting the return of principal and interest to the foreign investor.
Hosting:
Our Dominican Law Office associate can provide the in-country physical presence for the bank. As a bank owner you can retain this service for an extended period, or, seek your own physical presence upon completion of licensing. The initial monthly fee is USD$500.00 per month, first months hosting is free (included in license fee), allowing you time to open your own facility. The cost of extended hosting is negotiable and depends upon the amount of time required to service your bank
The hosting includes:
Ø Physical presence;
Ø Coordination with the Central Bank;
Ø Coordination with local Chartered Accountant;
Ø English speaking telephone reception;
Ø Phone, fax and e-mail contact and forwarding service;
Ø Obtaining and underwriting local lending opportunities;
Ø Coordinating correspondent banking with large commercial banks;
Ø Receiving and sending bank wires as directed;
For additional information about the Country and your opportunities, click here
