5 things you must know before Starting Your Own Business in Dominican Republic

Posted by Palm Hills Real Estate S.A. on October 1st, 2019

Traditionally, the Dominican Republic is known as a popular tourist destination with a population of over ten million inhabitants. It has been in rapid economic expansion over the last decade and now it finds its place in the global marketplace. It also boasts high economic growth rates, modern trade, and a stable and open economy.

If the Dominican Republic business for sale is on your radar, here are five things to know before doing business there.


The things to consider are extensive geography, the fragmented distribution channels and multiple tiers of distribution and also firms should not assume that the distribution landscape in the Dominican Republic is similar to other markets. The modern trade may glitter with its sophisticated retail store imaging, store formats, merchandising and product assortments. However, sufficient time should be invested in doing a channel analysis then finding the right distribution partner that can reach multiple channels.

Price competitiveness

With a local market of over 10M consumers; the Dominican companies are able to achieve economies of scale giving them a significant competitive advantage. This lower cost per unit of output directly impacts their on-shelf price competitiveness as well as overall attractiveness as a supplier to retailers and distributors. The different pricing and costing approaches should be explored as part of any business case for market entry.


The Dominican consumers are awash with product choices and are heavily influenced by both European and Western products and brands. The average Dominican consumer is very shrewd in their taste as brands are worn, consumed and displayed as status symbols. New brand entrants must have a strong brand platform, clear value proposition, unique and attractive packaging design, and a complete product portfolio and tastes to make an impression.

Culture and language

A business deal is not likely to be struck without investment in building a relationship with your potential trading partner over multiple market visits, meetings, and meals. Every effort should also be made to communicate in the Spanish language and to have someone senior in your team who can take the business relationship forward in Spanish and other local languages.

Law 173

Law 173 has been a sensitive issue and considered a non-tariff barrier by many Caribbean firms exploring business for sale in the Dominican Republic. This law protects local importers, distributors, and agents from wrongful unilateral termination by awarding substantial indemnities to the terminated party. However, it is recommended that a comprehensive and well-structured sales agreement be implemented with input from an established Dominican law firm.

Moreover, if you are looking to increase your consumer base, sales revenue and plant throughput; the Dominican Republic offers an attractive market profile and these pointers should serve as a roadmap as you plan your start-up business.

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Palm Hills Real Estate S.A.

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Palm Hills Real Estate S.A.
Joined: September 11th, 2019
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