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Ease of Doing Business in

Dominican Republic

Dominican Republic Download Profile (1773.7KB, pdf)
Region Latin America & Caribbean
Income Category Upper middle income
Population 10,528,391
GNI Per Capita (US$) 6,130
City covered Santo Domingo

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 103 103
0
59.35 59.08 down
0.27
Starting a Business 115 108 down
7
83.34 83.12 up
0.22
Dealing with Construction Permits 45 44 down
1
75.20 75.01 up
0.19
Getting Electricity 148 151 up
3
52.18 50.58 up
1.60
Registering Property 82 83 up
1
65.61 65.17 up
0.44
Getting Credit 101 97 down
4
45.00 45.00
-
Protecting Minority Investors 87 85 down
2
53.33 53.33
-
Paying Taxes 129 131 up
2
60.70 60.33 up
0.37
Trading across Borders 58 56 down
2
83.51 83.51
-
Enforcing Contracts 131 129 down
2
51.03 51.03
-
Resolving Insolvency 160 160
-
23.55 23.70 down
0.15

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

45

DB 2016 Rank:

44

Change in Rank:

down1

DB 2017 DTF (% points):

75.20

DB 2016 DTF (% points):

75.01

Change in DTF (% points):

up0.19

STANDARDIZED WAREHOUSE
Estimated value of warehouse DOP 13,705,646
City Santo Domingo
Indicator Dominican Republic Latin America & Caribbean OECD high income
Procedures (number) info_outline 13 14.4 12.1
Time (days) info_outline 184 181.3 152.1
Cost (% of warehouse value) info_outline 1.7 2.5 1.6
Building quality control index (0-15) info_outline 13 8.4 11.3
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Request a certificate to use the land and a certificate of no objection ("Certificado de uso de suelo", "certificado de no objecion") and receive inspection by the Municipal Council (Departamento de Planeamiento Urbano)

    Agency: Municipal Council (Departamento de Planeamiento Urbano)

    Following the Doing Business case study assumptions and based on Resolution 5/2004 one needs to request a certificate to use the land and also obtain a certificate of no objection prior to obtaining the construction permit. Moreover, in order to obtain the certificate to use the land an inspection by the Municipal Council is required (the official cost for this inspection is DOP 500.00.).
    The land-use certificate confers the right to build on the plot, but it does not authorize construction. The certificate ensures that the project conforms to zoning regulations.
    The certificate of no objection is a certificate which according to your project plans, elevations and sections approves and appoints the urban design parameters.

    The request must be accompanied by several documents related to the land, including:
    • A copy (simple, unnotarized) of the real property deed for the plot (does not have to be recently obtained)
    • A cadastral plan
    • A map of the project’s location and a first draft of the project design drawings


    1 day DOP 500
    2

    Obtain a certificate to use the land and a certificate of no objection ("certificación de uso de suelo" y "certificación de no objeción" )

    Agency: Municipal Council (Departamento de Planeamiento Urbano)

    According to Resolution 5/2004, the cost to obtain a certificate to use the land is DOP 1,000 and the cost to obtain the certificate of no objection is DOP 5,000.

    15 days DOP 6,000
    3

    Request and obtain approval of project design drawings by the Municipal Council

    Agency: Municipal Council (Departamento de Planeamiento Urbano del Ayuntamiento de la jurisdicción correspondiente)

    The request for approval of the project design drawings must be accompanied by several documents, including the property deed, the cadastral plan, and project design drawings, certified by an architect or engineer registered at the Dominican College of Engineers and Architects (CODIA) by the corresponding Municipal Council. BuildCo must request an inspection upon filing the project drawings. This is a prerequisite for other procedures.

    Once the request is approved by the Municipal Council, the Municipality forwards the request to the Ministry of Public Works and Communications. The Ministry then grants a construction license for the project. The license is granted to the project itself and not to BuildCo. During this process, BuildCo must follow up with both agencies to ensure license processing. Construction must commence within 1 year from the date of issuance of the license.

    According to Resolution #5 2004 of the National District Office (Ayuntamiento del Distrito Nacional de Santo Domingo) the official cost for the construction of a warehouse is DOP 75.00 per sq. m. For a warehouse of 1300.6 sq. m. the total cost will be DOP 97,545.00.

    21 days DOP 97,545
    4

    Receive pre-registration inspection (preinspeccion) by the Ministry of Public Works and Communications (Departamento de Inspeccion de Edificaciones Privadas)

    Agency: Ministry of Public Works and Communications (Departamento de Inspeccion de Edificaciones Privadas)

    According to article 86 of the Regulations for the Supervision and General Inspection of Work (R-0004 Reglamento para la Supervision e Inspeccion General de Obras), all projects which have been subject to the review and approval of project design drawing by the Ministry of Public Works and Communications (Oficina de Tramitacion de Planos) must be previously inspected (pre-registration) to verify that the construction has not started.

    1 day no charge
    5

    Request and obtain construction permit from the Ministry of Public Works and Communications

    Agency: Ministry of Public Works and Communications (Ministerio de Obras Publicas y Comunicaciones)

    Fees are paid once the license has been approved and the project has been valued by the Ministry of Public Works and Communications (Oficina de Tramitacion de Planos). The formula used by the Ministry of Public Works and Communications to determine the project value (is DOP 16,510.20 per sq. m (1,300.6 sq. m. x DOP 16,510 = DOP 21,473,166.12).
    Thus, the applicable administrative fees (based on a project value of 21,473,166.12 DOP ) to obtain the construction permit are as follows:
    • Fee for the Municipality, equivalent to 2.5 X 1,000 of the construction cost: DOP 53,682.9
    • Fee for the Dominican College of Engineers and Architects (CODIA), equivalent to 2 X 1,000 of the construction cost: DOP 42,946.3
    TOTAL: DOP 96,629.2
    BuildCo must present a copy of receipts for both payments made to the Ministry of Public Works and Communications in order to obtain the construction permit.

    90 days DOP 96,629
    6

    Receive an inspection before the lintel (zapata) of the project is made

    Agency: Ministry of Public Works and Communications (Departamento de Inspeccion de Edificaciones Privadas)

    The inspection is carried out by an inspector from the Private Buildings Inspection Department (Departamento de Inspeccion de Edificaciones Privadas) of the Ministry of Public Works and Communications. All required inspections are set out in the Regulations for the Supervision and General Inspection of Work (R-0004 Reglamento para la Supervision e Inspeccion General de Obras). BuildCo must complete an online application form and bring it to the Ministry of Public Works and Communications to schedule the inspection.

    1 day DOP 232
    7

    Receive an inspection before the space between galleries (entrepiso) is completed

    Agency: Ministry of Public Works and Communications (Departamento de Inspeccion de Edificaciones Privadas)

    BuildCo. receives an inspection before the space between galleries (entrepiso) is completed

    1 day DOP 232
    8

    Receive an inspection before the roof of the project is completed

    Agency: Ministry of Public Works and Communications (Departamento de Inspeccion de Edificaciones Privadas)

    Once the contruction is in the last stages, BuildCo. receives an inspection before the roof of the project is completed.

    1 day DOP 232
    9

    Request water and sewage connection

    Agency: Corporation of Aqueduct and Sewage System of Santo Domingo (CAASD)

    After the finalization of the work, BuildCo. requests water and sewage connection.

    1 day no charge
    10

    Receive on-site inspection for water and sewage connection

    Agency: Corporation of Aqueduct and Sewage System of Santo Domingo (CAASD)

    Due to the prior request, buildCo. receives an inspection in order to receive the utilities connections.

    1 day no charge
    11

    Receive water and sewage connection

    Agency: Corporation of Aqueduct and Sewage System of Santo Domingo (CAASD)

    A contract must be executed with the Corporation of Aqueducts and Sewage System of Santo Domingo.

    45 days DOP 25,632
    12

    Notify the Ministry of Public Works and Communications of building completion

    Agency: Ministry of Public Works and Communications (Dirección de Edificación de la Secretaría de Estado de Obras Públicas)

    After utilities are connected, BuildCo. notifies to the Ministry of Public Works and Communications (Dirección de Edificación de la Secretaría de Estado de Obras Públicas) the completion of the work.

    1 day no charge
    13

    Receive final inspection

    Agency: Ministry of Public Works and Communications (Departamento de Inspeccion de Edificaciones Privadas)

    Once notified of construction completion, the Ministry of Public Works undertakes a final on-site inspection. Usually, the inspectors visit the site in about a week or so. To obtain the final inspection, BuildCo must pay internal taxes of DOP 1,160.00 (five times the tax of DOP 232.00). This inspection verifies if the transit regulations have been fulfilled and examines the roof’s impermeability, the sanitary installations, the electrical installations,the door, floor, and window installations, and security safety (fire).

    5 days DOP 1,160

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 13.0
    Quality of building regulations index (0-2) 2.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals. 1.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in-house engineer; Inspections at various phases. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency; Yes, in-house engineer submits report for final inspection; Final inspection is not required by law. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 1.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  Architect or engineer; Professional in charge of the supervision; Construction company. 1.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance ; Insurance is commonly taken in practice. 0.0
    Professional certifications index (0-4) 4.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) Minimum number of years of experience; University degree in architecture or engineering; Being a registered architect or engineer. 2.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) Minimum number of years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer. 2.0