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Each partner has the right to vote on SRL decisions and has the same number of votes as the corporate quo- tas that the partner possesses. The general meetings of unit owners may be held for the approval of SRL de- cisions but are not necessary.


INDIVIDUAL ENTERPRISE OF LIMITED LIABILITY (E.I.R.L.)


An E.I.R.L. is a company of limited liability that belongs to one person, that has the legal ability to exercise rights and obligations, and that forms an independent and separate entity from the rest of the assets of the person who owns the E.I.R.L. Legal entities may not incorporate or purchase companies of this type. Capital and Transfer: The amount of contributions to be made by the owner of an E.I.R.L. may be freely estab- lished and increased, in accordance with the procedures established by law. An E.I.R.L. may be transferred in accordance with the rules established by law.


FOREIGN ENTITIES


Dominican law recognizes the legal existence of companies incorporated abroad, upon confirmation of their le- gal existence by the appropriate authority. Dominican law stipulates that foreign companies’ legal exis- tence, capacity, and dissolution are governed by the law in effect in the place of their incorporation, and their operations and activities in the Dominican Republic are subject to Dominican law. Foreign companies that wish to establish a branch or permanent establishment in the Dominican Republic or that are conducting commercial transactions on a regular basis in the country must be registered in the Mer- cantile Registry and also must obtain a National Taxpayers Registration from the General Department of In- ternal Revenue. The law recognizes the equality of foreign entities with local companies and, therefore, declares that for- eign entities have no obligation to provide any kind of litigation bond in case they need to appear before lo- cal courts in a litigation process.


OTHER PROVISIONS OF LAW RELATING TO BUSINESS ORGANIZATIONS


Dominican law establishes corporate processes for mergers and divisions, the increase and reduction of cor- porate capital, and the dissolution and liquidation of legal entities. The law also establishes in detail the obligations and responsibilities of directors and includes criminal penal- ties to punish the violation of the law by companies and their directors.


Doing business in the Dominican Republic


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