From informal trade to legal entity: a necessary evolution

Informality is a cultural problem in the Dominican Republic. Approximately 56 % of our economy remains submerged in informality. We are among the countries with the highest share of informality in the region, sharing that unfortunate basement with Paraguay, Haiti, Honduras and Nicaragua.

One of the things I am proudest of in my work is advising small and micro business owners to become legal entities. It is true that informal businesses do not pay taxes, but the advantages of formalization are far greater.

The first reward of becoming a legal entity is credibility: we inspire more trust in our clients and suppliers. Another very important point is that, from that moment on, we gain access to banking products and special offers.

The chances of doing new business also increase and, with them, the growth of profits. If you know the real profits of your business, you are in a better position for the future and to make the right decisions. It also makes it easier to transfer or wind up the business. Once a legal entity has been built, its greatest value is the future of our effort.

And that is always worth it.