Due Diligence Checklist for Private Deals in the Dominican Republic

<h2>Use the checklist as a decision record</h2><p>A private deal should be evaluated through independent evidence, not the completeness of a presentation. The checks below are a practical review framework, not a statutory checklist or a guarantee that a transaction is safe. Adapt the scope to an equity subscription, secured loan, operating-business acquisition or property development, with independent Dominican counsel and specialist advisers.</p><p>For every request record the responsible reviewer, document date, issuing authority, verification method, unresolved issue and proposed closing condition. Mark an item complete only when the reviewer has reconciled it to the transaction. An application receipt is not an issued permit, an unsigned contract is not an enforceable commitment, and an old certificate cannot show later changes.</p><h2>Corporate identity, ownership and authority</h2><p>The official Formalízate portal distinguishes commercial-name registration, Registro Mercantil and the RNC. Check records with the competent provincial Cámara de Comercio y Producción and commercial names or trademarks with ONAPI. A registered name does not prove share ownership, title to land or authority to borrow. <a href="https://formalizate.gob.do/">[1]</a></p><p>Reconcile constitutional documents, amendments, shareholder or quota-holder records, managers, appointment decisions and transaction approvals. Trace the ownership chain to natural persons and compare it with bank disclosures. Examine options, pledges, shareholder loans, convertible instruments and side agreements that could change control or dilute the investment. Ask counsel to identify any approvals or third-party consents needed for the proposed structure.</p><h2>Land, boundaries and registered rights</h2><p>Obtain a current Certificación del Estado Jurídico del Inmueble from the competent Registro de Títulos. The official service description says it records the property’s legal status and the current entries in its complementary register as of issuance. It is a snapshot, not a survey, environmental authorization or assurance of development feasibility. <a href="https://ri.gob.do/wp-content/uploads/Tramites/DNRT/CERTIFICACION_DEL_ESTADO_JURIDICO_DEL_INMUEBLE.pdf">[2]</a></p><p>Have counsel reconcile the registered owner, property identifiers, mortgages, liens, easements and restrictions with the sale or security documents. Commission an independent surveyor to inspect boundaries, access, occupation and any required cadastral regularization. Review leases and community claims as well as registered rights. Beach access, wetlands, protected land or neighboring infrastructure can constrain a project even where a title exists. Refresh the registry review near closing.</p><h2>Fiscal, payroll and social-security evidence</h2><p>Ask for DGII’s Certificación de Cumplimiento de Obligaciones Fiscales and validate its authenticity. DGII describes it as evidence that the taxpayer is current in its obligations. It does not replace a tax due-diligence review of historical returns, assessments, audits, disputed liabilities or the tax consequences of the acquisition. <a href="https://dgii.gov.do/servicios/Documents/Certificaciones/TRA-CER-Cumplimiento-Obligaciones-Fiscales-Al-Dia-en-la-Declaracion-Pago-de-Impuestos.pdf">[3]</a></p><p>Obtain TSS payment-status evidence and verify the certificate using the authority’s validation service. TSS explains that its certificates show information held in its database and can be checked using their security identifiers. Reconcile employee lists, reported wages, contributions, contractor arrangements, labor claims and termination exposure. A clean certificate is not proof that every worker was correctly registered or that every employment obligation has been recognized. <a href="https://tss.gob.do/tipo-servicio/certificaciones/">[4]</a></p><h2>Environmental and municipal permissions</h2><p>The Ministry of Environment’s authorization framework operates under Law 64-00 (2000). Its published requirements include project and corporate information and evidence connecting the promoter to the land. Review the issued environmental authorization and supporting studies, not simply an application number or the consultant’s assurance that approval is expected. <a href="https://ambiente.gob.do/autorizaciones-ambientales-4/">[5]</a></p><p>Compare the approved footprint, activity, capacity and conditions with the actual design. Request monitoring reports, notices, penalties, modification approvals and evidence of water supply, wastewater treatment and waste arrangements. Ask the relevant municipality to confirm land-use and municipal permissions, and have counsel identify construction and sector approvals from other competent bodies. Do not assume a tourism incentive classification replaces environmental or building approvals.</p><p>Visit the site with the technical reviewer. Confirm practical road access, utility connections, drainage, neighboring uses and the budget for unfinished infrastructure. A nearby public works announcement is not a binding connection commitment. Where third-party infrastructure is essential, seek the actual agreement, capacity allocation, delivery obligations and remedies for delay.</p><h2>Litigation, sanctions and AML review</h2><p>Engage counsel to scope civil, commercial, labor, tax, criminal and land-dispute searches in the relevant jurisdictions, including arbitration and enforcement matters where applicable. Ask management and external lawyers for disclosures and compare them with available records. Explain search limitations, name variations and the possibility of proceedings not visible in a single online system.</p><p>Law 155-17 (2017) is the AML framework, and DGII guidance emphasizes beneficial-owner identification and verification by obliged entities. Screen sponsors, controllers, key counterparties and receiving accounts against applicable sanctions requirements and politically exposed person risks. Resolve potential name matches through identifiers, not guesswork. Assess source of funds, adverse information and unusual payment routes. Document whether any enhanced checks or professional reporting obligations apply. <a href="https://dgii.gov.do/legislacion/prevencionLavado/marcoLegal/Documents/Ley155-17.pdf">[6]</a> <a href="https://dgii.gov.do/legislacion/prevencionLavado/beneficiarioFinal/Paginas/default.aspx">[7]</a></p><h2>Contracts, financial review and insurance</h2><p>Read customer, supplier, construction, operating, franchise and financing contracts together. Identify assignment and change-of-control clauses, termination rights, guarantees, related-party pricing, exclusivity and completion obligations. Model who bears delay, cost overruns and underperformance. Have counsel reconcile governing law, dispute resolution and enforcement with the location of assets and counterparties.</p><p>An independent financial reviewer should reconcile bank statements, ledgers, tax filings and audited accounts where available. Separate recurring cash generation from asset revaluations, deposits and related-party transfers. Test receivables, payables, debt, restricted cash, working capital and unrecorded commitments. For development projects, obtain an independent cost-to-complete assessment and evidence of committed financing rather than treating projected sales as available cash.</p><p>Ask an insurance specialist to examine policies, premiums, claims, exclusions, insured values and beneficiary endorsements. Distinguish construction, property damage, liability and business interruption coverage. Windstorm and flood deductibles or sublimits can leave substantial residual exposure. Confirm coverage remains effective after the transaction and identify risks that cannot be insured economically. Do not treat a certificate of insurance as the complete policy.</p><h2>Closing checklist at a glance</h2><table><thead><tr><th>Checked</th><th>Workstream</th><th>Minimum evidence</th><th>Escalation flag</th></tr></thead><tbody><tr><td>☐</td><td>Corporate</td><td>Filed records and approvals</td><td>Ownership or authority mismatch</td></tr><tr><td>☐</td><td>Land</td><td>Registry certificate and survey</td><td>Unreleased lien or disputed access</td></tr><tr><td>☐</td><td>Tax and TSS</td><td>Validated certificates and reconciliations</td><td>Unexplained liabilities</td></tr><tr><td>☐</td><td>Permits</td><td>Issued authorizations matching design</td><td>Only applications or expired approvals</td></tr><tr><td>☐</td><td>Financial and insurance</td><td>Cash reconciliation and policy review</td><td>Funding gap or uninsured exposure</td></tr></tbody></table><ul><li>☐ Resolve each escalation in writing and assign accountable reviewers.</li><li>☐ Agree holdbacks, protections and funding conditions with counsel.</li><li>☐ Refresh certificates, confirm bank instructions and retain the closing evidence pack.</li></ul><h2>Practical next steps</h2><ol><li>Define the structure, review budget and conditions that must be satisfied before funds are released.</li><li>Engage independent Dominican counsel and home-country tax advisers; assign an owner to every outstanding document.</li><li>Project sponsors can submit their materials at <a href="https://dominicaninvesting.com/for-projects">dominicaninvesting.com/for-projects</a>; investors can explain their mandate at <a href="https://dominicaninvesting.com/for-investors">dominicaninvesting.com/for-investors</a>.</li></ol><blockquote><p>General information only, not investment, tax or legal advice. No returns or transaction approvals are guaranteed. Consult qualified local professionals before committing funds.</p></blockquote><h2>Sources</h2><ul><li><a href="https://formalizate.gob.do/">Formalízate, formalization records (undated official portal)</a></li><li><a href="https://ri.gob.do/wp-content/uploads/Tramites/DNRT/CERTIFICACION_DEL_ESTADO_JURIDICO_DEL_INMUEBLE.pdf">Registro Inmobiliario, legal-status certificate (undated service sheet)</a></li><li><a href="https://dgii.gov.do/servicios/Documents/Certificaciones/TRA-CER-Cumplimiento-Obligaciones-Fiscales-Al-Dia-en-la-Declaracion-Pago-de-Impuestos.pdf">DGII, tax-compliance certification (undated service sheet)</a></li><li><a href="https://tss.gob.do/tipo-servicio/certificaciones/">TSS, certifications and validation (undated service page)</a></li><li><a href="https://ambiente.gob.do/autorizaciones-ambientales-4/">Ministry of Environment, authorizations (2022)</a></li><li><a href="https://dgii.gov.do/legislacion/prevencionLavado/marcoLegal/Documents/Ley155-17.pdf">Law 155-17, AML (2017)</a></li><li><a href="https://dgii.gov.do/legislacion/prevencionLavado/beneficiarioFinal/Paginas/default.aspx">DGII, beneficial ownership (undated guidance)</a></li></ul>