The Foreign Investment Law identifies three types of investment: Foreign Direct Investment (FDI), Foreign Reinvestment and New Foreign Investment.
FDI consists of the contribution made by individuals or legal entities residing abroad to the capital of a company that operates within the Dominican Republic. As a derivative, foreign reinvestment consists of reinvesting in the same company the profits generated from the FDI previously registered in the country. On the other hand, new foreign investment works practically the same as foreign reinvestment, with the only difference that the reinvestment is made in a company other than the one that generated the profits.
The limitations for foreign participation in the economic activities of the Dominican Republic are few; However, the participation of radio broadcasting companies, aviation (national flights) or assets of electricity companies have certain restrictions. Dominican Law establishes three areas in which foreign investment is prohibited: