By area, the Dominican Republic is the second-largest nation in the Caribbean. The economy’s foundational industries include tourism, agriculture, mining, and textiles, making it a desirable place to launch a business. But difficulties may arise if you are still familiar with the regional procedures’ particulars.
How to finance your restaurant
Thinking about starting a restaurant is thrilling. The people, the setting, and the cuisine. But when you start thinking about how much money you truly need to launch a restaurant, reality may soon take the wind out of your sails. Dealing with unforeseen costs and hidden fees while operating a restaurant is one of the major hurdles you’ll encounter.
Here are a few benchmark cost ratios you should consider while you plan, to get started:
Make sure to register your firm before delving too far into how to write a restaurant business plan. Each state requires that all new restaurants register with them. Depending on the type of business you’re opening, there will be different rules (e.g. sole proprietorship, partnership, LLC, etc.). A charge is associated with each business registration, often in the $100 to $1,200 range. Make sure to compare registration prices for one-time use versus yearly renewal. Some states demand a one-time flat cost from firms, while others charge a percentage of sales. For the most accurate information on different business types, how to register your business, and where to locate applications, look for a government website.
There will always be regions where you have blind spots when finding out how to operate a restaurant, regardless of your prior experiences and skills. No need to venture out on your own. Knowing your skills and weaknesses is essential when hiring restaurant specialists to handle highly specialized tasks like accounting, law, and real estate.
Permits and licenses
Restaurant owners must get several licenses and permissions, much like any other service-oriented business. Many of these criteria have small fees attached. You will need a license or permission if you want to renovate, have outdoor seating, or serve alcohol.
Some licenses and permits need a lengthy application process. Seriously. It takes a lot of patience. It is therefore essential to begin the application procedure as soon as possible so that you can remove each piece of red tape one at a time. The number of licenses and permits required to open a restaurant will vary. Due to the variety, many city offices have resources that enable restaurateurs to determine their needs before submitting applications.
Process of incorporation
There are numerous steps in the incorporation procedure, but they are all the same for all kinds of enterprises. It is crucial to be aware that every piece of paperwork must be written in Spanish. All limited liability corporations must first confirm that the company name is accessible online or locally at the National Office of Industrial Property (Oficina Nacional de la Propiedad Industrial), and after the name is chosen, it must be acquired. It can take up to 10 days for the name to appear in the monthly publication of the National Office of Industrial Property (Oficina Nacional de la Propiedad Industrial).
Register the business with the Chamber of Commerce
The following step is to physically register the business with the Chamber of Commerce.
A resident must complete this, and frequently a lawyer is present. After paying the Internal Revenue Service (DGII) an incorporation tax equal to 1% of the capital, the identity number (RNC) can be obtained. Following that, you must apply for fiscal receipts at the DGII and register for the National Taxpayers Registry, which can take up to 25 days. The company cannot invoice customers without fiscal receipts. The DGII will now confirm that the business is legitimate and registered in the Dominican Republic. Following this action, a document granting the business permission to operate in the Dominican Republic will be made available. Your company needs to be registered with the Department of Labour if it intends to employ people. Employee registration is also required at the main Social Security office (Consejo Nacional de Seguridad Social, CNSS). A resident must complete this with a copy of the incorporation paperwork and the Tax ID.
Duration of business incorporation
The total time needed to fully incorporate a business in the Dominican Republic is between 30 and 45 days. Each step in the incorporation process has a different time commitment.
All Dominican Republic-incorporated businesses must compile their financial statements in line with IFRS, and any business with a gross income larger than the public sector’s minimum salary is required to do so.