Opening a new business in DR

There is always a market for good music. In your case I would concentrate on areas with a larger Expat Community.  You most likely will not be able to support yourself on music alone.

There is a very popular Jazz singer here on the north coast who is making a name for himself both nationally here as well as internationally and recently has received some international and USA awards.  His name is Anthony Jefferson.  You should google or FB his name.

Bob K

I believe there is a market. In Santo Domingo there is a huge community that follows jazz.  There are facebook groups if you search Jazz Dominicana you can find Fernando, he is the go to guy.

AND do NOT post your email address or phone numbers on open forums. I am having it removed.  Thanks. And that was directed at EVERYONE. I've had to do this 3 times today already. 

thanks everyone.

Hello,

I met a great person/ entrepreneaur who's Dominican and lives there. He co-owns a bar with his mom and is a DJ full time. He wants to open a new bar in Sosua and I am looking into partnering up with him. He already has his liquor license and knows a lot of people which will definately help to market the place.
Me- I have 10 yrs experience in the bar/ restaurant business from hosting, waitressing, bartending (6yrs in NYC), and management (2yrs). I also worked in promotions & some basic marketing. I've ALWAYS wanted to have my own bar but living in NYC is almost impossible. When this opportunity was brought to my attention I figure why not look into it (even with all the cons, haha).

I know the bar business is Very iffy to say the least. Most fail. But i think researching the areas, real estate (we don't want to rent a place), and the competition will help. That's partly why I'm going back in a few weeks.

I currently reside in NYC. I don't plan on moving down until the bar succeeds for at least 4- 6 months... I make ok money here & feel it'd be best to manage the business from the US.
I did see the posts about residencia and cedula. Not sure if I read it correctly but I don't need either if I'm running the business from the US? And I'm guessing I can go back and forth on "visits" on my passport?
Now I DO want to eventually move to DR. I want to own property: a condo or house/villa. I'm pretty sure I will need residency and cedula for this, correct? And if I want to actually work IN the bar?

Can I apply for residency if I'm already a dual citizen? Will I have to give up either my Brazilian or American citizenship? Or is that just for when I'm applying for a dominican citizenship?

Also, any advice you may have would be great. I will be visiting often and if meeting in person is an option, I'm definately up for it!
Thank you!

Wow.  It is late and I will take time to answer this tomorrow morning.  But be careful and take it slow.

One of the last things Sosua needs is another bar.

Bob K

Bob is right....another bar....do your homework, it's very different here.

Running a bar from anywhere else is asking for trouble.

You can have residencia.without effecting your dual.citizenship.

And welcome to the forums....

Ok working on my second cup of great Dominican coffee this morning.  Let me try to answer some questions and give you my thoughts.

You met a guy when visiting and now you want to open a business with him.  A bar in Sosua and run it remotely from the US leaving him in charge.  I can tell you from past experiences (not mine) that you chances of success are just about ZERO and the chance that you won't lose a good piece of change is also about ZERO. You are opening a bar in an area that does not in any way need a new bar.  Multiple bars have come and gone over the last 10 years and currently there are probably 10 bars in the area (or more) that a closed.

Yes if you own a business you will need to have your residency and RNC (tax id) number. Yes you can have your residency with out giving up other passports. 

I would come down for a couple of months and explore your options more thoroughly before  you do anything along the lines of a business, buying property, leaning about this guy as there is long history of local men taking advantage of women both in love and business.

I hate to be blunt but I think you are heading to failure.......

Bob K

Bob K

Bob - one small correction.  To open a business and OWN it or a part of it, you do not need residencia. BUT to be working in the business you need the residencia and cedula! 

Small difference but a big one.

Planner thanks for setting that straight.

Bob K

please listen to planner & bob k.  over 39 years in & out of the business have watched many, many people go down hard. it is not just the islands or ex-pats that get taken in by a dream. reality is just that, reality.  please take a long time to investigate the real facts of business.  until it is your money on the line, you cannot truly know the decisions & responsibility that  is the real meaning of operating a biisiness, any business.  dreams are great, but to come to fruition requires a firm  foundation on solid ground.  yes, I.m pessemestic (sp) on your chances of success.  lived 8 + years in Sosua, saw good ,decent people drowned by poor decisions & scam artists of all types.   save your money & heart.  invest instead in spending time learning the true ropes of business in the D/R. or anywhere else.   I'm not raining on your parade,  I'm fertilizing your garden.

Gypsy I like your closing sentence.   Sooooo true.

If it is ok with you I may borrow it from time to time

Bob K

Thank you all for your advice and especially your honesty. 😄 I will definately reconsider my options. Thank you again.

You are welcome.  Just do your homework before you make any decisions.

Bob K

Yes come here & visit for at least a month.
Sosua is a very tough market to crack.
Do your homework twice & check it 3x.
Talk to everyone you can.
Owners, employees & customers.
Good luck, you will need a whole garden full of it,
properly fertilized, of course!

sure can use it. it just popped into my head & then popped out. it is the Gypsy way.

Hahaha!!! I will definately take your advice. I appreciate it. 😊

Gypsy - I love this too....."  I'm not raining on your parade,  I'm fertilizing your garden. "

Another note -  anything  you try to do will take  3 times as long and 2 times as much money as you think it will!!!!

Planner you are so correct on the time and money thing. 

Bob K

Hi guys
am new to this forum , Living in Cabarete,part of a new challenging Canadian run Rehab center due to open in January
currently Hiring personel specialised in addiction treatments,and others ,still few posts available if expats interested.
thanks

Welcome to the forums, you should put an ad in our classified section.  I assume you are only hiring those with cedulas - correct....

we own several businesses in this country. just be aware that the laws are in the employees favor if you lay them off and they sue you for a pension. They can and will.  I do not recommend opening a business unless its just a small bar or something like that without too many people.  we own manufacturing businesses  and it is a pain in the butt at times. It is tough here not like USA .

I WOUD THINH MANUFACTURING  IN THE DR WOULD BE GREAT LOW LABOR COSTS AND LOW RENT
IS THERE A PAYROLE TAX ? ARE THERE ANY TAX ABATEMENTS FOR NEW BUSINESSES?

There are all sorts of taxes even the dreaded BOHICA tax (bend over here it comes again).  However there are multiple tax free zones for manufacturing around the country were the taxes are less.

Bob K

Employee issues can be huge here.  We don't lay people off, you let them go.  When you do there are rules about "liquidation" and it is NOT fun.  It is almost always best just to pay it and be done with it. IF an employee goes after the company 98% chance the company loses and pays costs plus lawyers.  NOt fun.

There are all kinds of special tax concessions, depends what you are doing and it also depends where!

Liquidation can be a pain in the ass and yes the employee always wins and then some.  We even had to pay liquidation to a part time gardener who worked for us for 2 months.  Even though he was not due any money or entitled to any money we still had to pay him as going to court , and probably loosing, would cost more than paying him.

If you sell a business and the new owners are going to keep the employee you need to pay him his liquidation pay so he will start off with the new owner on a new "liquidation clock"


Bob K

If you have an online business registered in Canada and all payments are done online ,although you are let's say renting,wi fi modems where you need at least one employee on the ground , arrange transfers where you can only transfer money directly to the outfitter , it lets say you have a website on alcohol delivery services -where again you need somebody's help- do you need a Dominican corporation or because the payments are charged from people residing outside of DR ( no money transaction is made in Dr) you don't?????

where are thetax free zones any near SANTIAGO?

Leak your question is complicated and I suggest asking a lawyer.

There are more then 1 in Santiago!

I am considering opening a jewelery business in the Mercado in Santiago.
I hear it is very touristy and the owner is selling it due to him needing the money.

I have an opportunity to buy for 10K. I feel buying is better then leasing because if all goes down hill I can just sell!

Does anyone have any experience with this type of market?
Instead of incorporating can I do an LLC instead? which is better use in DR?

GM I whole heartedly agree with Planner she is bright and careful, consult a lawyer, in fact if you can a labor lawyer. Some of the comments regarding liquidation are just not correct. The Dominican Labor Law reads an employee is entitled to liquidation if they are fired or quit. Not exactly so if the business is sold. The employee if not liquidated retains there time earned with the new owner. Definitely consult a lawyer because if you read closely what was commented on earlier that is the case. The employee got paid for time carried over. Sounds a little complicated but a lawyer or a careful review should enlighten you and make it easy to understand. Also take a look at CAFTA regarding Trade Free Zones or Zona Francas in D.R. Buena fortuna en todo.

All corporations in D.R. are set up as LLC'S pretty much. Ariza Guzman has great information on the subject. Also google how to do business in D.R.  and how to incorporate in D.R. The D.R. tends to follow a lot of what the U.S. does. Read the economic reports by the  U.S. State Dept if you can. A liitle helpful and a decent guideline. Be prepared.

And be prepared for it to take  twice as long as they say, it is ridiculous here. IN a hurry - buy a "shelf" company then change the information etc as needed.

And thanks for the nice comments.

Cheka welcome to the forum.

Have you been here before???? if not DONOT BUY a thing before you visit and look around.  Santiago is not a very tourisy spot and you need to investigate just  how good a deal this is.

You also willl need your cedula and an RNC (tax) number to operate a business here.  This all will not happen quiclky.

Please do some research first

Bob K

Hi all! very interesting blog.  I have been considering moving to the DR for a long time now.  I was thinking Puerta Plata but also want to consider Samana.  I have a pretty good pension and have the option of pulling out early if I incorporate the money into a business... I'm not too far into my research yet but have always wanted to open up a small beach bar  that serves beer and both local and canadian foods. Reading this has made me wonder if it is possible with all the competition.  Any advice? Im thinking in a few years... not yet, so I have a lot of time to think about what I am going to do.  It is probably even possible to buy properties and rent them to make my living.... any ideas ?

Hi there Canadian!
First & MOST important, Come & visit for 2-4 weeks.
Puerto Plata has 8-10 beachfront bars.
Samana has none really. There is no beach right at Samana.
Come & visit Sousa, it has about 140 beachfront, or close to,
the beach. Also Cabarete, which has 20 or so beach bars,
all of them big.
You have a lot of time to look around.
Also, there is not much money left over when you
have a small bar here. Even if you pay yourself $20.(CDN) a week.
But, it's an ABSOLUTELY beautiful island to retire on.
That's what I did, full time, about 4 years ago.
Oh yeah, about 80 percent of the bars are for sale, eh?
So does that tell you anything?

Hi Tomas! thanks for your response! yes I've visited DR roughly 10 times....I'm thinking of buying property there first as a rental/vacation home - and then moving down later on....

Canadianhopeful.  Welcome

First do know that there are hundreds of bars here and they are closing and reopening all the time.  Competition is fierce and chance of success of a new bar....slim.  You also will need your residency and cedula to open a bar along with a RNC (tax id).
Visiting here and living here are two different animals.  No matter how many times you have visited,  you need to come down and "live" here for a couple of months before making any decisions.  Also buying property here to use as a rental is a whole other bag of worms (and many times not good worms).  Do your homework.

Bob K

Good advice, as usual Bob!

Opening a business here requires business skills PLUS Spanish language, PLUS cultural understanding PLUS understanding of the PARTICULAR business PLUS business experience, PLUS understanding of the labor code, PLUS  money PLUS tons of patience.

Otherwise not such a good idea!

Or have a intelligent Dominican Esposa!