Opening a new business in DR

Are you saying my wife can't cook???? jajajajaa
I have eaten in one in PTO PTA but can't say if it is good or not. i eat it.

There are 3 Chinese restaurants here in Santiago including Jade, which is a Dominican Chinese chain. The 2 local restaurants are run by Chinese families. They have a Dominican menu and a Chinese menu. On Sunday, the places are packed with Chinese and Dominican families. 

The idea of a fast food Chinese restaurant is not like in the US.  I don't think it would work here. When Dominicans think fast food Chinese, they think pica pollo. There are a ton of these and they don't serve "Chinese" food as most English speaking foreigners are familiar with.  They serve fried chicken, chow fan (fried rice with salami in it),  fritos (fried plaintains), french fries and maybe one or two other random dishes. 

Also, as stated before, Dominicans don't like anything that is remotely spicy. They don't even put black pepper out in restaurants because "eso pica!" I have even been told that raw onions are too spicy. Therefore anything spicy: Thai, "Real" Mexican, Indian wouldn't work here.

As others have said, it would be a good idea to move here first and get to know the culture before opening a restaurant. Having investigated opening a restaurant myself, $50k may be ok depending on the size  and location of the business you plan to open.

If you don't speak Spanish, learn it well asap or find someone you can truly trust that speaks Spanish before you start the process.

For Dreamtime.....
For real Chinese food: Go to Santo Dominigo Chinatown on Duarte. There is a restaurant on the 1st street after you pass the Chinatown arch. You should park first. Go down to the street and turn left. It is one or two stores down from the bakery on the left. They have a huge fish tank at the door when you walk in. You can order off the menu. Fyi the dumplings are frozen, but everything else hits the Chinese food spot! If you bring pictures and name of dish in Chinese, you will be most successfully at getting what you want. Did it & it worked. 😃

do they serve snake?

most people have never eaten authentic Chinese food.. They just think they have

Lol! @texas donkey I wouldn't know! But you can ask. 😃👍🏽

Every time I go to this restaurant, Chinese people are eating there. So I think it is as close as you can get.

jajajaja yes
I was served some round brown ball looking things that had hair or mold  growing out of them. Yuck I passed. That was at my friends place in Houston ,  Uncle Huang "uncle wong" served us a buffet of food that know one serves in Houston Texas. Only Chinese eat it. That's why his place is so packed. Some was ok. I never wanted to ask what it was, You can have the fish in a Pot. yuck

A little demographic & market research will afford you with a wealth of negatives. Buy cheap & sell dear doesn't apply here.  Sell what they buy with a little better quality at the same price & maybe you would survive, albeit with a smaller profit margin.   Very few make it in a niche market, don't think what worked at home will work here.  STUDY your market, do not deviate, wait till you show a profit, then institute  in very small increments your ideas.  If they don't work, so what?  You learned something I hope.  Ego does not work here, brains quietly applied do.  Heed this , lo es verdad siempre...... it is the truth always.

Excellente! I have been meaning to go to Chinatown in SD. Do you think it's possible to get gochugaru? That's the Korena chili pepper used in making Kimchi. Thanks.

Can I know more about what you mean by "shelf" company?  Does this apply to buying property as an LLC?  I'm in the process of contracting a DR lawyer who can do both...make our home purchase a company in DR and represent us in the sale of the house. Or is that not advisable?

Sebastian should know this stuff.
Tom.

Let me explain  a shelf company -  to do a normal incorporation can take about  45 days start to finish if nothing goes wrong. Yes you can do it faster, but it isn't normal.

Lawyers will create companies and put them on the "shelf" literally put the binder on a  shelf.  Then when someone needs a company in a hurry, they sell them.  They cost more then doing it start to finish as it is already there waiting for you. 

Can your lawyer sell you a shelf company and then represent you in the sale of your house? Absolutely.   Should he,  sure,  no big deal.  BUT make sure he does not also represent the seller of the house!!!!

As we sold our condo we are looking to sell the corp as well now.  CHEAP  contact me if interested

Bob K

I'm interested also.I would love to speak with some expats that have opened businesses.someone suggested that I might be able to work as as stylist with other expats.

Yep. Company 24 in Santo Domingo has companies to purchase in 24 hours. But, they are more expensive than a lawyer normally. But good if you are in a pinch.

Company  24 sells what we call "shelf companies" for when you are in a hurry.  There are less expensive options when you have  45 days or so to make it happen.....

I  have opened several  companies for myself and for others.  Ask away................

I have been reading your blog as I am interested in buying a business in the Dominican Republic, namely a restaurant so I can live and work in the DR. If i purchase an existing business is it normal that you buy the corporation as well or would I need to incorporate the business after I buy it.

It depends. If the restaurant is  corporation normally you buy it all. Be careful do not buy the employees and their liquidations along with it. Previous owners should let all employees go and pay them out OR compensate you for this.

If the restaurant is not a corporation, open a Corp first then the Corp buys the restaurant.

Planner is correct.  Having sold a few restaurants I can assure you this would be the game plan.  Make sure the employees have been paid their liquidation before you buy.

Bob K

Thank you very much. Another couple of questions.

If it is just the business I am buying the above advice holds true? In other words I am not buying the physical property, just the business, this should be incorporated?

Also, can you tell me if the steps to getting temporary residency are still current the way they are laid out in this website?
****

Incorporation protects you in business and personally.  Don 't go into the restaurant business without it.

Residencia process has not changed and is as posted on this site.

Yes when you buy the corporation you are buying it as well as all it owns (restaurant).  Do NOT put anything else in the corporation.  If  you were to buy  a house/condo and wanted it in a corp.  Then open a separate one for it,

Bob K

I'm still a little confused as to why it being registered as a corporation is better.

Separation  of personal and corporate responsibility!  Same as in many other  countries. Its a basic premise of business.

A liability issue.

Bob K

So let me ask the question:  Have you ever run a business?  Have you ever run a restaurant? Do you speak spanish? Do you know the laws here?

Good questions and important to know before you jump off the cliff

Bob K

Hi, yes I have worked in restaurants for 20 years, have ran them successfully for other people but never owned my own which is why i'm unsure on the legal side. My Spanish while rusty is passable and I will be taking more lessons to improve and in the meantime my partner is from here so obviously speaks fluently. I have been reading up on the laws and was aware of the need to liquidise staff, also aware of the christmas pay, need for 36 consecutive hours off and 44 hour weeks. While I am still learning advice is always helpful

Yup living the dream is all good in theory but  the struggles are very real.   Its best to be as prepared as you can be. Sometimes you need to come and just watch and learn for a while... Not saying this is the specific case here,  but lets see the answers  first.

Awesome so you already have a head start. Good for you.   Please understand we want to help and see you succeed!

So make sure to clearly understand the labor code, it is full of  loopholes you need to know about.  IF you need help PM me.

Also  make sure you understand that anything can be put into your name,  you will need one minority shareholder on your incorporation but that is as little as 1 share.   Nothing else needs to go into anyone elses name but yours!  Don't fall into that trap! 

Also  the process to get the corp from scratch (or by what is called a shelf company) then get your RNC number, register employees on the TSS etc etc etc  can take quite a long time. Be ready for it.

Trust me I appreciate all the help I can get.

I have been in the Caribbean for 12 years now so I know things tend to move slowly!!

Any other tips or advice are greatly accepted

Awesome!  You understand.

It sounds like you have done some homework and are on the right track.

Good luck

Bob K

Restaurants are a hard business to keep afloat here.

We have dozens that open and close every month in the North coast area.  Many are because of poor planning and no basic knowledge of the business or laws.  You do have a leg up on them.

Bob K

Hi Planner, sent you a private message with a question. Did you see it?

Nick

Nope but I am going to look for it now.

Hi to the forum,

I am looking to move to the Democratic Republic.
My aim would be to be self employed in the building services sector-
mostly doing electrical and maintenance services.
With small electrical installation works, and reactive works in electrical
and mechanical.

Would love to hear experiences of expats who work for them selves. The challenges
they face and their opinion of self employment in the country.

Regards

Bill

I was self employed for many years. It is a challenge.  To  function legally you will need to get your residencia. Then you register your cedula number as being self employed, OR you can incorporate.

Building your business will be about networking. Your best clients will be expats and anyone wanting work done by north american standards. 

Your fees will not be anywhere near what you are used to and you will need to find your way around that. Building services and maintenance - well  I can tell you that the typical employee in that area will be badly paid!

Planner is correct on all counts.

Bob K