Doing business in the DR

[SS2]

Opening up a business in the DR has been on my mind since I first visited the country over 3 years ago. I am planning a move down to Santo Domingo in August (for a 3 month period) in order to enhance my research. I live in Toronto (Canada) and attempting to open up a business here is tough enough, let alone trying to do it in a country where you've never lived before. I hope you will all forgive me, because I'm sure this question has been raised time and time again...but what do I need to know about opening up a business in the DR? Should I begin my application process for residency, or is that not a priority until I've settled in down there? Are there government regulations to foreigners (Canadians) operating businesses (like a restaurant or nightclub) in the DR? And for anyone that lives in the Punta Cana region (or is familiar with it), why don't restaurants or nightclubs exist outside of the resorts? When I was there, I ate at a restaurant called "Capitain Cook's" which wasn't that good, and the service was horrible, and our bill (for 25 people) came to $2700 (US). Have others tried to open up restaurants and failed, or is it prohibited through govt. laws?

Sorry for the repetitive questions, but if anyone can forward any info, it would be appreciated.

 

[ricktoronto]

Walk, Then Run

Should I begin my application process for residency, or is that not a priority until I've settled in down there? Are there government regulations to foreigners (Canadians) operating businesses (like a restaurant or nightclub) in the DR? And for anyone that lives in the Punta Cana region (or is familiar with it), why don't restaurants or nightclubs exist outside of the resorts? When I was there, I ate at a restaurant called "Capitain Cook's" which wasn't that good, and the service was horrible, and our bill (for 25 people) came to $2700 (US). Have others tried to open up restaurants and failed, or is it prohibited through govt. laws?

Lots of foreigners own bars and restaurants. In Boca Chica I think more do than Dominicans - bars, hotels, restaurants.

Since you do the residency from within the coutnry considering it now is not the right time nor place. Go for your 3 months and get the lay of the land. I assume you are fluent Spanish speaker , if not take decent lessons between now and then (Aug.) - you're in Toronto - try the Spanish Centre on Hadyen near Bloor and Yonge. Include their business Spanish courses.

Over US$100 a person is nearly RD$5000 a person - what did you eat and drink? This sounds a trifle pricey.

As for PC, it is an enclave of many AI's maybe more per square mile than anywhere else (not sure about the N. Shore) and there is really only a small non-AI town nearby (other than Higuey). I am not sure it would be my #1 choice of location since 99% of the clientele are unsophisticated tourists who get fed and drink for zero inside the AI's and combined with the usual dire warnings by management not to leave (and some geographical impediments such as taxis to town and long walks to the highway etc.) you don't have the largest market to exploit.

I'd think Boca Chica, Puerto Plata/Sosua where there are actual towns and a lot of non-AI's might be superior - in your 3 months explore the whole island and determine if there is a market. You've run bars and/or restaurnats before right?

 

[mountainfrog]

There is a formula

People on this board have got a formula which works very well for this country.
You enter the amount of money you have and out comes the date of your bankruptcy.

Good luck!

M?frog

 

[Escott]

How to take home your million from the DR

Please pay attention. I am going to give you the secret to the Republica Dominicana that no one else would do for you. This is the answer to every question you may have here.

Bring down 2 million US dollars from Canada to the RD. Invest it in a business here and hopefully you will be able to salvage 50% of it to return to Canada with the least amount of haste.

The RD is a very difficult place to do business. The Dominicans and the ExPats alike will eat you for dinner and steal the gold fillings out of your teeth if you even take one breath. This is what usually happens to foreigners who visit once or twice and fall in love with the place and make their way down to live and work here.

The government officials will even not look in your bags at the airport if you pay one guy US$20 and of course the other three hangers on with their hands out. These guys have the balls to do this openly. I pay these guys a couple of hundred pesos not because I am trying to smuggle stuff in without paying duty but because I am trying to NOT have these classless pigs wrinkle my clothes in my suitcase when they are looking for something to steal. Last time I came in I gave the pesos to a guy and they still looked in my suitcase. The jerk put his hand out after and I told him to go to hell after he rifled through my stuff.

Do you think the other officials will be kinder? You will be like the lost little lamb walking through the forest and then when you get approached by the big bad wolf you will wonder why.

Good luck to you in whatever you do. Me, I am just praying on the results of the election in May hoping that there is a slightly less corrupt government in place in the country I call home.

Escott

 

[gringo in dr]

Scott pretty much summed it up.

Especially being a foreigner, you have a better chance trying to make a living playing slots in vegas.

 

[Adrian Bye]

I think you're basing a lot of your assumptions on this:

> I ate at a restaurant called "Capitain Cook's" which wasn't
> that good, and the service was horrible, and our bill (for 25
> people) came to $2700 (US).

What if we told you that you got ripped off on that meal? Maybe that gives you a small indication of how business here is.

 

[gringo in dr]

I think the name of that place was actually Captian Crooks.

Here is a good reference point for you. I can show you one of the best resteraunts in Santiago. Your party of 25 would have eaten with bottles of wine for only $150. That is with tax and tip.

 

[Hillbilly]

Or you could go to the place i found on Saturady

And the 25 of you could have eaten for less than $100 ($4000 pesos)

The dire warnings are there for you to take off the rose tinted glasses.

There are tons of foreign owned restaurants all over the island. Lots of eyetalians, Spaniish, Chinese, japanese and Korean places..

I agree that Punta Cana might not be THE place to put up a restaurant. You are very far from your major suppliers, but that will not be your main problem... You do not have any clientel right there. The locals are ot going to eat there and toruists will need some nudging to get there.

I think you might look at places like La Vega, maybe Jarabacoa, Santiago, Sosua-Cabarete area, or Juan Dolio-Guayacanes area, and, of course, Santo Domingo.

You will need to network, that is for sure. Meet some Dominicans, other foreigners, to see which way is up.

There is a lot of truth in what they said about taking a million out of here..The sayings is: How to you take a small fortune out of the DR? Come with a large one...

Just go slow, is the best advice..

HB

 

[Tom F.]

The successful foreigners in the country speak Spanish well, play by Dominican rules, always take a hand's on approach, and pretty much stay small. There are always exceptions. While in the country, eat at the higher end restaurants in the Capital. Walk around Gazcue and you will find many are Spanish and Italian owned. Go talk to Marco at Rocky's or Eddy if you like the tourist areas. They seem to have figured out a good system. You might get lucky and have Bob White give you some advice. I wonder if he is still reading the bible or if he has finished it by now.

 

[Onions&carrots]

I agree with Escottia + Fulano,Mengano and Sutano

he's dead on correcto mundo. Not only should you speak Spanish fluently but also be well connected. Being Dominican myself from a well established old Dominican family when trouble comes as in any business esp. farming hay de donde hala'. What I mean is to give you an example a past downturn in agro-goods put a dent in our operations which was easily resolved by myself one phone call.

Without using our own money I called Fulano from el banco agricola in Santiago. Then I personally went to see Mengano. When I went to see Mengano the surly executive secretary told me Mengano was busy having his breakfast. I could've just pushed her aside and walked in but I was in my Onions and carrots alter ego. I waited like anyone else. Eventually I saw Mengano. She told him I was waiting. When he saw me he told her to never allow me another wait of that sort. He quickly resolved my problem within half an hour. Afterwards the secretary was kissy-kissy with me. I just smiled and left. When I told my gramps he was laughing hysterically.

To make a long story short with no connections you're outta gas. Do what Escott does put money in his finance company backing mortgages or do what AZB does provide a service which doesn't entail you carrying any type of inventory. Also what Rob does or offer some sort of services to foreigners.

Remember if you carry any type of INVENTORY- durable goods, agro-goods you had better be connected and gov't padding.

Like AZB says have a nice day!

 

[Hillbilly]

I hope that's not the same Bob White I knew in the Capitol

The successful foreigners in the country speak Spanish well, play by Dominican rules, always take a hand's on approach, and pretty much stay small. There are always exceptions. While in the country, eat at the higher end restaurants in the Capital. Walk around Gazcue and you will find many are Spanish and Italian owned. Go talk to Marco at Rocky's or Eddy if you like the tourist areas. They seem to have figured out a good system. You might get lucky and have Bob White give you some advice. I wonder if he is still reading the bible or if he has finished it by now.

He passed away.

HB

 

[BRAITHWAITE]

This thread is weak

I usually have nothing worth adding to these posts but I have to say that this discouraging advice is getting out of control. I don't think anyone questions the diffuculty of doing business out there but you guys are getting a little out of control. It's like you feind to crush the aspirations of everyone with a hint of ambition. If I didn't know any better, I'd think you all were getting rich out there and didn't want anyone to take a piece. I'll repeat what I'm sure has been said before: If you can't help but be so cynical about life there, why do you call it" the place I call home". You sound weak and your tales of hardship probably come from your own naivety. You make me want to go out there, make a million, wave it in your face and take the next flight home with your wife.

 

[radekcaba]

I usually have nothing worth adding to these posts but I have to say that this discouraging advice is getting out of control. I don't think anyone questions the diffuculty of doing business out there but you guys are getting a little out of control. It's like you feind to crush the aspirations of everyone with a hint of ambition. If I didn't know any better, I'd think you all were getting rich out there and didn't want anyone to take a piece. I'll repeat what I'm sure has been said before: If you can't help but be so cynical about life there, why do you call it" the place I call home". You sound weak and your tales of hardship probably come from your own naivety. You make me want to go out there, make a million, wave it in your face and take the next flight home with your wife.

Thanks for great post, I think the same!

 

[PICHARDO]

Opening up a business in the DR has been on my mind since I first visited the country over 3 years ago. I am planning a move down to Santo Domingo in August (for a 3 month period) in order to enhance my research. I live in Toronto (Canada) and attempting to open up a business here is tough enough, let alone trying to do it in a country where you've never lived before. I hope you will all forgive me, because I'm sure this question has been raised time and time again...but what do I need to know about opening up a business in the DR? Should I begin my application process for residency, or is that not a priority until I've settled in down there? Are there government regulations to foreigners (Canadians) operating businesses (like a restaurant or nightclub) in the DR? And for anyone that lives in the Punta Cana region (or is familiar with it), why don't restaurants or nightclubs exist outside of the resorts? When I was there, I ate at a restaurant called "Capitain Cook's" which wasn't that good, and the service was horrible, and our bill (for 25 people) came to $2700 (US). Have others tried to open up restaurants and failed, or is it prohibited through govt. laws?

Sorry for the repetitive questions, but if anyone can forward any info, it would be appreciated.

To give some sarcasm free answers:

You must possess a Dominican Cedula in order to conduct a business there, no cedula no cake, in order to obtain one you must be a resident for a period of time and after obtaining your residency then and only then can you apply for your Non-national cedula thus being able to conduct all business as needed for your enterprise the other choice it's to have a Dominican partner and that's not such a great idea to begin with unless you're very familiar with the way Dominicans conduct a partnering biz there.

I you're planning to open up a restaurant or cabaret close to the tourism points as you pointed out yourself, there' re biz there already, bad but open for business nevertheless, my point is that if you pretend to live out of what the tourists expend while venturing out on their own from their all inclusive kingdoms then you're in for a rude awakening just as many did before you and many will after you...

If you're still interested in opening a biz in the DR be it a restaurant or cabaret look into the cities and forget the Punta Canas and Puerto Platas, I'm pretty sure that if you bring something relatively different to what's offered already in some towns you can have a decent income and a nice living there...

I myself have this drive to open up a restaurant in Santiago, but what I have in mind takes about fifty million pesos RD$ to accomplish in today's economy, and the recent backstabbing some officials did to those of us with plans to generate our own commercial electricity taking advantage of the non commercialized gas import it's a crude awakening of the perils of thinking all's well and not planning for a disastrous economy plan in lieu of the incapable Govt. administrators in DR.


The rules are: there aren't any! At least when it comes down to what you want do in the DR as per your descriptions, unless or course you want to open up a casino or import/export company in which case stay in Toronto and just keep visiting for pleasure the DR...

 

[gringo in dr]

I usually have nothing worth adding to these posts but I have to say that this discouraging advice is getting out of control. I don't think anyone questions the diffuculty of doing business out there but you guys are getting a little out of control. It's like you feind to crush the aspirations of everyone with a hint of ambition. If I didn't know any better, I'd think you all were getting rich out there and didn't want anyone to take a piece. I'll repeat what I'm sure has been said before: If you can't help but be so cynical about life there, why do you call it" the place I call home". You sound weak and your tales of hardship probably come from your own naivety. You make me want to go out there, make a million, wave it in your face and take the next flight home with your wife.

Come on down buddy. The locals will gradly send you home broke. Don't say we didn't warn you.

 

[SS2]

Thank you so much, Braithwaite!

Thanks for all the warnings, guys, but especially thanks to you, "Braithwaite," because until I got to your note, I was absolutely discouraged. I'm not on this thread to play games, or put anyone down, but he's right...you guys sure are discouraging! Not a single one of you that posted those negative responses had ONE positive thing to say about doing business in the DR. I'll tell you something, businesses don't always succeed in North America, either. I personally know people with PHDs, and lots of capital, who have attempted to start a new business here, and have failed. So I'm not coming to your country with "rose tinted glasses" on, expecting to throw a million dollars into your country, and come out with 10 in a year (although nothing is impossible)...being realistic, there is no certainty or a guarantee of return in any business. But many people are living in the Dominican Republic, and are very successful at what they do. Instead of focusing on the thousands of reasons of why one shouldn't attempt to start a new life in a new country, why don't we focus on the reasons why one should (even if there are few)?

I have learned "not to run before I walk," so I will still be coming down in August to get some information first-hand, but if I do decide to go ahead with my business, believe me, I will hold no one responsable....for its success or its failure. Therefore, there will be no need for anyone to say, "I told you so," although it seems that many live their lives hoping others will fail, so that they could be at the same level as themselves...sad.

Once again, thank you all for your honest opinions, and thank you to those who have passed along any useful info (for example, the cedula). Good luck to all of you...see you in August! Hasta luego...

I usually have nothing worth adding to these posts but I have to say that this discouraging advice is getting out of control. I don't think anyone questions the diffuculty of doing business out there but you guys are getting a little out of control. It's like you feind to crush the aspirations of everyone with a hint of ambition. If I didn't know any better, I'd think you all were getting rich out there and didn't want anyone to take a piece. I'll repeat what I'm sure has been said before: If you can't help but be so cynical about life there, why do you call it" the place I call home". You sound weak and your tales of hardship probably come from your own naivety. You make me want to go out there, make a million, wave it in your face and take the next flight home with your wife.

 

[Onions&carrots]

If you didn't want to hear the truth why ask? Go ahead and come on down to the DR. Open up your business. Take a chance and good luck. Hey anything can happen. Maybe you'll rival Corripio. You'll never know if you don't try. Braithwaite has a point. Most of what has been said is negative. The problem is that its the truth. At least listen to those guys who told you about opening away from resort areas. Will you listen to that? How about not deal with inventory. Do what Escott, Golo, or AZB does. Invest in land, properties, finance houses so that your business won't enslave you. Do what AZB does and provide a service that doesn't require carrying any inventories. Do what Rob does and open a DR related website catering to foreigners with a different slant than he has. Offer some type of services to foreigners. How about that do you feel better now.

But please don't caryy inventory. I've seen an overwhelming amount of foreigners fail (90%+) fail at those type of ventures esp. import/export types.

 

[mountainfrog]

Lemmings

Why not let them come?
Aren?t they welcome?
Aren?t they the people this country is living on?
Why scare off your prey?
I don?t understand.

M?frog

 

[Hillbilly]

Was I THAT discouraging? Tsk, Tsk

A new Yugoslavian restaurant opened today in Santiago. All the people in the pictures had names ending in "ic" . Looked like the Serbian national Soccer team....

Anyway, it just goes to show you...it is possible..

But there are 600,000 thousand plus in Santiago.

Just so you know.

HB

 

[Tom F.]

Couldn't be the same guy hillbilly. This one would of had a Johnny Honda type activity on the board if he kicked the bucket. If he doesn't give up those cigs, he won't last too much longer. Tom F.