Research Paper: Running a Restaurant

Pages: 25 (8890 words)  ·  Style: APA  ·  Bibliography Sources: 25  ·  Level: Master's  ·  Topic: Business  ·  Buy This Paper

SAMPLE EXCERPT:

[. . .] Multifarious investor groups have announced new projects related to the industry. (The Dubai Department Of Tourism And Commerce Marketing, 2014)

As the industry gets crammed up with investors and businesses, the competition normally increases. Similarly, the restaurant industry of Dubai is also getting competitive. The investors have to think of new and innovative ideas to attract the tourists and locals to their restaurants. The result of this competition is that the new restaurants are coming up with innovative ideas and in order to compete with them, the older restaurants are engaging in renovations and refurbishments. (Arabian Business Publishing Ltd., 2014)

This has improved the condition of overall restaurant industry and ever increasing revenues are reaped every year. This increased revenue attracts more investors and the cycle then continues. The competition in the industry has made it a difficult place to operate in and some restaurants even fail to cope up with the pace of innovation. Therefore, in order to operate in the restaurant industry of Dubai, being competitive is necessary. (Arabian Business Publishing Ltd., 2014)

Apart from the competition inside the restaurant industry, Dubai also faces competition from other cities such as mecca, medina, Riyadh, Kuwait and other cities located in the gulf countries. Dubai has diversified its source of income to a great extent. It is now the most rapidly growing city in terms of tourists and restaurants. (Arabian Business Publishing Ltd., 2014)

As more and more investors enter the industry, they begin new projects and these new projects attract tourists. The hospitality industry of Dubai, incorporating the restaurant and accommodation industry, grew by more than five hundred percent in the last decade. The industry reaped a revenue of 4.5 billion U.S. dollars in 2011. The amount is expected to increase to 7.5 billion U.S. dollars in 2016. The soaring revenues of the industry are indicators of the success and potential of this industry. (The Dubai Department Of Tourism And Commerce Marketing, 2014)

Due to the dynamic growth of the hospitality industry in Dubai, there are many opportunities for investors and employment seekers. Increasing tourism demands more and more restaurants and hotels to provide accommodation and dining services to the tourists. In addition, the locals also visit the restaurants as a part of their dining out routine. Therefore, it is a heaven for investors who can start new projects and experiment new ideas in these projects. (Arabian Business Publishing Ltd., 2014)

As the new projects will begin, staff pertaining to construction, logistics, transportation, management and a host of other fields will be needed. Therefore, employment opportunities will be created as well. All of these opportunities make Dubai a land of scope where new businesses start at a rapid rate. In 2012, new business density was 1.38 which was the fourth highest in the Middle East and North African region. Tourism is one of the major causes of the beginning of these businesses. As tourism is an expanding industry which gives good returns, the investors are interested in investing in tourism. (The World Bank Group, 2014)

3. LEGAL AND REGULATOY PROCESS OF OPENING A RESTAURANT IN THE UNITED STATES OF AMERICA

3.1. Documentation and Legal Filing

3.1.1. Reserve Company Name

According to the Section 205 of the New York State Limited Liability Company Law the founders of the business, limited liability Company, are required to register the name of the business with the New York State Department of State, Division of Corporations. This registration is to be done before the owners issue the articles of organization for their company. According to the Section 204(a) of the New York State Limited Liability Company Law, the words Limited Liability Company or the abbreviation LLC must accompany the name of the company. In addition to that, it has also been indicated by the Section 204(b) of the New York State Limited Liability Company Law, that the Division of Corporations shall reject the name of the company if it cannot be distinguished from the names that already exist on the files of the Division of Corporations. (The World Bank Group, 2014)

Apart from that, the Section 203 of the New York Limited Liability Company Law require the founders of the company to file the articles of organization with the New York State Department of State, Division of Corporations. The founders can obtain the forms from a local supply store. Apart from that, these forms can also be download from the official website of the department. The processing time for the application is seven days. (The World Bank Group, 2014)

3.1.2. Apply For Federal Identification Number (EIN)

The organization is then required to apply for federal identification number (EIN). This is used for employer and tax purposes by the organization. The founders are required to file IRS Form SS-4. This form can be obtained from the Internal Revenue Service of the United States of America. The founders can also apply online, the application submitted through this medium is processed immediately, through telephone, the application submitted through this medium is processed immediately, or by fax, for this medium the application requires 4 days to get processed. If the founders apply for federal identification number online, then they are not required to file the IRS Form SS-4. (The World Bank Group, 2014)

3.1.3. Register To Collect State Sales Tax

The businesses that are indulged in any of the following activities are required to register themselves as a vendor of sales tax. Furthermore, these businesses are also required to obtain Certificate of Authority. (The World Bank Group, 2014)

a. The business is indulged in the sales of any kind of tangible property.

b. The business renders services that are taxable in nature.

c. The business operates a hotel, motel restaurant or any other entity that is indulged in the sales of food and drinks. (The World Bank Group, 2014)

The businesses can either go for online registration, through the official website of New York State Department of Taxation and Finance, or they must file Form DTF-17 to get registered. Once the business gets registered it is mandatory for it file its quarterly sales and deploy tax returns, irrespective of the fact that whether it has been initiated or rendered any operations. (The World Bank Group, 2014)

3.1.4. Register as an Employer with the Unemployment Insurance Division at the State Labor Department

In order to initiate a business, the founders of the business must register themselves as employers by filing Form NYS-100. This enables the New York State Department of Labor to determine that whether the organization can be rendered liable under the New York State Unemployment Insurance Law. If the organization is considered to be liable then it is provided with unemployment insurance returns, wage reporting and quarterly combined withholding, by the Department of Labor, for the recording of the wages that it has paid to its employees. In order to register, the founders of the business must first obtain the federal identification number. (The World Bank Group, 2014)

3.1.5. Arrange For Workers' Compensation and Disability Insurance

It is necessary for a limited liability company to attain and maintain an insurance in relation to compensation and disability of the workers. The businesses can go for buying insurance policies for the compensation and disability benefits of the employees from some private insurance company, or these policies can be obtained from the New York State insurance funds. The federal identification number acts as the identity of the business in the communication process that takes place between the Workers' Compensation Board. The organization shall also provide its EIN to the insurance carrier of the organization while it goes for attaining and maintaining a workers' compensation disability coverage insurance policies. (The World Bank Group, 2014)

3.1.6. Arrange For Publication and Submit Certificate and Affidavits of Publication

It has been indicated by section 206 of the New York State Limited Liability Company Law that the limited liability company must publish a copy of its articles of organization in two newspapers. This shall be done within 120 days from the date when the articles of organization are deemed effective. The organization can also go for publishing a notice of its formation once a week. This is to be done for six successive weeks. It is necessary that the selected newspaper must be designated by the county clerk of the county in which the primary office of the organization is located, in accordance with the articles of organization. (The World Bank Group, 2014)

After the organization has published either the articles of organization or the notice of publication, it would be provided by the affidavit of publication. The organization is then required to submit a certificate of publication along with the affidavit of publication with the New York Department of State, Division of Corporations. The charges associated with the filing of certificate of publication are $75. (The World Bank Group, 2014)

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3.2. Zoning Laws

Zoning can be regarded as a function… [END OF PREVIEW]

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