Starting a Business: How Much to Pay Employees?

Tips on Starting a Business

Entrepreneurship is an excellent opportunity for all dedicated businessmen, especially in developed countries, with macroeconomic stability, product market, labor market, perfect financial system, and business dynamism.

Existing policies for establishing companies generate relevant financial indicators. According to official sources, there are currently 222,079 registered companies throughout the country. Most of them specialize in administrative and support service activities, professional, scientific, technical, and real estate.

It is a priority task to comply with the requirements to register a business and define from the beginning the salaries to be paid to their employees, to dedicate themselves full time to selling. These processes can generate expenses that may jeopardize the initial capital. An expert recommendation is to obtain a working capital loan to pay for the daily operation.

How to establish and register a business

Registering a company is complex and requires hard work to meet the requirements. Most of the established firms are Limited Liability Company (LLC), which requires obtaining three main documents: Commercial Residence, Trade License, and Khalid Munshiah or Computer Card. If entrepreneurs do not have sufficient resources, they can get a working capital loan to achieve their goals.

Each procedure has different requirements, which are listed below:

• Commercial Residency: This is the simplest procedure to carry out; it is presented to the Ministry of Economy and Commerce (MEC). This document validates the existence of a company with the name, owner, and line of business. Once it is obtained, the company is established, the owners may buy and own the company’s assets but cannot yet operate. The steps to follow to get the commercial residence are:

- Register the commercial name

- Draw up constitutive Act

- Registering the commercial activities to be carried out

• Trade License: After obtaining the Commercial Residency (CR), the business owner(s) must obtain a license to operate. This is a slow process and can take up to two months to be granted. It is necessary to fill out an online application form, which is submitted to the MEC, attaching other documents such as:

- Copy of identification of the owners, copy of CR, bylaws, photo of the exterior and interior of the place where the company will operate, many growth opportunities, and other documents that prove the lease or ownership of the site.

- Upon completing this step, the authority will confirm receipt, and a representative will conduct a site inspection visit.

- Once this step is approved, the fees for obtaining the license must be paid. 

• Computer card: According to figures from the Official Labor Law site, computer cards are provided by immigration, since the labor force is mostly made up of foreigners (95%). This document allows companies to hire employees from other countries with all the facilities granted by the government. The procedures are costly; if entrepreneurs require financing, they can apply for the best working capital loans to start operations immediately.

How much should employees get paid

Remuneration for foreign employees depends on their nationality and the type of work they will be performing. According to the place of origin, the government has agreements and tabulators for salaries. For example, the agreement with Nepal has four classifications:

1. Unskilled workers

2. Semi-skilled workers

3. Skilled workers

4. Professional workers

In addition to complying with these salaries, companies must pay for workers' housing and benefits established by the government. Depending on the niche and the needs of the business, the hiring process will begin, and the salary will be established according to the nationality of origin. If business owners are short of financial resources, they can apply for a working capital loan to pay their employees and start the operation immediately.

Due to the complexity of the process, there are specialized agencies to provide advice and assistance in completing the procedures. Obtaining the authorization to start operating requires hard work on the part of the owners. An alternative is to turn to the best working capital loans so that the business can start generating profits from day one.

Entrepreneurship in this type of country has excellent benefits and great growth opportunities. Government policies help business owners to obtain labor, incentives, and financing. Although the road to the establishment is complicated, the reward, in the end, will be gratifying and, above all, profitable. Do you consider it a good opportunity to invest in a company and need financing to do so? Be sure to check our recommended site to access working capital loans today!