setting up a dive school

Question
Hi Mike, would you be able to give me some advice re procedures regarding regulations for owning a dive school? where should i look for information on legislation and regulations in the Dominican Republic? What things should i be considering to ensure i am running things legally as far as insurance for students, health and safety, or are there things you can advise me to do before i start promoting courses and taking students? thank you very much

Answer
Hi Nat

I'm not familiar with the laws and regulations in the Dominican Republic but can give you some advice as it pertains to the United States. As a dive school, you will need to provide classroom and pool facilities, agency sanctioned course materials, scuba gear, air and other items for your students so you will probably fall under a retail store category.  For this reason, I will address your question as if it were for a retail dive shop.

Currently there are no specific laws or regulations which treat a dive shop differently from any other retail business selling hard goods.  In most states, you can apply for a retail business license without having to supply any information other than your name, social security number and the location of the business.  You will have to apply for a state tax identification number and possibly a county tax identification number.  These don't require much more information than you supplied for the business license.  Once these forms are recorded, you will be required to file periodic reports on your business income and remit the collected taxes to the appropriate agencies.

You will need to carry liability insurance for your school, it's employees, and your students.  This is usually supplied by an insurance carrier who specializes in such coverages.  As instructors, we are required to carry such a policy and it covers us for students and any dive activity which we supervise.  These policies are available through our certifying agencies (PADI, NAUI, SSI, etc).  These policies are also available for dive shops through the same sources as long as they have instructors registered with that certifying agency.  Your certifying agency is your best source of information and I suggest contacting them for details.  If you're not associated with an agency yourself, then you'll need to reach an agreement with an instructor in order to work with his agency.

Once again, Nat, these suggestions apply to businesses located within the United States and may be substantially modified in the Dominican Republic.  I would suggest contacting your Department of Revenue for licensing requirements and your Small Business licensing department for the requirements for establishing a new business.  Also contact your selected Certifying Agency for their requirements for sanctioning a dive shop.

After rereading your question, it occurred to me that you may be planning to teach students privately as an independent instructor.  If that's the case then you can make arrangements with a local scuba shop to supply air, scuba gear and other necessities.  You would still have to carry liability insurance from your certifying agency and probably obtain a business license to keep the law from knocking on your door.  You may be able to get around the business license requirements by associating with your local dive shop and operating under their license.

As you can see, there are various ways to license yourself depending on your circumstances and what services you intend to provide.  If you're planning to operate as an independent instructor, I would suggest contacting your certifying agency first and discussing your plans with them.  They can help you determine the best way for you to set up your scuba school to meet their requirements.  Once that's been determined, then, if necessary, you can contact your business licensing agency and give them an accurate description of your proposed new business.

Nat, I wish you well in the establishment of your scuba school!!

Mike Giles
Mike's Dive Center
mikescuba.com