Registration – Starting a Business in the Philippines

by Rainier on April 18, 2006

Eto po ang registration requirements of starting a business in the Philippines. As I was looking into this, I don’t think na-beat ko yong number of days na sinasabi dito when I incorporated myself there. But this should give you a timetable para sa tamang planning na gagawin ninyo. You can find this article here: http://www.doingbusiness.org/ExploreTopics/StartingBusiness/MoreDetails.aspx?economyId=153

Procedure 1. Obtain bank certificate of deposit of the paid-in capital
Time to complete: 1 day
Cost to complete: no charge
Comment: Fees vary from bank to bank. Some banks in Manila do not charge any fee, some banks charge up to P105 for each certificate.  
Procedure 2. Register incorporation with the Securities and Exchange Commission
Time to complete: 3 days
Cost to complete: P40 reservation fee of company name (30 days) + filing fee for articles of incorporation: 1/5 of 1% of the authorized capital stock, no less than P1,000, plus Legal Research fee of 1% of filing fee, no less than P10 + P210 bylaws fee + P150 – stock and transfer book registration fee + P75 – membership book registration fee)
Comment: Documents to be submitted: corporate name verification slip, articles of incorporation and bylaws, treasurer’s affidavit, statement of assets and liabilities, bank certificate of deposit, authority to verify bank account, tax account number of incorporators, registration data sheet defining personal information regarding directors, officers, stockholders etc, and written undertaking to comply with the reporting requirements of the SEC.  SEC provides online registration through SEC-iRegister, the web-based Company Registration System. One can reserve a company. Forms for registration may be downloaded from the SEC website. One can search and research company name and register the company with the SEC on-line but payment must be made at the SEC itself. Same day payment is not possible.  
Procedure 3. Apply for a Barangay (district) clearance
Time to complete: 2 days
Cost to complete: P800
Comment: No city or municipality may issue any license or permit for any business or activity unless a clearance is first obtained from the barangay where such business or activity is located or conducted. Some barangays collect a fee for the issuance of a barangay clearance. The fee is based on the area (size in sq. meters) of the place of business and the location of the place of business.  The fee charged by the barangay depends on the paid-up capital of the corporation and the land area it occupiesP500 minimum plus P300 for the barangay clearance plate.
Procedure 4. Obtain mayors permit/municipal license to operate at the Licensing Section of the Mayor’s Office
Time to complete: 11 days
Cost to complete: The fees vary depending on the local government unit (city/municipality) issuing the mayors permit (=P300, sanitary permit fee + 0.2% of capital for license fee + P2000, permit fee for businesses engaged in retail + P1,500 garbage collection fee + P360, occupational tax + P705, occupational police clearance/health clearance + P750, plumbing inspection fee + P100, electrical inspection fee + P100 building permit fee + P100 sign board permit fee)
Comment: Required documents: accomplished application for business permits and licenses in duplicate copies with sketch of location of building at the back; certification issued by the corporate secretary to the effect that the company has been duly authorized to engaged in the business; amount of paid-up capital; certificate of registration; receipts of payment of due fees; lease contract; Barangay Clearance/Permit.
Procedure 5. Buy special books of account at bookstore
Time to complete: 1 day
Cost to complete: P200-300
Comment: Special books of account are required for the purpose of registering VAT. The books of account are sold at bookstores nationwide. One set of journals consisting of four books, namely, the cash receipts account, disbursements account, ledger and the general journal, may cost about P200, or about US$4.
Procedure 6. Secure a tax identification number, register for VAT
Time to complete: 15 days
Cost to complete: P500
Comment: A Tax Identification Number (TIN) must be obtained from the nearest Revenue District Office having jurisdiction over the head office. Need to have “Barangay” clearance, mayor’s permit, and copy of SEC registration certificate. Other documents may be required, e.g. homeowners clearance, contract of lease. There is a community tax, a local tax, VAT, and income tax. When a company registers as a taxpayer, it must indicate in the application for registration the types of taxes it expects to be liable for, including VAT. The Authority to Print Receipt/Invoices must be secured by the printer before the sales invoices/receipts may be printed. Philippine law does not require a company to have its official invoice forms printed at designated print shops. If a company has secured an Authority to Print Receipts and Invoices, it can ask any authorized printing company to print its official invoice forms. However, if a company wants to print its own invoice forms (i.e., it uses its computers to print loose-leaf invoice forms), the company must obtain a special permit from the Bureau of Internal Revenue for this purpose.
Procedure 7. Payment of Documentary Stamp Taxes
Time to complete: 1 day
Cost to complete: no charge
Comment: Section 174 of the National Internal Revenue Code, as amended, requires the payment of documentary stamp taxes on the original issuance of shares of stock at the rate of P1.00 on each P200 or a fractional part thereof, of the par value of such shares of stock, within 50 days after the close of the month when the registration certificate is issued by the SEC or the shares are issued by the corporation.
Procedure 8. Obtain the Authority to Print Receipt/Invoices with the Bureau of Internal Revenue
Time to complete: 1 day
Cost to complete: included in proc 6
Procedure 9. Print receipts and invoices at the print shops
Time to complete: 1 day
Cost to complete: P2250 (median of P1,500 and P3,000)
Comment: The minimum number to print is 25 booklets.
Procedure 10. Submit receipts and invoices to the BIR for approval, have receipts/invoices and books of accounts stamped by BIR
Time to complete: 1 day
Cost to complete: no charge
Comment: In practice, the books of accounts are presented for stamping right after the application is filed. Books can be obtained from BIR. To register books of account and invoices, present the following documents: all the required books of accounts, VAT registration certificate, SEC registration certificate and BIR Form W-5.
Procedure 11. Register with the Social Security System (SSS) and enroll with the government healthcare benefits system
Time to complete: 11 days
Cost to complete: no charge
Comment: For the social security application, file employer’s Data Record, report of Employee-Members (those are 2 standard forms), and articles of incorporation, copy of SEC registration certificate. Obligatory for firms with 50 or more workers to register with the Department of Labor and Employment. The Philippine government healthcare system is administered by the Philippine Health Insurance Corporation (“PHIC”). Enrollment with the PHIC is done through the Social Security System (“SSS”). If a company is enrolled with the SSS, it is automatically enrolled with the PHIC, but contributions for participation in the government healthcare system must be remitted to the PHIC. Enrollment with the SSS normally takes one to two weeks.





{ 25 comments… read them below or add one }

Edwin Panelo January 22, 2007 at 8:48 am

Hi, I was planning to start a Petrol selling or a Mc Donald burger business in the Philippines. What is the procedure of getting a franchise and what are the requirements of applying for it?. Hope you could help me for an advise this. Thanks.

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JC January 22, 2007 at 1:21 pm

ayan ha reynz, naumpisahan sa tutoring business at barbershop at kung anik anik pa, ngayon gasolinahan ba yan at franchising ng mcdo na ang gina-ask sayo…Reyna Elena for Congressness!!! (si Kutz na kasi for Presidentress eh) hehe

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Kutang Bato January 22, 2007 at 4:01 pm

migkano naman ang talent fee ng business advisor mo? give uz an idea…pati na rin yung terms nya – baka naman per ora or minuminuto mistulang taxi kung pumatak ang metro…juicekoday!!! avah, kung reazonable din lang eh ipapaasikaso ko na sa kanya ang necessary paperworks para nabawasan na sakit ng ulo ko, nakatulong pa ako sa raket nya, davah?

Pero teka, why don’t you do that yourself sa Pinas reynz para makapiling mo na ang iyong si J araw araw, hehehehe. tipong business consultancy firm – assist sa business plan aka feasibility studies, give advise at help sa paperworks ng mga OFW na gustong mag business or mag expand ng business ol ober our turd world kawntri pero la ng time para sa mga atsutsutsu na ito at nawalan na rin ng tiwala sa mga relathieves na pinag aasikaso nila ng mga kapermitan.

kasi ako kunyari kung magbabalak na akong umuwi… para hindi maputol yung pasok ng pera, gusto ko sagarin to da max ang days dito na mag work work work and earn earn earn – at gusto ko pag uwi ko dun, yung mismong negosyo na lang ang aatupagin ko.. avah, sa dami ng paperworks na yan at sa haba ng panahong ilalaan ko dyan baka bago pa ako magsimula bankrupt na ako noh! alam mo naman na pag alam ng relathieves na andyan ang alindog ko, talo pa mga langgam na naka discovr ng asukal…sagot ko agahan tanghalian at hapunan ng mga lintek at sa bahay na tatambay kasi daw “nangungumusta”.

gurll, mapapakinabangan mo pa ngayon ang iyong pagka social climber…sa metro manila kayang- kaya mo na paperworks kasi naranasan mo na eh, been there done that and drama mo…sa Cebu and Davao naman including the other provinces in visayas and mindanao, matutulungan ka namin ni Bea – kanya ang visayas, sagot kita sa Mindanao, hehehehe… hook up ka namin sa isang malaking WKREC (well-known real estate company) para sa mga suggested available commercial sites and pricing… piktapos hook up ka pa ulit namin sa mga ka friendshipan sa banks para sa ease ng pag borrow ng additional capital sakaling ma short ang dakilang OFW’s natin… ayy, wagi,wagiii..

At uulitin ko – ang pinaka da best jan, makakapiling mo pa si J, hehehehe. Saka unlike your former computer business, di kasinlaki ang puhunan sa consultancy davah…may credibility ka naman eh…you have the brinining at pag nagpagawa ka ng calling cards, shempre ang neym mo eh may eybecede sa dulo kaya bilibaboy kahit papano, ehehehehe…Nakatulong ka na, kumita ka pa…Mga OFW naman naman, nakaiwas na sa sakit ng ulo, nakatulong pa sa raket mo…o, ayan, win win solution!

Dude, I’ll hire someone like you in a heartbeat, man – advertise pa kita sa lahat ng mga friendships ko, serious! It’s about time for us to conffront the alarming brain drain in our country… ini- import na nga natin rice natin fron thailand sa ngayon, baka bukas pati bagoong imported na from vietnam, huhuhuhuhu…

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Kutang Bato January 22, 2007 at 5:44 pm

“I was planning to start a Petrol selling or a Mc Donald burger business”

Edwin, tigasan ka man dodong? sa amin sa mindanao Dong wala man mekdownald duon…baka wede ka dun magtinda ng hamburdyer!!!

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c5 January 23, 2007 at 1:22 am

Kuta, wede ako sa Luzon! :D

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reyna elena January 23, 2007 at 4:44 am

“Pero teka, why don’t you do that yourself sa Pinas reynz para makapiling mo na ang iyong si J araw araw”

Eeeekkk! BAT NGAYON KO LANG NABASA TO KUTZ EH MATUTULOG NA AKO?!

Mahabang wento… bukas na lang… sasara na mata ko.

(abangan ang susunod na katabana)

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c5 January 23, 2007 at 5:03 am

sweat drimz…

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JC January 23, 2007 at 11:06 am

reynz—>Mahabang wento… bukas na lang… sasara na mata ko. (abangan ang susunod na “katabana”)

inantok na talaga ang reyna hehe

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Barbeross January 23, 2007 at 1:06 pm
Barbeross January 23, 2007 at 1:31 pm

Ang lifestory ni John Gokongwei (owner ng Cebu pacific air, Sun cellular, digitel, robinsons etc) inspired me more na tahakin ang mundo ng entrepreneurship.

I didn’t know na “poor man” sya dati, na nangungutang para sa capital nya, na nag tinda sya sa palengke…now listed sya by Forbes as the 34th richest person in Southeast Asia, with a fortune of US$425 million!!!!

excerpt :
“I would load my bicycle with soap, thread, and candles, and then bike to neighboring towns to sell my goods. On market days, I would rent a stall, lay out the goods from the bike, and make about 20 pesos a day, enough for me to survive and to buy even more goods for next time. – JG

Kung gusto nyng basahin ang story nya, kilitiin itong link
http://www.jgsummit.com.ph/speech-jgkw-ateneo-som-20020301.html

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c5 January 23, 2007 at 2:00 pm

kinikiliti ko, ayaw e…nag-a-underline lang tapos nawawala tapos nag-a-underline uli…paulit-ulit, paulit-ulit…

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Kutang Bato January 23, 2007 at 2:00 pm

kakainspire naman Ross… ako kaya, kelan magkakaron ng guts na mag risk tulad nya?

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c5 January 23, 2007 at 2:13 pm

di ko kaya yun…eh yung bisikleta ko ninakaw na eh! =))

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Barbeross January 23, 2007 at 9:15 pm

KUTZ and C5,
yun answer ko senyo hiramin ko ke JG,jr:
“Choose to be entrepreneur because then YOU create value. Choose to be an entrepreneur because the products, services, and jobs you create then become the lifeblood of our nation. But most of all, choose to be an entrepreneur because then you desire a life of adventure, endless challenge, and the opportunity to be your BEST SELF.”

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Kutang Bato January 23, 2007 at 9:58 pm

REYNNZZZ UWI NA TAYOOOO…MAG INTRIPINYUR NA LANG TAYOOOO!!!!

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c5 January 23, 2007 at 10:21 pm

ross, agree ako jan! pero dagdag ko lang, “Be an entrepreneur so you have the opportunity to set time for your family which you can’t do when you’re employed.”

Kaya lang, by stats, yung mga nagsiyaman sa pagiging entrepreneur, sira ang family relationship…sad but true…

depende lang lahat yan sa priority eh…

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chuva January 23, 2007 at 10:35 pm

rossita soriano – - katouch naman yung speech ni JG!!!!

kuts – sama ko senyo!!! benta na rin ako ng kung ano ano .. pramis, di nako magsusugal..

iipunin ko lahat ng kita ng store ko (www.rainbowreels.com).. at mag-iisip ng bagong investments..

reyna.. tara na “BIYAHE TAYO!!!”

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Barbeross January 23, 2007 at 11:18 pm

C5,
>>agree ako about family me sagot din si JG jan
“And never forget your families! Your parents denied themselves many
things to send you here. They could have traveled around the world a
couple of times with the money they set aside for your education, and your
social life, and your comforts.

Remember them-and thank them.

When you have families of your own, you must be home with them for at
least one meal everyday.

I did that while I was building my company. Now, with all my six
children married, I ask that we spend every Sunday lunch together, when
everything under the sun is discussed.

As it is with business, so it is with family. There are no short cuts
for building either one.”

BAGONG LINK na pwedeng kilitiin:

http://www.webphil.com/philippineentrepreneur-mrjohngokongwei.htm

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Barbeross January 23, 2007 at 11:23 pm

KUTZ, CHUVZ…sama din ako!!!!
gawa tayo ng cooperative??? hehhe

o

** ______ Business associates???

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reyna elena January 25, 2007 at 1:13 pm

consulting business
nursing agency
isaw @ adidas franchising
cooperatiba

hmmm….

i know yong mga fans natin sa middle east, meron silang kooperativa. azan na kaya sila? sana turuan man lang tayo mag-start….

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reyna elena January 25, 2007 at 1:14 pm

I love that spitz! That was sent to me many many years back at buti na lang me link ka ross, post ko na rin yan dito para nasa palasyo sia ni reyna for good! Dai tenk you!

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Barbeross January 25, 2007 at 1:41 pm

reyna..alin spitz??? Pwe?!!!!???
ano naman yun nakita mo sa bolang kristal ha na si diwa at si barber? ha? ha?

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reyna elena January 25, 2007 at 11:47 pm

Nakita ko na kayong dalwa eh dama de noche sa koronasyon ko sa mayo he he he

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Treb September 7, 2009 at 12:57 pm

I would like to start a specialized service oriented business pinas base, at partnership ang tema. Kung i-apply ko ngayon na, then operate two years later, kelangan ba ng mga tax declararation every year kahit walang pumapasok na kita.

Pwede paki eksplika yung “register Incorporation”.

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JJ gabriel March 20, 2008 at 1:12 am

pag nag decide k do biz here be sure dat ul stay and run ur own biz,anyway franchising naman ata balak mo madali monitor yan.

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