Here are steps to
start business in the
Philippines.
Registration Requirements Details
Procedure 1.
Obtain
bank certificate of
deposit of the paid-in
capital
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Comment:
Fees vary from
bank to
bank. Some banks in Manila do not charge any fee, but others charge up to PHP 105 for each
certificate.
Procedure 2.
Verify the availability of the
company name with the Securities and Exchange Commission (SEC)
Time to complete:
1 day
Cost to complete:
PHP40
Name of Agency:
Comment:
The availability of the proposed
company name can be verified via the SEC`s
online verification system at no charge. However, the SEC charges Php40/month upon official reservation of the
company name. Within the reserved period, the
company must file its
application for
incorporation. In the event that the reservation period expires without the
company filing its
application for
incorporation, such reservation must be renewed/extended by paying Php40/month failure of which will prevent the
company from using such reserved name.
Procedure 3.
Register incorporation with the Securities and Exchange Commission
Time to complete:
3 days
Cost to complete:
filing fee for
articles of
incorporation PHP 1,000 issuance fees PHP 1,000 PHP 510 bylaws fee PHP 470 -
stock and
transfer book registration fee PHP 75 - membership
book registration fee
Name of Agency:
Comment:
To
register an incorporated
company with the Securities and Exchange Commission (SEC), the promoters must file the following
documents: the corporate name verification slip; the
articles of
incorporation and bylaws; the treasurer`s
affidavit; the
bank certificate of
deposit; the
authority to verify the
bank account; the incorporator`s
tax identification
number;
affidavit of incorporator or director undertaking to change corporate name , officers, stockholders, and so forth.
Through SEC i-Register, the SEC provides a Web-based,
online company registration system and the option to reserve a
company name. (Registration
forms may be downloaded from the SEC Web site.) Although
registration forms may now be downloaded from the SEC website, the
registration papers must be filed and the filing fee
paid at the SEC office. Applications are submitted for pre-processing evaluation prior to filing.
Whereas the
company now obtains a temporary identification
number (TIN), in the past, the
company obtained the
TIN from the
Revenue District Office. To obtain the
TIN, the
company requires a Barangay (district) clearance, a mayor`s
permit, and a copy of the SEC-issued
registration certificate (issued as part of this
procedure). Other
documents may be required (e.g., homeowner`s clearance, lease contract).
As authorized by the
Bureau of
Internal Revenue (BIR), the SEC now issues pre-generated TINs only if a company`s
application for
registration or
incorporation has been approved. Although the SEC issues the
TIN, the
company must still
register with the
BIR: this time, to identify applicable
tax types, to pay an annual
registration fee, to
register and stamp the
books of
accounts, and to obtain
sales invoices and
receipts.
Procedure 4.
Obtain community
tax certificate (CTC)
Time to complete:
1 day
Cost to complete:
PHP
500
Name of Agency:
Comment:
To obtain a Barangay clearance, a
company must obtain a community
tax certificate. The
company is assessed a basic and an additional community
tax. The basic community
tax rate depends on whether the
company legal
form is a corporation,
partnership, or association (PHP
500 or lower). The additional community
tax (not to exceed Php 10,000.00) depends on the assessed value of real property the
company owns in the
Philippines at the
rate of Php2.00 for every Php5,000.00 and on its gross
receipts, including dividends or earnings, derived from
business activities in the
Philippines during the preceding year, at the
rate of Php2.00 for every Php5,000.00.
Procedure 5.
Apply for a Barangay (district) clearance
Time to complete:
2 days
Cost to complete:
PHP 800
Name of Agency:
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 (district) where the
business or activity is located or conducted. To obtain a
business permit, the applicant submits a
business transaction
form (BTF) which contains vital information to process the
application. the
BTF is available in the
Business Promotions and Development Office located at ground floor of the Manila City Hall. the accomplished
BTF together with the following
requirements will be submitted to the
Bureau of Permits (BP): Barangay Clearance, SEC
Registration, Public Liability Insurance (for restaurants, parlos, cinemas, malls etc) Authorization
Letter of owner with ID, Lease Contract/Tax Declaration,
SSS (Certification/Clearance) and Community
Tax Certificate, The BP personnel encodes the
business transaction
form details and the
requirements for the processing and computation of
business permit fee. The BP personnel issues a computer generated
Business Identification
Number (BIN) slip to the applicant. The applicant proceedes to the License Division of the City Treasurer`s Office for computation and assessment of
Business tax and Regulatory Fees. The applicant presents the issued BIN to the licensing officer on duty. The latter then compute and generate the License and Regulatory Fees
Form (LRF) which shall be given to the applicant. The applicant then proceedws to the cashier and presents the issued LRF
Form. The cashier receives and records
payment of the applicant and validates the LRF
Form which serves as the official receipt. The applicant then goes back to the
business transaction office. After verifying that
payment has been made, a BP personnel generates the
Business Permit and secures the approval and signature of the Dept Head of the BP. Upon approval, the BP personnel releases the
Business Permit to the applicant.
The fee charged by the Barangay depends on the company`s paid-up
capital and the land area it occupies—a PHP
500 minimum plus PHP 300 for the Barangay clearance plate.
Procedure 6.
Obtain mayor`s 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 mayor`s
permit (PHP 900, sanitary
permit fee 0.2% of
capital for license fee PHP 2000,
permit fee for
businesses engaged in retail PHP 2,500 garbage collection fee
Name of Agency:
Comment:
An
application for
business permit begins with the filing with the
Bureau of Permits, City Mayor`s Office, Manila City Hall. The following
documents ( orginal and photocopies) are required: Taxpers identification
number (TIN), BIR-issued
certificate of
registration (COR") and a proof of
payment of annual
registration fees
paid to
BIR. The
Bureau then classifies the
business and identifies the agencies/units/offices whose endorsement/approval woud be required for the processing of the
permit. The
application would then be forwarded to the appropriate agencies involved for their approval. An inspection of the
business location is also conducted. Upon completion of all necessary approvals/endorsements from the various government departments/units/agencies, the
Bureau issues the
Business Permit which shall then be forwarded to the Licensing Section of the City Treasurer`s Office for assessment and collection of taxes and other fees (i.e.garbage fee, etc.) The Licensing Division generates a Statement of Account showing a breakdown of all applicable local (business) taxes and charges. The
Business Permit and License are released upon
payment of taxes and other applicable charges.
Procedure 7.
Receive inspection from the Mayor`s Office
Time to complete:
5 days
Cost to complete:
no charge
Name of Agency:
Comment:
The Mayor`s Office conducts an inspection to verify that the
company will conduct the activity stated in the
application for
business permit. There is no need to set an appointment for this inspection. The inspection generally occurs within the first 5 days of filing the
application for the
operating permit.
Procedure 8.
Buy special
books of account at bookstore
Time to complete:
1 day
Cost to complete:
PHP 400
Name of Agency:
Comment:
To
register with the
Bureau of
Internal Revenue, promoters must purchase special
books of account, available at bookstores nationwide. One set (of four
books, the cash
receipts account, the disbursements account, the ledger, and the general journal) may cost about PHP 400.
Procedure 9.
Register for taxes at the
Bureau of
Internal Revenue (BIR)
Time to complete:
2 days
Cost to complete:
PHP
500 (registration fee) PHP 15 (certification fee) and PHP 100(documentary stamp
tax, in loose
form to be attached to
Form 2303)
Name of Agency:
Comment:
After the taxpayer obtains the
TIN, the
company must pay the annual
registration fee of PHP
500 at any duly accredited
bank, using
payment form BIR Form 0605). To
register the
BIR taxpayer must first accomplish
BIR Form 1903 and submit the same together with the required attachments to the
Revenue District Office having jurisdiction over the registered address of the
business establishment. In the
Philippines, companies may be assessed various taxes: VAT, a community
tax, a local
tax, and income
tax. When a
company registers as a taxpayer, it must indicate in the
application the types of taxes it expects to be liable for, including VAT.
Procedure 10.
Payment of documentary stamp taxes
Time to complete:
1 day
Cost to complete:
PHP1 for every PHP 200 of
capital
Name of Agency:
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 PHP1 on each PHP 200 or a fractional part thereof of the par value of the shares of
stock.
payment must be made the 5th of the month following the date of issuance of said
registration certificate or issuance of shares.
Procedure 11.
Obtain the
authority to
print receipt/invoices with the
Bureau of
Internal Revenue (BIR)
Time to complete:
1 day
Cost to complete:
included in
procedure 9
Name of Agency:
Comment:
The
authority to
print receipts or
invoices must be secured by the
printer before the
sales invoices or
receipts may be printed.
Philippine law does not require a
company to
print its official
invoice forms at designated
print shops. If a
company has secured the
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 (as detailed in
Procedure 9), the
company must obtain a special
permit from the
Bureau of
Internal Revenue.
According to
requirements stipulated by the Large Taxpayer Service, new taxpayers must submit the following
documents to the
Revenue District Office or the office with jurisdiction over the taxpayer`s head office:
- Duly completed
application for
authority to
print receipts and
invoices (BIR
Form 1906)
- Job order.
- Final and clear
sample of
receipts and
invoices (machine-printed).
-
Application for
registration (BIR
Forms 1901 or 1903).
- TRU
form or photocopy of
TIN card.
- Proof of
payment of annual
registration fee (BIR
Form 0605).
Procedure 12.
Print receipts and
invoices at the
print shops accredited by the
BIR
Time to complete:
14 days
Cost to complete:
PHP 4,000 (between PHP 3,000 and PHP 5,000)
Name of Agency:
Comment:
The minimum
print number is 25 booklets.
Procedure 13.
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
Name of Agency:
Comment:
In practice, the
books of
accounts are presented for
stamping upon filing the
application. These
books can be obtained from
Bureau of
Internal Revenue (BIR).
To
register books of account and
invoices, founders must present the following
documents:
- All required
books of
accounts.
- VAT
registration certificate.
- SEC
registration certificate.
-
BIR Form W-5.
According to the
Revenue Regulation No. 26-03 dated September 18, 2003, in lieu of the usual
stamping of
BIR registration on every booklet of manually-printed
receipts and
invoices to confirm or signify
registration, the
printer indicated in the
BIR duly approved ȁCAuthority to
Print Receipts and/or InvoicesȁD (ATP) shall issue to the taxpayer a duly stamped BIR-registered ȁCPrinter`s
Certificate of
Delivery of
Receipts and InvoicesȁD (PCD) for printed
receipts and
invoices which shall be made available and ready for inspection anytime by duly authorized
revenue personnel. The above-mentioned
certificate may be issued either on a ȁCone-time basisȁD for full
delivery of ordered receipts/invoices or on a ȁCpiece-meal basisȁD in case of partial
delivery, in which latter case, the corresponding PCD shall be issued to the taxpayer every time a
delivery of the ordered receipts/invoices is made. Consequently, manually-printed receipts/invoices are deemed duly registered
receipts or
invoices as required under Section 237 of the National
Internal Revenue Code of 1997 only if they are covered by a duly approved and issued ȁCAuthority to
Print Receipts and/or InvoicesȁD and BIR-registered ȁCPrinter`s Certificate of Delivery of Receipts and Invoices.No receipt or sales/commercial
invoice shall be issued by a
seller to any customer or client unless the former has received his copy of the duly stamped BIR-Registered ȁCPrinter`s
Certificate of
Delivery of
Receipts and InvoicesȁD indicating the inclusive serial numbers of the receipts/invoices printed and delivered and the due dates of submission of the copy of the PCD to the concerned
BIR offices.
Within thirty (30) days from issuance of the PCD, the taxpayer or the
printer, as the case may be, shall submit to the concerned
BIR office that has jurisdiction over the taxpayer-user`s principal place of
business the triplicate copy of the PCD, together with the certified photocopy of approved ATP and the taxpayer`s Sworn Statement enumerating responsibilities and commitments of the taxpayer-user. One copy thereof shall likewise be submitted to the
BIR Revenue District Office that has jurisdiction over the principal place of
business of the
printer.
Procedure 14.
Initial
registration with the Social Security System (SSS) and
Time to complete:
1 week
Cost to complete:
no charge
Name of Agency:
Comment:
Under the new single
registration process, the employer is required to
register with the
SSS using the
business registration form or BR-1.
registration with
SSS automatically causes
registration with Philhealth thus the employer shall no longer be required to go to phihealth for
registration as
registration with . Based on BR-1 submission, the
SSS shall encode the employer detailes and issue the following:
SSS employer
number, together with the employer`s copy of the processed Br-1,SSS information Brochure, employer identification card and list of employer obligations and post-registration requireemnts.
Procedure 15.
Complete
registration with
SSS and
Philippines Health Insurance
Company (PHIC)
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Comment:
After initial
registration, the employer submits within 30 days from the issuance of employer
number by
SSS and Philhealthh the following:
To SSS- employment report (SS
form R-1A), specimen signiture card (SS
form L-501), sketch of
business address and validated miscellaneous
payment return
form (SS
form R-6) or special
bank receipt, showing
payment for the employer
registration plate, if not
paid upon initial
registration.
To philhealth: member
registration forms for each employee with the required supporting
documents. -161688
Canada
