The Philippine economy has greatly improved in the past years. More and more Filipinos are more creative in finding ways to earn, save and invest more. Whether working abroad or employed locally, it is always the ultimate dream of every Filipino to be financially independent. Starting a business is the most logical path to take towards financial independence.
There are also many foreign individuals and companies who find starting a business in the Philippines as one of the best investing options available to them. With English being the secondary language of the country and the people known for their hospitality, foreigners find it more convenient to invest here. Aside from India, the Philippines is also known in Asia with one of the lowest cost for high quality workforce. Hence, Filipinos and foreigners are now busy looking for ways on how to start a business here.
Starting a business in the Philippines may take weeks or at least a month in terms of registration depending on the completeness of the applicant's requirements and the procedures and timetable followed by various government agencies. Normally, the complications and delay arise when you want to start a specialized business that may require various requirements from different government agencies.
Generally, the following steps are to be followed in starting a business in the Philippines for Sole Proprietors, Partnerships and Corporations (excluding Professionals) not to mention that you should already have your place of business and lease contract or affidavit of free occupancy prior to doing the following:
Step 1 Secure a Business Name
Sole proprietors or individuals may secure a business name from DTI or Department of Trade of Industry while Corporations may go to SEC or Securities and Exchange Commission. You may check the website for requirements.
DTI registration fee is between Two Hundred to Two Thousand Pesos (PhP200-2,000) depending on the scope whether barangay, city, regional or national. You need to bring the original ID and the photocopy of the applicant's ID upon registration. You can get the certificate of registration the same day if they have no technical issues.
SEC registration depends on the amount of Capital. You may download the forms online or you may also purchase the forms from SEC for the Articles of Incorporation, By-Laws and Stock Transfer Book and complete the forms, have it notarized and submitted for approval. Pay the required fees. Once done registering a corporate name make sure to register the Stock Transfer Book as well.
SEC registration depends on the amount of Capital. You may download the forms online or you may also purchase the forms from SEC for the Articles of Incorporation, By-Laws and Stock Transfer Book and complete the forms, have it notarized and submitted for approval. Pay the required fees. Once done registering a corporate name make sure to register the Stock Transfer Book as well.
Step 2 Secure a Barangay Clearance
Go to the barangay hall where your place of business is located. Bring government IDs - at least 2 with signature, picture and birthday. Some would require you to bring an ID while others would take your picture when you apply. Bring your lease contract or affidavit of free occupancy. Of course, bring photocopies of your DTI Certificate or SEC Certificate of Registration, Articles of Incorporation and By-Laws. Fees can be as low as Six Hundred to Two Thousand Pesos (PhP600-2000). You can get your barangay clearance the same day especially if you arrive early.
Step 3 Secure a Mayor's or Business Permit
Head to your Municipal Hall or Mayor's Office and look for the BPLO or Business Processing and Licensing Office. Bring the original and photocopies of your lease contract or affidavit of free occupancy, DTI Certificate or SEC Certificate of Registration, Articles of Incorporation and By-Laws and Barangay Clearance.
Get the Application form, sign, have it notarized and pay for the related fees. Most municipalities or cities would require additional requirements such as locational clearance and insurance. Fees vary depending on the amount of your initial capital, number of employees, and others. Fees may be paid periodically - quarterly or annually. Some may release the permit on the same day once paid and others would require an inspection of the place of business before approval and release of the permit.
The Mayor's or Business Permit has to be renewed annually together with the Barangay Clearance on or before January 20. Upon renewal the basis of your fees would be your Gross Receipts instead of your initial capitalization.
