Business license in Philippines

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Business license in Philippines

Starting a business license in Philippines is main requirement and licenses depending on the kinds of businesses. The procedural complicates not only costs money but too much of times. The Doing Business 2016 report of World Bank Philippines ranks 99th in Ease of business and 171st in Starting a Business indices.

In addition to the incorporation or registration of the companies with SEC (Security Exchange Commission,) some specific Permits or licenses are too required to get to the business.

  • Barangay Clearance

One of the LGUs [Local Government Units], Barangay is the smallest administrative divisions in Philippines the barangay clearance is the residency permit certifying the location of a business or company. The fees required ranging from PHP 300 to PHP 1000 depending on the barangays or locations. Maximum 1 working is required to give the clearance if supported duly with documents required.

  • Mayor’s Business Permit.

Other LGUs is in big cities. In obtaining a Mayor’s Business permit the requirements vary from different cities or municipalities. This means that obtaining a business license in Philippines, business environment in Makati City may become different from getting it in Manila or Cebu City. This business license in Philippines is also a requirement by the BIR in issuing a BIR certificate of registration.

Costs are;  PHP 2,408.05 as Business tax [or 1% of paid-up capital whichever is higher] + PHP 200 for the permit itself + PHP 150 for sanitary inspection fee + PHP 50 for signboard fee + PHP 300 for business plate + PHP 100 for QCBRB + PHP for 545 zoning clearance + PHP 1,300 for garbage fee+ PHP 300 for FSIC[Fire Service Inspection Certificate].

  • BIR Certificate of Registration. Bureau of Internal Revenue BIR license is required for TIN [Tax Identification Number] permission to print official company Receipts, Invoices and to have registered the company books of accounts. The respective BIR office depending on the location of company is required to be contacted to perform the procedure of getting permit or license. The cost is for Certificate of Registration COR, TIN and DST [Documentary Stamp Tax] : PHP 615+ 500+5,165.345. For Print receipts and invoices at the print shop is PHP 3,500. As many as 7 working days are required to complete these formalities.
  • SSS Employer’s Registration. Businesses or companies are in need of employing human resources. Under Social Security Act of 1997 or Republic Act # 8282 all businesses and companies are required to be registered with the Social Security System SSS to start operations. The processing requires 1 working day but no charges. 1 day no charge. The employer is on 30 days time frame from the date of employment of employee to report the person for coverage to the SSS thru Form R-1A.
  • PhilHealth Employer’s Registration.

Employees of companies required to be registered In the with PhilHealth to get health insurance coverage .Those employers in the private sector registered with the SSS before July  are automatically registered but are required to update their records with PhilHealth. To check the requirements of registering your business with PhilHealth . The processing costs 1 Day but no charge.

  • Pag-IBIG Employer’s Registration.

Known popularly as the Pag-IBIG Fund, is The Home Development Mutual Fund HDMF of a Filipino government corporation under the Housing and Urban Development Coordinating Council responsible for the administration of the national savings program and affordable shelter financing for Filipino employees. 1 (one) working day is required and no charge.

  • DOLE Registration.

The registered businesses in the Philippines hiring 5 or more employees must register with the Department of Labor and Employment DOLE. In Philippine it’s very easy to file cases of labor related problems with the National Labor Relations Commission NLRC, a wing of DOLE responsible for investigating labor oriented cases. Registration with DOLE helps employers to avoiding influx of cases. Companies or businesses engaged in manpower industry and educational institutions are mandatory required to register with DOLE. Registration with DOLE would ½ days and no charge.

Special permits / Clearances

As requirement of business license in Philippines or permits required from some specific government bodies to do some specific businesses in Philippines. The authorities and the businesses are as follows:

  • Bangko Sentral ng Pilipinas BSP – Business of financing sector like banks, financing companies, pawnshops, money changers, and other financial institutions.
  • Bureau of Food and Drugs BFAD – Business related in the manufacturing and trading of food and drugs.
  • Bureau of Animal Industry BAI – Business related to animals.
  • Bureau of Fisheries and Aquatic Resources BFAR – Business related in fishing and aquatics products.
  • Bureau of Forest Development BFD – Businesses related forestry like logs, lumber products, plywood, etc.
  • Bureau of Plant Industry BPI – Businesses related to plants and vegetable crops.
  • Commission on Higher Education CHED and Department of Education DEd – Businesses related to education.
  • DTI-Bureau of Product Standards BPS – Related to manufacturing businesses
  • Fiber Industry Development Authority FIDA – Business related to fiber products.
  • Garments and Textile Industry Development Office GTIDO– Businesses related to RMG and textile for exports.
  • Insurance Commission(IC – Businesses related to insurance entities.
  • Intellectual Patent Office IPO – Businesses related to services of registering trademarks, logos, slogans.
  • National Food Authority NFA – Businesses related to rice, corn and flour dealers.
  • National Subcontractors Exchange SUBCONEX – Businesses engaged in sub-contracting of for garments and hand-woven fabrics, Home Textiles, gifts and house wares, furniture and fixtures, footwear and leather goods, fresh and processed foods, and jewelry etc.
  • National Tobacco Administration NTA – Business related to tobacco products.
  • Technical Education and Skills Development Authority TESDA – Institutions engage in businesses of technical education and skills development.

Well, laws and regulations are on constant changes to adjusting with the changes in the corporate environment. Thus it’s always suggesting to check with the relevant authorities beforehand to know what exactly the requirements of business license in Philippines and procedures that required currently to avoid any wrong doing.

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S & F CONSULTING FIRM LIMITED is a global business consulting firm. Services are: (1) Foreign company registration, formation, setup (2) Income tax (3) Accounting (4) Audit (5) Business advisory. Since 2012, we are providing professional services to the foreign investors. We try to develop our self everyday to satisfy honorable customers.


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