Legal Requirements

Doing business in the Philippines, either as single proprietorship,

partnership or corporation, calls for licenses or permits from
government. An investor or businessman needs to obtain a business
license in the locality where he will establish his business, as well as
register his business with the Department of Trade and Industry in case
of sole proprietorship, or with the Securities and Exchange Commission
in the case of partnerships and corporations.

The Gaming Caf as sole proprietorship should comply with the legal
requirements stated by the following government offices and departments
before starting their operations at Aldecoa Drive, Dumaguete City, Negros
Oriental.
Description

Total

Barangay Clearance
Tax Clearance
ENRO
Zoning Clearance
Sanitary Permit
Seminar Fee (PHP 50/employee)
Sanitary Permit
City Engineer
DTI
BIR
City Vet. Office (Pest Control
Clearance)
City Treasurers Office (Clearance
Fees/Business Tax/RPT
Bureau of Fire Protection
Mayors Permit
Business Tax
Garbage Collection Fee
Occupational Tax
Occupational Police Clearance/Health

PHP

200.00
100.00
400.00
2,000.00
250.00
300.00
645.00
515.00
530.00
200.00

5,000.00
950.00
2,500.00
400.00
910.00

Clearance
Plumbing Inspection Fee
Electrical Inspection Fee
Building Permit Fee
Sign Board Permit Fee
Fire Inspection
Filing
Processing
Total Legal Requirement Cost

1,500.00
850.00
500.00
400.00
350.00
100.00
120.00
PHP 18, 720.00

Registration of Business Name/Single Proprietorship

The Department of Trade and Industry (DTI) administers the registration of
business names.
A business proprietor who wishes to start his/her own business needs to
register with the DTI. Business name registration is compulsory and must be
completed before the business starts operating. By registering the business
name with the DTI, the proprietor is assured that no other individual or group
may legally use the business name anywhere in the Philippines.
Required:
1) Registration fee of Php 515.00
2) Two (2) copies 2 x 2 recent pictures of owner
3) Three (3) alternative names aside from the preferred name
4) Three (3) pieces documentary stamps
5) Application forms duly filled-up BTRCP Form No 16A 2012
Edition and signed by owner
Business Name Registration Fee*
Documentary Stamp Tax
Total

PHP 500.00
15.00
PHP 515.00

* Territorial Scope-City

Securing Locational Clearances / Business Permits from Municipality /

City Offices where the Business will be set-up

All businesses are required to secure a mayor's permit or municipal license

from the municipality or city where they are located. Various cities and
municipalities have different registration procedures. The following are the
general requirements:
Where to File
1) Concerned Municipal or City Government Office
2) Municipal/City Hall
Requirements
A) Mayor's/ Business Permit
1) Renewal:
a) Latest Mayor's Permit
b) Barangay Clearance
c) Community Tax Certificate with Gross Receipt
d) Financial Statement (Partnerships and Corporations)
e) BIR Clearance
f) SSS Clearance
g) ECC (or CNC)
h) Sanitary Permit
2) Additional Requirements for New Business:
a) DTI Registration
b) SEC Registration (Partnerships and Corporations)
c) Building Permit and Occupancy Permit (for newly constructed)
d) Zoning Clearance

B) Building Permit & Occupancy Permit

1) Building Permit (4 copies each):

a) Barangay Clearance
b) Building Plan
c) Bill of Materials
d) Tax Declaration
e) Land Title
f) Building & Sanitary Permit Application Form
2) Fire Safety Certificate
a) Certificate of Completion
3) Occupancy Permit

1. Barangay Clearance
The proponent shall acquire of the Barangay Clearance in the
Barangay Hall of Daro.
Requirements to obtain a Barangay Clearance:

Applicant will be interviewed by the Barangay Secretary or

Barangay Treasurer
Community Tax (CEDULA) or Valid ID
Payment of the PHP 200.00 fee

The person in-charge is the Punong Barangay Secretary.

2. Tax Clearance
The evaluation of gross receipts and the issuance of the tax
clearance aim to ensure that the proprietor has duly paid his taxes and
has not violated any tax laws.
Payment for tax clearance is at PHP 100.00.
3. Environmental and Natural Resources Office (ENRO)
A payment of PHP 100.00 per quarter plus the filling out of a form
are the requirement for the Environmental Clearance Certificate. The

renewal of the clearance will every January of the ensuing business

years.
4. City Planning and Development Office
The CPDO requires the proponent to fill out the Preliminary
Compliance Form and to pay an amount in based on the business initial
capitalization.
Zoning Rate Schedule for Commercial, Industrial
and Agro-Industrial Product
Capital of the Business
Fee
Below PHP 100,000
PHP 1,000.00
Over PHP 100,000 PHP 500,000
PHP 1,500.00
Over PHP 500,000 PHP 1,000,000
PHP 2,000.00
Over PHP 1,000,000 PHP 2,000,000
PHP 3,000.00
Over PHP 2,000,000
PHP 5,000.00 + 1/10 of
1% of cost in excess of
PHP 2,000,000

5. City Health Office

The City Health Office requires the following:
Inspection of the business establishment
Employees x-ray results and attendance to seminar and
physical examination administered and conducted by a City
Health Officer.
The total sanitary fees are as follows:

Employee seminar (PHP 50 per employee) PHP 250.00

Sanitary Permit Fee
PHP 300.00

The renewal of the Sanitary Permit will be every January of the

ensuing business years.
6. City Engineers Office
These amounts are estimates based on the computation given by
the City Engineer.
Connected Loads
PHP 400.00
Motors Fee (Equipment)

150.00

Inspection Fee (10% of Loads and Motors Fee)

55.00

Signage

40.00

Total

PHP 645.00

Note: The City Engineer will conduct an inspection that will produce
Annual Safety Inspection Report. After the inspection by the city
engineer, a Certificate of Annual Safety Report will be given.
7. City Veterinary Office
Required:
1.
2.

Fill up the form from the City Vet Office

Payment of Fees to the City Treasurer Office:

Capitalization of PHP 500,000 PHP 1,000,000: PHP 200.00

Note: Inspection will be conduction yearly to ensure the pest control of
the establishment
8. Bureau of Fire Protection
The Bureau of Fire Protection requires the inspection of the
business establishment to ensure that it has complied with the
provisions stated in the Fire Code of the Philippines of 2006. The Fire
Safety Inspection Certificate will then be issued with a fee charge of 10%
of all license fees paid by the proponent.

Registering with the Bureau of Internal Revenue

For taxation purposes, every business enterprise has to register
with the Bureau of Internal Revenue (BIR) before the commencement of
the business operation. The procedures in registering at the BIR are the
following
1. Secure a permanent record file number of Tax Identification
Number (TIN) from the nearest BIR satellite or regional district
office.
2. Register the business/trade name with the BIR Revenue District
Office (RDO) having jurisdiction over the registered address of the

business establishment. Secure and file an application form together

with the following supporting papers:
Mayor's Permit or Application for Mayors Permit
Certificate of Business Name Registration from DTI or SEC
Certificate of Registration for Partnership or Corporation
Residence certificate
3. Pay the following prescribed fees at the authorized agent banks
of the RDO:
Annual registration fee
(P500.00)
Certification fee
(P15.00)
Documentary Stamp Tax
(P15.00)
Total

PHP 530.00

Registering with the Social Security System

An employer or any person who uses the services of another
person in business, trade, industry or any undertaking must be
registered with the SSS. Social, civic, professional, charitable and other
non-profit organizations, which hire the services of employees, are
considered "employers".
The Social Security Program provides replacement income for
workers in times of disability, sickness, maternity and old age. It also
provides assistance for death and funeral expenses. The EC program
provides double compensation to the worker when the illness, death or
accident occurs during work-related activities. EC benefits are granted
only to members with employers other than themselves. Members may
avail of assistance in the form of salary, housing, house repair and
improvement, and calamity loans.
For employees:
A person registering with the SSS for the first time as a prospective
employee should accomplish SSS Form E-1 (Personal Record) and submit it
together with the original/certified true copy and photocopy of any of the
following: baptismal, birth certificate, drivers license, passport, Professional
Regulation Commission (PRC) Card or Seamans Book.
For Employers:

An owner of a single proprietorship business should accomplish and

submit SSS Form R-1 (Employer Registration) and R-1A (Employment Report).
Other Registration Processes
Registering with Department of Labor and Employment
Business establishments with one or more employees are required to
register in the Department of Labor and Employment (DOLE) for regulatory
compliance with existing labor laws.
Registering with PhilHealth
Duly accomplished Employer Data Record (ER-1) can be submitted at the
nearest PhilHealth office. Attached to the ER-1 is the license to operate,
barangay certification or mayors permit, and the DTI registration for sole
proprietorship and SEC registration for partnership or corporation.
Registering with PAG-IBIG
To obtain PAG-IBIG fund registration for sole proprietorship, submit
accomplished employers data and members data (for employees) forms, SSS
Coverage and Compliance Certificate, DTI business name registration, and
mayors or business permit.