Professional Documents
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a. Merchandising business
This classification of business is selling an actual product without any
modification. Some examples of this classification of business are real
estate, supermarket, restaurant (restaurants are considered service
business), automotive dealers and more.
b. Service business
This classification of business is offering a service or an intangible
product. Some examples are hotel, dental services, blogging, web
development, and more.
c. Manufacturing business
This classification of business provides finished products to the seller.
Some examples are cell phone parts manufacturers, drug
manufacturers, automobile manufacturer and more.
d. Other business
There are some businesses that do not belong to either of the three
above like rice farming.
2. What are the Types of Ownership of a Business
a. Sole Proprietorship
A business that is owned by a single individual is called as sole
proprietorship. There is only one individual who has the full control of
the business.
b. Partnership
A business that is owned by two or more individuals that are referred
to as partners is called partnership.
c. Corporation
A business that is owned by shareholders is called as a corporation.
3. What are the Basic Requirements of Putting up a Business?
Each barangay has its requirement and this will depend on which
barangay your business will be located.
d. Social Security System employers registration
This is required if a business renders the service of another person or so
called employee. This usually required in the corporation. (all private
entities are required to register)
e. Philhealth employers registration
This is a requirement to all business and its employees. Philhealth will
secure the health insurance coverage of employees.
f. Pag-ibig employers registration
This is required for a business and its employees. Pag-ibig will secure
the benefits to its members.
g. Mayors business permit
This is a basic requirement within a local municipality and this permit
enables you to pay the local business tax.
h. Bureau of Internal Revenue registration
This is very important in having a business, you need to get the TIN for
your business. Aside from TIN through BIR, you need to register your
books of accounts and pay your tax.
Aside from the basic requirements, there are also some special
requirements depending on the nature of your business. It can be any
of the following:
Money:
a. Bangko Sentral ng Pilipinas
If you will run a business that involves financial transactions such as
money changers, bank, pawn shop and credit company.
b. Insurance Commission
This is required for a business which specialized in insurance plans and
other related insurance businesses.
Wood:
l. Forest Management Bureau
If the business involves wood products such as logs, coco lumber and
plywood.
m. Bureau of Forest Development
This is required for wood products that will be exported.
Animal:
n. Bureau of Animal Industry
This is required for animal-related businesses such as hog raising,
poultry farming and animal breeding center.
o. Bureau of Fisheries and Aquatic Resources
If the business is about fish and other aquatic products like milkfish
pond, marine shrimp farming and aquarium store.
Fiber:
p. Fiber Industry Development Authority
This is required for a business that is related to fiber producing
products such as synthetic and natural fibers.
The first step in registering a business is to register its trade name. The
trade name is a very important part of your business, this will be used
in your transactions. Your trade name must be unique and it is
important to register it under DTI so that it will not be used by another
entity.
Without a DTI registration, you cannot proceed to the next step if you
are a sole proprietor, but if your business is a partnership or
corporation, you can skip this step. However, it is suggested that you
register your business name under DTI so that your trade name will not
be used by other people. (for partnership and corporations please
proceed to step 2)
Business name guidelines:
government names
b. Offline
You can walk-in to their regional office that is located in your area
to register.
The first step is to fill up an application form. In case you are not
available to do this, you can authorize your Attorney. After filling
up the form, submit it to the DTI processor for assessing if the
business name is still available. The last step is to pay the
registration and processing fee, then you can now get the
Business Name Certificate which is valid for 5 years.
Step 2: Registration at the Security and Exchange Commission
If you will register a sole proprietor business, you can skip this step.
Otherwise, your business is required to register under the SEC. The SEC
registration provides the business the license to operate. Without
completing this step, you cannot secure a permit from the Mayors
office and from the BIR.
First, you have to verify your preferred name in the Name Verification
Unit at the SEC office. You can also check the availability via the SECs
website.
The second thing to do is to prepare the following and secure it via the
Company Registration and Monitoring Department.
You can make the draft of the Articles of Incorporation and By Laws or
you can consult a corporate lawyer.
Third, you need to get the clearance and/or endorsements from the
government agency/agencies if needed. The documents depend on
your business industry.
Fourth, you need to get a bank certificate of the required deposit for
the paid-up capital. This is also via the Company Registration and
Monitoring Department in which you need to pay the filing fees but the
documents must be complete.
Finally, you can claim your SEC certificate or license via the Releasing
Unit, Records Division. You need to present the official filing receipt.
Step 3: Get the Barangay Clearance from your local Barangay Office
For a sole proprietorship, you need to present the Business Name
Certificate from the DTI.
First, you need to fill up the application form and submit it along with
other requirements to the Bureau of Permits. After this, you will be
issued with a Business Identification Number. Other requirements are:
Barangay Clearance
CEDULA
For single proprietorship, the first thing to do is to fill up the BIR Form
1901 and submit it along with other documents to the Revenue District
Office. Other documents that you need to submit are Certificate from
DTI, Mayors permit and valid identification which showing your name,
current address and birthday.
For partnership and corporation, you also need to fill up the BIR Form
1903 and submit to the Revenue District Office along with other
documents. Other documents are Certficate from SEC and Mayors
permit.
The second thing to do after submission of documents is the payment
of the Annual Registration Fee to any authorized agent banks of the
office. Then, you also need to pay for the Certification Fee and for the
Documentary Stamp Tax.
Third, upon payment you will be issued with the Certificate of
Registration Form 2302.
Fourth, you need to fill up the BIR Form 1906 for the Invoice/Receipts
authority to print. You will receive the Ask for a Receipt notice from
the BIR. This will be posted in your business together with the BIR form
2302.
Fifth, you need to register the book of accounts of your business and
have them stamped.
Step 6: Registration at Social Security System
For single proprietorship, you need to fill up and submit the SSS Form
R-1 or the Employer Registration and the R-1A or the Employment
Report.
For a partnership, you need to submit the same two forms together
with a photocopy of the Article of Partnership. Either you or your
partner can do this. You must also present the original copy of the
Article of Partnership.
For a corporation, you also need to submit the two forms, but the
President must sign the forms. In case the President of the corporation
is not available, any of the corporate officers can sign the forms. Along
with these forms, you also need to submit a photocopy of the Articles
of Incorporation but make sure to bring along the original copy.
Step 7: Registration at Philippine Health Insurance Corporation
The first thing to do is fill up the ER1 Form or the Employer Data Record
and submit it along with the Business permit. There are also other
documents that you need to submit. If you are a single proprietor,
submit the Business Name Certificate from the DTI. If your business is in
partnership or corporation, then you need to submit the SEC
Certificate.
After processing your application form and other documents, you will
be issued with a Philhealth Employer Number and Certificate of
Registration. The office will also issue the Philhealth Identification
Number and the Member Data Record (for your registered employees
under Philhealth).
Step 8: Pag-ibig Fund Registration
First, you need to fill up 2 copies of the Employers Data Form and
submit it along with other documents such as SSS Certification and
Proof of Business Existence. For a sole proprietor, you need to submit
the Certificate from DTI and the Business Permit.
Value Added Tax- this is collected from every sale from the
who has a selling business which do not exceed the required gross
annual sale amount.
Excise Tax- this is the tax for goods that are produced in the
Capital Gains Tax- the tax for the profit realized after a sale
of capital asset
Franchise Tax
store
in transferring of ownership