CHAPTER V

LEGAL AND TAXATION

Another necessary task in the commencement of a business is the compliance of

legal requirements. It will undergo legal processes to become a registered entity. A

business venture legally commences upon proper compliance with the requirements set

forth by the government such as registration and licensing, securing permits, and

payment of taxes and pertinent fees.

Legal Aspect

When starting up a business there is a range of legal requirements that must

be adhere to. In order to continue the its operation, the business must be legitimate and

duly registered. The following legal requirements must be secured and accomplished:

a. Registration with the Securities and Exchange Commission (SEC)

b. Securing Permits and Licenses

c. Application for Social Security System Membership.

d. Application for Philippine Health Insurance Membership.

e. Application for Home Development Mutual Fund.

f. Registration with Bureau of Internal Revenue.

Registration with the Securities and Exchange Commission (SEC)

A partnership with a capital of P3000.00 or more is required by law to have

its name registered with the Security and Exchange Commission (SEC) pursuant to the

provisions of the Civil Code of the Philippines, Article 1772. Its main purpose is to
establish the business identity to bear a name different form other partnerships. The

following are the requirements that must be accomplished and submitted:

BASIC REQUIREMENTS

1. Name verification slip

2. Articles of Partnership; and

3. Joint affidavit of two partners undertaking to change partnership name,

provided in its Articles of Partnership or as amended thereafter, immediately

upon receipt of notice of directive from the SEC that another corporation,

partnership or person has acquired prior right to the use of that name or that

name has been declared misleading, deceptive, confusingly, similar to a

registered name, or contrary to public morals, good customs, or public policy

(not required if Articles of Partnership has provision on this commitment).

ADDITIONAL REQUIREMENTS

1. Endorsement/ clearance from the other government agencies, if applicable.

2. For partnership with foreign partners:

a. SEC Form No. F- 105

b. Bank Certificate on the capital contribution of the partners

c. For foreign partners who want to register their investment with the

Bangko Sentral ng Pilipinas:

Proof of remittance.