Business Permits and Licenses in the Philippines
Starting a business in the Philippines means that you have to be willing to go through numerous processes to acquire business permits and licenses. Although there are different types of business structures, each class is required to secure permits and support to ensure that the business meets the standards set by the city and avoid facing legal problems and losses in the future.
Here are some of the critical business permits and licenses you need to secure in the Philippines:
Getting a Tax Identification Number (TIN) is the first step toward securing other permits and licenses. All companies in the Philippines must submit a tax statement at the end of each fiscal year, which is why having a business tax identification number is essential. You can acquire the corporate TIN from the Bureau of Internal Revenue (BIR). Apart from your TIN, the BIR can also grant your business the right to print official receipts, invoices, and other essential documents.
There are four (4) types of BIR forms for registration:
||Who should register?
||Mixed-income and self-employed individuals
||Employees with full compensation, non-residents, and resident aliens
||Corporations and partnerships
||One-time taxpayer who had business in the Philippines for a year
You may apply for BIR in the Regional District Office (RDO) where your office is situated.
The Philippine government needs to know that your business complies not only on a nationwide scale but also on a smaller scale in your village. Acquiring a barangay clearance is evidence that your company abides by the regulations of your local barangay. You will need to submit a Community Tax Certificate (CTC) or Cedula, accomplish the form, present a government-issued ID, and pay a fee.
A business permit, also known as a mayor’s permit, is a requirement you need to secure to let clients and everyone else know that your business complies with the laws and specific requirements of the city and is authorized to operate. To acquire the business permit, you must get a barangay clearance, a community tax certificate, and an environmental and sanitary permit in some cities.
DTI Business Name Registration Certificate
Sole proprietorship businesses must register their name with the Department of Trade and Industry (DTI). Business name registration permits your business to use your name for any business transaction. With a validity of five (5) years, it also protects your business name from being used by others. You may register at the nearest DTI Regional or provincial office.
Things you need to know to secure a DTI registration certificate:
- Applicants must be Filipino citizens aged 18 years and above.
- Non-Filipino nationals need to bring:
- A certified copy of their Alien Certificate of Registration
- Certificate of Registration for Sole Proprietorship/Certificate of Authority to engage in business in the Philippines
- Recognized refugees or recognized stateless persons need to bring a certified copy of the Certificate of Recognition issued by the DOJ-RSPPU or present the original Certificate of Recognition and submit a copy.
- Get ready to have a list of business names.
- Some businesses like brokers, dental clinics, and hospitals may have additional requirements.
- Fees may vary from Php 200 to Php 2,000 based on the scope of your business.
SEC Registration Certificate
Partnerships or corporations must secure a registration certificate from the Securities and Exchange Commission (SEC) to legally operate their businesses. Requirements for registration include business documents including articles of incorporation and by-laws, treasurer’s affidavit signed by the incorporators, bank certificate of deposit, and completed SEC form.
CDA Registration Certificate
Cooperative firms must register with the Cooperative Development Authority (CDA) per Republic Act 6938/6939. Documentary requirements you need to submit include an approved cooperative name reservation slip, treasurer’s affidavit, certificate of PMES, a surety bond of liable officers, four copies of duly notarized articles of cooperation and by-laws, and four copies of the economic survey.
SSS Employer’s Registration
Enterprise owners should register their employees to Social Security System (SSS) to provide them with insurance benefits, including sickness, maternity, disability, and death. Employee benefits are under Republic Act Number 8282.
You may apply for SSS at a branch near your office location.
PhilHealth Employer’s Registration
Business employers must register their employees to PhilHealth, a government agency that covers employees’ health insurance.
Pag-IBIG Employer’s Registration
Pag-IBIG or Home Development Mutual Fund is the government agency responsible for providing Philippine employees with housing loans or programs.
Department of Labor and Employment (DOLE)
Companies with five or more working staff may register with the Department of Labor and Employment (DOLE) to ensure that labor laws are observed. Registration with DOLE becomes a requirement for enterprises with 50 or more employees. The DOLE head office is located at the 2nd Floor, Dy International Building, San Marcelino cor. Gen. Malvar St., Malate, Manila.
Protect your assets by securing permits.
Secure your business and protect your assets by acquiring all the necessary legal permits. Postponing your business registration can lead to severe repercussions that can result in penalties and legal conflicts. If you need help in business permit/license acquisition, better call trustworthy professionals for guidance. Check out tips from Business Registration Philippines and contact them for help.
Business Registration Philippines is a website dedicated to helping investors, business owners, and other stakeholders establish and incorporate their enterprises. Topics range from Accounting, Finance, Human Resources, Business Process Outsourcing, Product Registration, Taxation, and more. It is a microsite of Triple i Consulting Inc.
Triple i Consulting is the first ISO 9001:2008 firm to offer company and business registration services in the Philippines. Armed with a team of experts endowed with up to 10 years’ worth of knowledge and skills in Philippines business registration, accounting, taxation, FDA licensing and product registration, and more, Triple i, together with Business Registration Philippines, provide reliable guidance for companies in the Philippines who need help with business permit acquisition and more.
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