Legal Requirements in Setting Up Business - Philippines

Business startup includes the process of You can register your business name online by
registration with the right government agencies going to the DTIs Business Name Registration
and authorities. This is an important step that System (BNRS) website (take note that you
must not be missed by any business, whether it should be at least 18 years of age to qualify).
is a small, medium or large enterprise. This is
also the process that will make your company To use and avail of their online services, such as
legitimate and duly registered. You can either application of new business names, renewing
register your business as a single proprietorship, expiring certificates and online payment of fees,
partnership or corporation. Furthermore, you must register first in their website for an
special type of organization can also be account. There, you can also check the
registered as an association or a cooperative. availability of your desire name by searching it
The following are guidelines to help you register in their database of registered names.
your business or organization in the Philippines. Alternatively, you can also go directly to their
regional office where your business is located if
you prefer to register offline.
Registering your business name (DTI)
The first step in registering your business is to Securities and Exchange Commission (SEC)
register your business name. Your trade name is
a vital part of your brand. That is why it is very If youre registering a corporation or a
important that you must duly register that partnership, you must register your business
name with the proper authorities to protect it with the Securities and Exchange Commission
(SEC). The SEC is the government agency that is
and claim the legal rights to use and operate
your business under that name. responsible for securities laws and regulating
the securities industry in the Philippines. The
The Department of Trade and Industry (DTI) is commission has the jurisdiction and supervision
the Philippine government agency that governs over all corporations, partnerships or
the registration of business names in the association who are grantees of primary
Philippines. If youre business is in the form of franchises and or a license or permit by the
single proprietorship, a DTI registered business Government.
name is one of the important requirement to be
able to register your business with the Mayors A corporation or partnership must secure a
Office and Bureau of Internal Revenue (BIR). certificate of registration with the SEC in order
to have the license to operate a business. That
For corporations and partnership form of certificate is also required by the Bureau of
businesses, their Securities and Exchange Internal Revenue and Mayors office to get
Commission (SEC) registration is already registration and license from them.
sufficient for their trade name. However, many
incorporators and partners are still registering
their trade name with the DTI to ensure that
their names will not be used by others.
Local Barangay Office Home Development Mutual Fund (Pag-IBIG
Fund)
As required by the Local Government Code, all
businesses must obtain a Barangay Clearance By virtue of RA 7742, SSS members earning at
from the local Barangay Office where their least 4,000 Philippine Pesos a month must be
businesses are located. A clearance assures that registered with HDMF (the agency that
your business is a community friendly administers the Pag-Ibig Fund). Like SSS and
establishment and conforms to the standards of PhilHealth, employers must also register their
the Barangay. Fee in securing a clearance is business and remit their employers share of
minimal but may vary depending on the size of contribution for employees to the agency.
your business or the district where the HDMF works towards providing Fund members
Barangay is located. with adequate housing through an effective
saving scheme.
Social Security System (SSS)

Mayors Office
Companies hire employees to run their
business. Employers should also register their After securing a DTI certificate of registration
businesses and employees with the SSS. An for your trade name (single proprietorship), SEC
employer who does not report employees, certificate of registration (corporations and
temporary or provisional employees is violating partnerships), Barangay clearance, and
the Social Security (SS) Law. Registering registration with SSS, Philhealth and HDMF,
employees ensures that, as an employer, you your next step is to register and obtain a permit
are lawfully remitting your employers with the Municipality or City Mayors Office.
contribution to the agency for the benefits of The permit affirms that your business is in
your employees. SS benefits include disability compliance to the municipality or Citys
pension, retirement, funeral benefit, sickness ordinances and standards such as sanitary, fire
allowance, loans and other benefits. and safety and other clearances. Fees for new
applications may depend on their initial capital
while fees for renewals depend on the
Philippine Health Insurance Corporation applicants prior year gross revenues or sales.
(Philhealth)
As required by the new National Health

Bureau of Internal Revenue (BIR)
Insurance Act (RA 7875 / RA 9241), all
employers are required to register their When youre done with the Mayors permit,
employees with PhilHealth and remit to the you can now register your business with the
agency their share of contribution. Aside from Bureau of Internal Revenue to secure a BIR
being mandatory, this is also to ensure that Certificate of Registration. Mayors Permit or
employees are adequately covered by health application for Mayors Permit is to be
insurance that will aid them in hospitalization submitted prior to the issuance of the BIR
costs and other health care needs. Certificate of Registration. Registering with the
BIR will give you an authorization to print 8. Forest Management Bureau (FMB) for
official receipts, register books of accounts and business related in lumber, logs, and other
obtain a separate Tax Identification Number wood product.
(for partnerships and corporations). BIR
9. National Tobacco Administration (NTA) for
registration fee is 500 pesos annually. The BIR
certificate of registration shows your trade business related to tobacco products
name, Tax Identification Number (TIN), line of 10. Insurance Commission (IC) for insurance
business, and taxes that you must file or remit and other IC regulated entities
to the BIR (e.g., annual registration fee, annual
and quarterly income tax, withholding taxes, 11. Bureau of Food and Drugs (BFAD) for
monthly and quarterly Value Added Tax or business related in the manufacturing, trading,
monthly Percentage Tax, etc.,). repacking, importing, exporting, distributing of
any products related to food and drugs
Other Government Agencies
12. Intellectual Patent Office (IPO) for
Other types of businesses may also be required registering your trademarks, logos, slogans,
by the government to secure special or processes and secret formulas
secondary licenses to operate. The following
agencies require special or secondary licenses 13. Commission on Higher Education (CHED)
for special types of business and companies. and Department of Education (DepEd) for
entities involved in providing education
1. Cooperative Development Authority (CDA)
for cooperatives 14. Technical Education and Skills Development
Authority (TESDA) for institutions involve in
2. Bangko Sentral ng Pilipinas (BSP) for banks, technical education and skills development
pawnshops and money changers
15. Department of Labor and Employment
3. Philippine Coconut Authority (PCA) for (DOLE) Business establishments with five or
businesses related in grain-rice farming and more employees are encouraged to register
trading with the DOLE for the purpose of monitoring
4. Fiber Industry Development Authorit (FIDA) the firms compliance with labor regulations.
Registration is required for firms with 50 or
for business related in fiber producing products.
more workers.
5. Bureau of Fisheries and Aquatic Resources
(BFAR) for business related in fishing and
aquatics products
6. Bureau of Animal Industry (BAI) for

business related to animals
7. Bureau of Plant Industry (BPI) for business

related to plants and vegetable crops

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Legal Requirements in Setting Up Business - Philippines

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Business startup includes the process of You can register your business name online by

Registering your business name (DTI)

Social Security System (SSS)

As required by the new National Health

6. Bureau of Animal Industry (BAI) for

7. Bureau of Plant Industry (BPI) for business

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