Business Registration and Licensing


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a Presentation by Department of Trade and Industry (DTI) at the BSP Regional Financial Literacy Campaign for OFWs in Davao City, Philippines on July 27, 2006

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Business Registration and Licensing

  1. 1. Business Registration and Licensing Engr. Edwin O. Banquerigo DTI NERBAC Davao
  2. 2. Single Window for Investment Facilitation National Economic Research and Business Assistance Center ( NERBAC ) <ul><li>Express Licensing & Registration </li></ul><ul><li>One Stop Exports Documentation Center </li></ul><ul><li>Incentives Facilitation </li></ul><ul><li>Investment Knowledge Management </li></ul>
  3. 3. <ul><li>Registration, Licensing, Accreditation </li></ul><ul><li>- DTI - CDA - MGB - PHIC </li></ul><ul><li>- HDMF - DOLE - BIR - PCAB </li></ul><ul><li>- DENR - SSS - LGU </li></ul><ul><li>Registration & Incentives Facilitation </li></ul><ul><li>- DCIPC - BOI </li></ul><ul><li>Export Documentation Processing </li></ul><ul><li>- BOC - BPI/PQS - BFAR </li></ul><ul><li>- FIDA - PCA - DENR </li></ul>Partner Institutions
  4. 4. <ul><li>Legal restriction </li></ul><ul><li>Liabilities assumed </li></ul><ul><li>Type of business operation </li></ul><ul><li>Earning distribution </li></ul><ul><li>Capital needs </li></ul><ul><li>Number of employees </li></ul><ul><li>Tax advantages or disadvantages </li></ul><ul><li>Length of business operation </li></ul>Business Structure
  5. 5. Form of Ownership -Complicated setting up -Individual stockholder may have limited influence on mngt -Tendency to institutionalize a bureaucracy -Sharing of risks and losses -Maximum flexibility for growth -Limited liability -Greater room for professio- nalism in mngt Corporation -Possible conflict w/ partners -Decision by one binding to the other -Relatively easy to set up -Check & balance maintained Partnership -Demand owners’ personal time -Growth limited by owners financial means -Easy to set up -Fast decision making Single Disadvantages Advantages Ownership
  6. 6. Business Registration Process START DTI LGU DOT END SEC CDA Firm Name Registration Business Permit Mandatory Registration Other Licenses and Permits * HDMF SSS PHIC DOLE DENR BIR BFAD FPA BSP NFA BOI LTFRB * Depending on the type of business
  7. 7. <ul><li>SEC Corp/Partnership Registration </li></ul><ul><li>DTI Business name Registration, single </li></ul><ul><li>CDA Coop Registration </li></ul><ul><li>LGU Business Permit </li></ul><ul><li>BIR Certificate of Registration, TIN </li></ul><ul><li>SSS Certificate of Registration </li></ul><ul><li>PHIC Clearance/Registration </li></ul><ul><li>HDMF Clearance/ Registration </li></ul>Registration Process
  8. 8. <ul><li>Articles of Incorporation and By-Laws </li></ul><ul><li>Verification slip (re: corporate name) </li></ul><ul><li>Registration Data Sheet </li></ul><ul><li>Treasurer’s Affidavit </li></ul><ul><li>Bank Certificate of Deposit </li></ul><ul><li>Authority to verify bank account </li></ul><ul><li>Subscriber Information Sheet </li></ul><ul><li>Undertaking to change name </li></ul><ul><li>Other clearances, if req’d. </li></ul>SEC Registration
  9. 9. <ul><li>Articles of Cooperative </li></ul><ul><li>By-Laws </li></ul><ul><li>Economic Survey </li></ul><ul><li>Bond of Account Officer </li></ul><ul><li>Certificate of Pre Membership </li></ul><ul><li>Undertaking to submit admin reqmts </li></ul><ul><li>Undertaking to change name </li></ul><ul><li>Registration Fee of P500 or 1/10% of authorized capital w/c ever is higher </li></ul>CDA Registration
  10. 10. <ul><li>Single Proprietorship </li></ul><ul><li>- DTI BN Certificate </li></ul><ul><li>- Community Tax Certificate </li></ul><ul><li>Corp/Partnership </li></ul><ul><li>- SEC Registration </li></ul><ul><li>- Articles & By-Laws </li></ul><ul><li>Other Requirements </li></ul><ul><li>- Barangay Clearance </li></ul><ul><li>- Cert. of Tax Exemption </li></ul>Mayor or Business Permit
  11. 11. <ul><li>Individual/ Corporation </li></ul><ul><li>- Business Permit </li></ul><ul><li>- SEC or DTI Certificate </li></ul><ul><li>- Articles and By-Laws </li></ul><ul><li>- Sketch of Premises - Lease Contract of Rented Space </li></ul><ul><li>Addt'l for Single Proprietorship </li></ul><ul><li>- Birth Certificate </li></ul><ul><li>- Marriage Contract </li></ul><ul><li>- Birth Certificates of Dependents </li></ul><ul><li>Registration Fee: P500.00 </li></ul><ul><li>Attendance to BIR Seminar </li></ul>BIR Certificate of Registration
  12. 12. <ul><li>Corporation/Partnership </li></ul><ul><li>- SEC/CDA Certificate </li></ul><ul><li>- Articles and By-Laws </li></ul><ul><li>- Business Permit </li></ul><ul><li>Single Proprietorship </li></ul><ul><li>- DTI BN Certificate </li></ul><ul><li>- Birth Certificate </li></ul><ul><li>- Marriage Contract </li></ul><ul><li>- Birth Certificates of Dependents </li></ul><ul><li>Minimum initial remittance: P 600.00 </li></ul>Philhealth Clearance
  13. 13. <ul><li>Corporation/Partnership/Coop </li></ul><ul><li>- SEC/CDA/DTI Certificate </li></ul><ul><li>- Business Permit </li></ul><ul><li>- SSS Registrations </li></ul><ul><li>For Self-Employed </li></ul><ul><li>- Valid ID with sig. & photo </li></ul><ul><li>- Commitment to remit </li></ul><ul><li>- SSS Registrations </li></ul><ul><li>Attendance to seminar </li></ul>HDMF Registration
  14. 14. <ul><li>SEC/CDA Certificate (Corp, Partnership) </li></ul><ul><li>Articles and By-Laws </li></ul><ul><li>DTI BN Certificate (Single Prop. ) </li></ul><ul><li>Business Permit </li></ul><ul><li>Attendance to Seminar </li></ul>SSS Certificate of Membership
  15. 15. <ul><li>Business Name Registration </li></ul><ul><li>Repair Shops Accreditation </li></ul><ul><li>Fire Extinguisher Licensing </li></ul><ul><li>Real Estate Broker Licensing </li></ul><ul><li>Contractor’s Accreditation </li></ul><ul><li>Private Emission Testing Center Accr. </li></ul><ul><li>PS (Product Standards) Licensing </li></ul><ul><li>Import Commodity Clearance </li></ul><ul><li>Sales Promotion </li></ul>DTI Registration & Licensing
  16. 16. <ul><li>Qualification </li></ul><ul><li>- For a natural person, must be 18 years old </li></ul><ul><li>- For a juridical person, must not be </li></ul><ul><li>disqualified by law to engage in business </li></ul><ul><li>A Juridical person already registered with SEC or </li></ul><ul><li>CDA and using only such corporate, partnership </li></ul><ul><li>or cooperative name may no longer registered </li></ul><ul><li>with DTI </li></ul>Business Name Registration
  17. 17. <ul><li>Single Proprietorship - 2 pcs 2x2 ID photo </li></ul><ul><li>- P300 + 15 Doc Stamp </li></ul><ul><li>- Proof of citizenship for natural born Filipinos </li></ul><ul><li>whose name are suggestive of alien </li></ul><ul><li>nationality (PRC ID, Birth Certificate ,etc) </li></ul><ul><li>- For naturalized Filipinos, Certificate or Oath of </li></ul><ul><li>Allegiance or ID issued by BID </li></ul><ul><li>Corp/Partnership/CDA (Optional) </li></ul><ul><li>- SEC Registration and Articles & By-Laws </li></ul><ul><li>- P500 + 15 Doc Stamp </li></ul><ul><li>- Board Resolution if using adopted name </li></ul>Business Name Registration
  18. 18. <ul><li>Franchising </li></ul><ul><li>- Franchise Agreement </li></ul><ul><li>- BN Certificate of Franchise </li></ul><ul><li>Bulk Sales (Sales/Transfer of Business) </li></ul><ul><li>- Deed of Sale, Assignment or Transfer </li></ul><ul><li>- Inventory of properties sold, assigned/transferred </li></ul><ul><li>- Affidavit of vendor stating that at the time of sale, </li></ul><ul><li>he had no creditors, or if there are any, copy of </li></ul><ul><li>notice to them regarding the sale; </li></ul><ul><li>- Original BN certificate of vendor; </li></ul><ul><li>- Fee of P55 </li></ul>Other Requirements
  19. 19. BN Registration – Single Proprietorship Fill-up BN Application Form and include with a Preferred Name & 3 Alternative Names Pay application Fee of P300.00 Submit Application Form with 2Passport ID photo, Doc Stamp, P15.00 Fill-up Authorization Form , in case release is thru a representative BN Release in 2-3 Days For foreign sounding names, submit proof of citizenship, PRC ID, Birth Certificate
  20. 20. BN Registration – Corp/Partnership/Coop Fill-up BN Application Form. Must be signed by a Board of Director or submit Board Resolution authorizing other signatory Pay application Fee of P500.00 Submit Application Form with SEC or CDA Registration and Articles of Inc/Coop and Doc Stamp (P15.00) Fill-up Authorization Form , in case release will done thru a representative BN Release in 2-3 Days Submit Board Resolution for registration of adopted name or branch
  21. 21. <ul><li>Those which are similar or confusingly similar to a previously registered Business name taking into consideration the following: </li></ul><ul><li>- nature of the business </li></ul><ul><li>- product/services handled </li></ul><ul><li>- location/place of business </li></ul><ul><li>- capitalization </li></ul><ul><li>- general appearance, spelling, sound and </li></ul><ul><li>meaning </li></ul><ul><li>- use of dominant/descriptive words </li></ul><ul><li>- other factors to be determined by the DTI Secretary </li></ul>What Cannot be Registered
  22. 22. <ul><li>Those which are or whose nature of business are illegal, immoral, scandalous, or inimical to </li></ul><ul><li>national security; </li></ul><ul><li>Words use to designate quality of goods or </li></ul><ul><li>services; </li></ul>What Cannot be Registered
  23. 23. <ul><li>The words company, limited, associates, inc., group cannot be be used for single proprietorships; </li></ul><ul><li>The words Philippine, nation, state, barangay , among others are for exclusive use of the government </li></ul><ul><li>The names or its abbreviations of any nation or any inter-governmental, int’l org’ns unless duly authorized, i.e. UN </li></ul>Words which cannot be Registered
  24. 24. <ul><li>What Cannot be Registered. . . </li></ul><ul><li>The words PC, Philippine Constabulary, Police, Law Enforcement and Intelligence cannot be used by Security and Investigation agencies; </li></ul><ul><li>The word International except those engaged in export/import; </li></ul><ul><li>The word Bargain, Discount </li></ul><ul><li>The word industry except if engaged in manufacturing processing or farming; </li></ul><ul><li>The full name of another person except if part of a bulk sales transaction; </li></ul>
  25. 25. <ul><li>BN Applications Requiring Licenses From other Agencies </li></ul><ul><li>Business engaged in sale or rental of video tapes. . . Video Regulatory Board </li></ul><ul><li>- Video, Beta and other similar words should be </li></ul><ul><li>included of the BN; </li></ul><ul><li>Pawnshops . . . Central Bank </li></ul><ul><li>- minimum capitalization of P100,000; </li></ul><ul><li>Overseas Recruitment Agencies … POEA. </li></ul><ul><li>- minimum capitalization of P1M </li></ul>
  26. 26. <ul><li>BN Applications Requiring… cont. </li></ul><ul><li>Hotel, motel, inn, resort, tour agency or allied business ... DOT </li></ul><ul><li>Food, drugs, cosmetics processing …BFAD </li></ul><ul><li>Fertilizer, pesticides processing … FPA </li></ul><ul><li>Customs brokers and insurance agents … Insurance Commission license </li></ul><ul><li>Practice of profession . . . PRC License </li></ul>
  27. 27. <ul><li>BN Applications Requiring… cont. </li></ul><ul><li>Firearms, ammo manufacture or sale … DND </li></ul><ul><li>Auto, aircon, electrical & equipment Service and Repair shops … DTI </li></ul><ul><li>Fire extinguisher mftr & refillers … DTI. </li></ul>
  28. 28. Key to Success <ul><li>A - 1 F - 6 K - 11 P - 16 U - 21 Z - 26 </li></ul><ul><li>B - 2 G - 7 L - 12 Q - 17 V - 22 </li></ul><ul><li>C - 3 H - 8 N - 14 R - 18 W - 23 </li></ul><ul><li>D - 4 I - 9 M - 13 S - 19 X - 24 </li></ul><ul><li>E - 5 J - 10 O - 15 T - 20 Y - 25 </li></ul><ul><li> </li></ul>H A R D W O R K 8 +1 +18 + 4 + 23 +15 +18 +11 = 98 K N O W L E D G E 11 +14 +15 + 23 +12 +5 +4 +7 +3 = 99 A T T I T U D E 1 +20 +20 +9 +20 +21 + 4 + 5 = 100%
  29. 29. Thank you
  30. 30. Note: Succeeding slides are for reference materials only but can be presented if time permits
  32. 32. STEP 1 <ul><li>Go to the website </li></ul><ul><li> </li></ul>
  33. 34. STEP 2 <ul><li>Look for the icon “Apply New Applications” and Click </li></ul>
  34. 37. STEP 3 <ul><li>Look for the icon “Start Applying for a Business Name” and click </li></ul>
  35. 39. STEP 4 <ul><li>Read the “BNRS Terms and Conditions” </li></ul>
  36. 41. STEP 5 <ul><li>If agreeable to the terms and conditions, click the icon </li></ul><ul><li>“ I Agree” </li></ul>
  37. 43. STEP 6 <ul><li>Write your proposed business name/s in the following boxes: </li></ul><ul><li>“ First Priority, Second Priority, Third Priority” </li></ul><ul><li>and click </li></ul><ul><li>” Check Business Names.” </li></ul>
  38. 45. STEP 7 <ul><li>Click “Register this Business Name” </li></ul>
  39. 47. STEP 8 <ul><li>Your proposed business name will be displayed and to continue, click “Next” </li></ul>
  40. 49. STEP 9 <ul><li>Fill up the form on page 1 of the application particularly those with an * sign. The asterisk means “it is a required information” and then click “Next.” </li></ul>
  41. 52. STEP 10 <ul><li>You are now on Page 2 of the application, check appropriate box on “Business Activity” and click “Next” </li></ul>
  42. 54. STEP 11 <ul><li>You are now on Page 3 of the application, check appropriate box on “Products and Services” and click “Next” </li></ul>
  43. 56. STEP 12 <ul><li>You are now on Page 4 of the application, check most applicable box on “Philippine Standard Industrial Classification” and click “Next ” </li></ul>
  44. 58. STEP 13 <ul><li>You are now on the Last Page of the application, click “Preview” if data entry is correct and then click “Next” </li></ul>
  45. 60. STEP 14 <ul><li>You have now completed the whole application process, please take note of your </li></ul><ul><li>“ TRN – Transaction Reference Number”. </li></ul><ul><li>Click “Print” and then sign the TRN Acknowledgement Receipt and go to the nearest DTI Office and submit the TRN and other required documents such as: </li></ul><ul><ul><ul><ul><li>Two (2) pcs of 2x2 colored picture </li></ul></ul></ul></ul><ul><ul><ul><ul><li>P15 doc stamps; and </li></ul></ul></ul></ul><ul><ul><ul><ul><li>P300 registration fee for single proprietorship </li></ul></ul></ul></ul><ul><ul><ul><ul><li>and P500 for corporation . </li></ul></ul></ul></ul>
  46. 62. Thank you
  47. 63. Please do not include in the handouts. Resume ENGR. EDWIN ORCULLO BANQUERIGO Position: Chief Trade and Industry Development Specialist Department of Trade and Industry - XI Designation: Deputy Center Manager National Economic Research and Business Assistance Center (NERBAC) Educational Qualifications: BS Agricultural Engineering, Mindanao State University, Marawi City Masters in Business Administration Ateneo De Davao University