Here's a guide to all SINGLE/SOLO proprietors out there who are entering the business world for the first time. I have to remind you that my field is on food and I'm not renting because I'm running a home-based cafe, so there might be slight differences on permits, etc. You have to check it yourself just to be sure.
--
1. Get Barangay Clearance.
Visit the barangay hall where your business will be or is situated. From the articles I've read online, some barangays asks for a fee. But from where I live, it's for free. I guess it's one of the perks living in the suburbs. The whole transaction will only take you five minutes minimum, not unless your barangay is really busy.
2. Register Business Name at DTI.
Fill-up online form, follow instructions (they're pretty simple), and print. Then go straight to DTI nearest you, if you still have time of your day after claiming your barangay clearance.
Business name is different to your 'brand' name, or name of your establishment. Have you noticed the receipts you have? The place you dined/purchased on has its brand name different to the business name printed on their official receipt.
You can name your business for DTI registration any way you want it, but you can check if it already exists on DTI's database. There are rules and guidelines on coming up with a business name.
Requirements (again, this is for single proprietorship):
- must be Filipino citizen, at least 18 years old.
- present birth certificate, or PRC ID, voter's ID, passport. Original and photocopy.
Processing fee is Php 150 + Documentary Stamp Php 15
Business scope vary. In my case I chose City/Municipality which amounted to Php 500. If you're a small business, like sari-sari store, you can choose Barangay, Php 200 (I should have chosen this instead). The way I understood it, if you're a franchisee or if you want to expand your business into different locations, let's say regional, or nationwide, then tick between the two on your online form. National is Php 2,000, while Regional is Php 1,000. But then again, always make a fact check.
Print out form and go straight to the nearest DTI with your requirements. It will only take less than hour for you to process your BNR.
3. Apply for Mayor's Permit.
You can now visit the municipal hall of the town where you will be running your business. Look for the Business Registration Office, or equivalent to it, and tell the attendant that you are applying for a new business. They will be handing you a form to fill up and will be asking questions like what kind of business are you putting up, where is it going to be located, how many staff will you be having (if applicable), etc.
In order to get a permit from the mayor, you have to submit the following as well:
- Sedula.
- Sanitary Permit to Operate
- Go to the Sanitation Department of the municipal hall. Hand over your application form,
and they will be giving you another list of requirements.
- You and your staff should undergo medical examination on your chosen clinic.
In my case, my business is a cafe, so we were required to have Hepa B tested aside from
the usual stool and urine sample, x-ray, blood, and physical examination.
- Collate all results of you and your staff, then forward it to the Sanitation Department for
verification. To lessen the hassle, always make sure the results are good to go.
- Once approved, the attendant will be handing you health cards for you and your staff to fill
out, most specifically the signatures and thumb marks. You could either process SD's
requirements alone (you need to go back and forth) or with your staff (process goes faster).
- If you have had the health cards accomplished have it photocopied, then go back to SD and
hand over those cards for them to check and then they will be giving you the Sanitary Permit
to Operate.
Go straight to your BRO and hand them your application form with the SPO. You will then be directed to the Treasurer's Office to pay fees (here's a sample of what I paid on this process):
Business Plate/Sticker Php 150
Environmental Protection Fee 500
Garbage Fee 1,000
Local Business Tax 200
Mayor's Permit Fee 450
Sanitary Permit 250
TOTAL 2,550
If you are not renting like me, head back to your BRO to show the receipt, and they will be asking you to go have your tax declaration of real property tax checked (amilyar).
Next step, head to the MPDC Office of your municipal hall for Zoning Certificate. Show them the application form you have together with the receipts and they will be asking where is the exact location of your business. You have to have a blueprint (original and photocopy) of the location since you're not renting. Then they will be handing you additional documents with the head's signature/approval. It may take a while, but you can pay for the Zoning Certificate (Php 500 in our town) while waiting.
Now you can head back to the BRO and submit all documents. They will be processing it for days and will schedule you when to pick it up along with your business plate. :)
It may seem tedious but it's quite an easy process. It's just a matter of walking towards one department to another and have all required documents done.
Although, I still have one certificate to accomplish to this day -- the Fire Safety Certificate. Our fire department is really pain in the a**. They have done their initial check a couple of months back and they told us they'll be coming back the day after but they're MIA! Ugh. I tried calling them a couple of times and they told me they'll be coming back that afternoon, but never did. Will try again tomorrow.
4. BIR Business Registration.
You can apply for BIR permit while your Mayor's permit is being processed.
Make sure you have your RDO transferred to the RDO that covers your location. I used to work in Taguig, so I had mine transferred first before heading to RDO 54B (Bacoor) by filling-up 1905 form.
Here's a list of requirements to have your business registered:
- DTI Certificate (single proprietor), original and photocopy
- Tax Identification Number (if you still don't have it, this should be your step 1 before
applying for Mayor's Permit, etc.).
- Contract of Lease if you are renting, or land title/tax declaration if you own the place.
- Mayor's Permit.
- Accomplish 3 forms (copies) and have it assessed:
- BIR Form 1901 (application form)
- BIR Form 0605 (payment form)
- BIR Form 2000 (documentary stamp tax on lease, if, obviously, you're renting)
- Contract of Lease (if you're renting)
After they assessed your documents, you need to go to the nearest accredited banks for payment. Ask the officer at the RDO you're at about it. Remember to have 3 photocopies of each forms before going to the bank.
Then go back to the RDO after payment has been done and go straight to the officer that assessed your application (no need to get a queue number). You need to purchase Books of Accounts either at the RDO or outside. You better study this link to understand the difference between VAT and NON-VAT.
Kind of Books for Non-VAT Kind of Books for VAT
- Journal - Journal
- Ledger - Ledger
- Cash Receipt - Cash Receipt
- Cash Disbursement - Cash Disbursement
- Subsidiary Sales Journal
- Subsidiary Purchase Journal
You have to fill it up with your name and other details and have it registered/signed by the officer. He/she will be scheduling the release date of your Certificate of Registration (COR). Some RDOs may request you to attend a seminar about filing your taxes on the same day your CORs are going to be released.
And, don't forget to get a hold of your "Ask for Receipt" sign. I still don't have mine to this day because they ran out of it a month ago.
By the way, you should also have your official receipts printed and approved by BIR! I had mine printed c/o the officer who attended me that day. I still don't have it, though. She said it will be printed after two weeks, and it's been a month! Sigh.
UPDATED:
For freelancers who are still confused when it comes to registering at BIR as self-employed or not, here's a link to answer your queries. It's really helpful! :)
--
So that would be it for now. I'm going to edit this when I get to process my SSS and other administrative requirements for the business.
I would absolutely appreciate it if you could check out my cafe's Facebook page by clicking on this link, or maybe drop by and try our homemade food and drinks (because I like to make everything from scratch).
You can also like my blog's page here.
No comments:
Post a Comment