STEPS IN REGISTERING SOLE PROPRIETORSHIP,

BasicRequirementsandProcedureinRegisteringaSoleProprietorBusiness

1.RegisterabusinessnameatDepartmentofTradeandIndustry(DTI)

As a business, we use a “Trade Name” as our brand that is easily remembered by our target customers. If you will use a “Trade Name” for your business, you may register it in the Department of Trade and Industry (DTI).

If you’re a self-employed, freelancer or professional who do not intend to use a “Trade Name”, you may skip this part.

To register in Department of Trade and Industry (DTI), follow these steps:

• Visit DTI’s Business Name Registration System here: https://bnrs.dti.gov.ph/registration

• Read the Terms and Conditions and click Accept

• Fill-in your personal information

• Choose the nature or industry of your business such as: Restaurant

• Come-up with a business name such as: Shodo Japanese Restaurant

• Search if business name is available or has passed the criteria

• Once proposed name is passed, fill-in other required information

• Pay registration fee

• Print DTI Certificate of Registration (COR)

After acquiring a DTI Certificate of Registration (COR), you may now proceed and register with Bureau of Internal Revenue (BIR)

2.RegisteryourbusinesswiththeBureauofInternalRevenue(BIR)

All sole proprietor are required to register with the Bureau of Internal Revenue (BIR). And last June 2020, the BIR has released Revenue Memorandum Circular (RMC) No 57-2020 to simplify the process of business registration by removing Local Government Unit (LGU) permits and license in their list of requirements.

However, just a quick note for those who have existing Tax Identification Number (TIN), before proceeding with the steps mentioned below, you must first submit update and/or transfer of records to your current BIR Regional District Office (RDO) prior to submission of new business application.

For first time applicants, meaning without existing TIN, you may proceed with the steps in registering a business in BIR as follows:

• Fill-up the BIR Form 1901 – Application for Registration (for Sole Proprietor)

• Prepare the list of requirements as follows: o Valid Government ID with Name/Address/Birthdate or PRC ID (if professional) o Filled-up and paid BIR Form 0605 – Annual Registration Fee of P500.00 o Prepare the sample format of the receipts and/or invoices you will use for sales o Prepare the books of accounts, such as journals and ledgers, you will use for record-keeping o DTI Certificate of Registration, if you will use a “Trade Name”

• Once you have completed all the requirement, submit to the Regional District Office (RDO) where your business is located

• Register your book of accounts and receipts/invoices

• Claim your BIR Form 2303 – Certificate of Registration (COR)

3.RegistrationwithBarangay Before you can legally operate your business, you must secure business clearance/permit from the Local Government Unit (LGU) starting with the Barangay. While processing your registration in BIR, you may also start processing in the Barangay.

However, if you are a freelancer, self-employed or practicing professional, you may skip this part.

Here are the steps in registering with Barangay:

1. Go to the barangay where your business is located to secure and fill-up application form

2. Submit your completed application form together with the following: o Certificate of Business Registration from DTI o Two (2) valid government IDs o Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if owned)

3. Pay the Barangay Clearance Fee

4. Claim your Barangay Certificate of Business Registration

4. Register your business in the Mayor’s Office

After claiming the barangay clearance/permit, the next step is to secure business clearance/permit from the Mayor or Municipal Office.

If you are a freelancer, self-employed or practicing professional, you may skip below steps. Instead, secure and pay either Occupational Tax Receipt (OTR), if non PRC licensed self-employed/freelancer, or Professional Tax Receipt (PTR), if PRC licensed self-employed/freelancer.

Here are the steps in registering with the Mayor’s or Municipal’s Office

1. Go to the municipal office where your business is located to secure and fill-up application form

2. Submit your completed application form together with the following:

▪ Certificate of Business Registration from DTI

▪ Barangay Clearance Certificate

▪ Two (2) valid IDs

▪ Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if owned)

3. Pay the Mayor’s Permit Fee

4. Claim you Mayor’s Business Permit and Licenses

5. Process other permits, if needed, such as: Fire Permit, Sanitary Permit, Locational Clearance, etc.

After completing all the steps above, you can now focus in operating and growing your business

1. PreparetherequireddocumentsforSECRegistration

The first thing you are required to accomplish is the registration of your business with the Securities and Exchange Commission or SEC. A partnership (or a corporation) is obliged to secure a certificate of registration with the SEC to own a license to operate their business. The basic documentary requirements that need to be prepared are:

• NameVerificationSlip (which can be obtained from the SEC’s website if you prefer to have it before going to an SEC office)

• ArticlesofPartnership or AP

• A JointAffidavit of partners to change their partnership name if it has not been stated in the AP

There are, however, additional requirements depending on the nature of your business. These requisites may include:

• EndorsementorClearance from other government agencies. You may check out this link to know if it’s applicable for your business.

• FIAForm – 105 (for partnerships with a foreigner as a partner)

2. ObtainaCertificateofRegistrationwiththeSEC

The initial steps can be done online through their website such as checking your proposed company name’s availability through https://crs.sec.gov.ph/, once verified that the name is not yet taken, you can then fill out the application form on the same site. The rest of the application process is listed on that corresponding page, however, this can all be accomplished at any SEC office as well if you find it more convenient to just go there and be personally assisted by an employee.

3. GetaBarangayClearance

All businesses are required to have a Barangay Clearance according to our Local Government Code. This clearance is obtained at the local Barangay Office where your business is or will be located and the fee in securing one, though varies per location, is often minimal. A Barangay Clearance serves as an assurance that your business adheres to the standards of the local Barangay and that your business is a community-friendly company.

4. Registeryourbusiness&employeeswiththeSocialSecuritySystem (SSS)

Registering your business and employees (even if they are temporary or provisional) is mandated and is considered a violation of the Social Security Law if not performed. Employers are obliged to submit the SSS coverage of a worker within 30 days of his or her employment. The SSS website (sss.gov.ph) presents comprehensive information on the responsibilities and obligations of an SSS employer. The following forms must be completely filled out and submitted to be a registered SSS employer:

• SS Forms R-1 and R-1A

• Photocopy of SEC Articles of Partnership

• Business location sketch or map

• Validated Miscellaneous Payment Return also known as SS Form R-6 or SS Form R-6 with Special Bank Receipt (proof of payment for the Employer Registration Plate)

5. Registerwithothergovernment-mandatedagencies

Once your business began its operations and you’ve hired a number of employees, registration with other government-mandated agencies must follow through.

• The new National Health Insurance Act (RA 7875/RA 9241) is requiring all employers in the Philippines to register their employees with Philippine Health Insurance Corporation (Philhealth) and to remit their share of contribution to the said agency. Registering your employees ensure that they are going to be covered by this health insurance which can help greatly in reducing hospitalization costs and their other health care needs.

• Pag-IBIGFUND. As stated in RA 7742, SSS members who earn at least Php4,000 per month must be registered with the Home Development Mutual Fund (HDMF) which is the agency that administers the Pag-IBIG Fund. This agency works towards providing its members with sufficient housing (loans) through an effective saving scheme.

NOTE: Registration with the Department of Labor and Employment (DOLE) is also a must for business operations with five or more employees.

6. Obtaina Mayor’s/Business Permit

This document can only be acquired after securing a Certificate of Registration from SEC, Barangay Clearance, and registration with the SSS since these documents would be required to get a business permit. The fees, requirements, and processes may vary in different local offices. Fees for new applicants may depend on their starting capital while charges for renewals depend on the applicant’s prior year gross revenues or sales. Here are the basic requirements in obtaining a Mayor’s Permit:

• Business Permit Application Form

• Barangay Clearance

• Certificate of SEC Registration

• Public Liability Insurance (for Restaurants, Cinemas, Malls, etc.)

• Authorization Letter of the owner/s with ID

• Contract of a lease (if renting a space) or land title/tax declaration (if you own the place of business)

• SSS Certification or Clearance

• Community Tax Certificate or CEDULA

Depending on the type of business, other documents may also be required. Business permits are renewed every year.

A Mayor’s Permit must be submitted before processing a Certificate of Registration with the BIR since Mayor’s permit is actually a requirement to obtain such a certificate. Registering with the Bureau of Internal Revenue will give you permission to issue official receipts, register books of accounts, and (for partnerships and corporations) to obtain a separate Tax Identification Number.

Business registrations take days and great effort and a helping hand shall always be considered. Yap, Kung, Ching & Associates Law Office provides complete assistance when it comes to business registrations together with other legal matters. Remember that starting a business can be a handful and getting a lawyer to help you have this thing off your load is just one call away.

I. IssuanceofCooperativeNameReservationNotice(CNRN)

▪ Submission of Cooperative Name Reservation Report Form (CNRRF) shall be submitted either to CDA Central Office or Regional Offices nationwide through personal, postal mail, courier, electronic mail, or online.

▪ The applicant has the option to choose from the following period to reserve their proposed names with the corresponding reservation fees a. Thirty (30) calendar days – Php 100.00 b. Sixty (60) calendar days – Php 200.00 c. Ninety (90) calendar days – Php 300.00

▪ Cooperative name shall be in accordance with the prescribed guidelines.

▪ All reserved names shall be valid in accordance with the period specified in the Cooperative Name Reservation Notice.

II. Issuance of Certificate of Registration (COR)

The prospective cooperative acquires its juridical personality upon issuance of a Certificate of Registration.

III. Issuance of Certificate of amendments

This is being issued in case of any amendments in the Articles of Cooperation and by laws of the Cooperative

IV. Issuance of Certificate of Authority (COA)

A Certificate of Authority shall be issued by CDA to cooperatives applying for the establishment of a branch office upon compliance with the requirements.

A Branch Office refers to a business office outside the principal office where cooperative activities and business operation are undertaken as per approved cooperative development plan.

V. Issuance of Letter of Authority (LOA)l

A Letter of Authority shall be issued by CDA to cooperatives applying for the establishment of a satellite office upon compliance with the requirements. Satellite Office refers to an office established by a cooperative outside of its principal/main office but within its area of operation to provide limited services to its members but which does not however maintain books of accounts as it is done only by the principal/main office.

VI. Issuance of Certificate of Recognition (CoR)

Certificate of Recognition shall be issued for the organization of laboratory cooperative for minors (ages below 18 years old) by a Guardian Cooperative.

VII. Issuance of Certificate of Merger or Consolidation

This refers to the process where two or more cooperatives become single cooperative, which, in the case of merger ,there is a surviving cooperative, and consolidated cooperative in the case of consolidation.

1. Reserve and Register Your Business Name in Securities and Exchange Commission(SEC),asfollows:

• Check if your desired business name is available via SEC online website or at SEC Office in Mandaluyong

• If available, register/reserve your business name via SEC online website or at SEC Name Verification Unit – SEC Office in Mandaluyong

• Prepare, sign and notarize the following: o Articles of Incorporation; o By Laws o Treasurer’s Affidavit; and o Joint affidavit of two incorporators undertaking to change corporate name immediately upon receipt of notice or directive from the Securities and Exchange Commission that another corporation, partnership, or person has acquired a 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 the Articles of Incorporation have a provision on this commitment).

• Submit notarized documents to SEC Office in Mandaluyong City

• Claim your SEC Certificate of Registration

ProcessingTime: At least one (1) week upon submission of complete documents

2.AcquireBarangayClearance

Once the corporation is registered with SEC the next step is to get a barangay clearance in the barangay where your business is located.

Herearethebasicsteps

• Go to the barangay where your business is located to secure and fill-up application form

• Submit your completed application form together with the following: o Certificate of Business Registration from SEC o Two (2) valid IDs o Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if owned)

ProcessingTime: 1 day upon submission of complete documents.

3. Acquire Business Permit from the Mayor’s Office

Once you have a Barangay Clearance Certificate, the next step is to acquire a Business Permit in the municipality where your business is located.

Here are the basic steps and requirements:

• Go to the municipal office where your business is located to secure and fill-up application form

• Submit your completed application form together with the following: o Certificate of Business Registration from SEC o Barangay Clearance Certificate o Two (2) valid IDs o Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if owned)

ProcessingTime: At least one week upon submission of complete documents. But It can take longer depending on the permit requirements based on the industry.

4.RegisterwiththeBureauofInternalRevenue(BIR)