Guideline On How To Organize.18.10.31.docx

Guideline 1. Sole Proprietorship To register your business name with the DTI and facilitate the processing of your application, you must comply with the following requirements and procedures. 1. 2.

3. 4. 5.

6.

Go to the Bureau of Trade Regulation and Consumer Protection (BTRCP) Business Name Department and secure an application for. If applicant is a natural born Filipino, he / she must be at least 18 years old and must attaché two (2) passport size pictures taken not later than the year preceding the filing of application. a. The applicant must be a majority age (18 years or over) b. He / She must submit two (2) passport size pictures of himself / herself taken not more than one (1) year preceding the filing of such application. c. If an alien, he / she must submit the following:  Alien Certificate of Registration (ACR), if any  Accomplished DTI Form No. 17 under Republic Act No. 7042  A written appointment of Filipino Resident Agent  Authority to verify bank accounts / bank certificate of deposit  Proof of inward remittance of foreign currency for non-resident alien and Bank Certificate of Deposit for resident alien  Copy of valuation report from the BangkoSentralngPilipinas (BSP) if investment includes assets other than foreign exchange  Clearance from other involved agencies such as the Department of Science and technology (DOST) Philippines National Police (PNP), etc.  In case of an alien retailer, latest permit to engage in retail business per Republic Act No. 1180 d. If the applicant has acquired Filipino citizenship by naturalization, election or by any other means provided by the law, he / she must submit proof of his / her Filipino citizenship. e. Filipino whose names are suggestive of alien nationality must submit proof of Filipino citizenship (e.g authenticated Birth Certificate, Voter’s I.D) In case of corporation or partnership, attach the SEC certificate and articles of incorporation or partnership For franchise holders of business name, applicant must attach latest copy of the franchise agreement Natural – born Filipinos whose names are suggestive of an alien nationality (e.g Lim, Taylor, Po, etc.) must submit proof of citizenship, e.g PRD ID, birth certificate or voter’s Id. For the citizens of the Philippines by:

Naturalization

A photo static copy of naturalization certificate and oath of allegiance or Identification Card issued by the Commission on Immigration and Deportation (Present original copies for comparison)

Election Affidavit of Election or Identification Card issued by the Commission on Immigration and Deportation (present original copies for comparison) 7.

In case of alien, submit the following: For Partnership / Corporation, if the foreign capital investment exceeds forty percent (40%) of the total authorized capital stock, secure certificate of authority to engage in business in the Philippines from the Securities and Exchange Commission

8.

If the business name, together with the business establishment is acquired through sales, transfer or assignment, applicant must comply with the Bulk Sales Law by submitting: a. An affidavit of vendor (stating that at the time of sale, he had no creditors, and if there were, copy of notice to them) b. Deed of Sale, assignment or transfer, as applicable c. Inventory of properties sold, assigned or transferred d. Payment of fee

An alien wishing to register with the Bureau of Trade Regulation and Consumer Protection (BTRCP) must submit the following:   

Accomplished DTI Form Nos. 16 and 17 available at the BTRCP offices A written appointment of Filipino Resident Agent Authority to verify bank account or bank certificate of deposit

For non-resident alien: 

Proof of inward remittance of foreign currency

For resident alien:   

Bank certificate of deposit If investment includes assets other than foreign exchange, copy of valuation report from BSP; and If applicable, clearance from other involved agencies, e.g DOST, DND / PNP

2. Corporation Pre-Processing Application

1. In applying for SEC Registration, the first step is to go to their website crs.sec.gov.ph, if you do not have an account for CRS you shall made your own or sign up. If you do have an account with CRS, then proceed with the log in. 2.

You can click Register a Company and fill out the forms.

3.

The checklist of basic requirements for SEC registration are as follows: For Stock Corporations a. b. c. d. e. f. g. h. i.

Articles of Incorporation By – Laws Treasurer’s Affidavit Bank Certificate or Deposit Authority to Verify Bank Accounts Registration Data Sheet / Subscribers Information Sheet Undertaking to Change Name Statement of Assets and Liabilities Filing Fees Articles of Incorporation – 1/10 of 1% of authorized Capital Stock + 20% but not less than P500.00 By Laws Legal research Fee (1% of filing fees)

For Non-Stock Corporation a. b. c. d. e. f. g. h.

Articles of Incorporation By – Laws Registration Data Sheet Undertaking to Change Name Secretary’s Certificate to comply with SEC Requirements for non-stock corporations List of members of the association List of contributors and amount contributed certified y Treasurer Filing Fees: Articles of Incorporation + By-Laws + Legal Research Fees

Filing and Processing 4. Upon submission, SEC shall compute the authorized subscribed and paid – up capital. This is usually a minimum of 25% of the subscribed capital stock. 5. Pay the filing fee. Under the Express Lane, you may secure your SEC Registration papers within three (3) working days. 6. Open a bank account with your preferred local bank and deposit the amount prescribed. The SEC will then verify your bank deposit based on the authorization letter issued to them and they shall call your office when the certification is ready to be issued.

Licenses and Permits Since local ordinances vary, check with your municipal and regional authorities to determine:  The requirements for licenses and / or permits in your area  The cost of each item  The time required for approval of each In particular, you will have to obtain a permits and business license from your city / town hall or local government office, and you will have to register with the Bureau of Internal Revenue to obtain your sales Taxpayer Identification Number (TIN). In additional, you will want to inquire about the following building permits and inspections: MUNICIPAL OFFICE OF BUILDING OFFICIAL (OBO) BUILDING PERMIT APPLICATION  Building permit form (Attachment: Bill of Materials and blue prints)  Zoning permit  Fire Safety Evaluation Clearance (FSEC) from Bureau Of Fire  Electrical permit form  Sanitary/Plumbing permit form  Mechanical permit form  CCTV & Smoke/Heat detector form  Barangay Clearance for Renovation  Sign permit form  Contractors’ All Risks Insurance (CARI)  All BLUE PRINTS PLAN must sign and seal with copy of PRC and PTR.

OCCUPANCY CERTIFICATE APPLICATION Occupancy Cert. form with as built plans Bureau Of Fire – Fire Safety Inspection Certificate (FSIC) Pictures of Salon Copy of Building, Electrical, Sanitary, Mechanical permit All BLUE PRINTS PLAN must sign and seal with copy of PRC and PTR. Paying Taxes Businesses and individuals alike must pay taxes based on the amount of income they report at the end of the year. However, businesses are required to file reports and pay taxes throughout the year as well. It is necessary to figure and report income taxes, value – added taxes and municipal taxes. Be aware that other taxes that are not mentioned here may apply to your operations.

TAXPAYER IDENTIFICATION NUMBERS Every person or entity desiring to engage in business must register with the Bureau of Internal Revenue (BIR) by obtaining an application for registration within thirty (30) days before actually engaging in business, if corporation/partnership SEC will assign TIN number and indicated on the Certificate of Incorporation. This must be obtained from the Revenue District Officer of the place where the business is located. Prior to this, however, preparatory acts must be done by the taxpayer or taxpaying entity to register its business name at the Securities and Exchange Commission or SEC (for partnerships and corporations only). After obtaining approval of the business name at the SEC, the approved business name must be registered at the Department of Trade and Industry (DTI). The SEC registration is perpetual except to amend articles, report changes in stockholders, and other such amendments. The DTI registration, however, has a validity period of five (5) years. The SEC (where applicable) and DTI – registered business names will be used in applying for a municipal license which is required in obtaining the above – mentioned Taxpayer Identification Number at the BIR. Registration at the Department of Labor and Employment (DOLE) must also be obtained for new businesses. For sole proprietorships, the person engaging in business must get approval of the business name from the Department of Trade and Industry within the region where business is to be located.

BIR REGISTRATION REQUIREMENTS -Application for registration – Fill up form 1903 Attachment: Business permit/Business permit form with sign from BPLO, Contract of Lease/offer sheet, Franchise Agreement, SEC/DTI, RF-0605 and DST-2000. -Registration Form – 0605 (File online and print 3X, then pay at the bank) -Documentary Stamp Tax-Declaration – 2000 (File online and print 3X, then bring to RDOlocated of business, sign by Officer of the day and pay at the bank). AFTER THE PROCESS WAIT FOR THE RELEASE OF COR Certificate Of Registration with stamp and the ASK FOR RECEIPT sticker.

REGISTRATION OF BOOKS – Journal, Ledger, Subsidiary Sales and purchase Fill up form 1905 and attached Copy of 2303 and 0605

FOR Authority To Print (ATP) APPLICATIONOR AND SI -Copy of COR-2303, 0605, and fill up application form 1906 in BIR-RDO ATP is for Official Receipts and Sales Invoices (OR- for services, SI- for products)

BIR – REQUIRED REPORTS The reports required by the BIR concerning business taxes are: 1.

Income Tax Returns A Quarterly Income Tax Return (BIR Form 1702 for corporations and partnerships / BIR Form 1701 for Proprietorships)

2. Due on May 30, August 29, November 29 (all of the current year) and the final filing on April 15 (of the following year), for businesses adopting the calendar year as their business year. 3. Due within 60 days from the end of each fiscal quarter and / or the 15th day of the 4th month following the end of the fiscal year, for business year. 4.

Withholding Tax on Compensation

Monthly remittance should be done by the 10th of each month. An annual Certificate on Income Tax Withheld on Compensation for individual employees (BIR Form W2), due to the employee by January 31. An annual alphabetical listings of employees showing their gross compensation taxes due and withheld for the year, due by January 31. An annual Withholding Compensation and Exemption Statement (W-4 from) duly filled out by employees by the last day of February, which should be forwarded to the Revenue District Officer within thirty (30) days thereafter. 5.

Annual Inventory Listing every January 30th

6.

Creditable Withholding Tax on Income Payments For monthly, this is due on the 10th For annual, this is due on the 25th of January

7.

Monthly and Quarterly VAT returns Due on the 25th of the month

As tax deposit and reporting requirements can be complex, you may discover that you must devote a lot of time to record keeping and tax reporting. but because you are subject to penalties incurred for late payments of taxes, it is essential that your tax data collecting methods are established correctly and that appropriate taxes are submitted accurately and on time. Therefore, TNJ FRANCHISE CORP. recommends that you call your Revenue District Office or the local chamber of commerce or small business association in your city or municipality when you have questions. You may find that the services of an experienced tax accountant may be well worth the fees charged.

VALUE-ADDED TAX (VAT) Value-Added Tax (VAT) simply means tax on the value added by every seller to purchases of goods and services. Thus, there shall be levied, assessed and collected on every sale, barter or exchange of goods, a value-added tax equivalent to ten percent (10%) of the gross selling price of gross value in money of the goods sold, bartered or exchanged, such tax to be paid by the seller or transferor. The VAT returns are filed on a monthly basis and are due on the 25th of every month.

CITY OR MUNICIPALITY TAXES

All cities and municipalities impose sales taxes in addition to VAT, which can be paid either annually or quarterly at a scaled rate depending on bracketed sales levels. Know the tax liability in your city and municipality. City or Municipal Permits / Licenses All municipal or Business Permit and Licensing Office (BPLO) require most of the following permits o be obtained before a business can commence operation: 1.

Barangay Clearance – for Business permit

2.

Building Permit

3.

Occupancy Certificate

4.

Signboard Permit

5.

Certificate of Electrical Inspection

6.

Fire Safety Inspection Certificate – for Business permit

7.

Mayor’s Permits / Municipal License

8.

CGLI and FIRE Insurance

9.

Community Tax Certificate

10.

Sanitary permit

11.

Health permit (for employees)

12.

Occupational Permits (for employees)

OTHER PERMITS TO SECURE IF REQUIRED Department of Environmental and Natural Resources (DENR) Must attend seminar and orientation from DENR -

Non compliance Certificate

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PCO – Pollution Control Officer

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Approving/Signing Manager