University of Perpetual Help System Laguna –

Isabela Campus
Minante Uno, Cauayan City
COLLEGE OF BUSINESS AND ACCOUNTANCY

CHAPTER 6

SOCIO-ECONOMIC ASPECT

Introduction

The proposed business will adopt the rules and policies of the government, in order to

secure the business and the potential customers. The SUNSHINE BLOOM’S

LAUNDRY will ensure the welfare of their employees and customers.

Contribution to Philippine Economy

The business will be a source of income in the economy, for it will pay taxes

annually. This way the Philippine Economy will continue to grow and prosper through

giving services to the resident of the Philippines.

Contribution to Philippine Government

The government will generate income from Value Added Tax (VAT) from other

products, licenses, registration, permits and other requirements required by the

government.

Generating Employment

The proposed project shall help not only the employees it shall hire nor the
employees it shall deploy but also their families. It will help them to improve their
standards of living because of the stable income they can get.

Social Responsibility

The business will offer job for the jobless person who are fit to the open job. In this case

it will lessen the jobless persons in our country.

 University of Perpetual Help System Laguna –
Isabela Campus
Minante Uno, Cauayan City
COLLEGE OF BUSINESS AND ACCOUNTANCY

CHAPTER 7

LEGAL ASPECT

Introduction

This chapter presents that the business is required to register first into the different
government agencies before they can start the operation. It needs to fulfill substantial
legal requirements in order to operate the business.
Legal Requirements

These are the common requirements imposed on all business organization in

whatever form they maybe:

Security and Exchange Commissions (SEC)

The SEC requires the registration of all partnership and corporation. The
following are the required documents to register to partnership:

 •All applications and supporting documents must be in four (4) copies and in A4
size bond paper with cover sheets.

 Documents signed abroad must be authenticated by the Philippine Embassy or

Consulate in the country where signed.

 Audited financial statements and Special Audit Reports must be certified by an

independent Certified Public Accountant (CPA), with Statement of Representation
filed with the SEC. Said statement must be indicate the CPA Cert. No., PRC /
BOA No. and the PTR No. of the CPA and SEC accreditation of External Auditor
if applicable.

 All applications must indicate the Tax Identification No. (TIN) of the
incorporators, directors/trustees, stockholders/members for corporations, and
partners for partnerships.

 Foreign investors are allowed to indicate passport number in lieu of TIN for
registration of a corporation/partnership.
 University of Perpetual Help System Laguna –
Isabela Campus
Minante Uno, Cauayan City
COLLEGE OF BUSINESS AND ACCOUNTANCY

Bureau of Internal Revenue (BIR)

The business needs to get a Tax Identification Number for taxation purposes, and
this can be acquired from the Bureau of Internal Revenue. A BIR Registration is also a
pre-requisite for you to get an official receipt and invoices printed. The books of the
company should also be stamped by the BIR. It is useful to have your official receipts and
invoices printed by the BIR accredited printing press. The following are the required
documents to register a partnership:

 Mayor’s permit

 BIR Application Form 1901 for Single Proprietorship

 BIR Application Form 1903 for Partnership and Corporation

 Certificate of Business Name Registration from the DTI

 Articles of Partnership or Corporation

 Community Tax Certificate

Social Security System (SSS)

Registering with the SSS is a requirement especially if you don’t have one. You
may still register as self-employed individual. The SSS provide sickness retirement, loan
and other social benefits to the employees of private businesses. The funds from such
benefits come from the contribution from the employer. Here are the requirements for
registering with the SSS:

 Photocopy of Articles of Co-Partnership

 Employees data record

 Initial or subsequent list of employees.

Home Development Mutual Fund/ PAG_IBIG

 University of Perpetual Help System Laguna –
Isabela Campus
Minante Uno, Cauayan City
COLLEGE OF BUSINESS AND ACCOUNTANCY

Pag-IBIG provides various services on its members such as Calamity Loan,

Multi-Purpose Loan, and Housing Loan for its members. Here are the required
documents in order to be registered in Pag-IBIG:

 Employer’s Data Form (EDF [HQP-PFF-002])

 Specimen Signature Form (SSF [HQP-PFF-003])

 SSS Certification (if already registered with SSS)

 Present Proof of Business Existence

o Sole Proprietorship - Department of Trade and Industry (DTI)

Certificate of Registration – Business Permit/Mayor’s Permit

o Partnership/Corporation/Foreign-Owned Corporation -
Securities and Exchange Commission (SEC) Certificate of
Partnership/Incorporation - Approved Articles of
Partnership/Incorporation and By-Laws - Business
Permit/Mayor’s Permit

o Cooperative – Cooperative Development Authority (CDA)

Certificate – Approved Articles of Cooperation – Business
Permit/Mayor’s Permit

o Trade Association – Securities and Exchange Commission

Certificate of Incorporation – Articles of Incorporation and By-
Laws – Business Permit/Mayor’s Permit

Philippine Health Insurance Corporation/PhilHealth

Provides health related benefits such as subsidies in hospital bill when the patient
is admitted in accredited hospital. Here are the documents needed to apply for PhilHealth
registration:

 Single Proprietorships – DTI Registration

 Partnership and Corporation – SEC Registration

 Foundations and Non-Profit Organization – SEC Registration

 University of Perpetual Help System Laguna –
Isabela Campus
Minante Uno, Cauayan City
COLLEGE OF BUSINESS AND ACCOUNTANCY

 Cooperatives – Cooperative Development Authority

 Backyard Industries/ Ventures and Micro-Business Enterprise- Mayor’s Permit

To register their employees

Government and Private Sectors

 Employer Data Record (ERI) Form (in duplicated)

 PhilHealth Membership Registration Form (PMRF) for each employee (in

duplicate)

Kasambahay Employer

 Household Employer Unified Registration Form

 Household Employment Unified Report Form

 Kasambahay Unified Registration Form

DOLE

It is the executive department of the Philippine Government mandated to

formulate policies, implement programs and services, and serve as the policy-
coordinating arm of the Executive Branch in the field of labor and employment. It is
tasked with the enforcement of the provision of the Labor Code. The following
documents are required to acquire DOLE Registration:

 Duly notarized Application for Registration with 2 x 2 colored ID picture of either

the President , General Manager, Chief Executive Officer or Chairman of the
Board for a labor organization.

 A certified true copy of a certificate of registration n (with its Article of

Incorporation) of firm or business name from the Securities and Exchange
Commission (SEC) ,Cooperative Development Authority (CDA) or from the
Department of Labor and Employment (DOLE) if the applicant is a labor
organization.

 A certified true copy of the license or business permit issued by the local
government unit where the contractor operates
 University of Perpetual Help System Laguna –
Isabela Campus
Minante Uno, Cauayan City
COLLEGE OF BUSINESS AND ACCOUNTANCY

 DOLE Certificate of Attendance to D. O. # 18-A orientation

 Photo of office bldg./façade with signboard and office premises where it holds
office, including its facilities, tools, equipment, premises, implements,
machineries and work premises that are actually and directly used by the
contractor in the performance or completion of the job, work or services
contracted out

 A sworn disclosure that the registrant, its officers and owners has not been
operating or previously operating as a contractor under a different name or entity
or with pending case of violation of these Rules and / or Labor Standards, or with
cancelled registration. In case there is a pending case, a copy of the complaint and
the latest status of the case shall be attached.

 Sketch Map – exact location of office (indicate landmarks)

 Proof of compliance with substantial capital requirement as define in Sec. 3 (L) of

D. O. # 18-A and Advisory 01-20312 dated March 20, 2012

 Latest Financial Statements audited by an independent CPA

 SEC certification of capitalization

 CDA certificate of capitalization

Mayor’s Permit

The office of the Municipal Mayor s where you go in order to get a permit or
license to go into business. The section to approach is the business licensing section.
Prior to this, you have to present a clearance from your local barangay. Aside from
Mayor’s permit you will be charged other fees including sanitary, garbage, building
inspection, mechanical inspection and water permit fee. Here are the requirements for
registering the Mayor’s Permit:

 Location Map of Business Establishment

 Barangay Clearance

 SEC Registration Certificate

 Articles of Partnership
 University of Perpetual Help System Laguna –
Isabela Campus
Minante Uno, Cauayan City
COLLEGE OF BUSINESS AND ACCOUNTANCY

 Current Class “C” Certificate

 Community Tax Certificate of the Partners