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DOING BUSINESS IN THE PHILIPPINES
Republic of the Philippines

Tarlac State University
COLLEGE OF BUSINESS AND ACCOUNTANCY
Tarlac City, Tarlac
First Semester, A.Y. 2021-2022
DOING
BUSINESS IN
THE
PHILIPPINES
Submitted by:
Erika Camille Asuncion
Andrea Martha Isobel Co
Myles Frances Duay
Hazel Jane Esclamada
Jude Dante Regidor
Andrea Nicole Sto. Domingo
Submitted to:
Mr. John Evander Cainip
Instructor
September 2021
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TABLE OF CONTENTS
Title: Doing Business in the Philippines ......................................................... 1

Table of Contents ............................................................................................ 2
A. Start a Business .......................................................................................... 3
A.1 The Business and Owner ............................................................... 3
A.2 What Business to Venture on? ....................................................... 3
A.3 Step by Step Guide......................................................................... 4
B. Type and Forms of Business ...................................................................... 5
B.1 Business, Industry, and Commerce ................................................ 5
B.2 Types of Business .......................................................................... 5
B.3 Forms of Business Organization .................................................... 6
B.4 Partnership vs. Corporation............................................................ 9
B.5 Cooperative .................................................................................... 9
C. Business Registration ............................................................................... 11
D. Registering a Property .............................................................................. 15
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STARTING A BUSINESS
BUSINESS
→ defined as an organization or enterprising entity engaged in commercial, industrial, or
professional activities
→ can be for-profit entities or they can be non-profit organizations that operate to fulfill a
charitable mission or further a social cause.
→ activity of making one's living or making money by producing or buying and
selling products (such as goods and services)
→ having a business name does not separate the business entity from the owner
BUSINESS OWNER
➢ legal proprietor of a business
➢ one who individually or with partners is in control of monetary and operational decision-
making
Strategic Location &Quality Manpower Resources

Openness to New Opportunities Filipinos are Confident Consumers
Developing InfrastructuresStrong Unlimited Business Opportunities
What Industry to venture on?

The Philippines takes pride in its scenic beauty and lavish
tourist destination, there is a huge demand for services,
TRAVEL AND TOURISM
packages, offers, facilities, accommodations, trips, transport,
food and beverage and other travel related services.
The Philippines being a tropical country holds a massive
agrarian land mass extending to 9.7 million hectares of
fertile soil suitable for different crops like, coconut, rice,
AGRICULTURE mango, sugarcane, corn, coffee, banana, pineapple and
cacao. The country also produces poultry and livestock
which support the basic needs of the region so it’s a good
industry to venture on.
Given the country’s low labor cost, the Philippines is a good
place to venture on manufacturing, covering the creation of
MANUFACTURING
products that include food and beverage, petroleum,
transport, and industrial equipment, textile and others.
IT, BPO, AND PUBLIC The development in the Information Technology sector
SERVICES leads to fast-paced and rapid expansion in Business Process
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Outsourcing, from the last decade, BPO’s emerged as the

top contributors to the Filipino economy.
Real estate is still considered to be a flourishing industry
even when it has already achieved so much in the last few
years. As the population keeps increasing there will always
REAL ESTATE be a demand for property space and offices. It is a
fairsustainable market with attractive potential for high
returns as investors can access a whole market for home
seekers and travelers.
Amidst the currency inflation rate, overall spending and
consumption among consumers are still high, thanks to the
RETAIL country’s high employment rate. Online shopping and
delivery have been a driver of this rise, more Filipinos
utilize mobile technology to fulfill their shopping needs.
This industry seems to be picking up steam as the country’s
health expenditure grew significantly for the past few years.
HEALTHCARE
This is a good indication that people prioritize a healthy
lifestyle and a good industry to be looked on.
Search on the industry you are

STEP BY STEP GUIDE interested in
Choose and register a business
Choose an office address
Open a bank account and pay

minimum deposit
Apply and secure the needed

clearance and business permits
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TYPE AND FORMS OF BUSINESS

BUSINESS
is an organization that uses economic resources or inputs to provide goods or services to
customers in exchange for money or other goods and services.
is an organization comprising people who strive together to achieve common objectives
and goals
is a combination of industry and commerce based on functions
Comes in different types and forms
INDUSTRY
industry refers to all business activities, which relate to raising, producing, and
processing of goods and services.
COMMERCE
includes all those activities which facilitate the transfer of goods and services from one
place to another or from one person to another.
It deals with the movement of goods from the person who produces them to the person
who consumes them.
Types of Business (Ballada, 2017)

Selling people’s time, professional skills, expertise, advice,
Activity
and other similar products; provides intangible products
Service
Structure Hiring skilled staff and selling their time
Examples Software development, Accounting
Activity Buying and selling of products

Trading Buying a range of raw materials and manufactured goods
Structure
and consolidating them, making them available for sale
Examples Wholesaler, Retailer
Activity Designing products, aggregating components and

assembling finished products
Manufacturing
Taking raw materials and using equipment and staff to
Structure
convert them into finished goods
Examples Vehicle assembly, Construction
Activity Growing or extracting raw materials

Raw Materials Buying blocks of land and using them to provide raw
Structure
materials
Examples Farming, mining
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Activity Selling the utilization of infrastructure

Infrastructure Buying and operating assets; selling occupancy often in
Structure
combination with services
Examples Hotels, Sports facilities
Activity Receiving deposits, lending and investing money

Financial Structure Accepting cash from depositors and paying them interest
Examples Banks, Investment house
Activity Pooling premiums of many to meet claims of a few

Collecting money from many customers; investing the
Insurance Structure
money to pay the losses experienced by other customers
Examples Insurance companies
HYBRID TYPE OF BUSINESS

• are companies that may be classified in more than one type of business.
• A restaurant, for example, combines ingredients in making a fine meal (manufacturing),
sells a cold bottle of wine (merchandising), and fills customer orders (service).
Nonetheless, these companies may be classified according to their major business
interest.
FORMS OF BUSINESS ORGANIZATION
SOLE PROPRIETORSHIP PARTNERSHIP CORPORATION

Definition
o A type of business unit o A partnership is a business o A corporation is an
where one person is solely owned by two or more artificial being created by
responsible for providing persons who contribute operation of law, having
the capital and bearing the resources into the entity. the right of succession and
risk of the enterprise, and The partners divide the the powers, attributes, and
for the management of the profits of the business properties expressly
business. among themselves. authorized by law or
o The sole proprietorship o Each owner is called a incident to its existence.
form is usually adopted by partner (BP Blg. Sec. 2)
small business entities. o The partnership has a o A business owned by its
juridical personality stockholders
separate and distinct from o A separate legal entity to
that of each partner (Civil that of the stockholders
Code of the Philippines,
Art. 1768)
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Characteristics
• Single Ownership • Mutual Contribution • An artificial being
• No Separation of Ownership • Limited Life • Created by operation of law
and Management • Unlimited Liability • Enjoys the rights of
• No Sharing of Profit/Loss • Mutual Agency succession
• One-man Control • It has powers, attributes, and
properties expressly
authorized by law or incident
to its existence
Types
• Self-Employed • General Partnership • Business Corporation
❑A self-employed ❑ In a general partnership, ❑ Formed to engage in
business owner is all partners have commercial activity;
someone who conducts a independent power to “for-profit corporation”
trade or business with bind the business to C-Corporation
the intent of making a contracts and loans. ❑ A corporation whose
profit. The self- Each partner also has income is taxed through
employed individual total liability, meaning the corporation rather
may conduct the they are personally than its shareholders
business on a full-time responsible for all of • Close Corporation
basis or as a part-time the business's debts and ❑ Any corporation whose
venture. legal obligations. stock is freely traded and
• Independent Contractor • Limited Partnership is held by only a few
❑ An independent ❑ They have at least one shareholders who are
contractor is also a self- general partner who is often within the same
employed sole fully responsible for the family
proprietor, but his role business and one or • Controlled corporation
more closely resembles more limited partners ❑ A corporation in which
that of an employee. who provide money but the majority of stock is
• Franchise do not actively manage held by one individual or
❑ A franchise may also the business. firm
take on the form of a • Limited Liability • Cooperative Corporation
sole proprietorship. In a Partnership ❑ Primarily organized for
franchise, the sole ❑ operates like a general the purpose of providing
proprietor, also referred partnership, with all services and profits to its
to as a franchisee, pays a partners actively members rather than for
fee to a franchisor in managing the business, a corporate profit
exchange for the right to but it limits their • Foreign Corporation
use the company brand. liability for one ❑ Overseas corporations
another's actions. doing business in the
Philippines
• Non-profit Corporation
❑ Corporation organized
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for some purpose other

than making a profit
• Private Corporation
❑ Founded and composed
of private individuals
principally for a
nonpublic purpose
• Professional Corporation
❑ Provides services of a
type that requires a
professional license
• Public Corporation
❑ A corporation whose
shares are traded to and
among the general
public
• S-Corporation
❑ A corporation whose
income is taxed through
its shareholders rather
than the corporation
itself.
Advantages
▪ Easy to set-up and ▪ Brings greater financial ▪ Has the legal capacity to
discontinue capability to the business act as a legal entity
▪ Requires a small capital to ▪ Combines special skills, ▪ Shareholders have limited
start expertise and experience of liability
▪ Profits all accrue to the partners ▪ Has continuity of existence
owner ▪ Risks are shared ▪ Greater ability to acquire
▪ Total control on the part of funds
the owner
Disadvantages
▪ Unlimited personal liability ▪ Profits are shared ▪ Relatively complicated as
▪ Limited management skills ▪ Easily dissolved thus to formation and
▪ Limited access to capital unstable vs. corporation management
▪ Lacks continuity in case of ▪ Less effective than a ▪ There is a greater degree of
death or incapacity of corporation in raising large government control and
owner amounts of capital supervision
▪ Subject to heavier taxation;
incurs relatively high costs
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PARTNERSHIP VS. CORPORATION
PARTNERSHIP CORPORATION
Manner of
By mere agreement of the partners Created by operation of law
Creation
Two or more persons At least five (5) but not more than
Number of Persons
15
Commencement of
Articles of Partnership Certificate of incorporation (from
Juridical
SEC)
Personality
Management Every partner is an agent Board of Directors
Liable to the extent of personal Stockholders are liable only to the
Extent of Liability
assets (except limited partner) extent of their interest/investment
Right of No right of succession Has the capacity of continued
Succession existence
Any period of time stipulated of the Not to exceed 50 years but subject
Terms of Existence
partners to extension
COOPERATIVE
Definitions
• An autonomous and duly registered association of persons, with a common bond of interest,
who have voluntarily joined together to achieve their social, economic and cultural needs and
aspirations by making equitable contributions to the capital required, patronizing their products
and services and accepting a fair share of risks and benefits of the undertaking in accordance
with the universally accepted cooperative principles.
• Registered with the Cooperative Development Authority (CDA)
Objectives and Goals
Provide goods and services to its members to enable them to attain increased income,
savings, investments, productivity, and purchasing power, and promote among themselves
A.
equitable distribution of net surplus through maximum utilization of economies of scale,
cost-sharing and risk-sharing;
B. Provide optimum social and economic benefits to its members;
C. Teach them efficient ways of doing things in a cooperative manner;
D. Propagate cooperative practices and new ideas in business and management;
Allow the lower income and less privileged groups to increase their ownership in the
E.
wealth of the nation; and
Cooperate with the government, other cooperatives and people-oriented organizations to
F.
further the attainment of any of the foregoing objectives.
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Types
Credit Cooperative is one that promotes and undertakes savings and lending
services among its members.
Consumer Cooperative is one the primary purpose of which is to procure and
distribute commodities to members and non-members
Producers Cooperative is one that undertakes joint production whether agricultural or
industrial.
Marketing Cooperative is one which engages in the supply of production inputs to
members and markets their products
is one which engages in medical and dental care,
Service Cooperative hospitalization, transportation, insurance, housing, labor,
electric light and power, communication, professional and
other services
Cooperative Bank is one organized for the primary purpose of providing a wide
range of financial services to cooperatives and their members
is one organized to assist or provide access to housing for the
Housing Cooperative benefit of its regular members who actively participate in the
savings program for housing. It is co-owned and controlled
by its members
is one organized by workers, including the self-employed,
Workers Cooperative
who are at the same time the members and owners of the
enterprise.
Other Types of Cooperative as may be determined by the Authority
Advantages Disadvantages
• Unlimited Life • Shared control
• Equality of members • One member, one vote
• Tax benefits
• Limited Liability
• Greater ability to attract capital
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BUSINESS REGISTRATION PROCESS

Single Proprietor
✓ As a sole owner, you’ll need to process your business registration at the Department of
Trade and Industry (DTI).
✓ When you go to their office, prepare at least three (3) proposed business names and
observe the DTI registration requirements below:
Applicant must be above 18 and a Filipino citizen
Bring two (2) copies of completed application forms, signed by the owner
Bring at least two (2) photo-bearing government-issued IDs
✓ Upon submission, the next step is to pay for the registration and documentary stamp tax.
✓ The following DTI registration fees apply depending on the territorial scope of your
business:
Barangay ₱200
City/Municipality ₱500
Regional ₱1,000
National ₱2,000
Note: Business name is valid for five years from the date it was registered.
Partnership or Corporation
✓ Register your business at the Securities and Exchange Commission (SEC).
✓ Here are the basic SEC requirements for registering a corporation or partnership:
Cover Sheet for Registration
Reservation Payment Confirmation
Articles of Incorporation (AI)
By-laws (BL)
✓ Go to your own barangay to obtain a barangay clearance

✓ Main documents for Barangay Clearance application:
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DTI or SEC certificates – bring original and photocopies
Business location sketch/map
Contract of lease if you rent the place of business, or land

title/tax declaration if you own the place of business
Duly filled out barangay clearance application form
✓ Depending on the type of business, other documents may be required, such as below
examples
National Food Authority (NFA) License for rice/corn and wheat

dealers
Bureau of Food and Drug Administration (BFAD) and

Department of Health (DOH) for drugstores, bakeries,
or other food and health related businesses
✓ The same documents are requested for mayor’s permit, with the addition of:
Certificate of
Mayor’s business
occupancy in the Liability Insurance
permit application
building or unit of (if applicable)
form
your business
✓ To comply with the BIR, you can first download and complete the following forms from
the BIR website before going to the BIR office:
BIR FORM 1901 Application Form for Single Proprietors
BIR FORM 1903 Application Form for Partnerships and Corporations
✓ Forms to be submitted for all types of businesses:

BIR FORM 0605 Payment Form
BIR FORM 2000 Documentary Stamp Tax
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✓ BIR business registration document requirements:
Contract of
Lease if you
DTI or SEC rent the place of
certificates. business, or
Business
Bring original Mayor’s Permit Land Title/Tax
location map
and photo Declaration if
copies you own the
place of
business.
Note: Along with the issuance of your Taxpayer Identification Number (TIN), you should also be
given the “ask for receipt” sign to be posted on your business establishment.
SOCIAL SECURITY SYSTEM (SSS) EMPLOYER’S REGISTRATION

✓ Employers must submit the SSS coverage of an employee within (30) days of to be a
registered SSS employer, you must accomplish and submit the following:
➢ Single Proprietors’ Document Requirements:
Employer Registration –
SSS Form R-1, Employment Report – R-
DTI or SEC Certificate
registration may be done 1A
through the SSS website
Main documents such as

baptismal, birth
certificate, driver’s
Mayor’s Permit and
license, passport,
Barangay Clearance
Professional Regulation
Commission (PRC) Card
or Seaman’s Book.
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➢ Partnership
1 2
Photocopy of
SS Forms R-1 and
SEC Articles of
R-1A
Partnership
➢ Corporation
1 2
SS Forms R-1
Photocopy of
and R-1A with
SEC Articles of
authorized
Incorporation
signature
Document requirements for ALL TYPES OF BUSINESSES:
Miscellaneous Payment Return (SS Form

R-6) validated, or SS Form R-6 with
Business location sketch/map Special Bank Receipt (SBR) – proof of
payment for the Employer Registration
Plate
Note:When the business has started operating and you’ve hired more employees, you’ll need to
register them with PhilHealth for their health care, Home Development Mutual Fund (HDMF)
registration for SS members earning at least P4,000 per month for PAG-IBIG Fund, and for
business operations with five (5) employees or more, you’ll need to register with the Department
of Labor and Employment (DOLE).
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REGISTERING A PROPERTY
1.
Check against encumbrances and obtain certified true copy of the land title
Procedure
from the Register of Deeds
Agency Register of Deeds (RD)
Encumbrance- can restrict the ability of the owner to transfer the title.
Documents A lawyer fills out an application: property title number and name of the
owner
P209 – checking against encumbrances
36 – certificate
Costs and Fees
6 – per additional pages(usually 1)
Associated
160.97 – IT fees
32.19 – per additional pages
Time to complete 4 Days
2.
Procedure Prepare the notarized Deed of Sale and related documents
Agency Notary
Documents Notarization- legal instrument to evidence
Costs and Fees 1-2% property value(SP)
Associated
Time to complete 1 Day
3.
Procedure Obtain Tax Clearance Certificate of real property taxes
Agency City Treasurer’s Office » Real Estate Tax Division
Tax Clearance Certificate – used to prove full and timely payment of
taxes, and compliance with tax laws.
Documentation shall include:
Documents → Official receipt evidencing payment of real property taxes
→ Certified true copy of the latest tax declaration of the property
→ Photocopy of Official receipt for payment of real property tax for the
property
P50 – tax clearance
Costs and Fees
50 – real estate clearance
Associated
30 – documentary stamp
4.
Obtain certified true copy of latest Tax Declaration and certificate of “With
Procedure
Improvement”
Agency City Assessor’s Office
Documents Takes place simultaneously with procedure 3
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P50 – per Right of Perpetual Usufruct (RPU)

Costs and Fees 50 – certificate of “with improvement”
Associated 20 – per document for DST
*P100+15 – Sworn declaration of No Improvement
5.
Pay documentary stamp tax and final capital gains tax for the transfer of real
Procedure
property
Agency Authorized Agent Bank » BIR
Buyer/Seller files the:
→ 1) Capital gains tax return; and
Documents → 2) Documentary stamp tax return
→ CGT is a Creditable withholding tax at 6%
→ Documentary Stamp Tax at 1.5%
Costs and Fees
---------
Associated
Time to complete ---------
Procedure Pay documentary stamp tax and final capital gains tax for the transfer of real
property
Agency --------
Documents Documentation shall include:
→ Original & photocopy of notarized Deed of Sale (procedure1)
→ Certified true copy of Transfer Certificate of Title(in the name of
seller)
→ Certified true copy of the latest Tax Declaration(in the name of the
seller)
→ Photocopy of the latest tax receipt
→ Letter-request
→ Identification card of the person requesting (ID)
Costs and Fees --------
Associated
6.
Procedure Obtain Certificate Authorizing Registration
Agency Bureau of Internal Revenue
Certificate Authorizing Registration (CAR) – the transfer has been
reported and taxes due are fully paid.
Documents Documentation shall include (& 2 Photocopies):
→ Tax Identification Number of Seller and Buyer
→ Notarized Deed of Sale
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Certified true copy of the latest tax declaration issued by the CAO for
the Land and Improvement applicable to taxable transaction
→ Owner’s copy of the Original Certificate of Title (COT), or the
Transfer Certificate of Title (TCT)
→ Certificate of “With Improvement” issued by CAO; or Sworn
declaration of No Improvement by at least one of the parties
→ Official Receipt issued by the notary public
Costs and Fees P100 – certification fee
Associated 30 – Documentary tax
7.
Procedure Pay the Transfer Tax at the City Assessor’s Office
Agency City Assessor’s Office » Real Estate Tax Division
→ Original copy of the Deed of Sale
Tax Clearance Certificate (TCC; procedure 3)
Documents
→ Tax Declaration from the CAO (procedure 4)
→ Official receipt from the BIR(procedure 5)
→ Certificate Authorizing Registration (CAR; procedure 6)
Costs and Fees 0.75% - as transfer tax, based of property price
Associated P125- for certificate o f payment
8.
Procedure Apply for registration with Register of Deed
Agency Register of Deeds
→ Copy of Deed of Sale
Official Receipt evidencing payment of transfer tax(procedure 7)
→ Certificate Authorizing Registration (CAR), including OR for payment
Documents of CGT & DST
Real property tax clearance from the CTO(procedure 3)
→ Original copy of the owner’s duplicate of Transfer Certificate of Title
(TCC; or OCT)
→ Original copy of the latest tax declaration
P8,796 – for the first 1.7M
90 – for every 20k excess or fraction thereof
Costs and Fees 199.56- legal research fee
Associated 30 – judicial form fee
344.93 – IT fee, per document
30 – primary entry fee, per document
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30 – annotation fee, per document

258 - for the new Transfer Certificate of Title (TCC)
P120 – registration fee for specific document, per document
30 – fixed entry fee for specific document, per document
10 – legal research fee for specific document, per document
9.
Procedure Prepare the notarized Deed of Sale and related documents
Agency City Assessor’s Office
The buyer applies for issuance of a new tax declaration in his name
→ Photocopy of Notarized Deed of Sale
Copy of latest tax declaration (in the name of seller)
Documents
→ Tax Clearance Certificate of real property taxes from CTO
Certificate Authorizing Registration from the BIR
Photocopy of OR of transfer tax payment
Transfer Certificate of Title in name of the buyer
Costs and Fees
No Charges
Associated
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LAWS, REGULATIONS AND REGULATORY AGENCIES
LAWS, REGULATIONS
AND
REGULATORY AGENCIES
(DTI & SEC)
Submitted by:
Avaricio, Ran Klein
Feliciano, Valerie Anne
Gonzales, Fredrick
Molano, Jorie
Natividad, Maru Ann
Taguinod, Ansherina
Submitted to:

Instructor
September 2021
1|Page
TABLE OF CONTENTS
Title: Laws, Regulations and Regulatory Agencies………………………………………………………...1
Table of Contents……………………………………………………………………………………………2
1. General- Department of Trade and Industry………………………………………………………...3
A. Objectives………………………………………………………………………………………..5
B. Roles, Structure and Authorities…………………………………………………………………6
C. Key Applicable Laws…………………………………………………………………………….7
D. Key Regulatory Requirements and Penalties for Non-Compliance……………………………..13
E. Latest News and Updates………………………………………………………………………...16
2. General- Securities and Exchange Commission……………………………………………………..29
A. Objectives………………………………………………………………………………………...30
B. Roles, Structure and Authorities………………………………………………………………….32
C. Key Applicable Laws……………………………………………………………………………..32
D. Key Regulatory Requirements and Penalties for Non-Compliance………………………………36
E. Lates Updates and News…………………………………………………………………………..37
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Current Secretary: Ramon M. Lopez
What is DTI?
The Department of Trade and Industry (DTI) is a prime mover of consumer welfare. It is committed to
protecting the rights and interests of the consumers and is also committed to developing policies and programs
aimed at sustaining the growth and development of the Philippine economy. Besides overseeing the effective
implementation and enforcement of trade regulation and fair trade laws, the DTI provides protection to
consumers through consumer education and information dissemination programs.
Established to address local industry and foreign trade growth, The Department of Trade and Industry
(DTI) traces its history back to the creation of the Department of Commerce in 1898. At the time, its primary
mandate involved supporting the Department of Agriculture and Commerce towards developing national trade
and industry. Nearly 75 years following its inception, changes in government and agency functions would make
possible the establishment of the Ministry of Trade and Industry, and, following the People Power Revolution,
the Department as it is presently known.
1898- OUR BEGINNINGS
The DTI had its beginnings on 23 June 1898 when President Emilio F. Aguinaldo formed four
government agencies, namely the Departments of Navy, Commerce, Agriculture, and Manufacturing.
1901- DEPARTMENT OF COMMERCE AND INDUSTRY
The Philippine Commission established the Department of Commerce (and Police). After World War II,
President Manuel A. Roxas issued Executive Order (EO) 94 on 04 October 1947, creating the Department of
Commerce and Industry (DCI). Cornelio Balmaceda, a much sought-after Economics Professor and Bureau of
Commerce (BOC) Director, was appointed Acting Secretary of the newly created Department of Commerce and
Industry. Prior to EO 94, the Bureau of Commerce was tasked to develop and promote the trade and industry of
the country under the overall supervision of the Department of Agriculture and Commerce (Act 4007 on 05
December 1932 by the Philippine Legislature.
1972- AFTER 25 YEARS
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DCI had grown into a big organization with 10 regular bureaus and 22 agencies under its direct
supervision. The DCI was mandated to promote, develop, expand, regulate, and control foreign and domestic
trade, industry, and tourism.
1973- DEPARTMENT OF INDUSTRY
To have closer supervision and ensure more effective delivery of services, President Ferdinand E.
Marcos issued Presidential Decree (PD) 189 on 11 May 1973, creating the Department of Tourism to handle all
tourism-related matters. A year later, 21 June 1974, Marcos issued PD 488 creating the Department of Industry
whose principal function was to promote and enhance the growth of the existing and thriving industries in the
country.
1975- DEPARTMENT OF TRADE
On 02 June 1975, the Department of Trade was created under PD 721 to pursue efforts of the
government toward strengthening socio-economic development of the country, particularly in the area of
commercial activities. A key strategy of the new department was vigorous export promotion to generate much
needed foreign exchange (forex). A Bureau of Foreign Trade was also established to push for domestic trade
and marketing programs.
1981- MINISTRY OF TRADE AND INDUSTRY
In the early 80s, the national economic development goal of the Marcos government required the need to
hew industrial promotion efforts with the expansion of Philippine trade overseas. This resulted in the creation
on 27 July 1981 of the Ministry of Trade and Industry, which took over the functions of the subsequently
abolished Departments of Trade and of Industry.
1987- DEPARTMENT OF TRADE AND INDUSTRY
Drastic changes followed after the People Power Revolution. President Corazon C. Aquino signed on 27
February 1987 EO 133, reorganizing the Ministry of Trade and Industry and renaming it the Department of
Trade and Industry (DTI).
About its logo
The simple yet bold and clear logotype signifies a willingness and ability to take proactive measures
and clearly defined approaches to achieve measurable results that will create an impact on consumers and
businesses, notably small and medium enterprises in the countryside.
The neat typeface connotes stability. The connected letters (dti) stand for a unified team working as one
with all instrumentalities of the government and the private sector to build a strong nation that is one in purpose
and aspiration.
The Philippine map within the dot of the letter ‘i’ signifies a country with a strong presence in the
global marketplace.
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The colors represent the Philippine flag: red for moral courage and strength of vision, and blue for
integrity and loyalty to country.
VALUES, MISSION, VISION & MANDATE
Anchored on the Values of Passion, Integrity, Creativity, Competence, Synergy, and Love of Country,
and our Mission as the government’s main economic catalyst in Enabling innovative, competitive, job-
generating, inclusive business, and Empowering consumers. These we do in order to achieve our Vision 2022
of “A more inclusive and prosperous Philippines with employment and income opportunities for all.”
VALUES
 Passion
 Integrity
 Creativity
 Competence
 Synergy
 Love of Country
MISSION
Enabling innovative, competitive, job-generating, inclusive business, and Empowering consumers.
VISION
“A more inclusive and prosperous Philippines with employment and income opportunities for all.”
(Vision 2022)
MANDATE
The DTI is responsible for realizing the country’s goal of globally competitive and innovative industry and
services sector that contribute to inclusive growth and employment generation.
Pursuant to the Philippine Development Plan (PDP) 2017-2022, we shall endeavor to reduce inequality and
poverty by expanding economic opportunities in industry and services, and by increasing the access
particularly of micro, small and medium enterprises (MSMEs), cooperatives and overseas Filipinos (OFs)
to these opportunities. To attain these sector outcomes by 2022, we need to:
 Increase local and foreign direct investments

 Increase competitiveness, innovativeness and resilience of industries and services
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 Improve access to finance, to production networks, and to markets
 Enhance productivity, efficiency, and resilience
 Ensure consumer access to safe and quality goods and services
These we accomplish through six major programs:
 Exports and Investment Development Program

 Industry Development Program
 SME Development Program
 Consumer Protection Program
 Consumer Education and Advocacy Program
 Good Governance Program
ROLES, STRUCTURE, AND AUTHORITIES
 ROLES
 Department of Trade and Industry (DTI)- committed to protecting the rights and interests of the
consumers and is also committed to developing policies and programs aimed at sustaining the growth and
development of the Philippine economy. Besides overseeing the effective implementation and enforcement
of trade regulation and fair trade laws, the DTI provides protection to consumers through consumer
education and information dissemination programs. Information materials such as Consumer Alerts, Tips,
and Advisories are regularly released and updated. It also provides a mechanism for the speedy resolution of
consumer complaints. The Bureau is currently preparing guidelines to help consumer organizations develop
and strengthen.
 Structure
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DTI’s 6 major functional groups

1. Competitiveness and Innovation Group (CIG) – Established in support of the President’s socio-
economic agenda to increase competitiveness, innovation, and ease of doing business.
2. Consumer Protection Group (CPG) – In-charge of the enforcement of laws to protect consumers,
consumer education, and formation of consumer groups.
3. Industry Development and Trade Policy Group (IDTPG) – Responsible for trade and industry policy
formulation and implementation of the Manufacturing Resurgence Program.
4. Management Services Group (MSG) – Ensures operational efficiency within the Department by
providing support services to all units to properly equip them in the performance of their respective
functions.
5. Regional Operations Group (ROG) – Responsible for the field operations of the DTI in the regions
and provinces.
6. Trade Promotions Group (TPG) – Responsible for DTI’s export and investment development
program.
KEY APPLICABLE LAWS
A. Accreditation of Repair Shop and Service

B. Business Name Related
C. Exports
D. E-commerce
E. MSME
A. PRESIDENTIAL DECREE No. 1572

Section 1. Accreditation
All enterprises and technical personnel employed therein engaged in the service and repair of
motor vehicles, heavy equipment, engines and engineering works; electronics, electrical, air-
conditioning and refrigeration; office equipment; medical and dental equipment; and other consumer
industrial electro-mechanical, chemical and gaseous equipment, machinery appliances or devices, shall
apply for accreditation with the Department of Trade within ninety (90) days from the promulgation of
this Decree and shall apply for renewal on or before the 31st day of January of every year thereafter.
There are four main categories for an accredited service enterprise or repair shop. These are:
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- Automotive and Heavy Equipment
- Engine and Engineering Works and Machine Shops
- Electronics, Electrical, Airconditioning, and Refrigeration
- Office and Data Processing Equipment
Procedures on application for accreditation:

1. Accomplish the accreditation application form, biodata, warranty, and attach supporting documents and
requirements.
2. Submit the documents for evaluation. If complete and in order, the applicant will be issued an Order of
Payment slip to pay the required accreditation fees.
3. Pay the required accreditation fees at the Cashier.
4. Submit the validated Order of Payment slip and the application documents
B. Business Name Related
1. Republic Act No. 3883
An Act to regulate the use in business transactions of names other than true names,
prescribing the duties of the Director of the Bureau of Commerce and Industry* in its enforcement, providing
penalties for violations thereof, and for other purposes.
Qualifications of an Applicant:
A person who is at least eighteen (18) years old, doing business Or proposing to do
business in the Philippines under a BN as defined in this Order and who is not disqualified by any existing law
or regulation to engage in business IS QUALIFIED TO APPLY FOR A BN REGISTRATION.
Period to file
- Original Application
The Original application must be filed AT ANYTIME before the commencement of the
applicant's business operation
- Renewal Application
Applications for renewal shall be filed WITHIN SIX (6) MONTHS IMMEDIATELY
FOLLOWING the expiration of the registration.
How to get a Certified True Copy of my Certificate of BN Registration?

Applicants may request for a Certified True Copy of your Certificate of BN Registration at any DTI Office with
the following requirements:
1. Submission of Other BN-Related Application Form (Annex D)
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2. Presentation of a valid ID as indicated in (Annex A)
3. Payment of fee prescribed in (Annex E)
The Certificate of BN registration is valid for five (5) years from the date of registration.
Schedule Of Fees
This schedule covers the following fees:
1. Registration fee for new and renewal applications based on territorial scope;
2. Fees for administrative, research and other miscellaneous expenses; and
3. Other charges for relevant certifications, changes in information, territorial scope, cancellations, directories,
statistical data, and listings generated.
2. Republic Act No. 7844 Export Development Act Of 1994

Export Development Act of 1994 (Republic Act No. 7844) is an act to develop exports
as a key towards the achievement of the national goals towards the years 2000.
Accreditation Of Exporters Under The Export Development Act
The Department of Trade and Industry-Export Marketing Bureau (DTI-EMB) offers
free accreditation of exporters under Republic Act (RA) 7844 or the Export Development Act (EDA) of 1994.
Export incentives are one of the salient provisions in the EDA which aims to encourage
investments in the export sector by offering support measures to qualified companies. In the case of DTI-
EMB’s EDA accreditation, this service is offered to export-oriented enterprises whose export sales comprise
more than 70% of their total annual production.
Required Documents for Accreditation of Exporter
1. Accomplished Application for Accreditation of Exporters Form
2. Notarized Affidavit of Compliance with the Minimum Wage and SSS Laws (download EDA Sworn
Statement Proforma Text, transfer to your company’s letterhead).
3. Audited Financial Statements
4. Bank Certification of Export Performance same year with No. 3 (Summary of Inward Remittance for
Export Sales).
THE PHILIPPINE EXPORT DEVELOPMENT PLAN
R.A. 7844 or the Export Development Act of 1994 mandates the DTI to prepare the
Philippine Export Development Plan (PEDP), a rolling 3-year plan which forms part of the Medium-Term
Philippine Development Plan, now referred to as the Philippine Development Plan.
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3. Republic Act 10817 and the Philippine Halal Export Development and Promotion
Act
An act instituting the Philippine Halal Export Development and Promotion Program,
creating for the purpose the Philippine Halal export development and promotion board, and for other purposes.
HALAL
- is usually seen on the packaging of some food products and on signs of some establishments. Halal is a
religious matter and is dealt with by Islamic religious organizations.
- refers to what is permissible or lawful in traditional Islamic law.
Securing HALAL certification requires compliance with certain requirements set by HALAL certifiers
such as:
a) submission of a letter of intent, filled out application forms (usually downloadable from the website of
HALAL certifier), and supporting documents.
b) document evaluation;
c) audit/ocular inspection;
d) audit inspection report;
e) submission of sample product for analysis;
f) final report and recommendation;
g) payment of applicable fees (certification/service fee, laboratory fee); and
h) issuance of HALAL certificate/HALAL logo. HALAL certification is valid for one year and
renewable. HALAL certifiers have adopted a unified HALAL logo for the purpose of protecting and
safeguarding consumer rights locally and abroad.
Payment of Applicable Fees
In the guidelines for Halal certification issued by National Commission on
Muslim Filipinos (NCMF) in 2012, “an amount of P30,000 shall be charged to the body/entity whose
application for accreditation is approved” and the cost of “renewal of accreditation will be P10,000
annually, for up to five consecutive years.”
The Philippine government adopted a national Halal logo or mark in July 2019
to identify halal-certified products produced in the country.
C. E-commerce

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AN ACT PROVIDING FOR THE RECOGNITION AND USE OF ELECTRONIC COMMERCIAL
AND NON -COMMERCIAL TRANSACTIONS AND DOCUMENTS, PENALTIES FOR
UNLAWFUL USE THEREOF AND FOR OTHER PURPOSES.
Examples of electronic records include:
emails, websites, Word/Excel documents, digital purchase receipts, databases,
text messages, social media postings, and information stored on SharePoint sites and content
management systems.
The following Acts shall be penalized by fine and/or imprisonment, as follows:
a) Hacking or cracking which refers to unauthorized access into or interference in a computer
system/server or information and communication system shall be punished by a minimum fine of one
hundred thousand pesos (P100,000.00) and a maximum commensurate to the damage incurred and a
mandatory imprisonment of six (6) months to three (3) years;
b) Piracy or the unauthorized copying, reproduction, dissemination, distribution, importation, use,
alteration, uploading, downloading, making available to the public, or broadcasting of protected
material, electronic signature or copyrighted works including legally protected sound recordings or
information material on protected works shall be punished by a minimum fine of one hundred thousand
pesos (P100,000.00) and a maximum commensurate to the damage incurred and a mandatory
imprisonment of six (6) months to three (3) years;
c) Violations of the Consumer Act or Republic Act No. 7394 and other relevant or pertinent laws through
transactions covered by or using electronic data messages or electronic documents, shall be penalized
with the same penalties as provided in those laws;
d) Other violations of the provisions of this Act, shall be penalized with a maximum penalty of one million
pesos (P1,000,000.00) or six (6) years imprisonment.
2. Republic Act (RA) 10173

or the Data Privacy Act of 2012 (DPA), enforces data privacy protection in the
Philippines to ensure transparency, legitimate purpose, and proportionality in data collection and
processing.
Purposes of this Law:
- It protects the privacy of individuals while making sure of free flow of information to promote
innovation and growth;
- It regulates the collection, recording, organization, storage, updating or modification, retrieval,
consultation, use, consolidation, blocking, erasure or destruction of personal data;
- It makes sure that the Philippines is compliant with international standards set for data protection
through the National Privacy Commission (NPC).
D. MSME
1. Republic Act 10644
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“An Act Promoting Job Generation and Inclusive Growth Through the
Development of Micro, Small and Medium Enterprises”, otherwise known as the “Go Negosyo Act”. It
was enacted into law on 15 July 2014 by His Excellency President Benigno Simeon C. Aquino III.”
The following are the salient features of the Act:
-Establishment of Negosyo Centers in all provinces, cities and municipalities nationwide
-Establishment of a Start-up Fund for MSMEs to be sourced from the MSME Development Fund and
BMBE Fund
-Technology Transfer, Production and Management Training, and Marketing Assistance for SMEs
-Recomposition of the MSME Development Council and its additional functions
The DTI Department Administrative Order No. 14-5 Series of 2014:
“Implementing Rules and Regulations for Republic Act No. 10644, An Act Promoting Job Generation
and Inclusive Growth Through the Development of Micro, Small and Medium Enterprises, otherwise
Known as the “Go Negosyo Act”” was published on 29 December 2014.
The Negosyo Center Program
Is responsible for promoting ease of doing business and facilitating access to
services for Micro, Small, and Medium Enterprises (MSMEs). Republic Act No. 10644 otherwise
known as the “Go Negosyo Act,” seeks to strengthen MSMEs to create more job opportunities in the
country.
An Act To Promote The Establishment Of Barangay Micro Business
Enterprises (BMBES), Providing Incentives And Benefits Therefor, And For Other Purposes.
Any business enterprise engaged in processing, manufacturing of products,
including Agro-processing, as trading and services and production, which the total asset is less than 3
million, including assets from loans but not including the value of land which the business or equipment
are located.
Incentives And Benefits
a. Exemption from Taxes and Fees. – All BMBEs shall be exempt from income tax for income arising
from the operations of the enterprise.
Exemption from the Coverage of the Minimum Wage Law. The BMBEs shall
be exempt from the coverage of the Minimum Wage Law. Provided, That all employees covered under
this Act shall be entitled to the same benefits given to any regular employee such as social security and
healthcare benefits.
b. Technology Transfer, Production and Management Training, and Marketing Assistance. – A BMBE
Development Fund shall be set up with an endowment of Three Hundred Million Pesos
(P300,000,00) from the Philippine Amusement and Gaming Corporation (PAGCOR) and shall be
administered by the SMED Council.
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Who are Eligible to Register?
Any person, natural or juridical, or cooperative, or association, having the
qualifications as defined in Section 3(a) hereof may apply for registration as BMBE.
Penalty
Any person who shall willfully violate any provision of this Act or who shall in
any manner commit any act to defeat any provision of this Act shall, upon conviction, be punished by a
fine of not less than Twenty-five Thousand Pesos (P25,000.00) but not more than Fifty Thousand Pesos
(P50,000.00) and suffer imprisonment of not less than six (6) months but not more than two (2) years.
KEY REGULATIONS AND PENALTIES FOR NON-COMPLIANCE
TO REGISTER YOUR NAME IN DTI

1. Prepare your business name
2. Confirm the availability of your business name
3. Fill up the online registration form through their business name registration system(bnrs) take note of
the reference code that will beused in all transactions with BNRS
4. Pay the registration fee
Territorial scale fee
Barangay 200 pesos
City/municipality 500
Regional 1000
5. Download your certificate
RENEWAL OF BUSINESS NAME

General documents:
FOR SOLE PROPRIETORSHIP:

 BTRCP Form No.16a BTRCP16A
-business name application for sole prop (original and renewal) (to be printed using legal sized bond paper)
 Original copy of business name certificate

If lost, affidavit of loss of owner
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 Two copies of lates 2x2 id pictures bearing applicant’s signature at the back
Payment of 300 pesos

Payment for documentary stamp of 15 pesos
FOR CORPORATE NAMEREGISTERED AS A BUSINESS NAME:

BTRCP FORM NO. 16B
 Business name application for corporations, partnership and other juridical entities
(original and renewal) (to be printed using legal sized bond paper
If lost, affidavit of loss of owner
Certified tru/ machine copy of the securities and exchange commission (SEC) registration certificate and
articles of incorporation by SEC or corporate secretary in each of the pages
 If registering an adopted name, board resolution for the use and registrationof an adopted name
- Board resolution re appointed of the authorized signatory, if signatory is not one of the incorporators
Payment of 500 pesos
Forment for documentary stamp of 15
FOR COOPERATIVES:
BTRCP form No. 16B
- Business name application for corporations, partnership, and other juridicial entities
- Legal size
Original copy og business name
CTC and articles or cooperation by CDA or Board secretary in each of the pages
If registering an adopted name, board resolution for the use and registration of an adopted name
resolution reappointment of the authorized signatory, if signatory is not one of the board members Board
Payment 500
Payment for docu stamp 15
OTHER REQUIREMENTS:
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If the surname of the owner/ registrant is suggestive of an alien nationality, any of the following
documents( original and photocopy)
- birth cert
- Voter’s id
- Passport
- Professional regulation commission id
If engage in the practice of a profession:
PRC regulated professions- original and photocopy of the professional regulation commission(PRC ID and
contract of employment( if applicable or certification of good standing from PRC
Insurance agent- License from insurance commission

Real estate broker/ salesman- license from department of DTI
If engaged in repair and service business covered by P.D 1572 (accreditation law)
And its implementing rules, a certificate of accreditation is required
If there is a change in the marital status, a marriage certificate is required
Such other requirements that the DTI may require to protect public interest.
PENALTIES TO NON COMPLIANCE

Surcharege fee:
The application for renewal is filed after the said period to three months, it shall be subject to a surcharge to be
added to the registration fee, in the amount of one hundred pesos
DTI Registration is valid for 5 years. Applications for renewal should be filed within the first 6 months from the
expiry of the registration. If the renewal is made during the last 3 months thereof, a s urcharge of 50% of the
registration fees shall be imposed. Grace period (90 days)
Any business name which has expired after its five-year effectivity and is not renewed within months would be
cancelled from the record upon publication of notice in a newspaper in a newspaper of general circulation
Registration of business name is required according to the business name law (republic act 3883)
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Fail to properly register in dti

5000-20,000 and imprisonment of between 6 months and 2 years
Aside from being liable for deficiances taxes and penalties for failing to register
LATEST NEWS AND UPDATES
DTI Share Ko Lang

Department of Trade and Industry’s #SKL encourages the content creator, vloggers and social media
influencers to legitimate their business.
DTI PM is the Key
PM sent? PM is the key? The sector reminds the public and online sellers, that sells products
without appropriate price tag, label or marking is prohibited in accordance to the article 81 of Consumer Act
or RA 7394.
The DTI encourages the public to report and file a complaint to those online sellers who violates this
act. The guidance for filling a complaint was in the DTI Complaint Page on their website.
DTI launches 2021 Hybrid National Food Fair with digital mall opening
Combining the reach and flexibility of digital market platforms, the Department of Trade and Industry –
Bureau of Domestic Trade Promotion (DTI-BDTP) conceptualized a program of activities that will
promote the Micro, Small and Medium Enterprises (MSME’s) engaged in the food industry. The 2021
Hybrid National Food Fair consists of virtual components such as the series of online events culminating
in a physical food fair towards the end of the year.
The program officially launches yesterday, Friday, September 17, 2021, virtually via live on the Bureau
of Domestic Trade Promotion (BDTP) Facebook page. This is also the opening of the National Food
Fair Digital Mall, which will serve as the permanent e-commerce platform for food entrepreneurs from
the country’s 16 regions. For starters, 836 food products from 108 MSMEs will be showcased in the
National Food Fair Digital Mall.
It will be a 10-day program which will include various of activities such as free webinars and business
talks, cooking demos, wine mixing show, product showcase, daily raffle draw and many more. From
September 17 to 26, the public can join this event by signing up on zoom or by watching live on the
BDTP Facebook page. The schedules of events on the program were also posted on the said page.
DTI GAD Agenda: Women as Exporters

The Department of Trade and Industry’s (DTI) Gender and Development Program follows closely the
Magna Carta of Women (Republic Act 9710) passed in 2009, which provides specific interventions by
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DTI on women’s economic empowerment. DTI programs that focus on women’s participation and
benefits in livelihood and entrepreneurial activities are: mainstreaming GAD in development plans,
sustaining women in business, capacitating women in entrepreneurship, and greater and better access to
business finance.
The latest DTI GAD program is the DTI GAD: Women as Exporters. This program is for Filipina
entrepreneurs to facilitate trade in global arena. With the help of GAD agenda and DTI’s inclusive
policies and assistance program, more women now are empowered to become a successful exporter.
One of its programs in helping these Filipina entrepreneurs to boost and grow their business is the
Kapatid Mentor Me Project.
Kapatid Mentor Me Project.
This Project Kaptid is an initiative of the DTI and the Philippine Center for Entrepreneurship (PCE) to help
the country’s micro and small enterprises (MSEs) through three key components:
 The Mentor ME (micro entrepreneurs) program, a coaching and mentoring approach where large
corporations teach MSEs on different aspects of business operations
 The Adopt-an-SSF (Shared Service Facility) program, which aims to help micro entrepreneurs by
providing them access to SSFs in their community
 The Inclusive Business (IB) model where MSEs are linked into large companies’ value chains
This Mentor ME program aims to help the micro and small entrepreneurs to scale up their
enterprises, to spur economic activity and generate employment opportunities and mainstream
OTOPreneurs who are ready for business expansion.
It features modules that shall subject the mentees to various business concepts and develop the
acumen needed in scaling up and sustaining an enterprise:
 The Entrepreneur, which discusses the mindset and values of a successful entrepreneur
 The Enterprise, a seven-topic module covering the basic functional areas of an enterprise:
o Product development
o Marketing
o Operations management
o Accounting
o Taxation
o Finance
o Obligations and contracts
 Sustaining the Enterprise, a four-topic module which focuses on sustainability amidst growth:
o HR management
o Supply and value chain
o Succession planning
o Business plan development
The Kapatid Mentor ME (KMME) has been implemented since 2016 as a 10-module mentorship
program that optimizes weekly face-to-face interactions between the mentors and the mentees. However,
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due to the pandemic face to face interactions became limited, with this the KMME-MME Online was
developed.
This KMME-MME Online is designed to integrate the Money Market Encounter (MME) into
the regular KMME Program. This will be achieved through the presentation of Business
Improvement Plan (BIP) to an expanded panel of evaluators composed of representatives from banks, online
market platforms and other business support organizations. Coaching is added in the program to assist the
mentees during the drafting of their BIPs and improve their materials and presentation skills. Coaching is also
envisioned to further develop their capacities in accessing CAPITAL and MARKET. Thus, enabling
them to pivot and prepare for the new normal. KMME- MME Online will be implemented in the new normal
using the Zoom app. It addresses the urgent need for the continued access of mentees to Money, Market
and Mentorship (or the 3Ms) without compromising the safety of the stakeholders involved and the
overall effectiveness of the comprehensive KMME Programs.
Philippine Exporters urged to look into EFTA countries
The Local exporters and MSMEs are invited to a webinar organized by the Department of Trade and
Industry and the Department of Agriculture on 28 September 2021 from 4:00PM-6:00PM, where they
can receive expert guidance on how to take full advantage of the Philippines-EFTA free trade agreement
(PH-EFTA FTA) to break into and expand their existing operations in Europe. On this webinar the
EFTA member countries will share the opportunities and requirements to succeed in their markets.
In June 2018, the country’s free trade deal with Iceland, Liechtenstein, Norway, and Switzerland entered
into force after a near ten-year journey that started when the EFTA member states indicated their interest
in forming an agreement in 2009. Under the agreement, Philippine exporters benefit from reduced, if not
zero, tariffs, liberal rules of origin, and trade-facilitating features aimed at increasing two-way trade. The
FTA also eliminates the need to secure a Certificate of Origin from the Bureau of Customs. This
commitment of the DTI helps the businesses to grow become global, and share in the benefits of
international trade by opening new markets for Philippine products, as said by DTI Undersecretary
Ceferino S. Rodolfo. In addition to promoting trade in goods, the EFTA also improves trade in services.
Philippine service suppliers, particularly architects and engineers who want to test their skills in EFTA,
can benefit from commitments by the member countries for cross-border movement.
For the upcoming webinar, officials from the EFTA Secretariat in Geneva will walk the audience
through the process of navigating the regulatory landscape to be able to export to EFTA. Krisztina
Bende, trade relations division director of the EFTA Secretariat, will headline the event. Ola Godø
Andersen, senior officer, will discuss trade in goods, rules of origin, and trade facilitation. Inger
Gregersen, officer, will touch on government procurement, trade, and sustainable development. Bruno
Hässig, officer, will cover trade in goods, agriculture, and sanitary and phytosanitary (SPS) issues. A
speaker from the Philippine Bureau of Customs will also discuss the PH-EFTA approved exporter
scheme in detail.
ECOTHON Sustainable Consumption and Production in Philippines 2021
Ecothon in the Philippines in partnership with DTI and other related agency calls for all STARTUPS to
join the Ecothon Philippines 2021: Hackathon for Sustainable Consumption & Production.
 What is Ecothon?
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Ecothon is a hackathon-type business model competition for fostering early-stage startups with
SCP (Sustainable Consumption and Production) solutions. It is 36 hours of intensive boot camp for
young eco-entrepreneurs to develop an innovative Sustainable Business Model. The
program includes lectures and workshops, expert mentoring, team activity, and final pitching.
 What is SCP?
Among the 17 UN Sustainable Development Goals (SDGs). Ecothon brings to focus on SDG 12:
Sustainable Consumption and Production (SCP). The concept of SCP links economic processes
to the environment and natural resources and provides policy instruments and tools to encourage
cleaner production and responsible consumption
 For whom?
A business team or a startup with more than three (3) members which:
 has an innovative SCP solution; or
 wants to develop a feasible SCP strategy for their business model; and
 is located in the Philippines and wants to run a business in the Philippines in the near future.
 Program
 Innovative Business Idea
 Developing Business
 Setting SCP Business Goal
 Developing Sustainable Business Model
 Demo day
MEMORANDUM CIRCULA NO. 21-32
Series of 2021
SUBJECT: ON SITE OPERATIONAL CAPACITY OF ESTABLISHMENTS, PERSONS,

AND ACTIVITIES IN THE NATIONAL CAPITAL REGION UNDER THE PILOT
IMPLEMENTATION OF ALERT LEVELS SYSTEM FOR COVID-19 RESPONSE
The forgoing guidelines will be applicable in the NCR for the pilot period of 16 to 30 September 2021.
SECTION 1. Business Establishments, Persons or Activities Allowed to Operate OnSite Under

Various Alert Levels. The updated operational capacity of business establishments, persons, and
activities based on the corresponding alert levels declared in their respective areas are provided.
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SECTION 2. Personal Care Services Guidelines. Subject to existing applicable MPHS, personal care
services and establishments shall comply with the updated guidelines and protocols.
SECTOR-SPECIFIC MINIMUM PUBLIC HEALTH STANDARDS FOR PERSONAL CARE

SERVICES
Consistent with the minimum public health standards (MPHS) prescribed by the Department of
Health (DOH) under Administrative Order No. 2021-0043 and DTI-DOLE Joint Memorandum
Circular No. 2020-04-A, owners or designated safety officers of establishments engaged in offering
personal care services are required to implement and maintain the following sector-specific public
health standards:
PREVENTION
A. Engineering Controls
Ensure adequate air exchange in enclosed areas through the implementation of strategies
as cited in DOLE Department Order No. 224-21 or the Guidelines on Ventilation for
Workplaces and Public Transport to Prevent and Control the Spread of COVID-19,
such as:
Maximizing natural ventilation through opening of windows;
Use of low-cost modifications to improve air flow (i.e. addition of fans or exhaust
fans);
Identification of multi-occupant spaces that are used regularly and are poorly
ventilated. Air flow shall be controlled to ensure indoor CO2 concentrations be
maintained at-or below 1,000 parts per million (ppm); and
Installation and regular maintenance of exhaust fans and air filtration devices with
High-Efficiency Particulate Air (HEPA) filters.
Install hand hygiene and sanitation facilities, and provide materials such as the following:
Adequate and safe water supply;
Hand washing station or sink;
Soap and water or 70% Isopropyl (or Ethyl) Alcohol; and
Hands-free trash receptacles, soap and towel dispensers, door openers, and other
similar hands-free equipment.
The use of foot baths, disinfection tents, misting chambers, or sanitation booths are
not recommended.
Maintain physical distancing by ensuring proper spacing of seats and reducing seating
capacity in accordance with the prevailing alert system where the establishment is
located.
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Establish a screening area at the point/s-of-entry. The following protocols must be
implemented thereat:
Health declaration or symptom assessment through the use of the Staysafe.ph

application, or any national and certified contact tracing application integrated
with the same, in the conduct of contact tracing activities. Those with symptoms
or exposure to probable, suspect, and confirmed COVID-19 cases shall not be
allowed entry.
All personnel and customers must undergo a non-contact temperature check, and
those with a temperature higher than 37.5 degrees centigrade shall not be allowed
entry.
Indoor barbershops, hair spas, nail spas, and beauty salons located in areas under Alert
Level 4 shall only accommodate asymptomatic fully vaccinated individuals who
must present valid proof thereof.
Install visual cues or signages to communicate:

Maintaining physical distancing of at least one meter distance;
Cough and sneeze etiquette;
Proper hand hygiene and control;
Proper use and disposal of PPE; and
Other critical reminders in the Prevent, Detect, Isolate, Treat,
Reintegrate (PDITR+) strategy, BIDA Solusyon and Resbakuna for the promotion
of the Government’s Vaccination Program .
Facility for proper storage, collection, treatment, and disposal of used PPE and other
infectious waste shall be in accordance with DOH AO 2021-0043.
Administrative Controls
Ensure adequate provision of personal protective equipment to all employees, regardless

of employment status, which includes:
Cloth or surgical masks, or face shields, as necessary; and
Gloves and other appropriate PPE for all personnel tasked to perform personal care
services to customers or do regular cleaning and disinfection of chairs and other
furniture, fixtures, and equipment.
Enforce limits on on-site capacity in accordance with the latest guidelines set by the
national government or limitations on venue/seating capacity or other prohibitions as
may be imposed by the host Local Government Unit (LGU).
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Maximize the use of text messaging and online tools for scheduling to avoid gathering in
queuing areas.
Disinfection shall adhere with the provisions outlined in DOH Department Memorandum
No. 2020-0157, its amendments and Cleaning and disinfection of environmental
surfaces in the context of COVID-19 by the WHO. For this purpose, all furniture,
fixtures, and equipment, including those inside the establishment and restrooms must
be properly and regularly sanitized.
Employers are encouraged to establish flexible policies on the provision of sick leaves
and health benefits.
The establishment shall, at all times, have a designated health and safety officer who will
be physically present in the establishment to ensure that the MPHS outlined herein
and government-imposed limitations on venue/seating capacity are strictly followed.
Any non-compliance with this requirement or to the MPHS shall serve as ground for
the temporary closure of the establishment, until such time that their violation is
rectified.
Personal Protective Equipment

Face masks must be worn at all times, regardless of the service to be performed (refer to
Figure 1 for guidance to barbershops when cutting the hair of clients with face
masks).
Proper donning and doffing of gloves after each served customer shall be observed.
Gloves and other appropriate PPE shall be used in performing activities such as cleaning
and disinfection.
SECTION 3. Operational Capacity of Indoor and Outdoor Dine-in and Personal Care Services
during the Pilot Period. Subject to compliance with MPHS, DTI MCs and DTI-DOT issuance/s on dine
in services, the operational capacity of dine-in services in NCR during the pilot period shall be –
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Meanwhile, subject to compliance with MPHS and personal care services in NCR are still not allowed during
the pilot period, except for the following services and/or activities--
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Current Chairman: Emilio Benito Aquino
What is SEC?
The Commission shall have the powers and functions provided by the Securities Regulation Code,
Presidential Decree No. 902-A, as amended, the Corporation Code, the Investment Houses Law, the Financing
Company Act, and other existing laws. The SEC is an agency under the Philippine Department of Finance that
is responsible for regulating the securities industry.
The SEC was established on 26 Oct 1936 by virtue of the Commonwealth Act No. 83 or the Securities
Act. Its establishment was prompted by the need to safeguard public interest in view of local stock market boom
at that time. Operations began on 11 Nov 1936 under the leadership of Commissioner Ricardo Nepomuceno. Its
major functions included registration of securities, analysis of every registered security, evaluation of the
financial condition and operations of applicants for security issue, screening of applications for broker’s or
dealer’s license and supervision of stock and bond brokers as well as the stock exchanges. The agency was
abolished during the Japanese occupation and was replaced with the Philippine Executive Commission. It was
reactivated in 1947 With the restoration of the Commonwealth Government. Due to the changes in the business
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environment under Pres. Ferdinand Marcos, the agency was reorganized on 29 Sept 1975 as a collegial body
with 3 commissioners and was given quasi-judicial powers under PD902-A.
In 1981, the Commission was expanded to include two (2) additional commissioners and two (2) departments,
one for prosecution and enforcement and the other for supervision and monitoring. Then on 01 December 2000,
the SEC was reorganized as mandated by R. A. 8799 also known as the Securities Regulation Code.
About its logo

In graphics design, this logo is classified as combination mark in that it fuses an icon and some text (or
wordmark) into a visual beacon. At first glance, it appears to be a cube suspended in mid-air but the two white,
parallel lines running across it vertically as though overlaid give it a distinct Escher-esque aesthetic to the entire
design – which is meant to stress the uniqueness of the SEC as a public sector institution in our country.
When seen from a distance, however, this logo is actually an elongated hexagon – the six sides of which
represent the core values of the SEC, viz: integrity, professionalism, accountability, independence, initiative,
and teamwork. Its shape imbues it with timeless integrity and allows it to exude elegant simplicity.
When seen up close, on the other hand, this logo features silhouettes of three rising buildings
representing the corporations (left), the SEC (middle), and the investors (right) all of which are sitting atop a
perfectly chiseled diamond serving as the bedrock of stability, reliability, and strength; and whose four sides
correspond to the people that make up the agency working together towards the achievement of its mission and
its vision, viz: the leadership, the management, the technical specialists, and the support staff; the image of
these buildings connotes the national economic development goal to which the agency is mandated to contribute
by way of its three critical roles, viz: corporate registrar, corporate regulator, and champion of investor
protection.
That green is the color of choice for this logo is meant to convey associations with life, growth, prosperity, and
the use of three varying shades thereof that blend well together is a way of paying homage to the Philippine flag
whose three major colors converge on a common vertex.
Principal Elements of the Logo
Hexagon – The shape depicts the SEC’s core values. It also suggests balance, cohesion and communication.
Three Rising Buildings – The bars represent the corporations, the SEC, and the investors. The image of these
buildings connotes the SEC’s contribution to national economic development through its three critical roles,
viz: corporate registrar, corporate regulator, and champion of investor protection.
Diamond – Each side of the diamond corresponds to the people who make up the agency working together
towards the achievement of its mission and its vision, viz: the leadership, the management, the technical
specialists, and the support staff.
Subliminal Elements of the Logo
Shield – The logo is reminiscent of a shield symbolizing the protection that the SEC provides to investors.
Gold Bars – The two bars on both sides are shaped as gold bars denoting wealth and prosperity, which are
important facets of the market it encompasses.
Philippine Flag – The three shades of the logo take their cue from the color pattern of the Philippine flag – to
pay homage to the Republic that the agency serves.
Color
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The SEC’s official color is green, which signifies life, growth and harmony. It also denotes money and
finances.
(VISION, MISSION, VALUES AND MANDATE)
VISION
By 2022, SEC is the champion of investor protection; the judicious administrator of an automated, reliable and
secured company registration and information systems; and the progressive overseer of a robust and inclusive
capital market in the ASEAN and Asia-Pacific Region.
MISSION
We develop and regulate the capital market and company registration; promote good corporate governance;
empower investors, corporators, and entrepreneurs; and facilitate access to financial products and resources.
VALUES
INTEGRITY
We are morally upright, honest, and sincere in our
private and public lives.
PROFESSIONALISM
We consistently implement the law, provide
timely and accurate information to investors, and render efficient, competent, and committed service
to the public in a fair and transparent manner.
ACCOUNTABILITY
We abide by prescribed ethical and work
standards and good governance principles in government service.
INDEPENDENCE
We act without fear or favor, and render sound judgment in the performance of our duties and
responsibilities.
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INITIATIVE
We are strategic, creative and forward-looking in the fulfillment of our developmental and
regulatory functions including identification and management of risks.
TEAMWORK
We engage in internal collaborative activities organized to facilitate inter-departmental
communication and cooperation.
MANDATE
The Commission was tasked to regulate the sale and registration of securities , exchanges,
brokers, dealers, and salesmen.
Today, SEC is tasked with “serious responsibility of enforcing all laws affecting corporations
and other forms of associations not otherwise vested in some other government offices.” In
addition to the aforementioned laws, the Commission also implements and acts either as lead or
support agency in administering and enforcing special laws , the more significant of which
are:
• Anti-Money Laundering Act of 2001 (RA 9160, as amended)

• Lending Company Regulation Act (LCRA) of 2007 (RA 9474)
• Financing Company Act (FCA) (RA 5980, as amended)
• Investment Company Act (RA 2629, as amended)
• Investment Houses Law (PD 129)
• Retail Trade Liberalization Act of 2000 (RA 8762)
• Foreign Investments Act of 1991 (RA 7402, as amended)
• Omnibus Investments Code of 1987 (E.O. 226, Book III)
• Anti-Dummy Law (Commonwealth Act 108, as amended)
• Civil Code of the Philippines (RA 386, Title IX – Partnership)
• Securitization Act of 2004 (RA 9267)
• Real Estate Investment Trust Act of 2009 (RA 9856)
• Personal Equity and Retirement Account Act of 2008 (RA 9505)
ROLES, STRUCTURE, AND AUTHORITIES
 Securities and Exchange Commission (SEC)- The role of the Securities and Exchange Commission itself
is to maintain efficient, transparent, and effective markets. SEC oversees the involvement and operations of
organizations and individual investors. The Commission monitors securities companies, self-regulatory
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organizations, and the stock markets.
SEC’s 5 Division
1. Division of Corporation Finance - This division is responsible for helping the Securities and Exchange
Commission in performing its role of overseeing the corporate disclosure of important information to
investors. When stock is sold, a corporation is required to adhere to regulations related to disclosure.
The Division of Corporation Finance is tasked to review on a regular basis disclosure documents that are
filed by corporations. It also helps interpret the rules of the SEC. It likewise gives recommendations
related to new adoption rules to the SEC.
2. Division of Trading and Markets - This division assists the SEC in ensuring that markets are fair,
orderly, and efficient. It oversees the day-to-day activities of major securities market participants,
securities firms, securities exchanges, self-regulatory organizations, clearing agencies, transfer agents,
credit rating agencies, as well as securities information processors.
3. Division of Investment Management - The division of Investment Management helps the Securities
and Exchange Commission in executing its role of protecting investors and promoting capital formation.
It oversees and regulates the country’s investment management industry. It ensures that disclosures
about investments such as mutual funds and exchange-traded funds are useful to retail customers. The
division also ensures that the regulatory costs are not too high.
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4. Division of Enforcement - The division of Enforcement is responsible for the enforcement of securities
laws. It gives recommendations on the commencement of investigations of securities law violations. It is
also in charge of working closely with law enforcement agencies to take on criminal cases.
5. Division of Economic and Risk Analysis - This division is in charge of protecting investors and
keeping markets fair, orderly, and efficient. It also provides economic analyses and data analytics, and
interacts with almost all divisions and offices within the Commission.
 Authorities
DTI Head - Secretary Ramon M. Lopez - Appointed as head of Department of Trade and Industry
since June 30, 2016
KEY APPLICABLE LAWS
A. Lending Company Regulation Act

B. Financing Company Act
C. Truth in Lending Act
D. The Consumer Act Of The Philippines
E. Revised Corporation Code of the Philippines
A. Lending Company Regulation Act

An Act Governing The Establishment, Operation And Regulation Of Lending
Companies
No lending company shall conduct business unless granted an authority to
operate by the SEC.
Lending Company shall refer to a corporation engaged in granting loans from
its own capital funds or from funds sourced from not more than nineteen (19) persons. It shall not be
deemed to include banking institutions, investment houses, savings and loan associations, financing
companies, pawnshops, insurance companies, cooperatives and other credit institutions already
regulated by law. The term shall be synonymous with lending investors.
It is hereby declared the policy of the State to regulate the establishment of
lending companies and to place their operation on a sound, efficient and stable condition to derive the
optimum advantages from them as an additional source cf credit; to prevent and mitigate, as far as
practicable, practices prejudicial to public interest; and to lay down the minimum requirements and
standards under which they may be established and do business.
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Authority of the SEC — The SEC is hereby authorized to:(a) Create a new division or bureau within its
control to regulate and supervise the operations and activities of lending companies in the country,(b)
Issue rules and regulations to implement the provisions contained herein;
Issue rules and regulations on, among other things, minimum capitalization,
uses of funds received, method of marketing and distribution, maturity of funds received, restrictions or
outright prohibition Of purchases or sales of receivables with or without recourse basis;Require from
lending companies reports of condition and such other reports næessary to determine compliance with
the provisions of this Act;
B. Financing Company Act
1. REPUBLIC ACT NO. 8556
An Act Amending Republic Act No. 5980, As Amended, Otherwise Known As The Financing
Company Act
Financing companies hereinafter called companies, are corporations, except banks,
investments houses, savings and loan associations, insurance companies, cooperatives, and other
financial institutions organized or operating under other special laws, which are primarily organized for
the purpose of extending credit facilities to consumers and to industrial, commercial, or agricultural
enterprises.
It is hereby declared to be the policy of the State to regulate and promote the
activities of financing and leasing companies to place their operations on a sound, competitive, stable
and efficient basis as other financial institutions.
C. Truth in Lending Act
An Act To Require The Disclosure Of Finance Charges In Connection With Extensions Of Credit
It is hereby declared to be the policy of the State to protect its citizens from a
lack of awareness of the true cost of credit to the user by assuring a full disclosure of such cost with a
view of preventing the uninformed use of credit to the detriment of the national economy.
Any creditor shall furnish to each person to whom credit is extended, prior to
the consummation of the transaction, a clear statement in writing setting forth, to the extent applicable
and in accordance with rules and regulations prescribed by the Board, the following information:
(1) the cash price or delivered price of the property or service to be acquired;
(2) the amounts, if any, to be credited as down payment and/or trade-in;
(3) the difference between the amounts set forth under clauses (1) and (2);
(4) the charges, individually itemized, which are paid or to be paid by such person in connection with
the transaction but which are not incident to the extension of credit;
(5) the total amount to be financed;
(6) the finance charge expressed in terms of pesos and centavos; and
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(7) the percentage that the finance bears to the total amount to be financed expressed as a simple annual
rate on the outstanding unpaid balance of the obligation.
E. The Consumer Act of the Philippines
The Consumer Act Of The Philippines
It is the policy of the State to protect the interests of the consumer, promote his
general welfare and to establish standards of conduct for business and industry. Towards this end, the
State shall implement measures to achieve the following objectives:
a) protection against hazards to health and safety;
b) protection against deceptive, unfair and unconscionable sales acts and practices;
c) provision of information and education to facilitate sound choice and the proper exercise of rights by
the consumer;
d) provision of adequate rights and means of redress; and
e) involvement of consumer representatives in the formulation of social and economic policies.
SEC NOTICE:
Subject: TRANSITION OF APPLICATIONS FOR REGISTRATION OF PARTNERSHIPS
AND LICENSING OF FOREIGN CORPORATIONS FROM CRS TO SEC ESPARC
Date: 14 SEPTEMBER 2021
Starting September 15, the SEC’s Company Registration System (CRS), which was the previous registration
and licensing system for partnerships and foreign corporations, will no longer accept and process the
aforementioned applications.
Instead, the said applications shall now be process and approved for payment through the SEC Electronic
Simplified Processing of Application for Registration of Company (eSPARC).
In relation to this, please be guided of the following actions for transition:
1. All pending applications starting with the company name reservation and those applications in the
preform and in-form status in the CRS, including those filed but not yet been approved for payment has to re-
apply in the SEC eSPARC.
2. Applications that are in compliance status in the CRS may continue with the registration application by
re-applying through SEC eSPARC.
3. Applicants whose applications have been approved for payment in the CRS and have been provided
with a Payment Assessment Form (PAF) should proceed in paying the registration fees. The proof of payment,
together with the signed and authenticated/notarized copies of the registration documents, should be submitted
to the selected processing office for the issuance of the Certificate of Incorporation.
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4. Applicants that have already paid their registration fees but cannot upload the proof of payment in the
CRS should submit the proof of payment, together with the signed and authenticated/notarized copies of the
registration documents, to the selected processing office for the issuance of the Certificate of Incorporation.
5. Applicants that have already uploaded the proof of payment in the CRS but have not yet been issued a
Certificate of Incorporation should submit the proof of payment, together with the signed and
authenticated/notarized copies of the registration documents, to the selected processing office for the issuance
of the Certificate of Incorporation.
SEC ADVISORY: Against Dealing with Non-Registered Foreign Entities,

Organizations and Corporations
The Security and Exchange Commission warned the public on dealing with unregistered firms such as play-to-
earn gaming platforms and crypto platforms that are not licensed or registered in the Philippines.
By law, an entity is required to register and obtain a primary registration with the SEC if they intend to conduct
business in the Philippines.
However, a number of these unregistered corporations and entities allow Filipinos to access their online
platforms and permit the enrollment, creation, or registration of client accounts through online means despite
having no registration or license to do business in the Philippines Such unregistered online platforms include,
but are not limited to, the following:
a. Foreign Currency (Forex) Brokers and Exchanges
b. Digital Asset/Cryptocurrency/Virtual Asset Exchanges
c. Decentralized Finance (DeFi) Investment Platforms
d. Yield Farming/Staking Platforms
e. Multi-asset/Multi-security Brokerage Companies
f. Websites for Securities Token Offerings/Token Generation Events
g. Illegal Investment Scheme websites
h. Binary Options Trading apps
i. Pay-to-Click/Captcha websites
j. “Play-to-Earn Gaming” platforms
k. Various fiat/cryptocurrency gambling websites
l. Various cryptocurrency-related investment websites
Transacting to corporations or entities without any registration or license to do business in the Philippines also
means running the risk of not getting your money back once these are transmitted outside of the Philippines.
The protections against these schemes are only applied on the entities licensed and registered to do business in
the Philippines.
KEY REGULATORY REQUIREMENTS AND PENALTIES FOR NON-COMPLIANCE

*FEW OF MANY REQUIREMENTS
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CORPORATIONS WITH PRIMARY LICENSES

DOMESTIC STOCK/NON-STOCK CORPORATIONS
SEC FORM GIS STOCK, SEC FORM GIS-NON STOCK,
due date would be within 30 calendar days from date of the actual annual stock holders or
members meeting
AUDITED FINANCE STATEMENT (stamped “ received” by the BIR

Within 120 calendar days after the end of the fiscal year, as indicated in the financial statements
SEC FORM GIS, within 30 days from date of issuance of SEC license – MC No. 15s. 2006
AFS, within 120 calendar days after the end of the fiscal year, as indicated in the financial
statements
SEC FORM GENERAL INFORMATION SHEET(GIS), within 30days from date of issuance of
SEC License – Mc. No. 15s 2006
Penalties: not definite but late filling can have a penalty between 10,000 – 50,000 plus 300-500
per delay of filing
CORPORATIONS WITH SECONDARY LICENSES

SEC FORM GIS, Within 30 calendar days following the date of stockholder’s meeting per by-
laws. If no meeting was held on that calendar year, on or before 30th of January of the following
year.
Penalties: 1 st warning; 2 nd - 50,000 plus 300 per day of delay
SEC FORM 17-Q, Quarterly Report. It contains Interim Financial Statements and Interim
Management’s Discussion, within 45 calendar days after the end of the quarter
Penalties: 1 st : warning; 2 nd -20,000 plus 300 per day of delay of filing amended report
SEC MEMORANDUM CIRCULAR NO. ______7

Series of 2021
Subject: CALLING OF SPECIAL STOCKHOLDERS’ MEETINGS
This memorandum circular resolved the issue underlying to the following rules:
(1) Any number of shareholders of a corporation (“Qualifying Shareholders”) who hold at least ten
percent (10%) or more of the outstanding capital stock (“Qualifying Shares”) of a Publicly Listed
Company (PLC) shall have the right to call for a Special Stockholders’ Meeting, subject to the
guidelines set under Section 49 of the RCC and other relevant regulations. The Special Stockholders’
Meeting may be done physically or remotely through allowable means of remote communication.
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(2) The Qualifying Shareholders should have continuously held the Qualifying Shares for a period
of at least one (1) year prior to the receipt by the Corporate Secretary of a written Call for a Special
Stockholders’ Meeting.
(3) The Call for a Special Stockholders’ Meeting shall be in writing, signed by all Qualifying
Shareholders, addressed to the Board of Directors and transmitted through the Corporate Secretary at
least forty-five (45) days prior to the proposed date of the special meeting, setting forth therein:
i. The names of the Qualifying Stockholder(s) and their respective percentage of shareholdings,
which must constitute at least ten percent (10%) of the outstanding capital stock of the
corporation;
ii. The purpose of the Call for a Special Stockholders’ Meeting, which must be stated with
sufficient clarity, and must affect the legitimate interest of the stockholders and is germane to the
stockholders’ interest; Provided, that the purpose should not include the removal of any director
under Section 27 of the RCC;
iii. The proposed date and time of the requested Special Stockholders’ Meeting; Provided, that
no stockholder may call a special meeting within sixty (60) days from the previous meeting of
the same nature and where the same matter was discussed, unless the company’s bylaws provide
otherwise or the special meeting is approved by the Board of Directors.
iv. The proposed agenda items to be discussed during the Special Stockholders’ Meeting;
Provided, that the matters to be discussed are those affecting the legitimate interests of the
shareholders on corporate actions where stockholders’ approval is required under the RCC,
except the right to remove a director; Provided further, that a special meeting cannot be called if
the proposed agenda:
(a) covers the same matter/s discussed and resolved in a previous meeting of the
stockholders, unless the sixty (60)-day holding-off period had lapsed, the company by-
laws provide otherwise or the special meeting is approved by the Board;
(b) will be covered in the next regular or special meeting; Provided, that the next
regular or special meeting is scheduled not later than thirty (30) days from the date of the
request; or
(c) has already been discussed and resolved with finality in the previous meetings.
The Qualifying Shareholders must provide proof of shareholdings and at least one (1) government-
issued ID.
The Board of Directors may, at its discretion, set the Special Stockholders’ Meeting, earlier than forty-
five (45) days, if it determines that the matters raised by the Qualifying Shareholders necessitate a quick
resolution to prevent undue damage to the company.
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(4) The Board of Directors shall determine if the objectives and conditions in the Call for Special
Stockholders’ Meeting are consistent with the requirements of this Memorandum Circular.
If found to be consistent, the Board of Directors shall issue the Notice to convene the Special
Stockholders’ Meeting at least seven (7) days prior to the proposed date of special meeting in
accordance with Sections 49 and 50 of the RCC, SEC Memorandum Circular No. 6, Series of 2020
(Teleconferencing, Videoconferencing, and Other Remote or Electronic Means of Communication), and
other relevant laws, rules and regulations of the Commission and the company’s by-laws.
If found to be inconsistent, the Board of Directors shall send a written notice to the requesting
stockholders indicating that a meeting cannot be called due to their failure to comply with the
requirements of this Memorandum Circular, clearly setting forth the basis of such inconsistency, within
twenty (20) days from receipt of the request.
(5) In the event that the Board of Directors fail to respond to the Call for Special Stockholders’
Meeting within twenty (20) days from receipt of the request, the Qualifying Stockholder/s may avail of
the remedy provided under paragraph 7, Section 49 of the RCC.
The Qualifying Shareholders may avail of the same remedy if the Board of Directors refuses to call a
meeting under Section (4) above.
(6) Any officer or agent of the corporation who shall refuse to allow a Qualifying Shareholder to
exercise his/her right to call a meeting shall be liable under Section 158 of the RCC: Provided, that if
such refusal is made pursuant to a resolution or order of the Board of Directors, the liability under this
section for such action shall be imposed upon the directors who voted for such refusal; Provided further,
that it shall be a defense to any action under this Memorandum Circular that the shareholder exercising
any of these rights was not acting in good faith or in accordance with the requirements of this
Memorandum Circular; Provided furthermore, that delay in the processing of such requests shall be
equivalent to refusal if the delay is solely caused by negligence on the part of the corporation.
The Road to IPO Forum: SME Forum
The Philippine Stock Exchange Inc. (PSE) in partnership with the DTI and SEC launches a two day virtual
forum entitled “The Road to IPO: SME Forum” last September 16 and 17. This two day forum aims to
strengthen the awareness of small and midsize enterprises on IPO listing as a capital funding source and core
part of the growth plans of the companies. The said event also gives its audiences the snapshot of the IPO
process while providing them the valuable guidelines and tips on the necessary preparations.
This virtual forum discussed the following topics:

 The Future of SME’s in the Philippines
 The IPO Listing Application Process
 Audit and Financial Preparation for an IPO
 The Integral Role of Legal Counsel in IPO Listing
 Understanding the Importance of Investor Relations for SMEs
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 The MerryMart IPO Success Story
19th DEVELOPMENT POLICY RESEARCH MONTH

Title: "Reset and Rebuild for a Better Philippines in the Post-Pandemic World or Muling Magsimula at
Magtayo tungo sa Mas Matatag na Pilipinas Pagkatapos ng Pandemya".
In accordance with the Malacañang Proclamation no. 247 that was issued in September 2002, that declared
September as Development Policy Research Month (DPRM) we are now celebrating the 19 th Development
Policy Research Month. This year's celebration carries the theme, "Reset and Rebuild for a Better Philippines in
the Post-Pandemic World or Muling Magsimula at Magtayo tungo sa Mas Matatag na Pilipinas Pagkatapos ng
Pandemya".
This year’s DPRM aims to emphasize that to be able to rebuild from the COVID-19 pandemic and create a
better Philippines, we need to reset our paradigms and practices by balancing the interests of people, profit, and
planet or by placing equal importance on economic, social, and environmental well-being and sustainability.
The celebration consist of four public policy conference webinars, where it will discussed the questions:
 How can we reset our paradigms and practices to move forward from the COVID-19 pandemic?
 Can businesses be profitable and ethical at the same time?
 How can we build back stronger, greener, and bluer post-pandemic?
 What should we do to protect the well-being of low-wage workers and those more vulnerable to
COVID-19?
 What adjustments in our education and training, labor and employment, and social protection systems
need to be made to ensure a robust and healthy workforce?
The first two questions was already discussed on the first and second webinar last Tuesday, September 14 and
Thursday, September 16. The rest of the questions will be discussed on the third and fourth webinar on
September 21 and 23.
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LAWS, REGULATIONS
AND
REGULATORY AGENCIES
(LOCAL GOVERNMENT UNITS)
Submitted by:
Elegores, Razel Corin
Meneses, Eumaida
Pascua, Karen
Pineda, Jan Marco
Quintos, Jan Raine
Santiago, Jesselle
Submitted to:

Instructor
October 2021
1|Page
TABLE OF CONTENTS
Title: Laws, Regulations and Regulatory Agencies...................................................................................... 1
Table of Contents ........................................................................................................................................... 2
1. General- Local Government Units… ................................................................................................. 3
A. Objectives .....................................................................................................................................4
B. Roles, Structure and Authorities ................................................................................................... 5
C. Key Applicable Laws.................................................................................................................... 9
D. Key Regulatory Requirements and Penalties for Non-Compliance .............................................14
E. Latest News and Updates .............................................................................................................. 21
2|Page
What is LGU (Local Government Unit)?
The UN (1962) defines local government as “political subdivision of a nation or state” Local
government refers to political administrative divisions of a state. It pertains to the activity by which local
officials both elected and appointed, implement the goals and manage the resources of the local government
unit. Autonomy of local government unit (sec.25, Art.II &Sec 2 and 3 Art.X of constitution) The Constitution
mandated the Congress to “enact a local government code” Local Government Code of 1991 (RA 7610)
Practicable element of the national government for local functions
In the Philippines local government is composed and divided into three levels:
❖ Provinces and independent cities
The largest unit in the political structure of the Philippines
❖ Cities and municipalities
Cities are divided in 3 classes which are the highly urbanized, the component cities and lastly to
their administrative supervision
While on the other hand municipality is define as a subsidiary of the province which consist of a
number of barangays within its territorial boundaries, one of which is the seat of government found at
the town proper poblacion).
❖ Barangays
The smallest political unit into which cities and municipalities in the Philippines are divided. It’s
the basic unit of the Philippine political system.
3|Page
According to the history, cities, municipalities and provinces of today evolved from the barangays of pre-
Spanish times, the pueblos and cabildos/ayuntamiento of the Spanish colonial days and the townships of the
American regime.
CHARACTERISTIC OF LOCAL GOVERNMENT UNITS
1. It must exist as an organized entity.

2. It must possess governmental accountability to the public at large with official
3. It must have substantial autonomy
OBJECTIVES:
The objective of local government is-
A. To provide democratic and accountable government for local communities;
B. To ensure the provision of services to communities in sustainable manner;
C. To promote social and economic development
D. To promote a safety and economic development
E. To promote a safe and healthy environment; and
F. To encourage the involvement of communities and community organizations in the matter of local government
4|Page
ROLES, STRUCTURE AND AUTHORITIES
Local Government refers to political administrative divisions of a state.

This is within the act of physically reaching to the citizens it governs with officials elected if not appointed by elected
officials.
LOCAL AUTONOMY - Is the ability of local governments to have an independent impact on the well-being of their
citizens.
DECENTRALIZATION - It is the transfer of power, authority or responsibility or the discretion to plan, decide and
manage from central to local levels; administrative and sectoral.
FUNCTIONS OF LGU
1. Legislative Function
2. Executive Function
3. Quasi-judicial Function
4. Taxation Function
5. Local Budget Preparation
6. Exercises the power of eminent domain
7. Maintenance and Protection of Public Property
STRUCTURE OF LOCAL GOVERNMENT UNITS
5|Page
LOCAL GOVERNMENT UNITS
These are institutional units whose fiscal, legislative and executive authority extends over the smallest
geographical areas distinguished for administrative and political purposes. The Philippines is divided into units of
different sizes -- known as political subdivisions. These are autonomous regions, provinces, municipalities & cities,
and barangays. These local governments are agencies of the national government in the matter of collection of taxes,
law enforcement, and other governmental functions, which may be delegated by the national government to these local
governments.
PROVINCE
The provincial government is the largest political unit in the Philippines. It takes care of the function so which
affect the people of a certain province. It possesses the following powers ---
1.) to acquire and transfer real and personal properties
2.) to enter into contracts, including those incurring obligations, which are expressly provided by law; and
3.) to exercise such other rights and incur such other obligations as are expressly authorized by law.
AUTHORITIES
There are 81 provinces in the Philippines. Which are classified according to their average income for five
consecutive years. The higher the income of the province, the higher is its classification.
A province is governed by the governor and a legislature known as the Sangguniang Panlalawigan. A province
elects its executives -- the governor, vice governor, and the members of the provincial board (vocales). The rest of the
provincial officials -- like the provincial treasurer, provincial assessor, district auditor, judges of the Regional Trial
courts, provincial fiscal, division superintendent of schools, district health officer, district engineer, and register of
deeds -- are all appointed by the corresponding departments of the national government.
ROLES
The provincial board is the law-making body of the province, with the provincial governor serving as the presiding
officer. Some of its most important functions are as follows:
a.) it passes laws for the welfare of the municipalities and cities within its jurisdiction;
b) it prepares and approves the provincial budget;
c) it appropriates money for provincial purposes;
d) it exercises the power of eminent domain; and
e) it provides for the maintenance of equipment and buildings for provincial purposes.
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CITIES AND MUNICIPALITIES

A municipality is a local government unit (LGU) in the Philippines which is called town in its archaic term: a
municipality has the function of a town since its inception. It is a public corporation created by an act of congress and
is governed by the Municipality Law, which defines its duties and powers. It is distinct from city, which is a different
category of local government unit.
A city is also one of the units of local government in the Philippines. All Philippine cities are chartered cities,
whose existence as corporate and administrative entities is governed by their own specific municipal charters. The
charter creates the city, defines its boundaries, provides its system of government, and defines the powers and duties of
its officials.
Municipalities have some autonomy from the National Government, they are classified according to their
average annual income for the last four fiscal years. They have been granted corporate personality enabling them to
enact local policies and laws, enforce them, and govern their jurisdictions. They can enter into contracts and other
transactions through their elected and appointed officials and can tax. They are tasked with enforcing all laws, whether
local or national but National Government assists and supervises them to make sure that they do not violate national
law.
Cities are entitled to at least one representative in the House of Representatives if its population reaches
250,000, they are classified according to average annual income of the city based on the previous four calendar years.
They are allowed to use a common seal and as corporate entities, cities have the power to take, purchase, receive, hold,
lease, convey, and dispose of real and personal property for its general interests, condemn private property for public
use contract and be contracted with, sue and exercise all the powers conferred to it by Congress.
AUTHORITIES AND ROLES

A municipality shall mainly have a mayor (alkalde), a vice mayor (bise alkalde) and members (kagawad) of the
legislative branch Sangguniang Bayan alongside a secretary to the said legislature. The municipal mayor is the chief
executive officer of the municipal government and shall determine guidelines on local policies and direct formulation
of development plans. These responsibilities shall be under approval of the Sangguniang Bayan. The vice mayor shall
sign all warrants drawn on the municipal treasury, which in short serves as the legislative.
The city elective officials are the mayor, vice mayor, and the members of the board of councilors. The mayor is
the executive official of the city, aided by the appointive heads of the various departments. The vice mayor serves as
the presiding officer of the Sangguniang Panlungsod (city council), which serves as the city's legislative body. Upon
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receiving their charters, cities also receive a full complement of executive departments to better serve their
constituents. Some departments are established on a case-by-case basis, depending on the needs of the city.
The municipal council is the lawmaking body of a municipality and is composed of the mayor, vice mayor, and
the councilors. Each councilor is in-charge of a village or barangay. Some of the more important mandatory powers of
the municipal council are the following:
1) to fix the salaries of all municipal offices and employees, except the treasurer, teachers in the public schools, and
staff of national government agencies assignee to the municipality;
2) to provide for expenses necessary to carry out the functions of the municipality;
3) to provide for buildings adequate for municipal uses, including school houses;
4) to provide for the levy and collection of taxes, fees, and charges as sources of municipal revenue; and
5) to establish and maintain an efficient police department and an adequate municipal jail.
The council is the lawmaking body of a city. Among its important functions are as follows:
1)to levy and collect taxes in accordance with law;
2) to enact ordinances;
3) to provide for public works constructions and for the maintenance of a local police force;
4) to establish fire zones within the city and to regulated the type of building which may be constructed
within each zone; and
5) to provide for the protection of the inhabitants from public calamities and to provide relied in times of
emergency. There are 67 chartered cities in the Philippines.
BARANGAY
A barangay, historically referred to as barrio, is the smallest administrative division in the Philippines and is the
native Filipino term for a village, district, or ward. Municipalities and cities in the Philippines are subdivided into
barangays. It is sometimes informally subdivided into smaller areas called purok, or barangay zones consisting of a
cluster of houses for organizational purposes. 42,046 barangays As of March 2021, there are 42,046 barangays
throughout the Philippines. They are public corporations and so, they can sue and be sued in court; can enter into contracts, can
acquire and hold all kinds of property; and can exercise such powers or perform such acts as are provided by law.
AUTHORITIES AND ROLES

The Barangay council is considered to be a local government unit, similar to the provincial and the municipal
government. The modern barangay is headed by elected officials, the topmost being the Punong Barangay or the
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Barangay Chairperson (addressed as Kapitan; also known as the Barangay Captain). The Kapitan is aided by the
Sangguniang Barangay (Barangay Council) whose members, called Barangay Kagawad ("Councilors"), are also
elected. As chief executive, the barangay captain is its recognized leader. He enforces all the laws and ordinances
applicable to his constituency. He may organize fire brigades, preside over all meetings both of the barangay council
and assembly, organize groups of citizens to fight criminality and brigandage, and approve all payments from barangay
funds.
The Barangay Justice System or Katarungang Pambarangay is composed of members commonly known as
Lupon Tagapamayapa (Justice of the peace). Their function is to conciliate and mediate disputes at the Barangay level
to avoid legal action and relieve the courts of docket congestion.
A tanod, or barangay police officer, is an unarmed watchman who fulfills policing functions within the barangay.
The number of barangay tanods differs from one barangay to another; they help maintain law and order in the
neighborhoods throughout the Philippines. Funding for the barangay comes from their share of the Internal Revenue
Allotment (IRA) with a portion of the allotment set aside for the Sangguniang Kabataan. The exact amount of money is
determined by a formula combining the barangay's population and land area.
Key Applicable Laws
“LOCAL GOVERNMENT CODE 1991”
Policy and Application
Section 1. Title.
This Act shall be known and cited as the "Local Government Code of 1991".
Section 2. Declaration of Policy.
Policy of the State
➢ that the territorial and political subdivisions of the State shall enjoy genuine and meaningful local autonomy to
enable them to attain their fullest development as self-reliant communities and make them more effective
partners in the attainment of national goals.
➢ responsive and accountable local government structure instituted through a system of decentralization
➢ powers, authority, responsibilities, and resources.
SECTION 4. Scope of Application.
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This Code shall apply to all provinces, cities, municipalities, barangays, and other political subdivisions as may be
created by law, and, to the extent herein provided, to officials, offices, or agencies of the national government.
Territorial and Political Subdivisions
NATIONAL
GOVERNMENT
LOCAL
GOVERNMENT
PROVINCES CITIES MUNICIPALITIES BARANGAYS
SECTION 5. Rules of Interpretation.

(a) Any provision on a power of a local government unit shall be liberally interpreted in its favor, and in case of
doubt, any question thereon shall be resolved in favor of devolution of powers and of the lower local government unit.
Any fair and reasonable doubt as to the existence of the power shall be interpreted in favor of the local government
unit concerned.
• (b) In case of doubt, any tax ordinance or revenue measure shall be construed strictly against the local
government unit enacting it, and liberally in favor of the taxpayer. Any tax exemption, incentive or relief
granted by any local government unit pursuant to the provisions of this Code shall be construed strictly against
the person claiming it.
• (c) The general welfare provisions in this Code shall be liberally interpreted to give more powers to local
government units in accelerating economic development and upgrading the quality of life for the people in the
community
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General Powers and Attributes of Local Government Units
SECTION 7. Creation and Conversion.
As a general rule, the creation of a local government unit or its conversion from one level to another
level shall be based on verifiable indicators of viability and projected capacity to provide services, to wit:
(a) Income (b) Population (c) Land Area
It must be sufficient, based on It shall be determined as the total It must be contiguous unless it
acceptable standards, to provide number of inhabitants within the comprises two (2) or more
for all essential government territorial jurisdiction of the islands or is separated by a local
facilities and services and local government unit government unit independent of
special functions commensurate concerned; and the others; properly identified by
with the size of its population, as metes and bounds with technical
expected of the local descriptions; and sufficient to
government unit concerned. provide for such basic services
and facilities to meet the
requirements of its populace.
"Section 450. Requisites for Creation. -

(a)A municipality or a cluster of barangays may be converted into a component city if it has a locally generated
average annual income, as certified by the Department of Finance, of at least One hundred million pesos
(P100,000,000) for the last two (2) consecutive years based on 2000 constant prices, and if it has either of the
following requisites:
❑ (i)a contiguous territory of at least one hundred (100) square kilometers, as certified by the Land Management
Bureau; or
❑ (ii)a population of not less than one hundred fifty thousand (150,000) inhabitants, as certified by the National
Statistics Office.
(c)The average annual income shall include the income accruing to the general fund, exclusive of special funds,
transfers, and non-recurring income."
SECTION 9. Abolition of Local Government Units.
A local government unit may be abolished when its income, population, or land area has been irreversibly reduced to
less than the minimum standards prescribed for its creation.
SECTION 10. Plebiscite Requirement.

No creation, division, merger, abolition, or substantial alteration of boundaries of local government units shall take
effect unless approved by a majority of the votes cast in a plebiscite called for the purpose in the political unit or units
directly affected. Said plebiscite shall be conducted by the Commission on Elections (COMELEC) within one hundred
twenty (120) days from the date of effectivity of the law or ordinance effecting such action, unless said law or
ordinance fixes another date.
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SECTION 17. Basic Services and Facilities.
(a) Local government units shall endeavor to be self-reliant and shall continue exercising the powers and
discharging the duties and functions currently vested upon them.
Such basic services and facilities include, but are not limited to, the following:
(1) For a Barangay:

• Agricultural support services
• Health and social welfare services
• Services and facilities
• Maintenance of katarungang pambarangay;
• Maintenance of barangay roads and bridges and water supply systems.
• Infrastructure facilities
• Information and reading center; and
• Satellite or public market
(2) For a Municipality:

• Extension and on-site research services and facilities related to agriculture and fishery activities, quality control
of copra and improvement and development of local distribution channels,
• Pursuant to national policies and subject to supervision, control, and review of the DENR, implementation of
community-based forestry projects.
• Health services
• Social welfare services
• Information services
• Solid waste disposal system or environmental management system and services or facilities related to general
hygiene and sanitation
• Municipal buildings, cultural centers, public parks including freedom parks, playgrounds, and other sports
facilities and equipment, and other similar facilities
• Infrastructure facilities intended primarily to service the needs of the residents of the municipality, and which
are funded out of municipal funds.
• Public markets, slaughterhouses, and other municipal enterprises.
• Public cemetery
• Tourism facilities and other tourist attractions
• Sites for police and fire stations and substations and municipal jail.
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(3) For a Province:
• Agricultural extension and on-site research services and
• Industrial research and development services,
• Pursuant to national policies and subject to supervision, control, and review of the DENR, enforcement of
forestry laws limited to community-based forestry projects, pollution control law, small-scale mining law, and
other laws on the protection of the environment
• health services
• Social welfare services
• Provincial buildings, provincial jails, freedom parks and other public assembly areas, and similar facilities.
• Infrastructure facilities intended to service the needs of the residents of the province
• Programs and projects for low-cost housing and other mass dwellings, except those funded by the Social
Security System (SSS), Government Service Insurance System (GSIS), and the Home Development
• Investment support services
• Upgrading and modernization of tax information and collection services through the use of computer hardware
and software and other means;
• Inter-municipal telecommunications services, subject to national policy guidelines; and
• Tourism development and promotion programs;
(4) For a City:
All the services and facilities of the municipality and province, and in addition thereto, the following:
• Adequate communication and transportation facilities;
• Support for education, police and fire services and facilities;
SECTION 18. Power to Generate and Apply Resources.

Local government units shall have the power and authority to establish an organization that shall be responsible for the
efficient and effective implementation of their development plans, program objectives and priorities; to create their
own sources of revenues and to levy taxes, fees, and charges.
LOCAL TAXES AS TO IMPOSING AUTHORITY
❑ Provincial Taxes
• Real property tax and other related taxes
• Other privilege taxes
❑ Municipal Taxes
• Community Tax
• Local Business Tax
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❑ Barangay Taxes
• Tax on small retailers
SECTION 22. Corporate Powers.

(1) To have continuous succession in its corporate name;
(2) To sue and be sued;
(3) To have and use a corporate seal;
(4) To acquire and convey real or personal property;
(5) To enter into contracts; and
(6) To exercise such other powers as are granted to corporations, subject to the limitations provided in this Code and
other laws.
(b) Local government units may continue using, modify, or change their existing corporate seals: Provided, that newly
established local government units or those without corporate seals may create their own corporate seals which shall be
registered with the Department of the Interior and Local Government.
(c) No contract may be entered into by the local chief executive in behalf of the local government unit without prior
authorization by the Sanggunian concerned.
(d) Local government units shall enjoy full autonomy in the exercise of their proprietary functions and in the
management of their economic enterprises, subject to the limitations provided in this Code and other applicable laws.
Key Regulatory Requirements & Penalties for Non-Compliance

BUSINESS REGISTRATION
• BARANGAY
Barangay Clearance
• Barangay Clearance is one of the permits or documents required when registering a new business in the
Philippines. This certificate is also needed when renewing your expired Mayor’s Permit or Business License,
changing your business location, and changing a new business commercial name.
Steps in Acquiring Barangay Clearance

1. Prepare your business documents.
2. Go to Barangay Hall or to the Office of the Barangay Captain.
3. Pay your Business Clearance Fee.
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4. Claim your Barangay Business Permit.
• CITY/MUNICIPALITY
Mayor’s Permit
• Securing a Mayor’s Permit is one of the requirements for every business or company to operate in the
Philippines. Each municipality has different procedures depending on the of the ordinance of the city or
municipality.
Steps in Securing Mayor’s Permit

1. Secure the initial requirements
2. Secure permits and clearances
3. File your Application Form along with the other requirements
4. Procure a Community Tax Certificate/Cedula
5. An assessor will assess your application fees
6. Submit your application requirements
7. Pay the necessary payment fees for the permits and licenses
8. Obtain a Fire Safety Inspection Permit from the designated
9. Obtain a Temporary Sanitary Permit
10. Submit all requirements, along with the Fire Safety Inspection Permit
11. Release of Mayor’s Permit
REGULATION OF BUSINESSES BY LGU

• Provided in The Local Government Code of the Philippines also known as the “Local Government Code of
1991”
Relevant Provisions on Revenue Regulation of LGU

➢ SECTION 134 - the province may levy only the taxes, fees, and charges.
➢ SECTION 142 - municipalities may levy taxes, fees, and charges not otherwise levied by provinces.
➢ SECTION 151 - the city, may levy the taxes, fees, and charges which the province or municipality may
impose: Provided, however, That the taxes, fees and charges levied and collected by highly urbanized and
independent component cities shall accrue to them and distributed in accordance with the provisions of this
code
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➢ SECTION 152 - The Barangays may levy taxes, fees, and charges which shall exclusively accrue to them.
➢ SECTION 147 - The municipality may impose and collect such reasonable fees and charges on business and
occupation, on the practice of any profession or calling, commensurate with the cost of regulation, inspection
and licensing before any person may engage in such business or occupation, or practice such profession or
calling.
➢ SECTION 153 - Local government units may impose and collect such reasonable fees and charges for services
rendered.
TAXING POWERS OF LOCAL GOVERNMENT UNITS
➢ SECTION 128 - The provision herein shall govern the exercise by provinces, cities, municipalities, and
Barangays of their taxing and other revenue-raising powers
Fundamental Principles
1. Uniform in each local government unit.
2. Equitable and based as far as practicable on the taxpayer's ability to pay, levied and collected only for public
purposes, not to be unjust, excesses, oppressive, or confiscatory and not be contrary to law, public policy,
national economic policy or in the restraint of trade.
3. Collections shall in no case be let to any private person.
4. Collections shall inure solely to the benefit of, and be subject to the disposition by the local government unit
levying the tax, fee, or charge or other imposition
5. Evolves a progressive system of taxation
Provisions on the Taxing and Other Revenue Raising Powers of Local Government Units
1. Provinces
▪ Tax on Transfer of Real Property Ownership - The province may impose a tax on the sale, donation, barter, or
on any other mode of transferring ownership or title of real property at the rate of not more than fifty percent (50%)
of one percent (1%) of the total consideration involved in the acquisition of the property or of the fair market value
in case the monetary consideration involved in the transfer is not substantial, whichever is higher. The sale,
transfer or other disposition of real property pursuant to R.A. No. 6657 shall be exempt from this tax
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▪ Tax on Business of Printing and Publication - The Province may impose a tax on the business of persons
engaged in the printing and/or publication of books, cards, posters, leaflets, handbills, certificates, receipts,
pamphlets, and other of similar nature, at a rate not exceeding fifty percent (50%) of one percent (1%) of the gross
annual receipts for the preceding calendar year. In the case of a newly started business, the tax shall not exceed
onetwentieth (1/20) of one percent (1%) of the capital investment. In the succeeding calendar year, regardless of
when the business started to operate, the tax shall be based on the gross receipts for the preceding calendar year, or
any fraction thereof, as provided herein. The receipts from the printing and/or publishing of books or other
reading materials prescribed by the Department of Education, Culture and Sports as school texts or reference shall
be exempt from the tax herein imposed.
▪ Franchise Tax - Notwithstanding any exemption granted by any law or other special laws, the province may
impose a tax on business enjoying a franchise, at a rate exceeding fifty percent (50%) of one percent (1%) of the
gross annual receipts for the preceding calendar year based on the incoming receipt, or realized, within its
territorial jurisdiction. In the case of a newly started business, the tax shall not exceed onetwentieth (1/20) of one
percent (1%) of the capital investment. In the succeeding calendar year, regardless of when the business started to
operate, the tax shall be based on the gross receipts for the preceding calendar year, or any fraction thereof, as
provided herein.
▪ Tax on Sand, Gravel and Other Quarry Resources - The province may levy and collect not more than ten
percent (10%) of fair market value in the locality per cubic meter of ordinary stones, sand, gravel, earth, and other
quarry resources, as defined under the National Internal Revenue Code, as amended, extracted from public lands or
from the beds of seas, lakes, rivers, streams, creeks, and other public waters within its territorial jurisdiction.
The proceeds of the tax on sand, gravel and other quarry resources shall be distributed as follows:
o Province - Thirty percent (30%)
o Component City or Municipality where the sand, gravel, and other quarry resources are extracted -
Thirty percent (30%)
o Barangay where the sand, gravel, and other quarry resources are extracted - Forty percent (40%).
▪ Professional Tax - The province may levy an annual professional tax on each person engaged in the exercise or
practice of his profession requiring government examination as such amount and reasonable classification as the
Sangguniang Panlalawigan may determine but shall in no case exceed Three hundred pesos (P300.00).
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▪ Amusement Tax - The province may levy an amusement tax to be collected from the proprietors, lessees, or
operators of theaters, cinemas, concert halls, circuses, boxing stadia, and other places of amusement at a rate of not
more than thirty percent (30%) of the gross receipts from admission fees.
▪ Annual Fixed Tax for Every Delivery Truck or Van of Manufacturers or Producers, Wholesalers of,
Dealers, or Retailers in, Certain Products - The province may levy an annual fixed tax for every truck, van or
any vehicle used by manufacturers, producers, wholesalers, dealers or retailers in the delivery or distribution of
distilled spirits, fermented liquors, soft drinks, cigars and cigarettes, and other products as may be determined by
the Sangguniang Panlalawigan, to sales outlets, consumers, whether directly or indirectly, within the province in an
amount not exceeding Five hundred pesos (P500.00).
2. Municipalities
• municipalities may levy taxes, fees, and charges not otherwise levied by provinces
• On manufacturers, assemblers, repackers, processors, brewers, distillers, rectifiers, and compounders of
liquors, distilled spirits, and wines or manufacturers of any article of commerce of whatever kind of nature
• On wholesalers, distributors, or dealers in any article of commerce of whatever kind or nature
• On exporters, and on manufacturers, millers, producers, wholesalers, distributors, dealers or retailers of
essential commodities
• On retailers
• On contractors and other independent contractors
• On banks and other financial institutions
3. Cities
• the city, may levy the taxes, fees, and charges which the province or municipality may impose: Provided,
however, That the taxes, fees and charges levied and collected by highly urbanized and independent component
cities shall accrue to them and distributed in accordance with the provisions of this code.
• The rates of taxes that the city may levy may exceed the maximum rates allowed for the province or
municipality by not more than fifty percent (50%) except the rates of professional and amusement taxes
4. Barangay
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• The Barangays may levy taxes, fees, and charges which shall exclusively accrue to them
➢ Taxes - On stores or retailers with fixed business establishments with gross sales or receipts of the
preceding calendar year of Fifty Thousand pesos (P50,000.00) or less, in the case of cities and Thirty
thousand pesos (P30,000.00) or less, in the case of municipalities, at a rate not exceeding one percent (1%)
on such gross sales or receipts.
➢ Service Fees or Charges - Barangays may collect reasonable fees or charges for services rendered in
connection with the regulation or the use of Barangay-owned properties or service facilities such as palay,
copra, or tobacco dryers.
➢ Barangay Clearance - No city or municipality may issue any license or permit for any business or activity
unless a clearance is first obtained from the Barangay where such business or activity is located or
conducted. For such clearance, the Sangguniang Barangay may impose a reasonable fee. The application
for clearance shall be acted upon within seven (7) working days from the filing thereof. In the event that
the clearance is not issued within the said period, the city or municipality may issue the said license or
permit.
➢ Other Fees and Charges
o On commercial breeding of fighting cocks, cockfighting and cockpits
o On places of recreation which charge admission fees
o On billboards, signboards, neon signs, and outdoor advertisements
Real Property Tax

• The real property tax (RPT) is an ad valorem tax on real properties such as lands, buildings, and other
improvements, and machineries imposed by provinces, cities and municipalities.
Exemption
• The following are exempted from payment of the RPT.
➢ Real property owned by the Republic of the Philippines or any of its political subdivisions, except when the
beneficial use thereof has been granted, for consideration or otherwise, to a taxable person
➢ Charitable institutions, churches, parsonages, or convents appurtenant thereto, mosques, non-profit or religious
cemeteries, and all lands, buildings, and improvements actually, directly, and exclusively used for religious,
charitable or educational purposes
➢ All machineries and equipment that are actually, directly and exclusively used by local water districts and
government owned or–controlled corporations (GOCCs) engaged in the supply and distribution of water and/or
generation and transmission of electric power
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➢ All real property owned by duly registered cooperatives as provided for under RA 6938
➢ Machinery and equipment used for pollution control and environment protection
Community Tax
• Cities or municipalities may levy a community tax in accordance with the provisions of the Local Government
Code.
Individuals Liable to Community Tax

Every inhabitant of the Philippines eighteen (18) years of age or over who has been regularly employed on a
wage or salary basis for at least thirty (30) consecutive working days during any calendar year, or who is engaged in
business or occupation, or who owns real property with an aggregate assessed value of One thousand pesos
(P1,000.00) or more, or who is required by law to file an income tax return shall pay an annual community tax of Five
pesos (P5.00) and an annual additional tax of One peso (P1.00_ for every One thousand pesos (P1,000.00) of income
regardless of whether from business, exercise of profession or from property which in no case shall exceed Five
thousand pesos (P5,000.00).
Juridical Persons Liable to Community Tax

Every corporation no matter how created or organized, whether domestic or resident foreign, engaged in or
doing business in the Philippines shall pay an annual community tax of Five hundred pesos (P500.00) and an annual
additional tax, which, on no case, shall exceed Ten thousand pesos (P10,000.00) in accordance with the following
schedule:
• For every Five thousand pesos (P5,000.00) worth of real property in the Philippines owned by it during
the preceding year based on the valuation used for the payment of the real property tax under existing
laws, found in the assessment rolls of the city or municipality where the real property is situated - Two
pesos (P2.00)
• For every Five thousand pesos (P5,000.00) of gross receipts or earnings derived by it from its business
in the Philippines during the preceding year - Two pesos (P2.00).
Exempted from Community Tax

• Diplomatic and consular representatives
• Transient visitors when their stay in the Philippines does not exceed three (3) months
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Common Revenues of LGUs

• Service Fees and Charges - Local government units may impose and collect such reasonable fees and charges
for services rendered.
• Public Utility Charges - The Sanggunian concerned may prescribe the terms and conditions and fix the rates
for the imposition of toll fees or charges for the use of any public road, pier or wharf, waterway, bridge, ferry or
telecommunication system funded and constructed by the local government unit concerned. No such toll fees or
charges shall be collected from officers and enlisted men of the Armed Forces of the Philippines and members
of the Philippine National Police on mission, post office personnel delivering mail, physically-handicapped,
and disabled citizens who are sixty-five (65) years or older. When public safety and welfare so requires, the
Sanggunian concerned may discontinue the collection of the tolls, and thereafter the said facility shall be free
and open for public use.
PENALTIES FOR NON-COMPLIANCE
➢ Surcharges and Penalties on unpaid Taxes, fees, or Charges - The Sanggunian may impose a surcharge not
exceeding twenty-five percent (25%) of the amount of taxes, fees or charges not paid on time and an interest at
the rate not exceeding two percent (2%) per month of the unpaid taxes, fees or charges including surcharges,
until such amount is fully paid but in no case shall the total interest on the unpaid amount or portion thereof
exceed thirty-six (36) months.
➢ Interests on Other Unpaid Revenues - Where the amount of any other revenue due a local government unit,
except voluntary contributions or donations, is not paid on the date fixed in the ordinance, or in the contract,
expressed or implied, or upon the occurrence of the event which has given rise to its collection, there shall be
collected as part of that amount an interest thereon at the rate not exceeding two percent (2%) per month from
the date it is due until it is paid, but in no case shall the total interest on the unpaid amount or a portion thereof
exceed thirty six (36) months.
DILG: 95% or P10.7-billion aid already distributed to eligible beneficiaries
The Department of Interior and Local Government (DILG) announced that 95% or P10.7-billion in financial aid or
assistance has been distributed by local governments in the National Capital Region (NCR) to eligible low-income
beneficiaries as of August 31, 2021.
According to DILG Secretary Eduardo M. Año, 10,663,537 beneficiaries from Metro Manila have already received
financial assistance to support them after the region was subjected to Enhanced Community Quarantine (ECQ). He
also acknowledged the local governments for their quick distribution of aid and hoped they would be able to disburse
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the remaining funds soon.
"It is a victory in the midst of the COVID-19 pandemic that local governments in Metro Manila have distributed
financial assistance to our countrymen and now 95% or P10.7-billion has been distributed," said Año.
He said, for those who have not yet received assistance, they can process and submit their pending claims to the LGU
Grievance and Appeals Committee until September 10, 2021 which is the last day of distribution before returning the
remaining funds to the National Treasury.
"Congratulations to our local governments for their rapid distribution of aid even in the midst of the spread of the Delta
variant, while continuing to enforce our health protocols," he added.
A total of P11.2-billion in financial assistance has been allocated by the national government which has provided
P1,000 to each low-income individual up to a maximum of P4,000 in assistance for an entire family affected by ECQ
in NCR since August. 6-20, 2021.
Año said six NCR cities including Manila, Caloocan, Pasig, Malabon, Navotas, and Quezon City have completed the
distribution of aid to 6,536,554 beneficiaries with a total amount of P6.5- billion in financial aid.
"We congratulate the cities in NCR that their distribution rate is 100% because it just means that the help from the
government has reached all our countrymen in need," he said.
He also added that most of the NCR local governments are almost done with the distribution of aid with a percentage
of 90% -99% such as the Cities of San Juan, Pateros City, Las Piñas City and Mandaluyong City with percentage
distributions of 99.52%, 98.85%, 96.61%, 95.61%, and 93.90%, respectively.
Meanwhile, DILG Spokesperson and Deputy Secretary Jonathan E. Malaya acknowledged the Philippine National
Police, barangay leaders, and other government agencies such as the Department of Social Welfare and Development
(DSWD) and the Department of National Defense (DND) in helping distribute aid “amid the intense threat of the more
contagious Delta variant.”
“We thank all those of us who were instrumental in distributing financial assistance for ECQ here in NCR. You are
making a huge sacrifice but in return we have helped millions of our countrymen in this pandemic, ”said Malaya.
DILG confers Manila BAYani Awards to 5 LGUs

The Department of the Interior and Local Government (DILG) has conferred the national Manila BAYani awards to
three cities and two municipalities for their strong commitment and contribution in the efforts to rehabilitate the Manila
Bay watershed area even amid the COVID-19 pandemic.
DILG Secretary Eduardo M. Año identified the national awardees to the 2020 Manila BAYani Awards and Incentives
(MBAI) program to the City of Biñan in Laguna (1st place), the City of Balanga in Bataan (2nd place), and Navotas
City (3rd place) for the city category; and the municipalities of Kalayaan in Laguna (1st place) and Baliwag in Bulacan
(2nd place) for the municipality category.
“Congratulations to our national awardees! We are inspired by your continuous commitment to comply with
environmental laws that support the rehabilitation of the Manila Bay and the objectives of the Manila Bay Clean-up
Rehabilitation and Preservation Program (MBCRPP). Ipagpatuloy n’yo ang inyong pakikiisa at pakikipagtulungan sa
rehabilitasyon ng Manila Bay,” he said.
22 | P a g e
Spearheaded by the DILG, through the MBCRPP, the MBAI aims to recognize LGUs that have shown exemplary
performance in the implementation of their mandates and responsibilities under environmental laws relative to Manila
Bay rehabilitation. It enjoins LGUs to develop their creativity in coming up with innovative strategies to environmental
management.
Año said the five national awardees emerged as top performers among 187 local government units (LGUs) within the
Manila Bay watershed area after rigid assessment and validation on the following areas: liquid waste management,
solid waste management, informal settlers families management, and information education and communication and
institutional arrangements.
“Hindi matatawaran ang pagtugon at pakikiisa ng mga LGU na ito sa ating hangaring muling buhayin ang Manila Bay
sa pamamagitan ng MBCRPP. Ang ating paggagawad sa kanila ay isang pasasalamat at isang patunay na kinikilala
natin ang kanilang mga pagsisikap,” he said.
Año shared that assessing the 187 LGUs around the Manila Bay area for the MBAI was a challenge due to the
restrictions placed to curtail public transmission of COVID-19 yet “the DILG, both regional and national, has been
creative to ensure that stringent evaluation is executed.”
“Sa kabila ng mga hamon na kinakaharap ng ating bansa, nais namin sa DILG na huwag mawala sa radar ng mga LGU
ang rehabilitation ng Manila Bay kaya patuloy kami sa effort na ito,” he said.
The DILG Chief said that first-time winner City of Biñan received P1.5-million for topping the City category, while
the three-time finalist City of Balanga, and Navotas City received P750,000 and P500,000, respectively.
The town of Kalayaan in Laguna likewise received P1.5-million for topping the Municipality category and P750,000
for three-time winner Baliwag, Bulacan, which came in second.
Año also added that prior to the selection of national winners, regional qualifiers were also chosen through the
Regional Interagency Committee Assessment (RIAC) giving P300,000, P200,000, and, P100,000 for the top three
ranked LGUs in Regions 3 and 4A, and the National Capital Region (NCR).
Per the Mandamus issued by the Supreme Court (SC) on December 18, 2008, the DILG, DENR and 11 other national
agencies (NGAs) were mandated to rehabilitate and preserve the Manila Bay to make it fit for swimming, skin diving,
and other forms of contact recreation in its waters.
The DILG was specifically mandated by the high court to supervise the LGUs in Regions III, IV-A, and the NCR that
are within the vicinity of the Manila Bay watershed to conduct programs and activities for the rehabilitation, as well as
information and education campaigns to inform and get the public involved.
DILG: Barangay tanods not allowed to carry firearms on duty
Following a barangay tanod’s fatal shooting of a person in Tondo, the Department of the Interior and Local
Government (DILG) today said barangay tanods and other members of so-called “police auxiliary units” (PAU) are not
allowed under the law to carry firearms in the performance of their official duties and functions.
DILG Secretary Eduardo M. Año said Republic Act (RA) No. 10591 or The Comprehensive Firearms and
Ammunition Regulation Act enacted in 2012 has revoked the authority of police auxiliary units, including barangay
tanods to carry firearms, which was previously allowed by Circular 2008-013 of the National Police Commission
(Napolcom).
“While we acknowledge that barangay tanods play a complementary role to local authorities in the maintenance of the
23 | P a g e
peace of order in their respective communities, we firmly reiterate that they are not authorized to carry any firearm in
the performance of their duties even if they own these firearms,” said Año.
He said the law is clear that registered firearms of local government units (LGUs) shall only be issued to a government
official or employee with a permanent plantilla position. “Since the barangay tanod position is not part of the plantilla,
barangay tanods are, therefore, not authorized to bear firearms while on duty,” he said.
He called on all Local Chief Executives (LCEs) to direct all barangay tanods within their respective jurisdiction not to
carry any firearm while in the performance of their duties and functions or face charges from the DILG.
Under DILG Memorandum Circular (MC) No. 2003-42, the gadgets which barangay tanods may use are the following:
nightstick with teargas with belt and holster, handcuff with holster, whistle, flashlight, raincoat, rain boots, small
notebooks and ballpens, and first-aid kits.
According to Año, if a barangay tanod feels that they are in a potentially dangerous situation they can always seek the
help of the local police or other barangay tanods. “Hindi sana humantong sa pamamaril at pagkamatay ng curfew
violator kung hindi armado ang tanod at kung kumilos siya nang naaayon lamang sa katungkulan niya,” he said.
Based on police reports, Cesar Panlaqui, a barangay tanod of Barangay 156 in Tondo, allegedly gunned down Eduardo
Geñoga along Tayuman Street last Saturday after the latter allegedly approached the former with a stick.
Filing of charges
Meanwhile, DILG Undersecretary and Spokesperson Jonathan E. Malaya reminded barangay tanods not to be reckless
and hotheaded in dealing with curfew violators and enforcing quarantine regulations.
“While we want the public to abide by health protocols, hindi dapat pairalin ang init ng ulo at maging padalos-dalos sa
pagpapatupad ng mga regulasyon. Ang lahat naman ay madadaan sa maayos na paalala at pakikipag-usap,” he said.
Malaya said the Philippine National Police (PNP) is already investigating the incident and is set to file murder charges
against the erring barangay tanod.
DILG: P16.24B or 99% of Barangay Development Fund released to LGUs

The Department of the Interior and Local Government (DILG) today confirms that a total of P16.24-billion or 99% of
the funds for the Barangay Development Program (BDP) targeting 822 barangays cleared of Communist Terrorist
Groups have already been released to the recipient local government units (LGUs) as of June 30, 2021.
DILG Secretary Eduardo M. Año said that the P16.24-billion will finance 2,276 projects in 812 barangays whose
allocations have already been approved and released by the Department of Budget and Management (DBM).
“With the P16.24-billion fund downloaded to the recipient Local Government Units nationwide, we will implement
some 2,276 projects which will benefit our kababayans in the sitios and barrios that were formerly influenced by the
Communist terrorists. These projects are tangible proof of the government’s desire to bring development to far flung
areas that have not seen government projects in a very long time,” he said.
According to the DILG Secretary, majority of the projects identified by the recipient barangays are infrastructure
projects which compose the biggest bulk of the LGSF with 926 farm-to-market roads; 516 water and sanitation
projects; 156 health stations; and 135 school buildings.
24 | P a g e
“It is apparent na malaki ang pangangailangan sa mga komunidad ng mga proyektong pang-imprastraktura kaya tayo
po ay natutuwa na sa tulong ng BDP ay napaglaanan ang mga proyektong tulad nito,” he said.
He said that P11.611-billion has been earmarked to farm-to-market road projects; P2.386-billion for water and
sanitation system; P569-million for school buildings; P491-million for health station; P482-million for rural
electrification; and, P328-million for agricultural, livelihood and technical vocational projects.
He further said that P125.8-million are for other infrastructure projects; P110-million cost of assistance to indigent
individuals and families; P87-million for the cost of reconstruction, rehabilitation, repair and other similar projects;
P22.4-million for housing; and, P22.5-million COVID-19-related projects.
The top five regions which received the biggest allocation are Regions 6, 10, 11, 12, and 13.
As for the remaining 10 barangays, whose allocations have not yet been released yet, Año said they are in the process
of completing their documentary project requirements as prescribed in the policies and procedures under the Local
Budget Circulars issued by the DBM for the implementation of the 2021 Local Government Support Fund – Support to
Barangay Development Program (LGSF-SBDP).
The BDP is a flagship program which was conceptualized to finally address insurgency by bringing sustainable
solutions and basic services to communities in need. The total budget of P16.44-billion for the 822 barangays, which
were formerly communist strongholds, is directly released to the Provincial or City Governments and not coursed
through the National Task Force to End Local Communist Armed Conflict (NTF-ELCAC).
Monitoring of BDP projects
Meanwhile, DILG Undersecretary Jonathan Malaya, who is also the NTF-ELCAC spokesperson on BDP, said that the
Department shall conduct stringent monitoring of the more than 2,000 BDP initiatives to ensure the progress of each
project and that they are adhering to the set guidelines and standard of the law.
“These projects are relevant to the people and utilize hard-earned tax money of our working force kaya naman
titiyakan natin na ang mga BDP initiatives na ito ay maisasakatuparan at magtatagumpay,” Malaya said.
As provided in the Special Provision No. 4 of Republic Act No.11518 or 2021 General Appropriations Act, the DILG
shall monitor and evaluate the projects covered by the LGSF, which includes the SBDP. This process shall include the
monitoring and evaluation of the preparation and submission of documentary requirements and actual project
implementation.
Furthermore, Malaya said that the DILG shall also use a portion of its budget for third party monitoring to be
conducted by an accredited non-government entity.
Meanwhile, he likewise urged the public to monitor the progress of these projects by regularly visiting
https://www.ntfelcac.org/bdp-dashboard and demand transparency in the implementation of the barangay development
projects.
DoST grants P7.36 million assistance to 7 Tarlac LGUs
25 | P a g e
TARLAC: Seven local government units (LGUs) in the province have benefited from the P7.36 million grant from
the Department of Science and Technology (DoST) for their science and technology (S&T) projects.
Recipients include the provincial government of Tarlac, which got a chunk of the aid with P2.5 million. The
municipalities of Camiling received P2.59 million, Mayantoc (P568,000), Moncada (P444,000), Victoria (P410,000)
and Pura (P355,000). Tarlac also received a P495,000 DoST aid.
DoST provincial director Karen Dañez said financial assistance was awarded to LGUs assessed in terms of condition
of their areas, sectors, livelihood, education, health and environment to identify technology innovation the department
can provide through the Grants-in-Aid of the Project Municipal Innovation through Science and Technology.
"Strengths and opportunities based on the result of the assessment helped our S&T coordinators determine the
appropriate project foreach LGU," she said.
Dañez added Camiling town, with the highest financial grant, was under a research and development collaboration
with Tarlac State University (TSU) for the product and packaging standardization of Chicharon Camiling.
"The ultimate goal is to make Chicharon Camiling the first Tarlac product to pass the Philippine National
Standards through the help of TSU and University of the Philippines Los Baños," she said. Dañez also cited the
beneficiaries of the Community Empowerment through Science and Technology (CEST) program intended for
indigenous peoples in geographically isolated and disadvantaged areas.
Under the CEST program, the municipal governments of Bamban, Mayantoc, San Clemente and San Jose will receive
a total of P5.67 million worth of S&T projects.
26 | P a g e

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DOING BUSINESS IN THE PHILIPPINES

Republic of the Philippines

Title: Doing Business in the Philippines ......................................................... 1

Strategic Location &Quality Manpower Resources

What Industry to venture on?

Outsourcing, from the last decade, BPO’s emerged as the

Search on the industry you are

Choose and register a business

Choose an office address

Open a bank account and pay

Apply and secure the needed

TYPE AND FORMS OF BUSINESS

Types of Business (Ballada, 2017)

Activity Buying and selling of products

Activity Designing products, aggregating components and

Activity Growing or extracting raw materials

Activity Selling the utilization of infrastructure

Activity Receiving deposits, lending and investing money

Activity Pooling premiums of many to meet claims of a few

HYBRID TYPE OF BUSINESS

FORMS OF BUSINESS ORGANIZATION

SOLE PROPRIETORSHIP PARTNERSHIP CORPORATION

for some purpose other

PARTNERSHIP VS. CORPORATION

C. Teach them efficient ways of doing things in a cooperative manner;

D. Propagate cooperative practices and new ideas in business and management;

BUSINESS REGISTRATION PROCESS

Applicant must be above 18 and a Filipino citizen

Bring at least two (2) photo-bearing government-issued IDs

Cover Sheet for Registration

Reservation Payment Confirmation

Articles of Incorporation (AI)

✓ Go to your own barangay to obtain a barangay clearance

DTI or SEC certificates – bring original and photocopies

Business location sketch/map

Contract of lease if you rent the place of business, or land

Duly filled out barangay clearance application form

National Food Authority (NFA) License for rice/corn and wheat

Bureau of Food and Drug Administration (BFAD) and

✓ Forms to be submitted for all types of businesses:

✓ BIR business registration document requirements:

SOCIAL SECURITY SYSTEM (SSS) EMPLOYER’S REGISTRATION

➢ Single Proprietors’ Document Requirements:

Main documents such as

Document requirements for ALL TYPES OF BUSINESSES:

Miscellaneous Payment Return (SS Form

P50 – per Right of Perpetual Usufruct (RPU)

30 – annotation fee, per document

Mr. John Evander Cainip

Current Secretary: Ramon M. Lopez

1898- OUR BEGINNINGS

1901- DEPARTMENT OF COMMERCE AND INDUSTRY

1972- AFTER 25 YEARS

1973- DEPARTMENT OF INDUSTRY

1975- DEPARTMENT OF TRADE

1981- MINISTRY OF TRADE AND INDUSTRY

1987- DEPARTMENT OF TRADE AND INDUSTRY

About its logo

VALUES, MISSION, VISION & MANDATE

Enabling innovative, competitive, job-generating, inclusive business, and Empowering consumers.

 Increase local and foreign direct investments

These we accomplish through six major programs:

 Exports and Investment Development Program