Form of the Business Organization

The form of our business is partnership. Partnership keeps track of each

partner's investment in the partnership through a financial record called a capital
account. A partner's opening capital account balance generally equals the value of his
contribution to the partnership. With this, the overall cost our product may or may not
varies around 250 pesos, this includes all the ingredients needed to be bought for this
production. The funding needed for this production will come from the members itself.
Each member will provide an equally amount of 50 pesos in order to buy the raw
materials and excess for changes of price of the raw materials.

In terms of duties in partnership, the responsibilities needed to perform in the

business should also be proportionate to each member, from the manager to the people
who are assign with different field such as in finance, marketing, and the operation itself.

All businesses are required to obtain a business permit. Head of the Local
Government Unit of the place you intend to conduct your business. Secure a business
or mayor’s permit. Each municipality has its own specific requirements and procedures
for the registration of businesses. In terms of tax implication, a partnership is set up
easier and has less paperwork, legal requirements, and tax obligations than a
corporation. And the partnership itself is not taxed on its income, each of the partners
will be taxed upon his or her share of the income from the partnership. The Securities
and Exchange Commission (SEC) requires a minimum paid-up initial capital investment
of three thousand pesos (P 3,000.00) for partnerships with foreign partners, engaged as
export market enterprises. Another role of 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 business is also required
to register in BIR which is also known as Certificate of Registration (COR), this gives
you the legal rights to operate your business in the Philippines. It provides you with Tax
Identification Number (TIN) and the authority to print and issue official receipts. It also
states the types of taxes you will settle.

Our product, BaRiCa homemade kakanin is a classic dainty composed of chewy,

malagkit rice with a banana condiment inside formed inside a banana leaf. Dainties are
popular in such place where people want something hefty yet flavorful dish. This
includes Philippines.

As of creating a new product, we address our business to be a manufacturing

business. Manufacturing Business buys raw materials and ingredients with intent of
using them to create a new product. Thus, there are changes of the materials
purchased by combining necessary raw materials and will include labor in order to
produce the new product or goods. These finished goods can be sold directly to
consumers or to other manufacturing business that use them to make different
products.

There are other expenses than business operations to produce our product. Here
are the details how we will use the money in external financing. We allot payment for tax
and licenses. The people who comprise the 34 partnerships shall be liable for income
tax in their separate and individual capacities. Meaning, as soon as the profits of the
partnership are divided and remitted to them, they become liable for the income tax due
for the money they received. The business would also provide money for rent space.
Businesses that rent commercial space need to secure a Contract of Lease. Businesses
that operate on private lands need to secure a Land Title. The business would also be
financing fixtures and equipment for the place. Aside from that, the partnership business
would also be spending money to market our product using various advertisements like
poster or through online.