Entrepreneurship 12 Name___________________________________ Score ____________ Prefi

MODULE
Legal Requirements
1

A new enterprise has to be registered in various government agencies. The complexity of registration varies according to the
legal form of the business. A single proprietorship is the easiest to register, while a corporation requires more elaborate procedures.
Below is the list of various government agencies and local government units where the entrepreneurs should secure the necessary legal
requirements to operate their business.
Registering with the Department of Trade and Industry (DTI)
The DTI-NCR and DTI provincial Offices nationwide administer the registration of business names.
If you are single proprietor and your business is using a name other than your true name, that business name should be
registered. By registering your business name with the DTI, you are assured that no other entity may legally use your business name
anywhere in the Philippines.
Steps for over-the-counter registration:
1. Obtain application forms (duplicate copy) and fill these up completely. Only the owner of the business or his or her Attorney-
in-Fact (who is authorized in the proper legal requirements) is authorized to sign all the forms.
2. Meet the following requirements (for single proprietorship)
- Must be a Filipino citizen, at least 18 years old. Filipinos with names suggestive of alien nationality must submit any
of the following proof of citizenship: birth certificate, PRC ID, voter’s ID, or valid passport.
- Certain types of businesses may have other requirements, such as service and repair shops, real estate brokers,
dental/medical, clinic/ hospitals, pawnshops, manpower services, engineering/architectural services and other services
provided by professionals.
3. Submit application form to the DTI processor. This will check if the Business Name is still available, if yes, you will be
asked to pay the application fee.
4. Pay the required registration and processing fee. A penalty is imposed if the BNRS certificate is not renewed within 3-month
grade period from the certification’s expiration date.
5. After showing the receipt to the Processor, the Business Name Certificate will be released.
6. Your business Name Certificate is valid for 5 years from date of registration.
Registering with the Securities and Exchange Commission (SEC)
The SEC is the government agency that gives the business enterprise its legal personality. Partnerships and corporations need
to be registered with the SEC. Singe proprietorship need not to register.
Registration Procedure
1. Verify/reserve proposed name with the Name Verification Unit.
2. Draw up the Articles of Incorporation and By-Laws in accordance with the Corporation Code. Blank forms are also available
from the CRMD (company registration and monitoring department)
3. If required, get endorsements from other government agencies.
4. Deposit paid-up capital/contribution (for foundations only) in the bank.
5. Present six (6) sets of the accomplished forms and documents for processing at the CRMD. Only complete application
documents are accepted for processing. All documents executed outside the Philippine must be authenticated by the
appropriate Philippine Embassy or consulate in the area concerned.
6. Pay the filling fees to the Cashier.
7. Claim the certificate/License from the Releasing Unit, Records Division upon presentation of the official receipt issued for
payment of filling fee.
Registering with the Bureau of Internal Revenue (BIR)
Every business enterprise has to register with the BIR for taxation purposes. Below are the steps to follow.
1. Secure a permanent record file number of Tax Identification Number (TIN) from the BIR National office.
2. Register the business/trade name with the supporting papers.
- Mayor’s permit
- Certificate of Business Name Registration from DTI
- Articles of Partnership or Corporation
- Community Tax Certificate (brgy/municipality)
- Secure authority to print books of account, invoices, receipts, and other accounting records by filling up four copies of an
application form and other counting records.
- Register book of accounts
Registering with the Department of Labor and Employment
Business establishments with one or more employees are required to register with DOLE, the agency which monitors
compliance with labor laws. The Bureau of Local Employment, administers the registration of establishments. To register, secure and
fill up a registration form. Corporations are required to attach a photocopy stat copy of the SEC Certificate of Registration.
Registering with the Social Security System (SSS)
An employer, or any person who uses the services of another person in business, trade, industry or any undertakings must be registered
with the SSS. Social, civic, professional, charitable, and other non-profit organizations, which hire the services of employees, are
considered “employers”.
Single Proprietorship
An owner of a single proprietorship business may accomplish and submit SSS Forms R-1 (Employer’s Data Record) and R-1A
(Initial or Subsequent List of Employees).
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Partnerships
Any of the partners of a partnership firm should accomplish SSS Forms R-1 and R-1A and submit these forms together with a
photocopy of the Articles of Partnership. The original copy of Partnership must be presented for authentication.
Corporations
A corporations must accomplish SSS forms R-1 and R1-A signed by its president or any of the corporate officers or incorporators.
Submit these forms together with the photocopy of the Articles of Incorporation. The original copy of the Articles of Incorporation
must be presented to the SSS for authentication.
SSS Contribution
P20, 000 x 12% = contribution amount to SSS/month
2, 400 (4%- employee, 8%- employer)
800 + 1,600 = 2,400
Pag-Ibig Fund Contribution
5,000= 100 + 100 = 200 (if employed)
100 (if not employed/voluntary)
PhilHealth Contribution
Monthly salary x 3.5%
20, 000 x 3.5 = 700 (divided by 2)
350- employee, 350- employer

Registering with other Agencies

- Bureau of Food and Drugs (BFAD)- for manufacturers of drugs, cosmetics, and food products
- National Food Authority (NFA)- for rice, corn, and flour deals
- Fiber Industry Development Authority (FIDA)- for processors and traders of fibers and fiber products
- Bureau of Fisheries and Aquatic Resources (BFAR)- for those engaged in the export of fish and fish products, and other
aquatic resources
- Bureau of Animal Industry (BAI)- for exporters of animals and animal by-products
- Bureau of Plant Industry (BPI)- for exporters of plant and plant products
- Forest Management Bureau- for exporters of forest products (logs, lumber products, plywood)
- Bureau of Product Standard (BPS) - for commodity clearance for producers, manufacturers or exporters (their products will
be tested to ensure that they meet established standards.
- DTI-Bureau of Trade Regulation and Consumer Protection (BTRCP)- for enterprises engaged directly or indirectly in the
servicing, repair or maintenance of vehicles, engines and engineering works, electrical components, electronics,
airconditioning and refrigeration, office machines and data processing equipment, medical and dental equipment.
Registering with the Local Government
All businesses, whatever the legal form, are required to secure a mayor’s permit or municipal license from the city or
municipality where they are located. Various cities and municipalities have different registration procedures, but the following steps
prescribed:
1. Go to the Business Permit and Licensing Office. Secure an application form from the Public Assistance Office.
2. Submit three copies of the form together with a simple sketch of your business location.
3. Support application with a Certificate of Business Name Registration from the DTI if you are using a firm name.
4. A partnership or corporation must submit the corresponding Articles of Partnership or Incorporation duly registered with a
SEC, together with a Photocopy of the Certificate of Registration with the SEC, and the current class “C” certificate in the
case of operations.
5. Proceed to the City Treasurer’s Office for any payments to be made. Present Mayor’s Permit for issuance of the business
license.
FT1. In which government agencies will the following entrepreneurs register their business?
1. PAZ Pharmacy 11. Cacao Culture farms
2. Rice Suppliers 12. Yago Food and Beverage Distribution
3. Agrivet Supplies 13. Bugsai Sea Crafts Corporation
4. Bohol People's Lumber 14. Livestock feeds and supplements Store Supply
5. Good Year Service Tech (Car repair shop 15. Townline Machine Shop and Fabrication
6. Island Motorcycle Rentals 16. Avon Cosmetic Products- Bohol Branch
7. Metroland Travel and Tours 17. Vicore Virgin Coco Oil
8. Diccion Electronics 18. Sumaylo Lumber Supplies
9. Fieldstone Hardware and Construction Supply 19. TGP Pharmacy
10. Dagohoy Native Bags and Designs 20. Lagura’s Car Maintenance Shop
FT2. Search and provide the complete meaning and their individual functions.
1. PITC-
2. TESDA
3. SEC
4. TIN
5. PTTC
6. TESDA
7. BITR
8. NLDC
9. PMDF
10. GSIS
FT3. Provide what is being asked.
1. Describe the training and human resource development assistance support services that the government provides to entrepreneurs.
2. Discuss in what government agencies should a small-sized, sole proprietor who intends to open a bakeshop should register.
3. What are the importance of registering a business to a specific government agency?
4. Is it beneficial for the employees of a company which is registered and legally permitted to operate?
4. What is the Labor Code about? How would it protect the workers and the employers at the same time?

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