starting a business - malabon city (1)

7/25/2019 Starting a Business - Malabon City (1)

1/15

The World Bank Group

The World Bank 1818 H Street N.W. Phone: (202) 473-6291INTERNATINA! "INAN#E #RPRATIN W$%h&n'ton .#. 20433 "$*: 202 473 +7+8

INTERNATINA! ,AN "R RE#NSTR#TIN AN E/E!PENT .S.A. E-$&: or$n5or$n.or'INTERNATINA! E/E!PENT ASS#IATIN

2007 Questionnaire on Starting a Business

Doing Business in the Philippines

Dear Contributor,

Thank you for your cooperation with the Doing Business in the Philippines project. On behalf of the

World Bank and IFC, it is a pleasure to introduce you to our sub national study on business start-up

reulation. The sur!ey will solicit your !iews and the !iews of other e"perts in the field of business start-

up in the #hilippines on aspects of reulatory re$uire%ents to open a do%estically-owned li%ited liability

co%pany. We belie!e that your e"perience and knowlede in this area can pro!ide us with an accurateand objecti!e picture of the practice of co%pany incorporation in your city.

#lease answer the two part sur!ey on the followin paes. The first section asks you to re!iew the

su%%ary of procedures to start a business in &anila City and asks you to co%pare it with your city.

#lease indicate whether each specific procedure is re$uired in your city and the ti%e and cost that it

entails. The second section asks you to describe any ad%inistrati!e or leal chanes that ha!e taken placein recent years which affected the procedures, ti%e and cost to start up a li%ited liability co%pany.

#lease address any $uestions reardin this sur!ey to 'yl!ia 'olf, tel. ( )*) + +), fa" ( )*) +/

, e-%ail0 ssolf1worldbank.or or 2driana 3icentini, tel. ( )*) +/ *+, e-%ail0a!icentini1worldbank.or. If you ha!e any $uestions, do not hesitate to contact us.

One o!pleted, please return the "uestionnaire #ithin $ business da%s, &S' ()(C* &'

+)(DC-O at the )sian nstitute o. &anage!ent /)&, 1ugenio +ope 3oundation Bldg',

4oseph 5' &&iking Ca!pus, 62 Paseo de 5o8as, &akati Cit% 6290, Philippines, Tel: ;92 066 e8t' 206


2/15


CO(T5BATO5S G1(15)+ (3O5&)TO(

Would %ou like this

in.or!ation published

*es (oTitle /&r', &s', et' 5&s.6

(a!e 57er%ilinda6 8first9i!en: 5Chan6 8last9fa%ily:

Position 5Officer-In-Chare6

3ir! 5Business #er%it and ;icensin Office6

&ailing )ddress

5F. 'e!illa 'ubdi!ision6 8street and nu%ber:5Bry. Ta?/) )( /+*(6

3a8 5 6

1?&ail 5al!in.culla%co1%ail.co%6

Website 5 6

(ote: Please list all respondents #ho partiipated in o!pleting this surEe%' Anless %ou indiate other#ise,#e #ill list %ou and %our .ir! as a Doing Business ontributor in our report and on our #ebsite' The

in.or!ation published #ill be li!ited to %our na!e, %our .ir!s na!e and /i. appliable %our .ir!s #ebsite'

1(A&15)TO5S (3O5&)TO(

(a!e 5@ancy &. ;andicho6

Phone 5>?/ A) +*(( local )*(6

1?&ail 5nlandicho1ai%.edu6

- ) Doing Business in Philippines
http://www.worldbank.org/


3/15


When o!pleting the surEe%, please pa% attention to the .ollo#ing assu!ptions'

The business:

- Is a do%estic li%ited liability co%pany 8stok orporation:.- Operates in &alabon City

- 7as owners, none of who% is a leal entity.

- 7as a start-up capital of (* ti%es inco%e per capita, paid in cash0 ASD 6>,200 or P-P 72


4/15


' Business 1ntr% Proedures in &alabon Cit%

#lease use this list of the reulatory re$uire%ents and %andatory procedures to incorporate a li%ited

liability co%pany in &anila Cit%as a basis for identifyin the procedures re$uired in your city.

'o%e procedures %ay be si%ilar but ha!e a differin ti%e, cost and aency associated with the%.#lease indicate these differences in the space pro!ided.

'o%e procedures %ay not be re$uired for your city. #lease indicate these procedures and pro!ide

an e"planation for the difference.

@ote that there are ) additional $uestions related to these procedures at the end of the list.

Proedure 6' Obtain bank erti.iate o. deposit o. the paid?in apital

Ti%e0 ( day

Cost0 @o chare

Co%%ent0 Fees !ary fro% bank to bank. 'o%e banks in &anila do not chare any fee, so%e banks

chare up to #7# (* for each certificate.

Is this procedure re$uired in &alabon CityD Ees @o

If Ees, are the ti%e and cost noted here the sa%e in &alabon CityD Ees @o

If @o, what is your esti%ate of the a!erae Ti%e to co%plete 5 6 and Cost to co%plete 5 6 in

&alabon CityD

If this procedure is @OT re$uired in &alabon City, please describe the procedure that you would

place here0 5

6

#lease esti%ate0 Ti%e to co%plete0 5

6 Cost to co%plete0 5

6

Feel free to use this space to %ake any additional co%%ents about this procedure in &alabon City0

5nu%eratorGs Co%%ent0 The respondent has no idea on the ti%e and cost since this procedure is

under a pri!ate co%pany.6

Proedure 2' Obtain Co!!unit% Ta8 Certi.iate /CTC

Ti%e0 ( day

Cost0 #7# ***

Co%%ent0 The CTC of the juridical entity is a prere$uisite to obtain the Baranay Clearance. The

basic Co%%unity Ta" depends on whether juridical entity is a corporation, partnership or

association 8#7# ** or lower:H 2dditional Co%%unity Ta" 8which shall not e"ceed #7#

(*,***.**: depends on the assessed !alue of real property owned in the #hilippines by the

co%pany 8#7# ) for e!ery #7# ,***: and ross receipts includin di!idends9earnins

deri!ed fro% business in the #hilippines durin the precedin year 8#7# A for e!ery #7#

,***.**:. The applicant only needs to supply its na%e and other personal circu%stances insecurin the CTC.



Ti%e Ees

Cost @o

- + Doing Business in Philippines


5/15


If @o, what is your esti%ate of the a!erae Ti%e to co%plete 5 6 and Cost to co%plete

5#7#**.**6in &alabon CityD


place here0 5

6#lease esti%ate0 Ti%e to co%plete0 5


6


5#art of the re$uire%ents for the processin of &ayor4s #er%it.6

Proedure ' Feri.% the aEailabilit% o. the o!pan% na!e #ith the Seurities and 18hange

Co!!ission /S1C

Ti%e0 ( day

Cost0 #7# +*

Co%%ent0 Corporate na%e !erification can be done on-line. 3erification is free but reser!ation of the

na%e, once appro!ed by the 'C, costs #7# +*.



If @o, what is your esti%ate of the a!erae Ti%e to co%plete 5

6 and Cost to co%plete 5

6 in

&alabon CityD


place here0 5

6



6

Feel free to use this space to %ake any additional co%%ents about this procedure in &alabon

City0 5nu%eratorGs Co%%ent0 The respondent has no idea on the ti%e and cost since this procedure

is under a @ational o!ern%ent 2ency.6

Proedure >' 5egister inorporation #ith the Seurities and 18hange Co!!ission /S1C

Ti%e0 / days

Cost0 #7# +* reser!ation fee of co%pany na%e 8/* days: > filin fee for articles of

incorporation0 (9 of (J of the authori=ed capital stock, no less than #7# (,***, plus ;eal

Kesearch fee of (J of filin fee, no less than #7# (* > #7# )(* bylaws fee > #7# (* -

stock and transfer book reistration fee > #7# - %e%bership book reistration fee

Co%%ent0 Ke$uired reistration docu%ents0 corporate na%e !erification slip, articles of incorporation

and bylaws, treasurerGs affida!it, state%ent of assets and liabilities, bank certificate of

deposit, authority to !erify bank account, ta" account nu%ber of incorporators, reistration

data sheet definin personal infor%ation reardin directors, officers, stockholders etc, andwritten undertakin to co%ply with the reportin re$uire%ents of the 'C.

The 'C pro!ides online reistration throuh 'C-iKeister, the web-based Co%panyKeistration 'yste% and the possibility to reser!e a co%pany na%e. For%s for reistration

%ay be downloaded fro% the 'C website. One can search and research co%pany na%e

and reister the co%pany with the 'C on-line but pay%ent %ust be %ade at the 'C

itself. 'a%e day pay%ent is not possible. 2t this point the co%pany obtains Te%poraryIdentification @u%ber 8TI@H in the past the co%pany had to obtain it fro% Ke!enue

istrict Office. To obtain the TI@ the co%pany needs to ha!e LBaranayL clearance,

- Doing Business in Philippines


6/15


%ayorGs per%it, and a copy of 'C reistration certificate 8issued by the 'C as part of this

sa%e procedure:. Other docu%ents %ay be re$uired, e.. ho%eowner4s clearance, contractof lease.





6 in

&alabon CityD


place here0 5

6



6




Proedure $' )ppl% .or a Baranga% /distrit learane

Ti%e0 ) days

Cost0 #7# **

Co%%ent0 @o city or %unicipality %ay issue any license or per%it for any business or acti!ity unless

a clearance is first obtained fro% the baranay where such business or acti!ity is located orconducted. 'o%e baranays collect a fee for the issuance of a baranay clearance. The fee

is based on the area 8si=e in s$. %eters: of the place of business and the location of the

place of business.

The fee chared by the baranay depends on the paid-up capital of the corporation and the

land area it occupiesM#** %ini%u% plus #/** for the baranay clearance plate.



If @o, what is your esti%ate of the a!erae Ti%e to co%plete 5(6and Cost to co%plete 5#7#(**.**

8%ini%u%: #7#**.** 8%a"i%u%:6 in &alabon CityD


place here0 5

6



6


5Baranay Clearance is one of the re$uire%ents for the processin of &ayor4s #er%it. Baranays in

&alabon City do not issue baranay plate, certificate only.6Proedure 9' Obtain !a%ors per!itH!uniipal liense to operate at the +iensing Setion o. the

&a%ors O..ie

Ti%e0 (( days

Cost0 The fees !ary dependin on the local o!ern%ent unit 8city9%unicipality: issuin the

%ayorGs per%it 8#7# /**, sanitary per%it fee > *.)J of capital for license fee > #7# )***,

per%it fee for businesses enaed in retail > #7# (,** arbae collection fee > #7# /?*,

occupational ta" > #7# *, occupational police clearance9health clearance > #7# *,

- ? Doing Business in Philippines


7/15


plu%bin inspection fee > #7# (**, electrical inspection fee > #7# (** buildin per%it

fee > #7# (** sin board per%it fee:

Co%%ent0 Ke$uired docu%ents0 acco%plished application for business per%its and licenses in

duplicate copies with sketch of location of buildin at the backH certification issued by the

corporate secretary to the effect that the co%pany has been duly authori=ed to enaed inthe businessH a%ount of paid-up capitalH certificate of reistrationH receipts of pay%ent of

due feesH lease contractH Baranay Clearance9#er%itH co%prehensi!e eneral liability

insurance 8which is usually based on the area si=e of the office space:, co%%unity ta"

certificate 8which is usually based on the paid-up capital:.





8/15


)**.:

(. Business Ta" #7#/,***.**

). Occupational Fee #7#**.** 8co%puted as #7#(**.** per person, assu%in that

e%ployees were declared by the entrepreneur upon application for &ayor4s #er%it:

/. Business #late #7#)**.**

+. &ayor4s #er%it Fee #7#(**.**

. arbae Fee #7#(,**.**

?. 'anitary Inspection Fee #7#(,***.**

. &ayor4s Certification #7#*.**

. Buildin Inspection Fee #7#+**.**

A. lectrical Inspection Fee #7#+**.**

(*. #lu%bin Inspection Fee #7#+**.**((. 'in9Billboard Inspection Fee #7#)**.**

(). Fire Fee #7#+*.** 8Co%puted as (*J of all the fees fro% Ite%s + 8&ayor4s #er%it: to ((

8'in9Billboard Inspection Fee:

(/. ;ocational Clearance Fee #7#/,?+*.**

(+. @otari=ation of Business 2pplication and ;ocational Clearance For%s #7#(**.**

TOT)+ COST I P-P66,0'00

P-P>0'00 8filin fee: > P-P,900'00 8processin fee for co%%ercial establish%ents is #7#(.**

per s$.%. of the total floor area:. #er%it Fee for Nonin9;ocational Clearance. 'ection A. Filin Fee

and #rocessin Fee. Ke$uired docu%ents for Nonin Clearance0 @otari=ed 2pplication For%H Copy

of ;and Title and Contract of ;easeH Co%%unity Ta" CertificateH and Baranay Consent.

Feel free to use this space for any co%%ents related to clearances0 5 6

Proedure 7' 5eeiEe inspetion .ro! the &a%ors O..ie

Ti%e0 days 8included in pre!ious procedure:

Cost0 @o chare

Co%%ent0 The &ayor4s Office conducts an inspection to !erify that the business will conduct the

acti!ity it has stated in the application. There is no need to set an appoint%ent for this

inspection and the cost of it is no%inalH the inspection enerally occurs in the first days

after the application for the per%it has been sub%itted.

- Doing Business in Philippines


9/15




Ti%e @o

Cost Ees

If @o, what is your esti%ate of the a!erae Ti%e to co%plete 5( 8included in pre!ious procedure:6and

Cost to co%plete 5

6 in &alabon CityD


place here0 5

6



6


City0 5The inspection happens the day after the application9re$uire%ents for new business has been

sub%itted. &ayor4s #er%it will only be released after this has been acco%plished.6

Proedure


10/15


printed. #hilippine law does not re$uire a co%pany to ha!e its official in!oice for%s

printed at desinated print shops. If a co%pany has secured an 2uthority to #rint Keceiptsand In!oices, it can ask any authori=ed printin co%pany to print its official in!oice for%s.

7owe!er, if a co%pany wants to print its own in!oice for%s 8i.e., it uses its co%puters to

print loose-leaf in!oice for%s:, the co%pany %ust obtain a special per%it fro% the BIK forthis purpose.





6 in

&alabon CityD


place here0 5

6



6

Feel free to use this space to %ake any additional co%%ents about this procedure in &alabon City05nu%eratorGs Co%%ent0 The respondent has no idea on the ti%e and cost since this procedure is

under a @ational o!ern%ent 2ency.6

Proedure 60' Pa%!ent o. Dou!entar% Sta!p Ta8es

Ti%e0 ( day

Cost0 @o chare

Co%%ent0 'ection (+ of the @ational Internal Ke!enue Code, as a%ended, re$uires the pay%ent of

docu%entary sta%p ta"es on the oriinal issuance of shares of stock at the rate of #7# ) on

each #7# )** or a fractional part thereof, of the par !alue of such shares of stock, within

days after the close of the %onth when the reistration certificate is issued by the 'C or

the shares are issued by the corporation.




&alabon CityD


place here0 5

6



6


5nu%eratorGs Co%%ent0 The respondent has no idea on the ti%e and cost since this procedure isunder a @ational o!ern%ent 2ency.6

Proedure 66' Obtain the )uthorit% to Print 5eeiptHnEoies #ith the Bureau o. nternal 5eEenue

Ti%e0 ( day

Cost0 included in procedure A

Co%%ent0 The 2uthority to #rint Keceipt9In!oices %ust be secured by the printer before the salesin!oices9receipts %ay be printed. #hilippine law does not re$uire a co%pany to ha!e its

- (* Doing Business in Philippines


11/15


official in!oice for%s printed at desinated print shops. If a co%pany has secured an

2uthority to #rint Keceipts and In!oices, it can ask any authori=ed printin co%pany toprint its official in!oice for%s. 7owe!er, if a co%pany wants to print its own in!oice for%s

8i.e., it uses its co%puters to print loose-leaf in!oice for%s:, the co%pany %ust obtain a

special per%it fro% the BIK for this purpose.@ew ta"payers %ust sub%it the followin to the Ke!enue istrict Office or concerned

office under the ;are Ta"payer 'er!ice ha!in jurisdiction o!er the ta"payerGs 7ead

Office0

8a: uly acco%plished BIK For% (A*? - 2pplication for 2uthority to #rint Keceipts and

In!oices

b: Pob order

c: Final and clear sa%ple of receipts and in!oices 8%achine printed:

d: #hotocopy of the followin0

2pplication for Keistration 8BIK For% @o. (A*( or (A*/:9 TKQ for% or photocopy of

TI@ card

#roof of pay%ent of 2nnual Keistration Fee 8BIK For% @o. *?*:





6 in

&alabon CityD


place here0 5

6



6




Proedure 62' Print reeipts and inEoies at the print shops

Ti%e0 (+ days

Cost0 #7# +,*** 8between #7# /,*** and #7# ,***:

Co%%ent0





6 in

&alabon CityD


place here0 5

6



6



under a pri!ate co%pany.6

- (( Doing Business in Philippines


12/15


Proedure 6' Sub!it reeipts and inEoies to the B5 .or approEal, haEe reeiptsHinEoies and

books o. aounts sta!ped b% B5Ti%e0 ( day

Cost0 @o chare

Co%%ent0 In practice, the books of accounts are presented for sta%pin riht after the application is

filed. Books can be obtained fro% BIK. To reister books of account and in!oices, present

the followin docu%ents0 all the re$uired books of accounts, 32T reistration certificate,

'C reistration certificate and BIK For% W-.





6 in

&alabon CityD


place here0 5

6



6




Proedure 6>' 5egister #ith the Soial Seurit% S%ste! /SSS

Ti%e0 ( week

Cost0 @o chareCo%%ent0 To enroll for %e%bership with the ''' the docu%entary re$uire%ents are the followin0

(. ;ist of %ployees, specifyin their birth dates, positions, %onthly salary and date of

e%ploy%entH and). 2rticles of Incorporation, By-;aws and Certificate of Keistration with the 'ecurities R

"chane Co%%ission 8'C: or the Certificate of Keistration with the epart%ent of

Trade and Industry 8TI:.

Qpon sub%ission of the re$uisite docu%ents, the e%ployees shall undero a se%inar,

which shall be scheduled within one 8(: week. 2t the end of the se%inar, the Certificate of

&e%bership shall then be released.




your &alabon CityD


place here0 5

6



6

- () Doing Business in Philippines


13/15





Proedure 6$' 5egister #ith Philippines -ealth nsurane Co!pan% /P-CTi%e0 ( week

Cost0 @o chare

Co%%ent0 Qpon enroll%ent with the ''', reistration with #7IC %ay be undertaken. ;ist of

%ployees shall likewise be sub%itted to the #7IC.





6 in

&alabon CityD

If this procedure is @OT re$uired in &alabon City, please describe the procedure that you wouldplace here0 5

6



6




If additional procedures are re$uired in &alabon City, please describe the%, in the spaces below. If you

need additional space, please add a separate sheet0

Proedure 69 (otariation o. the +oational Clearane and Business )ppliation 3or!s/inluded in Proedure 9

Ti%e0 5(6

Cost0 5#7#(**.**6

Co%%ent0 5This is re$uired before the processin of the locational clearance and business per%it.6

Proedure 67'

Ti%e0

Cost0

Co%%ent0

#lease specify if any of the pre!ious procedures can be done in parallel, that is, there is no need to wait

for one procedure to be co%pleted until the ne"t one can be started 8e.. #rocedures ), / and procedures ,

A:0 5@one6

- (/ Doing Business in Philippines


14/15


' 5e.or!s

(.Between 2pril )**? and now, were any ad%inistrati!e or leal chanes i%ple%ented in &alabon City

that affected the re$uire%ents and process to establish a do%estic li%ited liability co%panyD

Ees @o

If your answer is Ees, please describe these chanes in the table below 8please include the date of the

chane or refor%, %ajor characteristics, objecti!es, rele!ant reulation, if applicable:0

18a!ples .or re.or!s and si!pli.iations *es (o

;ealrefor%

&ini%u% capital re$uire%ent chaned.

#rocedures were added or cut.

Co%pany ;aw or Co%%ercial Code was re!ised.

If yes please

describe

5

6

Co%panyreistration

Keistry co%puteri=ed or re-orani=ed.

Keistration chaned fro% judicial to ad%inistrati!e process.

'ubstanti!e re!iew of applications was eli%inated.

@ew sinle access point or one-stop shop 8e.. BO'':.

Keistration can be co%pleted online.

@ew e"pedited ser!ice.

@ew statutory ti%e li%its.

S'ilence-is-consent4 rule was introduced 8authori=ation

auto%atically appro!ed after certain ti%e li%it:.

If yes pleasedescribe

5

6

ocu%entation and

publication

ocu%entation re$uire%ents were si%plified, reduced orstandardi=ed.

#ublication re$uire%ents 8in official a=ette or daily

newspaper: chaned.

If yes please

describe5

6

Ta"

reistration Ta" reistration was si%plified.

'inle identification nu%ber 8for ta", statistical and other

reistration purposes: was introduced.

If yes please

describe5

6

'ocial

security or

labor

Ke$uire%ents were strea%lined or reistration si%plified.

If yes please

describe5

6

18plain ho# the aboEe re.or!s haEe i!pated the ti!e, osts and proedures .or doing business in

this it%'

2dditionalco%%ents

5 6

- (+ Doing Business in Philippines


15/15


). 2re you aware of any planned 8future: chanes to the laws and reulations on establishin a

do%estic li%ited liability co%pany in &alabon CityD

Ees @o

If your answer is Ees, please briefly describe0 (: the e"pected date of the refor%, ): the oal of the

refor%, and /: its %ajor characteristics 8solutions it pro!ides to achie!e the oal:0 5

6

/. In your opinion, is the process to open a business in &alabon City %ore or less efficient today

co%pared with a year a oD

#lease describe the rationale for your selection

'a%e 5

6

&ore efficient 5#rocessin of per%its ha!e been %ore efficient due to co%puteri=ation.6

;ess efficient 5

6

+. If you were to ad!ise the o!ern%ent on how to refor% business start-up, what would be your %ainsuestion and whyD 5The processin of per%its for new business should start fro% the ;Q 8B#;O:

before oin to the BIK.6

Thank %ou .or o!pleting the surEe%N

We appreciate your contribution to the oin Business project.

The results will appear inDoing Businessand on our websitehttp099www.doinbusiness.or .

Eour work will be ratefully acknowleded in both.

The oin Business project co!ers (* topics of business reulation fro% start-up to closin. #lease let us

know whether you would like to contribute to any of the followin topic8s: in addition to startin a

business or whether you would like to reco%%end one of your colleaues or a local e"pert.

- ( Doing Business in Philippines
http://rru.worldbank.org/doingbusinesshttp://rru.worldbank.org/doingbusinesshttp://rru.worldbank.org/doingbusinesshttp://www.worldbank.org/http://rru.worldbank.org/doingbusiness

starting a business - malabon city (1)

Documents