Starting A Business - Malabon City
Starting A Business - Malabon City
Starting A Business - Malabon City
Sylvia Solf
[email protected]
Adriana Vicentini
[email protected]
[Ms.]
[Hermilinda] (first/given) [Chan] (last/family)
[Officer-In-Charge]
[Business Permit and Licensing Office]
[F. Sevilla Subdivision] (street and number)
[Brgy. Taong, Malabon City] (city)
[Philippines] (country) [] (zip/postal code)
[+632 281 3401]
[]
[[email protected]]
[]
*Note: Please list all respondents who participated in completing this survey. Unless you indicate otherwise,
we will list you and your firm as a Doing Business contributor in our report and on our website. The
information published will be limited to your name, your firms name and (if applicable) your firms website.
ENUMERATORS INFORMATION
Name
Phone
E-Mail
[Nancy M. Landicho]
[+63 892 4011 local 2018]
[[email protected]]
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When completing the survey, please pay attention to the following assumptions.
The business:
-
A procedure is defined as any interaction of the company founder with external parties (for example,
government agencies, lawyers, auditors, or notaries). Interactions between company founders or company
officers and employees are not considered separate procedures. Both pre- and post-incorporation
procedures that are officially required for an entrepreneur to legally operate a business are recorded.
Costs only include official fees and taxes. Bribes are excluded. If possible, the relevant fee schedule or
calculation formula should be indicated (for example, as a percentage of the companys capital).
Professional fees (notaries, lawyers or accountants) are only included if the company is required to use
such services.
Time is recorded in calendar days and captures the median duration of each procedure. The time span for
each procedure starts with the first filing of the application or demand, and ends once the company has
received the final document, such as the company registration certificate or tax number (that is, it
includes, for example, the time to make an appointment with the notary or any waiting time once the
documents are filed). It is assumed that the entrepreneur has had no prior contact with any of the
officials).
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1 day
No charge
Fees vary from bank to bank. Some banks in Manila do not charge any fee, some banks
charge up to PHP 105 for each certificate.
Yes
No
If Yes, are the time and cost noted here the same in Malabon City?
Yes
No
If No, what is your estimate of the average Time to complete [] and Cost to complete [] in
Malabon City?
If this procedure is NOT required in Malabon City, please describe the procedure that you would
place here: []
Please estimate: Time to complete: [] Cost to complete: []
Feel free to use this space to make any additional comments about this procedure in Malabon City:
[Enumerator's Comment: The respondent has no idea on the time and cost since this procedure is
under a private company.]
Procedure 2. Obtain Community Tax Certificate (CTC)
Time:
Cost:
Comment:
1 day
PHP 5000
The CTC of the juridical entity is a prerequisite to obtain the Barangay Clearance. The
basic Community Tax depends on whether juridical entity is a corporation, partnership or
association (PHP 500 or lower); Additional Community Tax (which shall not exceed PHP
10,000.00) depends on the assessed value of real property owned in the Philippines by the
company (PHP 2 for every PHP 5,000) and gross receipts including dividends/earnings
derived from business in the Philippines during the preceding year (PHP 9 for every PHP
5,000.00). The applicant only needs to supply its name and other personal circumstances in
securing the CTC.
Yes
No
If Yes, are the time and cost noted here the same in Malabon City?
Yes
No
Time Yes
Cost No
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If No, what is your estimate of the average Time to complete [] and Cost to complete
[PHP500.00] in Malabon City?
If this procedure is NOT required in Malabon City, please describe the procedure that you would
place here: []
Please estimate: Time to complete: [] Cost to complete: []
Feel free to use this space to make any additional comments about this procedure in Malabon City:
[Part of the requirements for the processing of Mayors Permit.]
Procedure 3. Verify the availability of the company name with the Securities and Exchange
Commission (SEC)
Time:
Cost:
Comment:
1 day
PHP 40
Corporate name verification can be done on-line. Verification is free but reservation of the
name, once approved by the SEC, costs PHP 40.
Yes
No
If Yes, are the time and cost noted here the same in Malabon City?
Yes
No
If No, what is your estimate of the average Time to complete [] and Cost to complete [] in
Malabon City?
If this procedure is NOT required in Malabon City, please describe the procedure that you would
place here: []
Please estimate: Time to complete: [] Cost to complete: []
Feel free to use this space to make any additional comments about this procedure in Malabon
City: [Enumerator's Comment: The respondent has no idea on the time and cost since this procedure
is under a National Government Agency.]
Procedure 4. Register incorporation with the Securities and Exchange Commission (SEC)
Time:
Cost:
Comment:
3 days
PHP 40 reservation fee of company name (30 days) + filing fee for articles of
incorporation: 1/5 of 1% of the authorized capital stock, no less than PHP 1,000, plus Legal
Research fee of 1% of filing fee, no less than PHP 10 + PHP 210 bylaws fee + PHP 150 stock and transfer book registration fee + PHP 75 - membership book registration fee
Required registration documents: corporate name verification slip, articles of incorporation
and bylaws, treasurer's affidavit, statement of assets and liabilities, bank certificate of
deposit, authority to verify bank account, tax account number of incorporators, registration
data sheet defining personal information regarding directors, officers, stockholders etc, and
written undertaking to comply with the reporting requirements of the SEC.
The SEC provides online registration through SEC-iRegister, the web-based Company
Registration System and the possibility to reserve a company name. Forms for registration
may be downloaded from the SEC website. One can search and research company name
and register the company with the SEC on-line but payment must be made at the SEC
itself. Same day payment is not possible. At this point the company obtains Temporary
Identification Number (TIN; in the past the company had to obtain it from Revenue
District Office. To obtain the TIN the company needs to have "Barangay" clearance,
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mayor's permit, and a copy of SEC registration certificate (issued by the SEC as part of this
same procedure). Other documents may be required, e.g. homeowners clearance, contract
of lease.
Is this procedure required in Malabon City?
Yes
No
If Yes, are the time and cost noted here the same in Malabon City?
Yes
No
If No, what is your estimate of the average Time to complete [] and Cost to complete [] in
Malabon City?
If this procedure is NOT required in Malabon City, please describe the procedure that you would
place here: []
Please estimate: Time to complete: [] Cost to complete: []
Feel free to use this space to make any additional comments about this procedure in Malabon
City: [Enumerator's Comment: The respondent has no idea on the time and cost since this procedure
is under a National Government Agency.]
2 days
PHP 800
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. Some barangays collect a fee for the issuance of a barangay clearance. The fee
is based on the area (size in sq. meters) of the place of business and the location of the
place of business.
The fee charged by the barangay depends on the paid-up capital of the corporation and the
land area it occupiesP500 minimum plus P300 for the barangay clearance plate.
Yes
No
If Yes, are the time and cost noted here the same in Malabon City?
Yes
No
If No, what is your estimate of the average Time to complete [1] and Cost to complete [PHP100.00
(minimum) PHP500.00 (maximum)] in Malabon City?
If this procedure is NOT required in Malabon City, please describe the procedure that you would
place here: []
Please estimate: Time to complete: [] Cost to complete: []
Feel free to use this space to make any additional comments about this procedure in Malabon City:
[Barangay Clearance is one of the requirements for the processing of Mayors Permit. Barangays in
Malabon City do not issue barangay plate, certificate only.]
Procedure 6. Obtain mayor's permit/municipal license to operate at the Licensing Section of the
Mayor's Office
Time:
Cost:
11 days
The fees vary depending on the local government unit (city/municipality) issuing the
mayor's permit (PHP 300, sanitary permit fee + 0.2% of capital for license fee + PHP 2000,
permit fee for businesses engaged in retail + PHP 1,500 garbage collection fee + PHP 360,
occupational tax + PHP 705, occupational police clearance/health clearance + PHP 750,
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Comment:
plumbing inspection fee + PHP 100, electrical inspection fee + PHP 100 building permit
fee + PHP 100 sign board permit fee)
Required documents: accomplished application for business permits and licenses in
duplicate copies with sketch of location of building at the back; certification issued by the
corporate secretary to the effect that the company has been duly authorized to engaged in
the business; amount of paid-up capital; certificate of registration; receipts of payment of
due fees; lease contract; Barangay Clearance/Permit; comprehensive general liability
insurance (which is usually based on the area size of the office space), community tax
certificate (which is usually based on the paid-up capital).
Yes
No
If Yes, are the time and cost noted here the same in Malabon City?
Yes
No
If No, what is your estimate of the average Time to complete [8] and Cost to complete
[PHP11,895.00] in Malabon City?
If this procedure is NOT required in Malabon City, please describe the procedure that you would
place here: []
Please estimate: Time to complete: [] Cost to complete: []
Feel free to use this space to make any additional comments about this procedure in Malabon City:
Required Documents: Two (2) Passport Size picture of the Senior Managing Partner/President or
General Manager; Picture of the frontal view of the Business Establishment; C and C1 Community
Tax Certificate for Partnership/Corporation; Barangay Clearance (where the business is located); SEC
Registration or Articles of Incorporation; Locational Clearance Certificate/Official Receipt of the
Filing and Processing Fees; Location Sketch/Vicinity Map; If business establishment is rented,
Contract of Lease duly notarized/ Letter of Consent by the owner of the property.
Step-By-Step Procedure (for computation of TIME):
1. Get Application Form for Business at the Business Permit and Licensing Office (BPLO) and
Locational Clearance Form from the City Planning and Development Office (CPDO) 2 days
2. Notarize Locational Clearance and Application form for Business 1 day
3. Submission of requirements and assessment of fees at the Business Permit and Licensing Office
(BPLO) 1 day
4. Process requirements at CPDO for the Zoning/Locational Clearance 1 day
5. Zoning/Locational Inspection 2 days
6. Mayors Inspection (simultaneous with Zoning/Locational Inspection) 1 day
7. Release of Permit at the BPLO 1 day
Estimated Processing Time. In actuality, with complete requirements, it would only take 2 to 3 days
(processing at BPLO only, excluding other offices) to get the Mayors Permit from Malabon City.
Computation for the COST. The computation stated herein is based on the assumption that the
entrepreneur has declared 5 employees at the start-up of the office operations. (Ordinances/Rules
supporting the fees stated herein can be found at the City of Malabon, City Ordinance No. 16-2005.
An Ordinance Amending certain Sections of Municipal Ordinance No. 30-1993. Otherwise known as
the Revenue Code of the Municipality of Malabon. Published in the Manila Times, 21 December
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2005.)
1. Business Tax PHP3,000.00
2. Occupational Fee PHP500.00 (computed as PHP100.00 per person, assuming that 5
employees were declared by the entrepreneur upon application for Mayors Permit)
3. Business Plate PHP200.00
4. Mayors Permit Fee PHP100.00
5. Garbage Fee PHP1,500.00
6. Sanitary Inspection Fee PHP1,000.00
7. Mayors Certification PHP50.00
8. Building Inspection Fee PHP400.00
9. Electrical Inspection Fee PHP400.00
10. Plumbing Inspection Fee PHP400.00
11. Sign/Billboard Inspection Fee PHP200.00
12. Fire Fee PHP405.00 (Computed as 10% of all the fees from Items 4 (Mayors Permit) to 11
(Sign/Billboard Inspection Fee)
13. Locational Clearance Fee PHP3,640.00
14. Notarization of Business Application and Locational Clearance Forms PHP100.00
TOTAL COST = PHP11,895.00
[Enumerators Comment: The Building Official answered Items 8 to 11 in the fees above. Inspection
fees are collected but no actual inspection. Imposition of fees is based on the National Building Code.
As indicated above, the Sanitary Inspection and Fire Fees are paid as part of the fees to be paid before
issuance of the Mayors Permit. Theres no need for inspection before the release of permit.]
Are there additional clearances required in Malabon City to obtain the municipal license?
No
Yes
Feel free to use this space for any comments related to clearances: []
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Yes
No
If Yes, are the time and cost noted here the same in Malabon City?
Yes
No
Time No
Cost Yes
If No, what is your estimate of the average Time to complete [1 (included in previous procedure)] and
Cost to complete [] in Malabon City?
If this procedure is NOT required in Malabon City, please describe the procedure that you would
place here: []
Please estimate: Time to complete: [] Cost to complete: []
Feel free to use this space to make any additional comments about this procedure in Malabon
City: [The inspection happens the day after the application/requirements for new business has been
submitted. Mayors Permit will only be released after this has been accomplished.]
1 day
PHP 400
Special books of account are required for the purpose of registering VAT. The books of
account are sold at bookstores nationwide. One set of journals consisting of four books,
namely, the cash receipts account, disbursements account, ledger and the general journal,
may cost about PHP 400
Yes
No
If Yes, are the time and cost noted here the same in Malabon City?
Yes
No
If No, what is your estimate of the average Time to complete [] and Cost to complete [] in
Malabon City?
If this procedure is NOT required in Malabon City, please describe the procedure that you would
place here: []
Please estimate: Time to complete: [] Cost to complete: []
Feel free to use this space to make any additional comments about this procedure in Malabon City:
[Enumerator's Comment: The respondent has no idea on the time and cost since this procedure is
under a private company.]
Procedure 9. Secure a tax identification number; Register for VAT
Time:
Cost:
Comment:
2 days
PHP 500 (registration fee) + PHP 15 (certification fee) and PHP 15 (documentary stamp
tax, in loose form to be attached to Form 2303)
After the taxpayer obtains the TIN, the company is required to pay the annual registration
fee of PHP 500 at any duly accredited bank by using the payment form (BIR Form 0605).
In Philippines, there is a community tax, a local tax, VAT, and income tax. When a
company registers as a taxpayer, it must indicate in the application for registration the
types of taxes it expects to be liable for, including VAT. The Authority to Print
Receipt/Invoices must be secured by the printer before the sales invoices/receipts may be
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printed. Philippine law does not require a company to have its official invoice forms
printed at designated print shops. If a company has secured an Authority to Print Receipts
and Invoices, it can ask any authorized printing company to print its official invoice forms.
However, if a company wants to print its own invoice forms (i.e., it uses its computers to
print loose-leaf invoice forms), the company must obtain a special permit from the BIR for
this purpose.
Is this procedure required in Malabon City?
Yes
No
If Yes, are the time and cost noted here the same in Malabon City?
Yes
No
If No, what is your estimate of the average Time to complete [] and Cost to complete [] in
Malabon City?
If this procedure is NOT required in Malabon City, please describe the procedure that you would
place here: []
Please estimate: Time to complete: [] Cost to complete: []
Feel free to use this space to make any additional comments about this procedure in Malabon City:
[Enumerator's Comment: The respondent has no idea on the time and cost since this procedure is
under a National Government Agency.]
Procedure 10. Payment of Documentary Stamp Taxes
Time:
Cost:
Comment:
1 day
No charge
Section 174 of the National Internal Revenue Code, as amended, requires the payment of
documentary stamp taxes on the original issuance of shares of stock at the rate of PHP 2 on
each PHP 200 or a fractional part thereof, of the par value of such shares of stock, within 5
days after the close of the month when the registration certificate is issued by the SEC or
the shares are issued by the corporation.
Yes
No
If Yes, are the time and cost noted here the same in Malabon City?
Yes
No
If No, what is your estimate of the average Time to complete [] and Cost to complete [] in
Malabon City?
If this procedure is NOT required in Malabon City, please describe the procedure that you would
place here: []
Please estimate: Time to complete: [] Cost to complete: []
Feel free to use this space to make any additional comments about this procedure in Malabon City:
[Enumerator's Comment: The respondent has no idea on the time and cost since this procedure is
under a National Government Agency.]
Procedure 11. Obtain the Authority to Print Receipt/Invoices with the Bureau of Internal Revenue
Time:
Cost:
Comment:
1 day
included in procedure 9
The Authority to Print Receipt/Invoices must be secured by the printer before the sales
invoices/receipts may be printed. Philippine law does not require a company to have its
- 10
official invoice forms printed at designated print shops. If a company has secured an
Authority to Print Receipts and Invoices, it can ask any authorized printing company to
print its official invoice forms. However, if a company wants to print its own invoice forms
(i.e., it uses its computers to print loose-leaf invoice forms), the company must obtain a
special permit from the BIR for this purpose.
New taxpayers must submit the following to the Revenue District Office or concerned
office under the Large Taxpayer Service having jurisdiction over the taxpayer's Head
Office:
(a) Duly accomplished BIR Form 1906 - Application for Authority to Print Receipts and
Invoices
b) Job order
c) Final and clear sample of receipts and invoices (machine printed)
d) Photocopy of the following:
Application for Registration (BIR Form No. 1901 or 1903)/ TRU form or photocopy of
TIN card
Proof of payment of Annual Registration Fee (BIR Form No. 0605)
Is this procedure required in Malabon City?
Yes
No
If Yes, are the time and cost noted here the same in Malabon City?
Yes
No
If No, what is your estimate of the average Time to complete [] and Cost to complete [] in
Malabon City?
If this procedure is NOT required in Malabon City, please describe the procedure that you would
place here: []
Please estimate: Time to complete: [] Cost to complete: []
Feel free to use this space to make any additional comments about this procedure in Malabon City:
[Enumerator's Comment: The respondent has no idea on the time and cost since this procedure is
under a National Government Agency.]
Procedure 12. Print receipts and invoices at the print shops
Time:
Cost:
Comment:
14 days
PHP 4,000 (between PHP 3,000 and PHP 5,000)
Yes
No
If Yes, are the time and cost noted here the same in Malabon City?
Yes
No
If No, what is your estimate of the average Time to complete [] and Cost to complete [] in
Malabon City?
If this procedure is NOT required in Malabon City, please describe the procedure that you would
place here: []
Please estimate: Time to complete: [] Cost to complete: []
Feel free to use this space to make any additional comments about this procedure in Malabon City:
[Enumerator's Comment: The respondent has no idea on the time and cost since this procedure is
under a private company.]
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Procedure 13. Submit receipts and invoices to the BIR for approval, have receipts/invoices and
books of accounts stamped by BIR
Time:
Cost:
Comment:
1 day
No charge
In practice, the books of accounts are presented for stamping right after the application is
filed. Books can be obtained from BIR. To register books of account and invoices, present
the following documents: all the required books of accounts, VAT registration certificate,
SEC registration certificate and BIR Form W-5.
Yes
No
If Yes, are the time and cost noted here the same in Malabon City?
Yes
No
If No, what is your estimate of the average Time to complete [] and Cost to complete [] in
Malabon City?
If this procedure is NOT required in Malabon City, please describe the procedure that you would
place here: []
Please estimate: Time to complete: [] Cost to complete: []
Feel free to use this space to make any additional comments about this procedure in Malabon
City: [Enumerator's Comment: The respondent has no idea on the time and cost since this procedure
is under a National Government Agency.]
1 week
No charge
To enroll for membership with the SSS the documentary requirements are the following:
1. List of Employees, specifying their birth dates, positions, monthly salary and date of
employment; and
2. Articles of Incorporation, By-Laws and Certificate of Registration with the Securities &
Exchange Commission (SEC) or the Certificate of Registration with the Department of
Trade and Industry (DTI).
Upon submission of the requisite documents, the employees shall undergo a seminar,
which shall be scheduled within one (1) week. At the end of the seminar, the Certificate of
Membership shall then be released.
Yes
No
If Yes, are the time and cost noted here the same in Malabon City?
Yes
No
If No, what is your estimate of the average Time to complete [] and Cost to complete [] in
your Malabon City?
If this procedure is NOT required in Malabon City, please describe the procedure that you would
place here: []
Please estimate: Time to complete: [] Cost to complete: []
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Feel free to use this space to make any additional comments about this procedure in Malabon City:
[Enumerator's Comment: The respondent has no idea on the time and cost since this procedure is
under a National Government Agency.]
Procedure 15. Register with Philippines Health Insurance Company (PHIC)
Time:
Cost:
Comment:
1 week
No charge
Upon enrollment with the SSS, registration with PHIC may be undertaken. List of
Employees shall likewise be submitted to the PHIC.
Yes
No
If Yes, are the time and cost noted here the same in Malabon City?
Yes
No
If No, what is your estimate of the average Time to complete [] and Cost to complete [] in
Malabon City?
If this procedure is NOT required in Malabon City, please describe the procedure that you would
place here: []
Please estimate: Time to complete: [] Cost to complete: []
Feel free to use this space to make any additional comments about this procedure in Malabon City:
[Enumerator's Comment: The respondent has no idea on the time and cost since this procedure is
under a National Government Agency.]
If additional procedures are required in Malabon City, please describe them, in the spaces below. If you
need additional space, please add a separate sheet:
Procedure 16
Time:
Cost:
Comment:
[1]
[PHP100.00]
[This is required before the processing of the locational clearance and business permit.]
Procedure 17.
Time:
Cost:
Comment:
Please specify if any of the previous procedures can be done in parallel, that is, there is no need to wait
for one procedure to be completed until the next one can be started (e.g. Procedures 2, 3 and procedures 8,
9): [None]
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II. Reforms
1. Between April 2006 and now, were any administrative or legal changes implemented in Malabon City
that affected the requirements and process to establish a domestic limited liability company?
Yes
No
If your answer is Yes, please describe these changes in the table below (please include the date of the
change or reform, major characteristics, objectives, relevant regulation, if applicable):
Examples for reforms and simplifications
Legal
reform
Yes No
If yes please []
describe
Company
Registry computerized or re-organized.
registration Registration changed from judicial to administrative process.
Substantive review of applications was eliminated.
New single access point or one-stop shop (e.g. BOSS).
Registration can be completed online.
New expedited service.
New statutory time limits.
Silence-is-consent rule was introduced (authorization
automatically approved after certain time limit).
If yes please []
describe
Documentati Documentation requirements were simplified, reduced or
on and
standardized.
publication Publication requirements (in official gazette or daily
newspaper) changed.
If yes please []
describe
Tax
Tax registration was simplified.
registration Single identification number (for tax, statistical and other
registration purposes) was introduced.
If yes please []
describe
Social
Requirements were streamlined or registration simplified.
security or
labor
If yes please []
describe
Explain how the above reforms have impacted the time, costs and procedures for doing business in
this city.
Additional
[]
comments
- 14
2.
Are you aware of any planned (future) changes to the laws and regulations on establishing a
domestic limited liability company in Malabon City?
Yes
No
If your answer is Yes, please briefly describe: 1) the expected date of the reform, 2) the goal of the
reform, and 3) its major characteristics (solutions it provides to achieve the goal): []
3. In your opinion, is the process to open a business in Malabon City more or less efficient today
compared with a year a go?
Same
More efficient
Less efficient
4. If you were to advise the government on how to reform business start-up, what would be your main
suggestion and why? [The processing of permits for new business should start from the LGU (BPLO)
before going to the BIR.]
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