How to register a partnership business in the Philippines
Prepare the required documents for SEC Registration
The first thing you are required to accomplishis the registration of your
business with the Securities and Exchange Commissionor SEC. A
partnership (or a corporation) is obliged to secure a certificate of
registration with the SEC to own a license to operate their business.The
basic documentary requirements that need to be prepared are:
Name Verification Slip (which can be obtained from the SEC’s
website if you preferto have it before going to an SEC office)
Articles of Partnershipor AP
A JointAffidavit of partners to change their partnership name if
it has not been stated in the AP
There are, however, additional requirements depending on the nature of
your business.These requisites may include:
Endorsement or Clearance from other government agencies.
You may check out this link to know if it’s applicable for your
business.
FIA Form – 105 (for partnerships with a foreigneras a partner)
Obtain a Certificate of Registration with the SEC
The initial steps can be done online through their website such as checking
your proposed company name’s availability through https://crs.sec.gov.ph/,
once verified that the name is not yet taken, you can then fill out the
application form on the same site. The rest of the application processis
listed on that corresponding page,however, this can all be accomplishedat
any SEC office as well if you find it more convenient to just go there and be
personally assisted by an employee.
Get a BarangayClearance
All businesses are required to have a Barangay Clearance according to our
Local Government Code.This clearance is obtained at the local Barangay
Office where your business is or will be located and the fee in securing one,
though varies per location, is often minimal. A Barangay Clearance serves
as an assurance that your business adheres to the standards of the local
Barangay and that your business is a community-friendly company.
Register your business & employeeswith the Social Security System
(SSS)
Registering your business and employees (even if they are temporary or
provisional) is mandated and is considereda violation of the Social Security
Law if not performed.Employers are obliged to submit the SSS coverage of
a worker within 30 days of his or her employment.The SSS website
(sss.gov.ph)presents comprehensive information on the responsibilities
and obligations of an SSS employer.The following forms must be
completelyfilled out and submitted to be a registered SSS employer:
SS Forms R-1 and R-1A
Photocopyof SEC Articles of Partnership
Business location sketch or map
Validated Miscellaneous Payment Return also known as SS
Form R-6 or SS Form R-6 with Special Bank Receipt(proof of
payment for the EmployerRegistration Plate)
Register with other government-mandated agencies
Once your business began its operations and you’ve hired a number of
employees,registration with other government-mandated agencies must
follow through.
The new National Health Insurance Act (RA 7875/RA 9241)is
requiring all employers in the Philippines to register their
employees with Philippine Health Insurance Corporation
(Philhealth) and to remit their share of contribution to the said
agency. Registering your employeesensure that they are going
to be covered by this health insurance which can help greatly in
reducing hospitalization costs and their other health care needs.
Pag-IBIG FUND. As stated in RA 7742,SSS members who earn
at least Php4,000 per month must be registered with the Home
DevelopmentMutual Fund (HDMF) which is the agency that
administers the Pag-IBIG Fund. This agency works towards
providing its members with sufficienthousing (loans) through an
effective saving scheme.
NOTE:Registration with the Departmentof Labor and Employment(DOLE)
is also a must for business operations with five or more employees.
Obtain a Mayor’s/Business Permit
This document can only be acquired after securing a Certificate of
Registration from SEC, Barangay Clearance, and registration with the SSS
since these documents would be required to get a business permit. The
fees,requirements,and processes may vary in differentlocal offices.Fees
for new applicants may depend on their starting capital while charges for
renewals depend on the applicant’s prior year gross revenues or sales.
Here are the basic requirements in obtaining a Mayor’s Permit:
Business Permit Application Form
Barangay Clearance
Certificate of SEC Registration
Public Liability Insurance (for Restaurants, Cinemas, Malls,etc.)
Authorization Letter of the owner/s with ID
Contract of a lease (if renting a space)or land title/tax declaration
(if you own the place of business)
SSS Certificationor Clearance
Community Tax Certificate or CEDULA
Depending on the type of business,other documents may also be required.
Business permits are renewed every year.
Register with the Bureauof Internal Revenue (BIR)
A Mayor’s Permit must be submitted before processing a Certificate of
Registration with the BIR since Mayor’s permit is actually a requirement to
obtain such a certificate. Registering with the Bureau of Internal Revenue
will give you permissionto issue officialreceipts,registerbooks of
accounts, and (for partnerships and corporations)to obtain a separate Tax
IdentificationNumber.