LEONYLYN V.

DELA LUNA MBA-1

MGT. 105- ENTREPRENEURSHIP

1. Identify
different business models of SMEs in the Philippines

 Wholesale and Retail Trade

 Manufacturing
 Hotels and Restaurants
 Community, Social & Personal Service Activities
 Health & Social Work
 Financial Intermediation
 Transport, Storage and Communications
 Education
 Agriculture, Hunting and Forestry
 Construction
 Electricity, Gas and Water
 Fishery
 Mining and Quarrying

2. Elaborate
on the initial registration of different business organizations

When starting a business in the Philippines and hiring employees, you must register with a
number of government agencies in addition to opening a bank account. It is critical to
register your business in order to avoid legal issues once operations begin. The following are
the steps that ICPH must take on your behalf in order to legally register your new business
in the Philippines. The majority of the steps cannot be completed at the same time. These
steps must be completed one at a time.

1. Secure Business Name with the SECURITIES AND EXCHANGE COMMISSION (SEC)
While our lawyers work on the company's articles of incorporation and by-laws, the first
step is to register your preferred corporate name with the SEC. After you've completed
the Adjusted Operating Income (AOI) and By-laws, you can open a Temporary
Depository Account (TITF)) with your preferred bank.

2. Open Corporate Bank Account

Businesses must open a TITF account with their preferred bank before filing for
incorporation. The required paid-up capital of the corporation will be temporarily
deposited in the TITF account. The proposed articles of incorporation and bylaws,
account opening forms with the specimen signature card to be completed by the
treasurer-in-trust, valid identification cards of the treasurer-in-trust, and the minimum
deposit required by the bank, which varies from P10,000.00 to P50,000.00 depending on
the bank, are the basic requirements for opening a TITF account. A certificate of deposit,
one of the documentation needs to be presented to the SEC, will be issued by the bank.

3. Register with the Securities and Exchange Commission (SEC)

Once a bank certificate of deposit is issued, and provided the following documentary
requirements are complete, the application for registration may be submitted to the
SEC:

 Name Reservation and Payment Form

 Notarized Articles of Incorporation and By-laws
 Treasurer’s Affidavit
 Bank Certificate of Deposit or Proof of Inward Remittance
  Duly accomplished SEC Form F-100 (for corporations with more than 40% foreign
equity)
 SEC registration takes 10 to 15 working days upon submission of complete
documentary requirements, provided there are no holidays during this time period.

4. Register with the Bureau of Internal Revenue (BIR)

After SEC registration, a company must obtain a taxpayer identification number (TIN),
register its books of accounts, and apply for authority to print official receipts from the
Bureau of Internal Revenue (BIR), the national taxing authority in the Philippines.

5. Register with the Social Security System (SSS)

All companies must be registered with the SSS and must secure an employer number
which will be used as reference for the remittance of monthly contributions. To register
with the SSS, the following documents have to be submitted:

 Employer Registration Form (R-1)

 Employment Report Form (R-1A)
 SEC Registration, Articles of Incorporation, and By-laws

6. Register with PhilHealth

PhilHealth is a medical insurance program administered by the Philippine Health
Insurance Corporation (PHIC). All employers are required to register their employees
with this agency as stated in the New National Health Insurance Act (RA 7875 / RA
9241). To register with PhilHealth, the following documents are required:

 Employer Data Record (ER1)

 Report of Employee-Members (ER2)
 SEC Registration, Articles of Incorporation, and By-laws

7. Register with Pag-IBIG

Pag-IBIG Fund is also known as the Home Development Mutual Fund (HDMF), a housing
loan which is mandatory for all employees covered by the Social Security System (SSS).
The Pag-IBIG Fund also provides other types of loans for qualified individuals.

8. Obtain a Mayor’s or Business Permit

The following documents are required to secure a business permit:

 SEC Registration, Articles of Incorporation, and By-laws

 Locational Clearance
 Lease Contract
 Barangay Clearance
 Barangay Clearance

This clearance is obtained from the Barangay where the business/company is located.
The fees depend on the company’s paid-up capital plus an additional amount for taxes,
fees, and other charges which may vary for each barangay. The basic document required
is the notarized lease contract between the company and the lessor of its registered
office.

Locational Clearance
The following documents are required to secure a locational clearance:

 Location Map
 Barangay Clearance
 Lease Contract
 SEC Registration Documents
 Occupancy Permit (Building/Unit)
 Business Permit Application Form