Government

Regulations/
Requirements on
business ownership
Francis Louie V. Cariaga
 Major types of business
regulations
Business Permits and Licenses Industry-Specific Regulations

Taxes Local Zoning and Land Use

Employment Regulations Capitalization Requirements

Corporate Governance Competition and Antitrust Laws

Intellectual Property Import and Export Regulations

Environmental Regulations Business Reporting

BUSINESS PERMITS AND LICENSES

After registration, businesses must

obtain permits and licenses from the
local government units (LGUs) where
they operate. This includes Mayor's
Permit and other local licenses, which
may vary depending on the type of
business and location.
TAXES

Business owners are required to pay

various taxes, including income tax,
value-added tax (VAT), and local
business taxes. The Bureau of Internal
Revenue (BIR) is the agency responsible
for tax collection.
EMPLOYMENT REGULATIONS

If the business employs workers, it must

adhere to labor laws, such as providing
proper wages, benefits, and working
conditions. The Department of Labor
and Employment (DOLE) oversees these
regulations.
FILIPINO EMPLOYEES ARE ENTITLED TO 13TH
MONTH PAY

Employers are required to provide non-

management employees in the Philippines
with an extra month salary by Christmas
Eve, with some employees choosing to
receive it in biannual installments.
EMPLOYERS ARE RESPONSIBLE FOR WORKPLACE
HEALTH AND SAFETY STANDARDS

The DOLE established mandatory Occupational Safety and

Health Standards that protect Filipino employees from injury,
sickness, and other safety hazards on the job. It gives workers
the right to know of workplace hazards, refuse unsafe work,
report accidents, and wear protective equipment. Employers
have to register their business with the DOLE and provide
necessary training to deal with emergencies and other
dangerous situations. Penalties for violating any of the
government standards range from PHP 20,000 to PHP 50,000
per violation.
WHAT IS THE MINIMUM WAGE IN THE
PHILIPPINES?

There is no nationally set minimum wage

requirement in the Philippines. Different rates are
instead set by wage boards and vary across regions.
HTTPS://WWW.RIPPLING.COM/BLOG/LABOR-EMPLOYMENT-LAW-IN-PHILIPPINES
WHAT ARE THE REQUIRED EMPLOYEE BENEFITS
IN THE PHILIPPINES?

The Philippines has a Social Security System

(SSS) that funds most of its benefits, which
all employees are entitled to

Retirement pay
Sick leave
Disability
Maternity leave (solo parents get an extra 15 days’ full pay)
A “death benefit” given to beneficiaries of a deceased employee
Unemployment insurance
HOW DO I TERMINATE EMPLOYEES IN THE
PHILIPPINES?
While terminating employees might be far from your
mind, it’s important to be aware of Philippine termination
laws before building out your team. See the breakdown
of mandatory notice periods and termination pay for
Filipino employees

Termination of employment for just cause

Termination of employment for authorized cause

Termination of employment based on serious diseases or health conditions

CORPORATE GOVERNANCE

Corporations must comply with

corporate governance regulations
outlined in the Corporation Code of the
Philippines. This includes having a board
of directors, corporate officers, and
maintaining corporate records.
INTELLECTUAL PROPERTY

Businesses should protect their

intellectual property, such as
trademarks and patents, by registering
them with the Intellectual Property
Office (IPO).
ENVIRONMENTAL REGULATIONS

Depending on the nature of the

business, environmental compliance
certificates and permits may be
required to ensure that the business
operations do not harm the
environment. The Department of
Environment and Natural Resources
(DENR) oversees environmental
regulations.
INDUSTRY-SPECIFIC REGULATIONS

Certain industries, like banking,

insurance, pharmaceuticals, and
telecommunications, have specific
regulations and requirements set by
government agencies such as the
Bangko Sentral ng Pilipinas (BSP)
and the Food and Drug
Administration (FDA).
LOCAL ZONING AND LAND USE

Compliance with local zoning and

land use regulations is essential for
businesses, as local governments
have specific guidelines for where
businesses can operate.
CAPITALIZATION REQUIREMENT

Some industries, particularly those

related to finance and banking, may
have minimum capitalization
requirements set by regulatory
agencies
COMPETITION AND ANTITRUST LAWS

Businesses must adhere to

competition and antitrust laws to
prevent anti-competitive behavior
and monopolistic practices. The
Philippine Competition Commission
(PCC) enforces these regulations.
IMPORT AND EXPORT REGULATIONS

Businesses involved in international

trade must comply with import and
export regulations set by the Bureau
of Customs (BOC).
BUSINESS REPORTING

Regular financial and operational

reporting may be required for
businesses, depending on their size
and industry.
THANK YOU
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