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Registration of Cosmetic Products in the Philippines Made Easy

registration of cosmetic products in the philippines

The Philippines is a growing market for cosmetics, with analytics company GlobalData forecasting the industry to be worth PhP 228.8 billion (USD 4.2 billion) by 2023. Contributing to this potential for an upswing is the country’s increasing population as well as lower unemployment rates. The archipelagic nation’s citizens appreciate beauty and social interactions, driving the demand for cosmetic products in the Philippines.

Clearly, there is an opportunity to be had here for enterprising individuals and corporations. After all, cosmetics is an umbrella term. Products such as perfumes, hair dyes, lipsticks, soaps, lotions, and other skincare items are all in high demand and will continue to be so in the short and long term.

If you are interested in importing, selling, or distributing cosmetic products in the Philippines, you need to first secure necessary permits from the Food and Drug Administration (FDA). Going through the registration process will show potential customers that you care about their health and safety.  

In this article, we give you the lowdown on how to register cosmetic products in the country.

Regulation of Cosmetic Products in the Philippines

Main Cosmetic Regulations in the Philippines

The Philippine regulatory environment for cosmetics is primarily based on the ASEAN Cosmetic Directive (ACD), an initiative to promote trade among members of the Association of Southeast Asian Nations (ASEAN)  by harmonizing technical industry requirements while maintaining safety and quality standards. 

According to this directive, cosmetic products are “any substance or preparation intended to be placed in contact with the external parts of the human body… or with the teeth and the mucous membranes of the oral cavity with a view exclusively or mainly for cleaning them, perfuming them, or changing their appearance, and/or correcting body odours and/or protecting or keeping them in good condition.” 

Several other regulations have also been released by the FDA which are related to ASEAN’s streamlining initiative. Among them is Administrative Order (AO) 2016-0003 (“Guidelines on Unified Licensing Requirements and Procedures of the Food and Drug Administration”), which aims to improve the approval processes for cosmetic products and to strengthen the institution’s post-market surveillance activities by unifying and harmonizing the licensing requirements of the FDA. 

Regulating Bodies in the Philippines

The Center for Cosmetics Regulation and Research (CCRR) is the main arm of the FDA that is responsible for cosmetic product regulation. This department further branches into two divisions — (1) the Licensing and Registration Division and (2) the Product Research and Standard Development Division.

Steps in Registering Cosmetic Products in the Philippines

License to Operate (LTO)

A company is required to obtain an LTO before it can legally import, distribute, sell wholesale, and/or manufacture cosmetics.

Here at Dayanan Consulting, we help our clients by facilitating their application process with the FDA from start to finish, from LTO to labeling. They just need to provide us the necessary information and we help prepare the documents needed.

But if you choose to try doing it by yourself, here are the requirements to secure one:

  • Notarized Petition form from the owner, incorporator, or authorized representative
  • Joint Affidavit of Undertaking signed by the owner and an authorized individual (an allied health science professional) stating that they understand the FDA’s regulation for LTO; note that the authorized individual must also present their professional license or board certification
  • Proof of your Business’ Registration
  • Site Master File (this is required from manufacturers of drugs, devices, and cosmetics)
  • Proof of occupancy or business address
  • Floor plan and vicinity map of the business location
  • Risk management plan
  • Application fee

After preparing these requirements, you may now proceed to file them with the FDA. Note that if you are just renewing your LTO, submission of the first, second, and last items would suffice. You will then have to wait for the FDA evaluation results.

For manufacturers, pre-opening inspection is required as part of FDA’s post-marketing surveillance activities. The FDA may inspect all covered establishments at any time so you need to be prepared and compliant with all standards.

Notification

Before the product can be released to the market, the FDA must be notified first using the procedures outlined in the  Cosmetic E-Notification v.2.0 User Manual for Applicants. 

You need to provide the following information in your Cosmetic Product Notification:

  • Brand Name / Product Name / Product Variants – The complete name of the product should be given in the following sequence: brand name, line name (if applicable), product name, and the shade name/number if a single shade is notified (e.g. BRAND ABC PRODUCT XYZ EYSHADOW SHADE 1). If there are different shades, the shade name/number for each shade shall be declared.
  • Product Types – the category of the cosmetic product for which you are applying for notification.
  • Particulars of the Product – The validity of the notification may either be 1, 2, or 3 years at the option of the applicant. 
  • Intended Use – This refers to the function or use of the product and not the directions for use e.g. to moisturize the face, hand, etc.
  • Product Presentations – select whether you are applying for (1) a single product, (2) a range of variants similar in composition for the same use but differs in colors, flavors, etc., (3) palette(s) in a range of one product type, or (4) combination products in a single kit. 
  • Local Company Responsible for Placing the Cosmetic Product in the Market – Indicate the local company responsible for placing the cosmetic products in the market. This company must also have a valid LTO number.  If the company responsible for placing the cosmetic product in the market is a distributor, then the applicant must also declare the details of the direct supplier or manufacturer of the cosmetic product, namely Country of Manufacture, Address, and others. 
  • Establishment Information – It refers to the particulars of the manufacturer and/or supplier of the notified cosmetic product.
  • Person Representing the Local Company – It refers to the company representative who may be contacted by the FDA in case there are questions on the cosmetic product or if additional documents are needed to substantiate the application. 
  • Product Ingredient List – All the ingredients in the product must be specified by using the nomenclature from the latest edition of standard references (International Cosmetic Ingredient Dictionary, British Pharmacopoeia, United States Pharmacopoeia, Chemical Abstract Services). Botanicals and extract of botanicals should be identified by its genus and species. The genus may be abbreviated. The functions and percentages of ingredients must be declared if they are substances with restrictions for use as specified in the annexes of the ASEAN Cosmetic Directive.

To apply, follow the steps below:

  1. Obtain a CCRR User Account by requesting one from info@fda.gov.ph. You must provide the following information to proceed:
    1. Email address or company email address
    2. Name
    3. Position
    4. Contact No.
    5. Company Name
    6. Company Address
    7. Product Classification: Cosmetics
  2. Log in at the FDA e-portal (https://ww2.fda.gov.ph).
  3. Click on “New Case” and accomplish the ASEAN Notification Form.
  4. Download the “Order of Payment” and assign this task to the FDA Cashier.
  5. Pay the fee either through any Landbank branch or by online Bancnet payment methods.
  6. Wait for the Result of Application.
  7. Download and print the notice of acknowledgment once your application is approved.

Organizations that have submitted correct application documents will then be issued a Cosmetic Product Notification certificate which is valid for 1-3 years. Those with insufficient documentation will be given a Notice of Deficiencies wherein clarification or further explanation of details will be asked. Finally, anyone who declared misleading information or failed to meet FDA standards will merit a Letter of Disapproval.

Acknowledged cosmetic notifications may be revalidated for a new validity date, where the new validity date will be based on the date of submission of the revalidation application.

Note that the same process of application for cosmetic e-notification applies for revalidation. In the e-portal, the previously acknowledged case must be selected to continue with the task for Revalidation Application. There must be no modifications from the information provided during the previous application to avail of revalidation. Hence, any changes to the information will constitute a new notification application.

In the event that the notification is desired to be cancelled, the applicant may choose to cancel the application. This option is available in the Revalidation Application Task.

Manufacturing Requirements: GMP, Ingredients, and Labelling

For manufacturers, your manufacturing processes and practices — personnel, premises, equipment, sanitation and hygiene, etc. — must be compliant with the Good Manufacturing Practices (GMP) set by the ASEAN guidelines. 

Note that a Certificate of GMP Compliance will only be issued upon the demonstration of satisfactory compliance and will be effective up to the validity of your current LTO. Thereafter, it shall be issued every time your LTO is renewed.

Aside from the procedures and processes, you also need to ensure that ingredients used in your cosmetic products adhere to ASEAN cosmetic regulations. The annexes of the ASEAN Cosmetic Directive provides prohibitions and regulations of cosmetic product ingredients as listed below:

Table 1. Annexes of ASEAN Cosmetics Directive that Provide the Regulations and Ingredient Prohibitions for Cosmetic Products in the Philippines

ASEAN Cosmetics DirectiveRegulations and Prohibitions
Annex IISubstances that are prohibited to form part of the composition of cosmetics products
Annex IIISubstances that are prohibited to be contained in cosmetic products except for the ones subject to restrictions and conditions laid down
Annex IVColoring agents that can be used in cosmetic products
Annex VIPreservatives that can be contained in cosmetic products

When it comes to labelling of cosmetic products in the Philippines, the following must be seen on your product’s packaging:

  • Weight or volume of the product content
  • Brand, product name, and its function
  • Batch number
  • Manufacturing or expiration date of the product in terms of (month/year)
  • Country where the cosmetic product is manufactured
  • Instructions on how the product is used
  • Special precautions (if any)
  • List of all the ingredients in the product
  • Name and address of the company or individual who placed the product in the market

For decorative cosmetic products that are marketed in multiple color shades, all coloring agents may be listed as long as the description includes the words, “may contain” or “+/”. 

Penalties Associated with Cosmetic Products in the Philippines

Misbranding of cosmetic products, whether deliberately or accidentally, will net violators jail time of at least one (1) year or a maximum of ten (10) years. Fines can also be imposed which range from Php 15,000 to Php 500,000. Some may even have to deal with both depending on a court’s decisions.

On the other hand, for violators who are manufacturers, importers, or distributors of any cosmetic product, the minimum jail time would be five years while the amount of the fine will range from Php 500,000 to Php 5 million.

Fees and Requirements for FDA-Approved Food Supplements in the Philippines (Part 2)

If you are interested to sell, import, and distribute FDA-approved food supplements in the Philippines, then the Food and Drug Administration (FDA) is your first stop. This article, Part 2 of this series, discusses the detailed requirements you need to prepare to get FDA approval as well as the corresponding fees and charges.

What kind of supplements need to be registered with the FDA?

All types of processed foods, including food supplements that contain no additional pharmacologically active ingredients, must receive approval first from the FDA. It must be noted that per FDA Circular 2016-014, the registration process applies to low-risk, medium-risk, and high-risk food products (refer to our previous article for a discussion on these categories).

How many kinds of FDA registrations do I need for my product?

One registration may satisfy different packaging sizes for the same product as long as they share the same brand and product names. They must also have exactly similar formulation and proportion of ingredients. When it comes to the label information, everything must also be the same except for net weight.

If you are a manufacturer, trader, or distributor (whether importer, exporter, or wholesaler), you need to get a License to Operate (LTO) before you can obtain a certificate of product registration (CPR).

To get prioritized in food registrations, you must attend and complete the Qualified Person in Industry Regulatory Affairs (QPIRA) Training organized by the Center for Food Regulation and Research (CFRR). Before availing the services of a Liaison Officer to help you transact with the FDA, check for their names in the FDA website first.

What are the requirements for FDA approval in the Philippines?

FDA-approved food supplements in the Philippines present these documents first:

  • Notarized and completed Integrated Application Form
  • Proof of payment of fees
  • Clear and complete loose labels or artworks of all packaging sizes
  • Sticker of importer for imported food supplements.
  • Pictures of the product from all different angles for all packaging sizes
  • For food supplements, a sample in actual commercial presentation needs to be submitted
  • Certificate of analysis to demonstrate compliance with Codex, national and other standards – Physical, Chemical and Microbiological Analysis, stability data of the finished product and Safety Data
  • Documentation to substantiate the use of claims in the given case
  • Certification to support use of logo’s (e.g. Halal, Kosher, Organic)
  • Certificate of analysis to determine compliance with applicable standards (e.g. Codex, Philippine National, etc.)
  • Relevant scientific studies to support the use of products for specific purposes
  • Certificate of analysis to determine compliance with FDA circular No. 2013
  • Quantitative analysis and computations to support nutrition facts/nutrient content claims
  • Scientific researches or studies published in peer-reviewed scientific journals to support declaration of health and nutrition claims
  • Other relevant supporting documents to substantiate claims other than health and nutrition
  • Additional requirements to address uncertainties on safety as deemed necessary

For more detailed information on these requirements, check out FDA Circular 2016-014 here.

How do I process my registration with FDA Philippines?

  • Download the Integrated Application Form [11] from the FDA website and fill-in the required details.
  • After filling up the document, it will generate a worksheet email which you have to send to pair@fda.gov.ph. A maximum of 10 applications with the FDA may be forwarded in a single email.
  • Your application will then be scheduled through a Document Tracking Log (DTL) sent to your email within two days.
  • After receiving the DTL, make sure to pay the fees. You can submit your application via soft copy (USB device). Note that only applications scheduled for the day will be accommodated.

What fees and charges do I need to pay for an FDA Philippines registration of my supplements?

This schedule of fees is based on FDA Administrative Order 2001-50

1) Product classification = PhP 500.00

2) Initial Registration for Food Supplements = PhP 1,000.00 (Valid for up to 2 years)

3) Renewal of Registration for Food Supplements = PhP 5,000.00 (Valid for up to 3 years)

4) Amendment of CPR = PhP 200.00

5) Re-application Fees = PhP 200.00

Please note that payment of fees cannot exceed ten applications. Manufacturing and distribution licenses require the payment of a separate fee. Such a license is initially valid for 1 year and 2 years upon renewal.

Frequently Asked Questions for Bookkeeping in the Philippines

Frequently Asked Questions for Bookkeeping in the Philippines

COVID-19 or not, bookkeeping is a taxing but necessary endeavor for any business. Regardless of scale, businesses need to know the current state of their finances. Company owners and management members should at least have a working knowledge of the most commonly-used accounting jargon. This way, they can make decisions and allocate resources with an eye on maintaining and building the company’s financial health.

The following is a short list of frequently asked questions (FAQs) on bookkeeping in the Philippines. It includes answers to general questions like “What is bookkeeping?” to more specific questions like “What is the difference between bookkeeper and accountant?”. We hope that this list can help you answer some of your most common questions when it comes to bookkeeping.

What is bookkeeping?

Q: What is bookkeeping?

Bookkeeping includes recording, storing, and retrieving financial transactions for an entity such as a business, nonprofit organization, individual, etc. It also requires knowledge of basic financial accounting concepts such as debits and credits, balance sheets, and income statements. It is part of the full business accounting process.

On the other hand, accounting refers to recording, organizing, and understanding your company’s financial records. Accounting can tell you which parts of the business actually makes you money and whether your business is making a profit or not.

Q: What’s the difference between bookkeeper and accountant?

What’s the difference between bookkeeper and accountant?

A bookkeeper is the one who keeps, records, and gathers financial data, while an accountant summarizes, interprets and communicates this data for financial decisions. The two roles are very similar, but still very different.

While an accountant can do bookkeeping tasks (but usually don’t), they are better suited to consulting work, such as preparing your financial reports and helping you understand the financial impact of your previous (and upcoming) decisions.

Q: What are some examples of bookkeeping tasks?

Typical bookkeeping tasks include:

  • Processing employee payroll and related governmental reports
  • Billing for goods sold/services provided to clients
  • Recording receipts from customers
  • Monitoring individual accounts receivable
  • Providing financial reports
  • Paying suppliers
  • Verifying and recording invoices received from suppliers
  • Recording depreciation and other adjusting entries

Q: What makes a good bookkeeper?

A good bookkeeper will help improve business cash flow, maximize tax exemptions, and free you up to focus on growing your business.

Q: Can I do the bookkeeping myself?

Yes, but you need to ask yourself if this is really the best use of your time. For many business owners, time is their most valuable asset. Consider if you have other business tasks that need attending to. A good rule of thumb is that if you can outsource or delegate it to someone else, then do so.

We can only do so much in a day, so your limited time is better spent on pursuing high-leverage tasks and ideas. In the long run, you may also find that it costs more money to do the bookkeeping yourself—especially if you don’t have the necessary experience or interest

Should I outsource my bookkeeping?

Q: Should I outsource my bookkeeping?

Yes, but it also depends on how much you’d like to micromanage.

If you like having a tight rein over your company’s finances, being your own bookkeeper might work for you. However, our general recommendation is to outsource as it saves your time, money, and energy. Hiring a professional bookkeeper or accountant is always the better choice, as it can save you from making mistakes that could eventually cost you a lot.

Q: Will I save time and money if I outsource accounting or bookkeeping?

Yes to both! Your time is better off spent on tasks that will grow your business the most, like strategizing and planning for business growth. Some benefits of outsourcing business bookkeeping and accounting include:

Will I save time and money if I outsource accounting or bookkeeping?
  • Reduced operational costs (e.g. payroll, office space, equipment)
  • Lesser risk of paying penalties and fines for non-compliance
  • Improved Cash Flow
  • More time spent on core business competencies
  • Better insights with which to boost your internal systems and processes
  • Allows you to easily scale up as needed

Q: Where can I find a bookkeeping firm in Makati?

DAYANAN Business Consultancy offers bookkeeping services and is located in the heart of the Philippines’ business district. You may contact us at telephone number +632 7576-8476 or visit us at LG1, Cityland III, V.A. Rufino corner Esteban Streets, Legaspi Village, Makati City.

Q: What are some examples of bookkeeping and/or accounting software?

While a spreadsheet program like MS Excel or Google Sheets may be useful for businesses with a tight budget, it’s still limited compared to specialized bookkeeping software such as Quickbooks.

The most popular bookkeeping software is Quickbooks, but Xero and Freshbooks are some well-known names as well. Explore your choices before making your purchase.

Q: What bookkeeping records must be maintained by businesses in the Philippines and what are they for?

What bookkeeping records must be maintained by businesses in the Philippines and what are they for?

According to the Philippines’ Bureau of Internal Revenue (BIR), there are six books that every business should keep and maintain regularly:

  • Journal
  • General Ledger
  • Cash Receipts Book
  • Cash Disbursements Book
  • Subsidiaries Sales Journal
  • Subsidiaries Purchases Journal

1. Journal – Accounting entries are recorded here in chronological order before the transactions are posted to the General Ledger.

2. General Ledger – It holds account information needed to prepare the company’s financial statements. Data in the general ledger is segregated by type into accounts for revenues, expenses, assets, liabilities, and equity.

3. Cash receipts book – It is a detailed record of all cash inflows to a business, such as cash sales and collections of accounts receivable.

4. Cash disbursements book – This is a record of all financial expenditures made by a company before they are posted to the general ledger. It includes disbursements for cash purchases and payments of payables.

5. Subsidiary Sales Journal – It is a record of the details of all sales transactions. The information stored in this journal is a summary of customer-issued invoices. This journal only stores receivables; this means that sales made in cash are not recorded in the sales journal.

6. Subsidiary Purchases Journal – This contains all cash and credit purchases of goods and services. A Subsidiary Purchases Journal contains information about purchasing transactions. All types of purchases made on credit are recorded here.

The BIR also mandates businesses to keep other accounting records such as registers, invoices, receipts, vouchers, returns, and other source documents that support entries in the books of accounts.

Q: For how long does a company have to store its accounting books and records?

For how long does a company have to store its accounting books and records?

10 years per RR 17-2013 and RR 05-2014 issued by BIR. This is because Section 203 of the National Revenue Code provides that in pending cases relating to tax evasion or failure to file returns, the BIR has the authority to examine tax documents for up to 10 years after the discovery of fraud or omission.

Q: What are the common mistakes or misconceptions about bookkeeping that people should be aware of?

There are two common misconceptions when it comes to bookkeeping and accounting. The first is regarding the start of operations and the second is about when to file tax returns.

  • Businesses should only start operating AFTER it obtains necessary permits and licenses from the relevant government offices, either the Securities and Exchange Commission (SEC) for corporations and partnerships or the Department of Trade and Industry (DTI) for sole proprietors. Aside from these, permits and licenses from local government units and the Bureau of Internal Revenue (BIR) must also be obtained.
  • Once the BIR has issued the Certificate of Registration, tax returns MUST be filed, EVEN IF there are no transactions to report. Not doing so will incur you some penalties.

Q: What are the BIR tax reports/requirements that we need to maintain? How often do we submit them to BIR?

The taxpayer needs to regularly file tax returns. What these returns are will depend on the tax types indicated in the BIR Certificate of Registration (COR). Generally speaking though, tax returns need to be filed monthly, quarterly, and yearly, as follows:

  • Withholding Taxes – filed monthly and annually
  • Value Added Tax – filed monthly and quarterly
  • Income Tax – filed quarterly and annually

Aside from tax returns, licenses and permits should be renewed annually, while annual reports should be filed and paid.

Q: Do I need to comply with BIR reports if I already have a registered entity in the Philippines but it’s not yet operational?

Once the BIR issues the Certificate of Registration, you must file, even if no transactions have taken place. Otherwise, you will be charged penalties for non-compliance.

Q: Are there any additional tax requirements for foreign businesses registered in the Philippines?

There are NO additional tax compliance requirements for foreign businesses, but there may be additional tax filings that are unique to foreign entities. An example is the branch profit remittance tax on profits remitted by a Philippine Branch to its Head Office.

Q: What happens if we don’t comply with the mandated accounting/bookkeeping requirements?

The SEC and BIR can impose penalties for failure to submit financial statements and tax returns on time. While the exact fines and penalties vary on a case to case basis, complying with basic accounting/bookkeeping requirements is always a good idea.

Thanks for reading this article on frequently asked questions for bookkeeping in the Philippines. If you want to grow your business, outsourcing is generally the way to go. If you need bookkeeping services in Makati or are searching for a bookkeeping firm in Makati, we at DAYANAN can help you! You may contact us here for any inquiries and our team of experts will gladly assist you.

FDA-Approved Food Supplements in the Philippines: A Quick Guide (Part 1)

As the threat of the COVID-19 pandemic continues to loom, the adage “health is wealth” has never been more true. People are starting to invest more seriously in the physical well-being of their families and loved ones. This is where FDA-approved food supplements in the Philippines come in.

With experts saying that a vaccine is at least a year away, maybe even more, prevention is taking center stage. Supplements help individuals increase their daily intake of recommended energy and nutrient requirements. This makes people less vulnerable to common illnesses as well as the dreaded COVID-19.

If you are thinking of selling, importing, and distributing food supplements in the Philippines, you must first obtain the approval of the Food and Drug Administration (FDA). This article provides you the basics of FDA Philippines food standards, including items such as the difference between drug-based and processed food categories for supplements, prohibited and allowed ingredients, making therapeutic claims, and what to include in a food label.

In the upcoming Part 2 article, we will discuss the detailed requirements for FDA approval and the corresponding fees and charges.

What are Food or Dietary Supplements?

As defined by Administrative Order No. 2014-0029, these are processed food products that help supplement the diet. A food supplement may contain dietary ingredients such as vitamins, minerals, herbs, amino acids, and other dietary substances made from plant, animal, natural, or artificial matter. It may take various forms, including those of liquids, capsules, pills, tablets, powders, and gels. It is not marketed as a conventional food or as replacement for drugs and medicines.

Does my dietary supplement fall under the Food or Drug category?

Based on FDA Philippines Officer Order No. 22 s. 1991, your vitamin or mineral product will be classified as drug-based if it meets the following conditions:

1) Has clinical therapeutic claim/s with regards to a specific vitamin deficiency or disease;

2) Has a concentration per dosage form of greater than 150 percent of the Philippine Dietary Reference Index (PDRI) for water-soluble vitamins and/or greater than 105 percent of the PDRI for fat-soluble vitamins;

3) Takes the form of a pharmaceutical dosage or injectable; and

4) Has additional pharmacologically-active ingredients present

On the other hand, your product will be categorized as a food supplement (more specifically a “processed food”) if:

1) Its indication is that of “Dietary or Health Supplement;

2) Its concentration per dosage form is less than 105% of the PDRI for fat- soluble vitamins and/or less than 150 percent for water-soluble vitamins;

3) It may be available in both non-pharmaceutical and pharmaceutical dosage form except parenterals;

4) It is available as either a purified or a natural product; and

5) It contains no additional pharmacologically-active ingredients.

Under FDA Philippines Administrative Order No. 2014-0029 (Annex A), food products are further classified according to microbiological risk: low, medium, and high. If your dietary supplement contains herbs and botanicals and/or products with other nutritional substances, it will be categorized as a high-risk food; if it has vitamins and minerals and/or amino acids, it will be considered as a medium-risk food. The authorization process and the inspection priorities of the FDA would depend on these subcategories.

What ingredients can be included in my health supplement?

FDA-approved food supplements in the Philippines must meet the regulatory body’s key standards. Among these is the ASEAN Negative List, which details substances that should not be used in health supplements. The prohibited items include:

1) Deadly Nightshade

2) Marijuana

3) Hemlock

4) Chaparral

5) Opium / Poppy

For its part, FDA Philippines Circular 2006-016 enumerates all authorized food additives. These are some examples of what we call additives today:

1) Artificial sweeteners

2) Emulsifiers

3) Food Colors

4) Flavor Enhancers

5) Preservatives

Any food additive and functional classes that will be adopted by the Codex Alimentarius Commission (CAC) shall be automatically included as an addendum to the circular’s Appendix for Food Additives.

What kind of claims can my food supplement make?

Food product claims are regulated under FDA Philippines Circular 2007-002. This circular adopts the CAC Guidelines for Use of Nutrition and Health Claims as its standard for evaluating nutrition and health claims made in advertisements and food labels. It must be noted that products that make unproven claims could be banned from being sold in the Philippine market.

Other relevant regulations include:

1) Administrative order 2014-0029: prohibits the use of curative and therapeutic claims under Chapter VI, Part C of the Guidelines in the Registration of Processed Food Products.

2) Administrative Order 2014-0030: precludes the declaration of misleading and prohibited claims, specifically those in the labels of prepacked foods, under Section VII.

What should be on the label of my dietary supplement?

FDA Philippines Administrative Order No. 88-B s. 1984, as amended by Administrative Order 2014-0030, regulates the labeling of prepacked food, particularly food supplements. Its main provisions are:

1) The following details must be included on the label:

  • Product name
  • Brand name and/or trademark
  • Full ingredient list
  • Net content

Note: Either a per volume or per quantity indication is allowed. For multi-packs, the total quantity as well as the number of individual portions must be indicated.

  • Name and address of the manufacturer and/or repacker, packer, importer, trader, and distributor

Note: For imported products, the country of origin as well as the complete name and address of the importer should be indicated.

  • Lot identification
  • Storage conditions
  • Expiration date
  • Food allergen information (to be mentioned below the ingredient list)

Note: The following allergens and its derivative products must be clearly indicated on the label:

a) Cereals containing gluten
b) Crustaceans
c) Eggs
d) Fish
e) Milk, including lactose
f) Peanuts
g) Soybean
h) Sulfites
i) Tree nut and other nuts
  • Instructions for use
  • Nutrition information

Notes:

Full nutritional declaration is required, especially if a product claims to contain certain nutrients. Only foods for special purposes, medical or otherwise, are exempted. The quantities must be displayed in a tabular form and declared according to the portion size or a specific weight or volume. Vitamins and minerals are to be expressed in mg or µg. The exceptions are Vitamin A, D, and E, which are to be expressed in IU (International Units).

The indicated recommended daily allowance must conform to the Philippine Recommended Energy and Nutrient Intakes (RENI) for male adults aged 19 to 29. Foods for specific groups may use values applicable to such age groups, which will have to be indicated in the labeling. The actual nutrient content of vitamins and minerals should at no point be lower than 80 percent of what is declared on the label. There is no upper limit of overages for micro-nutrients and fiber though.

2) Additives must be properly labeled according to CAC standards.

3) All mandatory information on labels must be in English and/or Filipino. For imported products, the use of other languages is allowed but they should also carry a corresponding English translation.

4) For FDA-approved food supplements in the Philippines, the following statement in Filipino must be included in every advertisement or promotional effort as per Administrative Order No 2010-008:

“IMPORTANT REMINDER: THIS PRODUCT IS NOT A DRUG AND SHOULD NOT BE USED FOR ANY TYPE OF ILLNESS” (non-official translation)

This message should be printed in a size of at least one-third of the size of the largest letter or logo. It must be prominently printed using capital and bold letters using either Arial or Tahoma font.

5) Qualification for other standards such as for halal (Muslim) and kosher (Jewish) may be included in the label but would require proper substantiation. The assigned registration number may also be included on the label.

Need help with registering your food or dietary supplement?

If we handle it, you are guaranteed to have your FDA-approved food supplements in the Philippines. Let us help you. Contact us here and stay tuned for our next article on the registration process, requirements, and fees.

Fees and Requirements for FDA-Approved Food Supplements in the Philippines (Part 2)

FDA CPR Certificate of Product Registration Requirements and Application Process in the Philippines

Certificate of Product Registration FDA Phils
Certificate of Product Registration FDA Phils.

Before you can start selling food items, cosmetics, or drugs in the Philippines, you need to secure first a Certificate of Product Registration (CPR) from the Food and Drug Administration (FDA).

Obtaining a CPR for your product involves knowing if it needs one, having the proper documents and requirements, and applying for it using the FDA’s system. Take note that each product being registered will have its own CPR. This means that each variant, flavor, and dosage will have its own certificate—basically, each item must be registered individually. There is no bulk processing option for FDA CPR application on their website.

Need to know more about how to apply for a Certificate of Product Registration from the FDA? Keep reading.

Click the links below to go directly to that part of this article:

  1. Products with Required Certificate of Product Registration (FDA CPR)
  2. Requirements for FDA CPR
  3. How to Get Certificate of Product Registration from FDA
  4. Automatic CPR Renewal
  5. Penalty for Products with no CPR

Products with Required Certificate of Product Registration (FDA CPR)

Which products need a CPR? The following items do:

1) Food Products (canned goods, bottled beverages, infant formulae, etc.)

2) Medicines, Pharmaceuticals, and Over-the-Counter Drugs

3) Medical Devices

4) Food Supplements (vitamins, minerals, energy boosters, etc.)

5) Toys

6) Veterinary Products (pet medications, vitamins, supplements, etc.)

7) Hazardous Household Products and Urban Pesticides (cleaning supplies, disinfectant sprays, etc.)

Do cosmetics need a Certificate of Product Registration?

Cosmetic products do not have a CPR, and instead are required to have a product notification. While the FDA needs to be informed regarding such cosmetics, the procedure outlined here is for obtaining a CPR only.

Requirements for FDA Certificate of Product Registration

If your product is listed above, you are required to process a CPR for your product. The following are the requirements for doing so:

1) A valid LTO or License to Operate which can be obtained from the FDA

2) A clear, scanned, and colored copy of loose labels of all packaging sizes for the products (or equivalent, as defined by FDA), as well as pictures of the product from all angles and in different packaging sizes. This allows easy recognition of a product as the same one being registered.

  • For food supplements, include blister packs, Alu-Alu packs, and secondary packaging (i.e. paper box or cardboard box).

3) Other requirements for traders, wholesalers, and distributors of locally manufactured food products / for importers and distributors

4) Documents to support product claims, such as:

  • Technical/nutrition health studies or reports
  • Market research studies
  • Certificate of analysis, quantitative analysis, and computations
  • Scientific reports or studies published in peer-reviewed scientific journals
  • Supporting certificates to allow the use of “Sangkap Pinoy”, Halal, Organic, Kosher, and other claims in compliance with current labeling requirements

5) Certificate of Analysis stating essential details to determine product compliance to food standards and regulations for the following:

  • Medium to high-risk products with standards of identity such as food for infants and young children, foods intended for special medical purposes, bottled water, etc) the certificate of analysis must be uploaded. The list of low, medium, and high risks can be found here on the FDA website.
  • Fortified food products covered by R.A. 8176 (iodized salt) and R.A. 8976 (cooking oil, flour, and refined sugar)

6) For food supplements, additional requirements include:

  • A stability study of the actual food supplement
  • Safety data, such as toxicity tests, must be attached to address safety concerns regarding the product.

7) Actual representative product sample of food supplement (for initial application only, and is not needed during CPR renewal).

Note: This is a list of general requirements; additional requirements and procedures may be required by the FDA depending on the product being registered. Confused? You can ask us about it.

Once you have these requirements, you can opt to register these products online using the FDA e-registration system, which can be found here.

How to Get Certificate of Product Registration from FDA

The following is the basic CPR e-registration procedure (as per FDA Circular 2016-014):

1) Secure your FDA E-registration log-in details.

2) Log in to the FDA website e-portal.

3) For first-time product applications, click on “New Case.”

4) Type the details of needed information of product, such as brand name, product name, food category, list of ingredients, product specifications, and other pertinent information.

5) Upload the required documents. The documents needed vary per product and if the product is for export or not. Please check the FDA website for more details.

Note: Maximum 2MB per attachment in PDF or PNG format, and 25 MB max for all attachments per application

6) Print Order of Payment and pay corresponding fees either in person at the FDA Main Office located in Alabang, through the Bancnet online payment gateway option as per FDA Advisory 2015-021, or whatever FDSA recommends on their site.

7) You can track the application progress through the process map indicated on the FDA website.

Automatic CPR Renewal

To make CPR renewal automatic, the following conditions must be met:

1) The renewal application must be filed before the expiration date of the CPR;

2) The automatic renewal fee must be paid prior to the filing of application; and

3) There should be no condition stated at the back of the issued Certificate of Product Registration.

In case of a condition, compliance with the condition must be met and proven by including a scanned copy of the acknowledgment letter from the FDA indicating that the condition has been met.

Penalty for Products with no CPR

What if you release the product to the market without the proper certification? Not only is this illegal, but once FDA is notified, they will issue a cease and desist order. They will take your products off the market AND require you to pay fines AND process CPRs for your products that were taken off the shelves.

Going against the law can destroy the name of your business as well. The FDA issues public health warnings against products without CPRs, and this means bad publicity for your brand.

All in all, the hassles and penalties brought about by not doing things properly is just not worth the risk.

Does the application for an FDA CPR sound too tedious?

If applying for a CPR sounds like a hassle to do it yourself, then let us help! Our team of experts can help you with the whole FDA process, not just for product registration. If you have any inquiries, you may contact us here.

Here’s Why You Should Retire in the Philippines

Did you know that you can migrate to and retire in the Philippines as early as 35 years old? Yes, you can! This is just one of the reasons why retiring in the Philippines could—and should—be on your bucket list. But before you pack your suitcases, it would be wise to research and weigh the pros and cons of such an important decision. Here is a list that will hopefully help you decide whether to get a retirement visa in the Philippines or not:

Pros:

Cons:

Pros of retiring in the Philippines
In a nutshell: If you want to live comfortably even on a budget, enjoy paradise-like surroundings, and interact with friendly English-speaking people, then this archipelago is the retirement destination for you.
Low Cost of Living
According to Investopedia, the Philippines is the fifth cheapest country to retire to for 2018. Most expats can live comfortably on about USD800 to USD1,200 a month—including dining out and in-country travel, at least according to International Living, a website that covers living costs in different countries.
Household help is also abundant and cheap, so you can easily find someone to cook, clean, and do other chores around the house—even with a small budget.
Friendly Filipinos





Filipinos are world-renowned for being happy people who serve with a smile. What’s more, they speak English well given its inclusion in the school curriculum and the prevalence of American tastes in pop culture.
If you’re an English speaker, you will find communicating with locals to be relatively easy. The English Proficiency Index 2019 ranked the Philippines as #1 in Southeast Asia (#2 in Asia, second only to Singapore) and #20 Worldwide (out of 100 countries surveyed), proving the country’s high proficiency in the language.
Picturesque Scenery
The Philippines is a beautiful country. Home to six UNESCO World Heritage Sites, the tropical country has something to offer for everyone. From the mountains, beaches, and even sand dunes, the country is a sight to see — and you don’t need to break the bank to do so. The following is just a tiny sample of what you can expect:
All these among many, many others.
Government Incentives for Expats
A dedicated government office, the Philippine Retirement Agency (PRA), ensures the provision of benefits to expats such as senior citizen discounts, duty-free imports (up to USD7,000 worth of household goods, and exemption from airport travel taxes. Expats in the Philippines are also allowed to start and own businesses.
Lastly, holders of the retiree visa (called the SRRV or Special Resident Retiree Visa) are considered permanent Philippine residents and would no longer need to have periodic visa renewals. That means you can leave and return to the country whenever you please without having to re-apply for residency.
Low Minimum Retirement Age
As mentioned earlier, you don’t have to wait until you’re 60 to enjoy the fruits of your labor. As long as you submit the requirements, you can retire in the Philippines even as a 35-year-old—something that sets the country apart from its peers in Southeast Asia. Application and process requirements for Philippine immigration are also relatively simple compared to neighboring countries.
Cons of retiring in the Philippines
In a nutshell: If you are used to First-World infrastructure and healthcare even in rural areas, or are easily spooked by the smallest possibility of risk, the archipelago could slide a little down your list of retirement destinations.
Less-developed Infrastructure
The local infrastructure may not be the same or at par with those of more developed countries. This is more of an issue with the rural provinces, but if you decide to live in the urban metropolises (e.g. Manila, Cebu, or Davao), you can expect good-enough transportation and utility services.
Public Safety
As of April 2019, the US has placed the Philippines in Alert List Level 2 and reminds its citizens to “Exercise Increased Caution” when traveling in the country. It must be noted though that five (5) out of the top 10 safest South East Asian Cities in 2018 came from the Philippines. If you avoid the southern island of Mindanao, you are generally safe from terrorist threats.
Inaccessible Rural Healthcare
If you need regular check-ups and treatment, living in rural areas might not be the best option. The country’s capital, Manila, may be famous for its traffic jams, but it more than makes up for it with healthcare that’s both accessible and affordable for expats.
Where do you get a retirement visa in the Philippines?
The Philippine Retirement Authority (PRA) issues the Special Resident Retiree’s Visa (SRRV), a special non-immigrant retirement visa in the Philippines. The PRA is actually under the Department of Tourism and NOT the Bureau of Immigration. Having the SRRV actually exempts you from some Philippine immigration requirements.
Is retiring in the Philippines for you?
Every country has its pros and cons. All possible factors should be carefully evaluated before making any decisions. though It may be prudent to visit the country a few times and to look at it from the perspective of a potential resident, not a tourist.
Need help in visa processing?
Have you decided to retire in the Philippines? DAYANAN Business Consulting can assist in processing visas for you. Reach out to our Visa Specialist here.
How to Apply for FDA LTO (License to Operate) in the Philippines
 
Interested in FDA LTO application (License to Operate from the Philippine Food and Drug Administration) but don’t know where to start? 

This new guide gives you a complete step-by-step process on how to apply for an FDA LTO in 2020.
While there are quite a few articles online on FDA LTO application, they are mostly outdated. 

One major change to the process is that it is now done online via https://eportal.fda.gov.ph (the integrated application form may be found here). 

Once processed and approved, the LTO will be mailed to you; no need to pick it up from regional FDA centers.
Click the links below to go directly to that part of this article:
  1. What is an LTO? Why would you need one?
  2. How to Apply for FDA eLTO User Account
  3. License to Operate Requirements
  4. Steps for FDA LTO Application
  5. Tips to make application easier and faster
What is an LTO or License to Operate? Why would you need one?
An LTO allows you to legally import, distribute, sell wholesale, and/or manufacture food, drugs, cosmetics, and medical devices. It is also a requirement before you can obtain a Certificate of Product Registration (CPR), a seal of approval which indicates that your product complies with health, safety, and technical standards set by the FDA in the Philippines.
Operating without a license can spell disaster for your business. If caught, your LTO may be suspended, revoked, canceled, or disapproved upon renewal. Likewise, existing licenses that were not renewed after one-hundred twenty (120) days from the date of expiration will be automatically canceled by the FDA. Not only that, but the company will automatically be delisted from the FDA’s list of licensed establishments, so be sure to renew on time.
Important Reminder: 
Only companies incorporated in the Philippines may apply for LTO.
All guidelines and penalties may be found on the FDA website: http://www.fda.gov.ph
 
How to Apply for FDA eLTO User Account
Per FDA Circular 2016-004 (Procedures on the Use of the New Application Form for License to Operate through the FDA Electronic Portal), the application process has been moved online. With the goal of increasing transparency, accessibility, and efficiency of the process, this decision has been especially beneficial for businesses based outside Metro Manila.
Before you can access the E-portal, you must first create a User Account, the application for which is not as straightforward as what you may be used to. Instead of a simple sign-up button, it instead involves sending a few emails. Here’s how to create a new User Account for the FDA E-Portal System:
Creating eLTO User Account
  • First, accomplish an authorization letter for the eLTO User Account Application. This will designate a specific individual as eLTO account holder.
  • Next, send an email to request for a User Account to the FDA’s Public Assistance, Information and Receiving (PAIR) unit via pair@fda.gov.ph with the following format:
SUBJECT: Request for eLTO User Account

BODY: 

a. E-mail address (preferably company email address) 
b. Name of the authorized company representative (preferably permanently employed and not merely a consultant) 
c. Position in the company 
d. Contact Number 
e. Company Name
  • Don’t forget to attach a scanned Authorization Letter in PDF format. Be sure that it is completed (signed and notarized) and virus-free.
Below is a sample email provided by the FDA:
From: https://ww2.fda.gov.ph/attachments/article/330042/FDA%20Circular%20No.%202016-004.pdf
About the eLTO User Account
Please take note that the User Account details will be sent to the company email address provided in the body of the email, not to the original sender’s email address. User Accounts are usually issued within two (2) days upon receipt of the completed request by the FDA in the Philippines. Requests received after 5:00 pm on regular working days, holidays, Saturdays, and Sundays shall be processed on the next working day.
Each User Account is unique to one company and is valid for one (1) year. Requests for replacing the authorized company representative as well as account reactivation must be sent to pair@fda.gov.ph at least three (3) months before the expiration of the User Account.
Once you have a valid User Account in hand, the E-Portal can now be accessed. Filling up the forms and uploading the documents can now be done via the portal. The E-Portal accepts new, renewal, and variation applications.
The accomplishment of the eLTO may be done via http://www.fda.gov.ph.
License to Operate Requirements
The following are the License to Operate requirements for initial and renewal applications. Ensure that all documents are secured before applying to avoid processing delays.
Requirements for FDA LTO - Initial and Renewal Application
FDA LTO Initial Requirements:
  • Completed Application Form with Declaration and Undertaking
  • Proof of Business Name Registration
  • Risk Management Plan
  • Site Master File (for manufacturers of drugs, devices and cosmetics)
  • Fees payment
FDA LTO Renewal Requirements:
  • Completed Application Form with Declaration and Undertaking
  • Payment of fees
Now that you have all the requirements, the application for the actual license can now follow.
Steps for FDA LTO Application
Applying for an initial FDA LTO consists of the following steps: filing, evaluation, and inspection. An application is considered filed only if all necessary requirements are met, including payment of fees. After filing, the FDA will evaluate all LTO applications to determine whether to grant the license or not. Lastly, a pre-opening inspection shall be conducted for manufacturers. In addition, all establishments covered under the FDA may be inspected anytime by the agency to ensure proper compliance with its set rules and regulations.
  • Log-in to the e-Portal using the User Account provided by FDA at http://www.fda.gov.ph.
  • Click “New Case” on the upper left-hand side and select “License to Operate v2.0” which can be found under Electronic Licensing.
  • Make sure you’ve read and fully understood the “Declaration and Undertaking” and click the “I Agree” button before proceeding.
  • Under the General Information tab, select the appropriate Product Type, Primary Activity, and Type of Application from their respective drop-down menus.
  • (Each primary activity has its applicable sub-options. Accomplish the General Information appropriately).
  • Under Establishment Information, provide the complete establishment name, TIN, address, and contact details. Use the Show Map Tool and move the arrow to the exact address of the establishment and click the “Submit” button.
  • Provide needed information under “Details of the Authorized Officer” and “Details of the Applicant.”Upload the required documents (depending on LTO type). Make sure documents are in PDF format.
  • Double-check the total amount to be paid by looking at the Order of Payment section, which can be downloaded if needed.
  • Payment can be made using existing FDA mechanisms.
  • Please note: Under the “Assign Task” section, please click the “Continue” button in order for the application to be processed by the FDA.
Here are some tips to make application easier and faster:
Tips for Faster and Easier FDA LTO Application
Tip 1: Follow documentary requirements listed in Administrative Order (AO) 2016-0003 (“Guidelines on Unified Licensing Requirements and Procedures of the Food and Drug Administration”):
  • Submit files in PDF format and ensure that there are no bugs, viruses, or anything that can jeopardize the system of the FDA.
  • All documents must be scanned and compiled with 100-150 dots-per-inch (dpi).
  • All document file names must be less than 40 characters, should not contain the following characters: \ ? / : * ” > <
Tip 2: Make sure to submit all forms completely. Do not forget to attach files to emails before sending them.
Tip 3: Get assistance from DAYANAN Business Consultancy! With our FDA Consulting services, you would no longer have to stress and fret over the LTO application process.
After you’re done applying, expect your FDA License to Operate (LTO) in the mail! We hope these tips answer your queries on how to apply for an FDA LTO. If you would like to avail of our FDA consulting services, you may contact us here.
FDA Consulting Philippines
The Complete FAQ Guide on How to Renew Your Business Permit in the Philippines for 2020
 
Having a business registered in the Philippines requires you to renew its business permits annually.
It doesn’t matter if the company is a Single Proprietorship, a One Person Corporation, a Partnership, a Corporation, a Branch Office, or a Regional Headquarter (ROHQ). All business establishments, per Philippine law, must renew their permits or face possible closure of their operations as well as a loss of face to their clients. 
To help you avoid long lines and heavy monetary penalties, we give you our complete FAQ guide on how to renew your business permit in the Philippines for 2020. 
Frequently Asked Questions (FAQs):
  1. What permits do I need to renew? When is the deadline for each?
  1.  What are the penalties for non-renewal or late renewal of business permits? 
  1. What are the needed requirements and fees for business permit renewal with each government office?
  1. What are the steps for renewing business permits? How long will the process take? 
  1. What other tips should I know about business permit renewal?
 
What permits do I need to renew? When is the deadline for each? 
Business permit renewal season involves coordinating with three different government entities: the barangay, the city or municipality, and the Bureau of Internal Revenue (BIR). 
1. Barangay Permit or Clearance (Deadline: January 20)
A barangay permit certifies that a business establishment is compliant with the requirements set by its local government unit (LGU) of operation. It is also a requirement when securing the Mayor’s Permit. 
2. Mayor’s Permit or Business License (Deadline: January 20)
Each city or municipality has its own rules to comply with. The Mayor’s Permit certifies that a company is compliant with the ordinances of the city or municipal it operates in. 
3. BIR Renewal of Registration (Deadline: January 31)
The BIR issues a Certificate of Registration (COR) to a company when it is first established. To ensure its validity from year to year, a business establishment must pay a renewal fee of PhP 500.00 every January 31.
 
What are the penalties for non-renewal or late renewal of business permits? 
City or Municipality
If filing is not accomplished by January 20 of each year, the LGU concerned will impose a 25 percent surcharge on top of the unpaid taxes, charges, and fees assessed. Also, a negligent company will incur a 2 percent monthly interest on all unsettled fees, including the surcharge, until everything is paid off.
Extremely delinquent businesses, on the other hand, run the risk of closure and/or seizure of its properties and assets.
All these penalties are imposed by the Local Government Code of 1991.
BIR
A company that did not comply to the January 31 deadline will be fined an amount ranging from PhP 5,000.00 to PhP 20,000.00. Its officers also face the risk of imprisonment, with the term ranging from six months to a maximum of two years. 
 
What requirements do you need for business permit renewal with each government office?
Barangay
1. 2019 Barangay Permit (original and photocopy)
2. Official Receipt from last year (original and photocopy)
3. Accomplished application form (2 copies)
4. Renewal fee (varies per barangay)
City / Municipality
1. 2020 Barangay Permit (to be availed first for the current year)
2. 2019 Mayor’s Permit (original copy)
3. 2019 Official Receipt (original copy)
4. 2019 Audited Financial Statement
5. Lease Contract (if changing address)
6. Community Tax Certificate (CTC) or Cedula (to be secured first from City or Municipal Hall)
7. Comprehensive General Liability Policy (CGLP) insurance for 2020
8. Official receipt of CGLP availed
9. Renewal fee (varies per city or municipality)
Depending on the LGU concerned, you may also be asked to provide the following documents:
1. Fire and Safety Inspection Certificate (original copy) 
2. Sanitary Permit (original copy)
BIR
1. BIR Payment Form 0605 (Click this link to download from the BIR website)
2. PhP 500.00 annual business registration fee
 
What are the steps for renewing business permits? How long will the process take? 
Barangay
Estimated Time Needed: 1 day
1. Visit the barangay hall in whose district your company operates in. Secure a renewal application form.
2. After filling out the form, submit it along with the original copies of your 2019 Barangay Permit and Official Receipt.
3. The barangay’s permit division will then assess your renewal application and documentary requirements. If everything is in order, you may then pay the necessary renewal fee.
4. You will be given the Official Receipt for your Barangay Permit. You may then claim your new Barangay Permit on the date indicated in the Official Receipt.
City / Municipality
Estimated Time Needed: 1 to 2 weeks
1. Secure a renewal application form from the Business Permits and Licensing Office (BPLO) of the LGU that your company operates in.
2. Fill out the form then submit along with the documentary requirements for evaluation.
3. Based on the submitted documents, the BPLO will issue an assessment notice containing the amount of local business tax, real property tax, and other fees that your company needs to pay for 2020. You can choose to pay the entire annual fee in full or in quarterly installments. You may also contest the amount and request a lower assessment. 
4. Bring the assessment notice and pay the required fees at the City Treasurer’s Office. They will provide you the Official Receipt to be presented when you claim the Mayor’s Permit certificate.
5. If your documents are in order, pay the Mayor’s Permit renewal fee at the City Treasurer’s Office. You will be given a receiving copy of your documents.
6. It will take some time for the certificate to be released. In the meantime, the Official Receipt will serve as proof that you renewed your Mayor’s Permit on time if asked. 
7. You may then claim your new Business License from the City Treasurer’s Office on the date indicated in the Official Receipt.
BIR
Estimated Time Needed: 1 day
1. Fill up BIR Payment Form 0605 with details of your business establishment.
2. Bring the BIR Payment Form 0605 to your RDO’s Authorized Agent Bank (AAB) and pay the PhP 500.00 annual business registration fee there.
 
What other tips should I know about business permit renewal?
1. Don’t procrastinate. Preparing the documents required by your LGU at the last minute will land you in long waiting lines and possible payment of penalties. Use the whole month of December if necessary. Remember: the deadline for the whole process of business permit renewal is January 20.
2. Be OC (obsessive-compulsive). Paying attention to small details can save you a lot of time. Organize your documents as soon as you receive or print them. Triple-check what is written in your application form and its attachments. Bring enough cash before you head to the battle lines. 
3. Patience is a virtue. No matter how early you start preparing, you will probably still face lines at your barangay hall, city hall, and BIR RDO. Make sure you’re ready to play the waiting game. Bring a fan, towel, bottled water, and even a good book if you’re so inclined.
4. Copies can save you. You never know how many copies of a particular document will be asked of you at the counter. Bring extra copies of your required documents so you don’t have to run out to the nearest photocopier (and lose your spot in the lines).
5. Avoid fixers. Do everything aboveboard. Don’t listen to individuals who promise shortcuts and discounts in the business permit renewal process. Their quick fixes may also quickly land you in hot water for tax evasion.
 
The best partner for renewing your business permit is someone who tells you the fees and steps needed exactly as it is. At DAYANAN Business Consultancy, we do exactly just that. Having helped over a hundred companies through the process, we know exactly how to save you time and effort. This allows you to focus on your core business functions better.
Let us take care of filling out forms and going to government offices for you. Contact us today!
 
Pros and Cons of Starting Foreign Companies in the Philippines
 
Infographic summarizing the Pros and Cons for foreign companies in the Philippines
Like it or not, today’s business landscape is incredibly competitive and will continue to be so. It’s no wonder that companies scramble to build, maintain, and expand their edge over competitors. To get that proverbial edge, the savviest of entrepreneurs are exploring strategies that they have never pursued before.
Among these strategies is establishing businesses overseas. After all, one can make money anywhere in the world. In recent years, the Philippines has become a favored destination for aspiring moguls and tycoons. Opening foreign companies in the Philippines allows them to be successful even outside of their home countries.
Any businessman worth his salt would do his research before investing his hard-earned money in another country. After all, doing business in the Philippines is not for the faint-hearted. If you have ever thought of branching out abroad, you must be aware of the benefits and risks of doing so. To guide you, here is a short list of the pros and cons of starting your own business in the Philippines as a foreigner:
Pros:
Cons:
Pros of Starting Foreign Companies in the Philippines
A Large Market
With
a population of over 100 million, the Philippines offers numerous
opportunities for any enterprising businessman to sell his products
and services. Filipinos have an affinity for Western culture and are
famously consumer-driven. Foreigners
would have an easier time adjusting here compared to other Southeast
Asian countries like Thailand and Indonesia.
Despite
the great income disparity between population sectors, a smart
entrepreneur can profit by honing in on and marketing to specific
segments. In addition, locating your business in the Philippines
allows you to take advantage of the greater ASEAN and Asia-Pacific
markets.
Low-Cost,
Talented Labor
Naturally
hardworking, Filipinos are the dream employees of every company. Each
year, the country’s universities and colleges add thousands of
graduates to an already large labor pool. This has been – and still
is – a boon to the business process outsourcing (BPO) sector, with
the average Filipino’s good command of the English language and
excellent communication skills.
Salaries in the country are also much lower compared to North America and European countries. With the exchange rate hovering at around PhP 50 to USD 1, foreign companies in the Philippines definitely get more bang for their (payroll) buck.
Good-Enough
Infrastructure
Despite
being an archipelagic country, the main islands of the Philippines
are surprisingly well-connected to each other and the outside world.
Large cargo shipments mostly utilize the seaports, while smaller ones
go through the various airports dotting the major cities.
Within
the greater metropolitan Manila area, the key business hubs are
Makati City, Bonifacio Global City (BGC), and Ortigas Center.
Rivaling the likes of Hong Kong and Singapore, these places boast of
state-of-the-art, eco-friendly communities that bring residents and
businesses together.
While there remains a lot to be done to improve the country’s infrastructure, President Rodrigo Duterte has recently initiated the “Build, Build, Build” program to fast track major infrastructure projects that would benefit both local and foreign companies in the Philippines.
Incentives
from the Government
The Philippine government, through the Board of Investments (BOI) and Philippine Economic Zone Authority (PEZA), provides several incentives to attract foreign investments, especially into priority areas and industries marked for development.
Fiscal
incentives include income tax holidays, tax exemptions and
deductions, and preferential rates on the final tax of gross income
(for PEZA-registered companies). Among the non-tax incentives are
simplification of customs procedures for imported products, issuance
of resident visas to foreign investors and their families, and the
privilege to operate a bonded trading or manufacturing warehouse.
If it’s your first time to open an foreign-owned company in the Philippines, don’t forget to avail of these goodies!
Cons of Starting Foreign Companies in the Philippines
More Holidays in the Philippines
The Philippines has 18 official non-working holidays. Many of these are of great cultural significance, such as Christmas, New Year, the Christian Holy Week, and All Souls’ Day.
On
the other hand, these holidays provide a ready-made,
annually-occurring boon to consumer-oriented businesses. Marketing
your products and services could not become any easier, with the
extended Christmas season in the Philippines that unofficially starts
in September and ends in February.
The
Law Favors the Laborer
Most
of the labor laws in the Philippines are geared to favor employees
over management. For example, companies cannot simply fire
underperforming employees at will. Before fully terminating someone,
the employer has to prove first that the staff member concerned was
at fault or failed to pass the standards of his/her probationary
period. Companies are also mandated by Philippine law to provide
severance pay and 13th-month pay.
These
conditions may seem unfair to some, but overall such laws have
contributed to higher morale and a lower turnover rate among Filipino
employees compared to their foreign counterparts. That is something
any smart businessman would appreciate.
Heavy
Traffic
Sad
to say, the Philippines lacks any kind of efficient mass
transportation system. According to the Asian Development Bank, Metro
Manila tops the list of 278 most congested cities in developing Asia.
The sheer volume of public utility buses, jeepneys, and private
vehicles on its roads during work hours leads to slow-moving traffic
at best and outright gridlock at worst.
The
good news is that various skyways and expressways, as well as a new
train line in the northern part of Metro Manila, are being built to
ease the traffic situation. It may take some time, but things are
bound to get better.
Despite
the government-provided incentives mentioned above, some foreign
businessmen still hesitate to shortlist the Philippines as an
investment destination because of the restriction on foreign
ownership of land. They may, however, own 40 percent of a corporation
that owns land. Most businesses are allowed to be 100% foreign-owned.
The Foreign Investment Negative List contains the limitations of
foreign ownership mandated by the constitution and specific laws.
It must be noted that 100% foreign ownership of a company catering to the Philippine local market is allowed, subject to having a minimum paid-in capital of USD 200,000.00. An exemption may be obtained for foreign companies in the Philippines that employ a minimum of 50 direct employees or use advanced technology, for a minimum paid-in capital of USD 100,000.00.
Need Help with Starting Your New Business?
You may be discouraged by some of the cons we enumerated, but don’t be. The Philippines has been one of the fastest-growing economies in Asia, and it will continue to expand in the coming years. With its friendly people and climate, you have even more incentives to build your dream business here.
If you don’t know where (and how) to start, we at DAYANAN Business Consultancy are here to help. Contact us today.
 
Event Report – Public Relations Crash Course (Sept. 4, 2019)
 
Last September 4, DAYANAN held the first run of “Public Relations for Government and Civil Society: A Crash Course for Professionals” at  One Cafe and Events Place in Ortigas. Facilitated by Mr. Darwin Masacupan, the seminar aims to equip members of public information,  marketing, and corporate communications departments with the knowledge and skills of an effective PR professional. It has a unique learning framework, one that emphasizes the challenges and opportunities of working in a government or civil society setting.
A total of 26 participants attended the seminar, representing organizations such as the Metropolitan Waterworks and Sewerage System (MWSS), Philippine Business for Education (PBED), Pasay City, San  Fernando City in La Union, Land Bank of the Philippines, Provincial  Government of La Union, Children’s Hour Philippines, ACCORD, Southern Philippines Development Authority, Climate Change Commission, and the Philippine Reclamation Authority. Through this crash course, DAYANAN aims to contribute to the improvement of public relations in the Philippines.
Testimonials from Attendees:
I have new learnings to take home with me which will help me progress in my tasks and role in the organization.
– from Land Bank of the Philippines
The speaker was very approachable, amiable, & knowledgeable.
– from ACCORD 
I enjoyed the participative discussions, where I was able to learn not just from the speaker but also from my fellow participants.
– from Children’s Hour Philippines Foundation 
Module 7: The Day After (topics  included evaluation, handling negative publicity, thanking media  attendees, pitching post-event PRs) was helpful and contributed to my  personal working development.
– from City Government of San Fernando, La Union
Selected Photos