The Food and Drug Administration (FDA) is the Philippine government agency charged with ensuring the quality and safety of the following products:
Processed food and drinks
Drugs and other pharmaceutical products
Toys and child care articles
Household pesticides/cleaning agents
In line with its mandate under the Department of Health (DOH), the FDA regulates the production, importation, and distribution of these products in the country.
A company that wishes to engage in such business activities must first obtain a License To Operate (LTO) from the FDA either as an importer or a manufacturer. Once done, the company must then apply for a Certificate of Product Registration (CPR) to ensure that its products comply with FDA technical standards.
DAYANAN can serve as primary liaison between your company and the FDA. Our familiarity with the regulatory framework and proactive approach will help ensure faster turnaround on your application. We will also link your company to laboratories recognized by the FDA to perform various required analytical tests on your products.
Makati City has long been the country’s leading business and financial hub, serving as home to 40 percent of the country’s top 1000 multinational and local corporations. The city boasts of a highly-developed transport and communications infrastructure, quality shopping centers, state-of-the-art hospitals, and premiere residential areas. All these advantages have made Makati the location of choice for new businesses.
We have previously covered the steps on registering your Philippine-based corporation with national- and municipal-level agencies. In this article, we will highlight the specific, up-to-date requirements and steps for business registration in Makati City.
Makati City Business Registration / Mayors’ Permit
1) Locational Clearance for Business
– to determine if the business activity you are applying for is allowed in the area
– will be issued by the Zoning Administration Division after five (5) working days if an inspection is needed
2) Proof of Business Address
a. Contract of Lease (if the place of business is rented)
b. Transfer Certificate of Title / Tax Declaration / Real Property Tax Receipt (if the place of business is owned)
3) Proof of Business Name and Activity / Line of Business
a. Business Name Certificate from the Department of Trade and Industry (DTI) (if sole proprietorship)
b. Articles of Incorporation or Partnership from the Securities and Exchange Commission (SEC) (if corporation or partnership)
4) Barangay Clearance for Business
5) Comprehensive General Liability Insurance (CGLI)
– protects an enterprise from liability claims arising in the course of business
ADDITIONAL REQUIREMENTS BASED ON NATURE OF BUSINESS BEING APPLIED:
1) Residence Certificate A and B for Single Proprietorship, C and C1 for Corporation
2) Contractor’s License issued by the Philippine Contractors Accreditation Board (PCAB) for General/Specialty Engineering Contractors
3) National Food Authority (NFA) License for Dealers of Rice/Corn and Wheat
4) Food and Drug Administration (FDA) Certification for Bakeries and Drugstores
5) Authority from Bangko Sentral ng Pilipinas (BSP) for Banking Institutions
6) Accreditation Certificate issued by DTI for Auto Repair Shop, Electronics, Radio, and other Electrical Equipment Businesses
7) Customs Broker’s Accreditation granted by the Bureau of Customs (BOC) for Customs Brokerage Businesses
8) Real Estate Broker’s License issued by the Professional Regulation Commission (PRC) for Real Estate Brokers
9) License issued by the Department of Labor and Employment (DOLE) for Local Manpower/Recruitment Agencies
10) License issued by the Philippine Overseas and Employment Agency (POEA) for Manning and Crewing Services
11) Pest Control License issued by Fertilizers and Pesticide Authority for Pest Control Services
12) License issued by the Optimal Media Board (OMB) for Video Rental Services
13) Occupancy Permit for Real Estate Lessors
14) License to Operate from the Philippine National Police (PNP) for Private Security Agencies
15) Clearance issued by the Department of Environmental and Natural Resources (DENR) for Mining Companies
16) Franchise granted by the Land Transportation Franchising and Regulatory Board (LTFRB) for Rent-A-Car and Transportation Services
17) License to Own and Possess Firearms issued by PNP
18) Accreditation issued by the Department of Information and Communications Technology (DICT) for Messengerial or Courier Services
19) License issued by the Department of Energy (DOE) for Dealers of Liquefied Petroleum Gas (LPG)
20) License issued by the National Telecommunication Commission (NTC) for Telecommunications Companies
21) Certificate of Accreditation issued by Philippine Shippers’ Bureau for Seafreight Forwarders
22) Accreditation issued by the Technical Education and Skills Development Authority (TESDA) for Training Centers
23) Accreditation Certificate issued by the Department of Education (DepEd) for Educational Institutions
24) Certificate of Authority to Operate issued by SEC for Financial Lending Institutions
3. EASY STEPS FOR GETTING YOUR MAYOR’S / BUSINESS PERMIT
Location: Business Permits Office (BPO), Ground Floor, New Makati City Hall Building II
Estimated Time Frame: 30 minutes
a. Secure application form from receiving or processing clerks. Be informed of the requirements and processes.
Note: If your business is considered “Subject for Inspection,” you will have to proceed to the Inspection Division.
b. Have the BPO check your requirements and accept your application. Officials will evaluate and assess taxes, fees, and charges. The BPO Chief will then sign the billing statement and application form to indicate approval.
Location: Business Tax Division / Treasury Department, Ground Floor, New Makati City Hall Building II
Estimated Time Frame: 5 minutes
a. With your approved application form and billing statement at hand, pay the corresponding fees and tax at designated windows.
Estimated Time Frame: 15 minutes
a. Claim your Business Permit, Sanitary Permit, and Fire Safety Inspection Notice.
Note: Inspections will be conducted after release of Business Permit by the Bureau of Fire Protection (BFP), Health Department, and Engineering Office.
TOTAL TIME: 50 minutes
Want to save even more time? Let the experts at DAYANAN Business Consultancy do the work for you! We’ll be happy to guide you through the ins and outs of the Philippine business registration process!
Source: Makati City BPO
Makati City skyline image taken from www.makati.gov.ph
January is time for Business Permit renewal in the Philippines, and should be done between January 1st – 20th, 2017. The law requires, every business establishment to annually renew its registration with the local government unit (LGU) that has jurisdiction over its place of business.
REQUIREMENTS FOR RENEWAL
Renewal of Barangay Clearance – present the Original copy of 2016 Barangay and Official Receipt of the previous year
Official Receipts of payments – 1st to 4th quarters or annual payment of the year 2016
Declaration of Gross Sales / Receipts for the preceding year, number of employees, floor area (in sq. meters) of the office /factory or premises/compound occupied
Residence Certificate A and B for single proprietorship, C and C1 in case of Corporation or partnership for the current year (cedula)
Income Tax Returns and Financial Statements (FS) for the preceding calendar year which were filed with the BIR during the current year
Public Liability Insurance
Affidavit of No Income / No Operation, if no operations/ no income
Authorization Letter authorizing the representative to process all the above.
COMPUTATION OF BUSINESS PERMIT FEES
Business tax is imposed upon the company’s gross sales or receipts. Rates vary depending on the nature of the business under Section 143 of the Local Government Code of the Philippines.
Gross Sales or Receipts include the total amount of money or its equivalent representing the contract price, compensation or service fee, including the amount charged or materials supplied with the services and deposits or advance payments actually or constructively received during the taxable quarter for the services performed or to be performed for another person excluding discounts if determinable at the time of sales, sales returns, excise tax, and value added taxes (Book II, Section 130 (n) Local Government Code).
PENALTIES FOR LATE FILING AND UNDER DECLARATION OF GROSS SALES/RECEIPTS
Local Government Units typically impose a 25% surcharge on the unpaid amount plus 2% interest per month, on top of the unpaid amount, if filing is not accomplished by January 20th. Failure to renew your business permit on time, may result in City Hall ordering the closure of your business.
If Gross Sales /Receipts declared in the Company’s 2016 Business Permits are lower than the Actual Gross Sales /Receipts per 2016 Audited Financial Statements the company will be subjected to a penalty of 25% surcharge and 2% interest per month for any computed Tax Deficiency/Delinquency noted during assessment.
BUSINESS PERMIT COMPLIANCE
Avoid the hassle of long lines and red tape, outsource your business permit renewal to Dayanan Business Consultancy.
Every business whether a corporation or partnership registered with the SEC or a sole proprietorship registered with the DTI is under the obligation to immediately obtain business permits in the municipalities where they operate. Corporations whether PEZA registered or not operating without the necessary business permits will incur fines, penalties or closure from the BIR or City Hall.
Registration is required for every separate or distinct establishment or place of business including facility types where sales transactions occur and warehouse where inventory of goods for sale are kept, and must be obtained before commencement of business and payment of any tax due.
Failure to Register
– Fine of not less than P5,000 but not more than P20,000 and imprisonment of not less than 6 months but not more than 2 years.
a. Cities 20,000 b. 1st class municipalities 10,000 c. 2nd class municipalities 5,000 d. 3rd class municipalities 2,000
The above are just a few of the penalties that the BIR may impose.
None registration with City Hall has its own penalties;
Makati City Penalty example: SEC. 3A.11. Penalty – Any violation of the provisions of this Article shall be punished by a fine of not less than One Thousands Pesos (P 1,000.00) nor more than Five Thousands Pesos (P 5,000.00), or imprisonment of not less than one (1) month not more than five (5) months, or both, at the discretion of the Court.
The above does not includes a surcharge of 25% for late payments and a 2% monthly interest on the unpaid taxes, fees or charges including surcharges.
The documentation required varies according to the municipality, below are listed :
– Barangay Clearance/Permit for the new year – Previous Year’s Business Permit – Financial Statement/ Income Tax Return for the preceding year – Latest Community Tax Certificate – Contract of Lease/ Lessor’s Permit – Comprehensive General Liability Insurance – List of Company Employees with Medical Certificates
Documentary requirements may vary from year to year, we recommend that you check for changes before filing your business permit renewal with City Hall.
Annual Mayor’s Permit Fees (business tax) vary according to the nature of the company’s business, the company’s preceding years gross sales are used to calculate the amount of tax due which can be less than 1% to 3% or more, regardless of when the business started to operate .
In the case of a newly-started business the initial tax for the year shall be calculated on the capital investment or paid up capital, contract of lease and size of office.
All business permits should be prominently displayed in every location where business is transacted.