Thursday, March 15, 2007

Business Permits, Registration to BIR, TAX!

Having a business really is a tough and tedious one...there are a lot of things you have to consider and a lot of things to do, most especially when you are just starting. You need to secure a business permit from the Homeowner's Office (if your business is in a village or subdivision), then another business permit from the Barangay Hall, then lastly, a business permit from the Mayor's Office. You can't get the Mayor's Permit without securing the Homeowner and Barangay permits first. It took me almost three weeks to be able to completely process and secure all those permits from different offices. Guess what caused the delays...of course, not me but the people who processed it, starting from the Homeowner's Office up to the City Hall.

Homeowner's Office - took me almost a week and a half to get the business permit because their head officer who's going to sign the paper has been out for a couple of days. It should have been processed and given to me after one to two days but that didnt happen...

Barangay Hall - took me another week for them to issue my business permit. The lady who received my documents and application told me that they will just inform me the following day through text regarding the release of the permit. But guess what...I never received any text from them. I asked my brother a couple of days later to follow it up with them and as expected, the permit wasn't ready and they will release it after we give them a simple sketch of our business location (which they didn't ask from us beforehand) The next day, my brother gave the sketch to them but was told that he has to wait until afternoon since the person who's going to sign it wasn't in the barangay. My brother went back to get the permit in the afternoon and surprisingly, after a long time of waiting, it was handed to my brother.

Mayor's Permit - I didn't experience a lot of trouble processing the business permit in the city hall. The only cause of the delay was because of the misinformation provided to me by one of the employees from a certain department who needs to approve my application (I guess, I need not mention the department) The employees in the Business Permit Office were really helpful and patient. The old guy who works from that department helped me a lot and instructed me with all the things I need to do and where I will go, step-by-step. I finished the first step for 10 minutes. I thought the next steps will be as smooth as the first one not until I went in to the second step. This time I had some confusion...the employee who first talked to me just gave me a form and talked to me while she was filing up all her papers. She never even dared to check which department I have gone to already and if the form she's giving me was even needed. I asked her a lot of questions but she just keeps on filing her things and not really listening to what I was asking her. With dismay, I went back to the tutorial center and tried reading all the questions in the form and other documents needed. I was surprised because the documents they need aren't really applicable to me since I am not asking for a building permit but a business permit. I am only renting the space and not reconstructing a new building. So I guess, I dont need to give them the layout of the building, Transfer Certificate of Title (TCT) and a lot more papers. I went back to the same department the following day and talked to a different employee. She told me different things but this time, she admitted that she was not sure. So she asked me to stay and wait for their Head Officer. After a couple of minutes waiting, the Head Officer arrived and talked to me. She told me that our place will only be inspected the following day with one of their officers and that's all. The following day, an inspector came in the tutorial center at around 10 am and just checked the place. Then they told me to go back to the city hall and get the application form in the afternoon to move on to the next step. The succeeding steps weren't really difficult. It only took me two hours to finish all 5 remaining steps. I felt so happy when I received the last of all business permits I needed to secure...the most important of all business permits. Now, I can display it inside the tutorial center so that people will know that we are a "legal business."

Anyways, after those tiring and exhausting weeks of securing the business permits...here comes a new challenge...registration of business to the Bureau of Internal Revenue (BIR). This time, I must admit, I am not familiar with the forms they will ask me to answer and I have no clue as to what type of taxes they will give me. So when I went to the BIR office in Las Pinas, I immediately went to the Officer of the Day and asked what to do. She was very patient and instructed me everything, what to do and where to go. I followed what she told me...went to the Registration Section and gave them lots of forms I was asked to answer. The lady from the Registration Section was very accomodating and told me that I have to update and change my registered address from Pasig to Las Pinas since my business is based in Las Pinas. She advised me to go to BIR Pasig to process the transfer. So I did...but again, it was stressful and confusing. The Officer of the Day from that district office wasn't helpful because she didn't even bother to look at my application and listen to me, the next guy I talked to just referred me to someone else. But the last employee I talked to (he's the only employee who gives out BIR Forms; he's located in front of the stairs going to the 2nd floor) was very helpful and nice, gave me all the steps I need to do. He should be commended!!! same with the old guy from BPO in Las Pinas!!! Well, moving on, the Registration Officer told me that the transfer will be processed within 5 days. That means, I will have to wait for 5 days before I go back to BIR Las Pinas and register the business. Well, at least I would have time to relax and not think about the papers...

For now, I'm just trying to relax, managing all the expenses and schedules. My aunt will do the bookkeeping for me while my brother is managing the business. Hope I'll finish all the papers for the business soon.

6 comments:

Anonymous said...

hey there, i'm jenn. my friends and i are planning to put up a tutorial center in bf, paranaque. we wanted it to be legal but still don't know how. i've done some research but i'm still confused. hope you could help us. please email me at jenguiang@yahoo.com. good luck with your center. thanks and God bless!

Anonymous said...

Hi there. I wanted to put up my own travel agency in las pinas. But i heard a lot of "lagay system" in the public offices. And I really really hate that.

Good thing that i came upon your blog. You inspired me actually. Would you think I could also process my business permit, just like you did, without me passing on with the "Buwayas" in the cityhall?

Please be kind to us, new and aspiring businessmen. Share your strategies. We live on the same city (las pinas). And I promise to myself, if I will find a better way to process my business permit without any lagay system, I will share it to everyone. So that lagay system will be put to an end. - hydro

doing business in the Philippines said...

Thanks for sharing your experiences. I'm a young entrepreneur and starting up on my website. Your post is helpful because I learned more things about business registration.

Anonymous said...

SIR, WHERE IS THE BIR IN LPC LOCATED? THANK YOU

Cristina Ortega said...

I want to know what is the requirements of transferring business permits in las pinas even its already expired 9yrs.ago.....

Mark Dimagiba said...

Thanks for sharing this information about business registration. It's very helpful especially for young entrepreneurs who are planning to start their own business.