Starting a Business - Davao City

8/11/2019 Starting a Business - Davao City

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The World Bank Group

The World Bank 1818 H Street N.W. Phone: (202) 473-6291INTERNATINA! "INAN#E #RPRATIN W$%h&n'ton .#. 20433 "$*: 202 473 +7+8

INTERNATINA! ,AN "R RE#NSTR#TIN AN E/E!PENT .S.A. E-$&: or$n5or$n.or'INTERNATINA! E/E!PENT ASS#IATIN

2007 Questionnaire on Starting a Business

Doing Business in the Philippines

Dear Contributor,

Thank you for your cooperation with the Doing Business in the Philippines project. On behalf of the

World Bank and IFC, it is a pleasure to introduce you to our sub national study on business start-up

reulation. The sur!ey will solicit your !iews and the !iews of other e"perts in the field of business start-

up in the #hilippines on aspects of reulatory re$uire%ents to open a do%estically-owned li%ited liability

co%pany. We belie!e that your e"perience and knowlede in this area can pro!ide us with an accurateand objecti!e picture of the practice of co%pany incorporation in your city.

#lease answer the two part sur!ey on the followin paes. The first section asks you to re!iew the

su%%ary of procedures to start a business in &anila City and asks you to co%pare it with your city.

#lease indicate whether each specific procedure is re$uired in your city and the ti%e and cost that it

entails. The second section asks you to describe any ad%inistrati!e or leal chanes that ha!e taken placein recent years which affected the procedures, ti%e and cost to start up a li%ited liability co%pany.

#lease address any $uestions reardin this sur!ey to 'yl!ia 'olf, tel. ( )*) + +), fa" ( )*) +/

, e-%ail0 ssolf1worldbank.or or 2driana 3icentini, tel. ( )*) +/ *+, e-%ail0a!icentini1worldbank.or. If you ha!e any $uestions, do not hesitate to contact us.

One o!pleted, please return the "uestionnaire #ithin $ business da%s, to &S' ()(C* &'

+)(DC-O at the )sian nstitute o. &anage!ent /)&, 1ugenio +ope 3oundation Bldg',

4oseph 5' &&iking Ca!pus, 62 Paseo de 5o8as, &akati Cit% 6290, Philippines' Tel: ;92 066 e8t' 206


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CO(T5BATO5S G1(15)+ (3O5&)TO(

Would %ou like this

in.or!ation published

*es (oTitle /&r', &s', et' 5&s.6

(a!e 53illa6 7first8i!en9 5:oresa6 7last8fa%ily9

Position 52sst. :i!ision Chief, Business Bureau6

3ir! 5;ocal


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When o!pleting the surEe%, please pa% attention to the .ollo#ing assu!ptions'

The business:

- Is a do%estic li%ited liability co%pany 7stok orporation9.- Operates in :a!ao City

- as owners, none of who% is a leal entity.

- as a start-up capital of (* ti%es inco%e per capita, paid in cash0 ASD 6>,200 or P-P 72


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' Business 1ntr% Proedures in DaEao Cit%

#lease use this list of the reulatory re$uire%ents and %andatory procedures to incorporate a li%ited

liability co%pany in &anila Cit%as a basis for identifyin the procedures re$uired in your city.

'o%e procedures %ay be si%ilar but ha!e a differin ti%e, cost and aency associated with the%.#lease indicate these differences in the space pro!ided.

'o%e procedures %ay not be re$uired for your city. #lease indicate these procedures and pro!ide

an e"planation for the difference.

>ote that there are ) additional $uestions related to these procedures at the end of the list.

Proedure 6' Obtain bank erti.iate o. deposit o. the paid?in apital

Ti%e0 ( day

Cost0 >o chare

Co%%ent0 Fees !ary fro% bank to bank. 'o%e banks in &anila do not chare any fee, so%e banks

chare up to ## (* for each certificate.

Is this procedure re$uired in :a!ao City Des >o

If Des, are the ti%e and cost noted here the sa%e in :a!ao City Des >o

If >o, what is your esti%ate of the a!erae Ti%e to co%plete 5 6 and Cost to co%plete 5 6 in

:a!ao City

If this procedure is >OT re$uired in :a!ao City, please describe the procedure that you would place

here0 5

6

#lease esti%ate0 Ti%e to co%plete0 5

6 Cost to co%plete0 5

6

Feel free to use this space to %ake any additional co%%ents about this procedure in :a!ao City0

5Enu%erator4s Co%%ent0 The respondent has no idea on the ti%e and cost since this procedure isunder a pri!ate co%pany.6

Proedure 2' Obtain Co!!unit% Ta8 Certi.iate /CTC

Ti%e0 ( day

Cost0 ## ***

Co%%ent0 The CTC of the juridical entity is a prere$uisite to obtain the Baranay Clearance. The

basic Co%%unity Ta" depends on whether juridical entity is a corporation, partnership or

association 7## ** or lower9 2dditional Co%%unity Ta" 7which shall not e"ceed ##(*,***9 depends on the assessed !alue of real property owned in the #hilippines by the

co%pany 7## ) for e!ery ## ,***9 and ross receipts includin di!idends8earnins

deri!ed fro% business in the #hilippines durin the precedin year 7## @ for e!ery ##

,***9. The applicant only needs to supply its na%e and other personal circu%stances in

securin the CTC.



Ti%e A Des

Cost A >o

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http://www.worldbank.org/


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If >o, what is your esti%ate of the a!erae Ti%e to co%plete 5 6 and Cost to co%plete

5##**.**6in :a!ao City


here0 5

6#lease esti%ate0 Ti%e to co%plete0 5


6


5

6

Proedure ' Feri.% the aEailabilit% o. the o!pan% na!e #ith the Seurities and 18hange

Co!!ission /S1C

Ti%e0 ( day

Cost0 ## +*

Co%%ent0 Corporate na%e !erification can be done on-line. 3erification is free but reser!ation of the

na%e, once appro!ed by the 'EC, costs ## +*. Is this procedure re$uired in :a!ao City Des >o


If >o, what is your esti%ate of the a!erae Ti%e to co%plete 5

6 and Cost to co%plete 5

6 in

:a!ao City


here0 5

6



6


5Enu%eratorGs Co%%ent0 The respondent has no idea on the ti%e and cost since this procedure is

under a >ational ' 5egister inorporation #ith the S1C

Ti%e0 / days

Cost0 ## +* reser!ation fee of co%pany na%e 7/* days9 H filin fee for articles of

incorporation0 (8 of ( of the authori=ed capital stock, no less than ## (,***, plus ;eal

Jesearch fee of ( of filin fee, no less than ## (* H ## )(* bylaws fee H ## (* -

stock and transfer book reistration fee H ## - %e%bership book reistration fee

Co%%ent0 Je$uired reistration docu%ents0 corporate na%e !erification slip, articles ofincorporation and bylaws, treasurerGs affida!it, state%ent of assets and liabilities, bank

certificate of deposit, authority to !erify bank account, ta" account nu%ber ofincorporators, reistration data sheet definin personal infor%ation reardin directors,

officers, stockholders etc, and written undertakin to co%ply with the reportin

re$uire%ents of the 'EC.

The 'EC pro!ides online reistration throuh 'EC-iJeister, the web-based Co%pany

Jeistration 'yste% and the possibility to reser!e a co%pany na%e. For%s for reistration

%ay be downloaded fro% the 'EC website. One can search and research co%pany na%e

and reister the co%pany with the 'EC on-line but pay%ent %ust be %ade at the 'EC

itself. 'a%e day pay%ent is not possible. 2t this point the co%pany obtains Te%porary

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Identification >u%ber 7TI> in the past the co%pany had to obtain it fro% Je!enue

:istrict Office. To obtain the TI> the co%pany needs to ha!e KBaranayK clearance,%ayorGs per%it, and a copy of 'EC reistration certificate 7issued by the 'EC as part of this

sa%e procedure9. Other docu%ents %ay be re$uired, e.. ho%eowner4s clearance, contract

of lease.





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under a >ational


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Proedure 9' Obtain !a%ors per!itH!uniipal liense to operate at the +iensing Setion o. the

&a%ors O..ie

Ti%e0 (( days

Cost0 The fees !ary dependin on the local o!ern%ent unit 7city8%unicipality9 issuin the

%ayorGs per%it 7## /**, sanitary per%it fee H *.) of capital for license fee H ##

)***, per%it fee for businesses enaed in retail H ## (,** arbae collection fee H

## /?*, occupational ta" H ## *, occupational police clearance8health clearance H

## *, plu%bin inspection fee H ## (**, electrical inspection fee H ## (** buildin

per%it fee H ## (** sin board per%it fee9

Co%%ent0 Je$uired docu%ents0 acco%plished application for business per%its and licenses in

duplicate copies with sketch of location of buildin at the back certification issued by the

corporate secretary to the effect that the co%pany has been duly authori=ed to enaed in

the business a%ount of paid-up capital certificate of reistration receipts of pay%ent ofdue fees lease contract Baranay Clearance8#er%it co%prehensi!e eneral liability

insurance 7which is usually based on the area si=e of the office space9, co%%unity ta"

certificate 7which is usually based on the paid-up capital9.



If >o, what is your esti%ate of the a!erae Ti%e to co%pleteI6>Jand Cost to co%plete I/see

o!putation belo#Jin :a!ao City


here0 5

6



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5e"uired Dou!ents: 'EC 2rticles of Incorporation Cedula of the Corporation 7if business

application is sub%itted after Muly /*, there4s no need to present the cedula9 Baranay Clearance If itis the liaison officer who shall conduct the processin of the papers for the co%pany, an authori=ation

letter fro% the owner of the co%pany shall be presented at the Business Bureau alon with a

speci%en sinature of the owner.

Step?B%?Step Proedure /.or o!putation o. T&1:

(. 2t the Business Bureau A #er%its and ;icense :i!ision. A( day

a.


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(. 5Clearance fro% the City Enineer4s Office6Ti%e to co%plete 5)6and cost to co%plete

5##(,***.**6. Ti%e and Cost included in the abo!e co%putation. Npon presentin business

application, the establish%ent will be inspected.

). 5CE>JO Clearance6Ti%e to co%plete 5(6and cost to co%plete 5

6. 5Enu%erator4sCo%%ent0 Cost cannot be deter%ined since they need to know the e"act location of the business

establish%ent before they can pro!ide an esti%ate.6

/. 5ealth8'anitary #er%it fro% the City ealth Office6Ti%e to co%plete 5)6and cost to co%plete

5

6. 5Enu%erator4s Co%%ent0 Cost cannot be deter%ined since they need to know the e"act

location of the business establish%ent before they can pro!ide an esti%ate.6

+. 5;ocational Clearance fro% the City #lannin Office6Ti%e to co%plete 5/6and cost to co%plete

5##//*.**6. Cost included in the abo!e co%putation. The o!erall plan of the business

establish%ent should be sub%itted for the processin of the locational clearance. The inspectiondepends on the location of the business establish%ent.

Feel free to use this space for any co%%ents related to clearances0 5 6

Proedure 7' 5eeiEe inspetion .ro! the &a%ors O..ie

Ti%e0 days 7included in pre!ious procedure9

Cost0 >o chare

Co%%ent0 The &ayor4s Office conducts an inspection to !erify that the business will conduct theacti!ity it has stated in the application. There is no need to set an appoint%ent for this

inspection and the cost of it is no%inal the inspection enerally occurs in the first days

after the application for the per%it has been sub%itted.





6 in:a!ao City


here0 5

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Proedure o


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:a!ao City


here0 5

6#lease esti%ate0 Ti%e to co%plete0 5


6


5Enu%erator4s Co%%ent0 The respondent has no idea on the ti%e and cost since this procedure is

under a pri!ate co%pany.6

Proedure =' Seure a ta8 identi.iation nu!berK 5egister .or F)T at the Bureau o. nternal

5eEenue /B5

Ti%e0 ) days

Cost0 ## ** 7reistration fee9 H ## ( 7certification fee9 and ## ( 7docu%entary sta%p

ta", in loose for% to be attached to For% )/*/9

Co%%ent0 2fter the ta"payer obtains the TI>, the co%pany is re$uired to pay the annual reistration

fee of ## ** at any duly accredited bank by usin the pay%ent for% 7BIJ For% *?*9.

In #hilippines, there is a co%%unity ta", a local ta", 32T, and inco%e ta". When a

co%pany reisters as a ta"payer, it %ust indicate in the application for reistration the

types of ta"es it e"pects to be liable for, includin 32T. The 2uthority to #rint

Jeceipt8In!oices %ust be secured by the printer before the sales in!oices8receipts %ay be

printed. #hilippine law does not re$uire a co%pany to ha!e its official in!oice for%s

printed at desinated print shops. If a co%pany has secured an 2uthority to #rint Jeceipts

and In!oices, it can ask any authori=ed printin co%pany to print its official in!oice for%s.

owe!er, if a co%pany wants to print its own in!oice for%s 7i.e., it uses its co%puters to

print loose-leaf in!oice for%s9, the co%pany %ust obtain a special per%it fro% the BIJ for

this purpose.





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under a >ational ational Internal Je!enue Code, as a%ended, re$uires the pay%ent of

docu%entary sta%p ta"es on the oriinal issuance of shares of stock at the rate of ## ) on

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each ## )** or a fractional part thereof, of the par !alue of such shares of stock, within

days after the close of the %onth when the reistration certificate is issued by the 'EC orthe shares are issued by the corporation.





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under a >ational


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under a >ational o chare

Co%%ent0 In practice, the books of accounts are presented for sta%pin riht after the application is

filed. Books can be obtained fro% BIJ. To reister books of account and in!oices, present

the followin docu%ents0 all the re$uired books of accounts, 32T reistration certificate,

'EC reistration certificate and BIJ For% W-.




:a!ao City

If this procedure is >OT re$uired in :a!ao City, please describe the procedure that you would placehere0 5

6



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under a >ational


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Proedure 6>' 5egister #ith the Soial Seurit% S%ste! /SSS

Ti%e0 ( week

Cost0 >o chare

Co%%ent0 To enroll for %e%bership with the ''' the docu%entary re$uire%ents are the followin0(. ;ist of E%ployees, specifyin their birth dates, positions, %onthly salary and date of

e%ploy%ent and

). 2rticles of Incorporation, By-;aws and Certificate of Jeistration with the 'ecurities Q

E"chane Co%%ission 7'EC9 or the Certificate of Jeistration with the :epart%ent of

Trade and Industry 7:TI9.

Npon sub%ission of the re$uisite docu%ents, the e%ployees shall undero a se%inar,

which shall be scheduled within one 7(9 week. 2t the end of the se%inar, the Certificate of

&e%bership shall then be released.





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under a >ational o



:a!ao City


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under a >ational


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If additional procedures are re$uired in :a!ao City, please describe the%, in the spaces below. If you

need additional space, please add a separate sheet0

Proedure 69' (otariation o. the Business )ppliation 3or! /inluded in Proedure 9

Ti%e0 5(6

Cost0 5##*.**6

Co%%ent0 5The business per%it application for% should be notari=ed first before the processin of

the &ayor4s #er%it.6

#lease specify if any of the pre!ious procedures can be done in parallel, that is, there is no need to waitfor one procedure to be co%pleted until the ne"t one can be started 7e.. #rocedures ), / and procedures ,

@90 5>one6

' 5e.or!s

(.Between 2pril )**? and now, were any ad%inistrati!e or leal chanes i%ple%ented in :a!ao City

that affected the re$uire%ents and process to establish a do%estic li%ited liability co%pany

Des >o

If your answer is Des, please describe these chanes in the table below 7please include the date of the

chane or refor%, %ajor characteristics, objecti!es, rele!ant reulation, if applicable90

18a!ples .or re.or!s and si!pli.iations *es (o

;eal

refor%

&ini%u% capital re$uire%ent chaned.

#rocedures were added or cut. Co%pany ;aw or Co%%ercial Code was re!ised.

If yes pleasedescribe

5 6

Co%pany

reistration Jeistry co%puteri=ed or re-orani=ed.

Jeistration chaned fro% judicial to ad%inistrati!e process.

'ubstanti!e re!iew of applications was eli%inated.

>ew sinle access point or one-stop shop 7e.. BO''9.

Jeistration can be co%pleted online.

>ew e"pedited ser!ice.

>ew statutory ti%e li%its.

R'ilence-is-consent4 rule was introduced 7authori=ation

auto%atically appro!ed after certain ti%e li%it9.

If yes please

describe

5 6

:ocu%entati

on and

publication

:ocu%entation re$uire%ents were si%plified, reduced or

standardi=ed.

#ublication re$uire%ents 7in official a=ette or daily

newspaper9 chaned.

If yes pleasedescribe

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Ta"

reistration Ta" reistration was si%plified.

'inle identification nu%ber 7for ta", statistical and other

reistration purposes9 was introduced.

If yes please

describe

5 6

'ocial

security or

labor

Je$uire%ents were strea%lined or reistration si%plified.

If yes please

describe

5 6

Please e8plain ho# the aboEe re.or!s haEe i!pated the ti!e, osts and proedures .or doing

business in this it%'

2dditionalco%%ents

5 6

). 2re you aware of any planned 7future9 chanes to the laws and reulations on establishin a

do%estic li%ited liability co%pany in :a!ao City

Des >o

If your answer is Des, please briefly describe0 (9 the e"pected date of the refor%, )9 the oal of the

refor%, and /9 its %ajor characteristics 7solutions it pro!ides to achie!e the oal90 5

6

/. In your opinion, is the process to open a business in :a!ao City %ore or less efficient today co%pared

with a year a o

#lease describe the rationale for your selection

'a%e 5

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&ore efficient 5Co%puteri=ation on the processin of docu%ents.6 ;ess efficient 5

6

+. If you were to ad!ise the o!ern%ent on how to refor% business start-up, what would be your %ain

suestion and why 5BIJ should not be too strict in the processin of docu%ents.6

Thank %ou .or o!pleting the surEe%L

We appreciate your contribution to the :oin Business project.

The results will appear inDoing Businessand on our websitehttp088www.doinbusiness.or .

Dour work will be ratefully acknowleded in both.

The :oin Business project co!ers (* topics of business reulation fro% start-up to closin. #lease let us

know whether you would like to contribute to any of the followin topic7s9 in addition to startin a

business or whether you would like to reco%%end one of your colleaues or a local e"pert.

- ( A Doing Business in Philippines
http://rru.worldbank.org/doingbusinesshttp://rru.worldbank.org/doingbusinesshttp://rru.worldbank.org/doingbusinesshttp://www.worldbank.org/http://rru.worldbank.org/doingbusiness

Starting a Business - Davao City

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