How to Apply for Business Permit in the Philippines

Before thinking of profits, expansion and even entertaining your first customer, setting up proper licenses and paying necessary taxes is an appropriate thing to do.

Doing business can be a big challenge especially if you have not followed due processes before you can establish an entity. Who wants to invest so much in a startup only to have it closed down in a matter of days for failure to comply with government ordinance? Does it take a lot of paperwork to have a business set up?

The last question which anyone would be seeking answers to here is; what are the necessary business permits anyone living in Philippines ought to have before he or she is allowed to venture into corporate world? Types of business may vary, however, when it comes to setting up one, a business permit or Mayor’s permit as is commonly referred to as in Philippines is something which you must have. With point of reference being Philippines, this post exemplifies means and way of acquiring a mayor’s permit in the Philippines but first of all note the following:

  1. Acquisition of business permit is subject to renewal on every 31st of December each year. However, this may not apply if issuance of a permit if made every three months or quarterly.
  2. Each and every city in Philippines has varied set procedure for business permit acquisition so ensure that you are well accustomed with the procedures in your city.
  3. If you are applying for the first time, some of the requirements include clearance on zoning, environmental safety permit, articles of incorporation is you are starting a corporation. For sole proprietorship, DTI registration is required, proof of business ownership, a sketch of where your business is located, clearance for fire safety and among others.
  4. In some case, special business permits are required and they include a permit from security agency, a permit from Bureau of Food and drug administration and among others.

    Note: Before you seek the issuance of a mayor’s permit in Philippines, it is important that you know what your city regulations are because procedures may vary from city to city depending on these prerequisites.

Procedure for Permit Acquisition

  • A barangay clearance will always come first in which case you must have DTI or AOI registration, lease contract, pictures of the premises.
  • After this, the next stage is to go to city hall and particularly Business permit and licensing office (BPLO) where you will fill a form.
  • Next is the engineering and electrical office where you will show proof of occupancy certificate as well as electrical and mechanical permit.
  • This will see you go back to for further authentication after which procedure cedula follows.
  • The next place is payment of requisite fees at Treasury.
  • After this, the next place to visit will be Health offices to get a permit on the same where other requirements based on your locality may be included.
  • After this, the office of environment is your next stop for a permit on the same.
  • Fire permit will be next in line at the bureau of fire protection (BFP)
  • The final stage therefore becomes acquisition of the business permit.

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4 Disadvantages of Owning a Condo Unit

Living in condos is the new trend for the past years. More and more homeowners like the promise of affordable home ownership and carefree living that condos usually provide. Condos can be townhouses, low rise buildings, duplexes, and many other buildings.

However, what many owners often forget is that living in a condo implies sharing everything (floors, walls, ceilings) with your neighbors. Soon after they move to a condo, many owners face the hell and find the true meaning of life in a condo. There are several disadvantages of owning a condo, and here are some of them.

Mortgage and Other Fees. Fees for condos don’t diminish once you paid up the mortgage. On the contrary, they increase over time. Tenants in the condo share the costs, but what they usually find out is that there are far more expenses than they were anticipating. Dues are usually billed monthly, depending on the size of the area you own. Owners can also pay in advance, with some low discount as 5%. Furthermore, condo owners pay different taxes: for their condo unit, for the building, and additional one for the land where the building is located. And there are always additional hidden fees that lurk in the background waiting to be revealed in the worst possible moment.

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Everything is Sharing. Living in a condo requires sharing (the area, floor and everything in the building). But with so many tenants in a condo, you are bound to meet several that will annoy the hell out of you. Take smokers for example. Not everyone enjoys smoking, but sharing a condo with tenants, sometimes requires people to adjust. You can’t forbid your tenants to stop smoking; they have their rights as well. Because of smokers, the whole condo is doomed with risks from secondary smoking. And smoking is not the only problem. Some tenants own a pet, and with pet owners, there are two extreme types. The first group cleans everything their pet leaves, and the second, ignore the garbage done by their pet and its biological needs. With so many neighbors and tenants around you, there will never be a peaceful time for you to relax. Someone always plays or listens to music loudly, and walls in a condo don?t provide the necessary privacy. Noise is part of living in a condo, and owners must adjust to that.

The Problem with Parking Lot. Parking is as painful as possible. Once they examine advantages and disadvantages of paying for a parking spot, many condo owners tend to park their car outside, and leave at risk of vandals. And when owners have guests scheduled for a visit, first thing they warn them is parking. Condos never come with parking slots for the owners; they need to buy a separate one.

Fraudulent Deposit. Probably the biggest risk when purchasing a condo is lost deposit. There are lots of hidden risks lurking, and owners must be careful to follow up deposit on time, be careful with agents, and more often than not, owners are placing a deposit for a condo that is already sold. Filipinos working overseas are usually targets for this kind of scams.

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Advantages of Owning Bonifacio Global City Property

Bonifacio Global City (BGC) is a flourishing local area in Metro Manila, Philippines specifically situated between EDSA and C-5 Road. This 240-hectare world-class development space is hailed as the Home of Passionate Minds. It is a rising local place in Metro Manila with high number of skyscrapers and manly developed establishments including condominiums, business centers and hotels.

Here is a rundown of advantages of getting a real estate in Bonifacio Global City.

  1. Bonifacio Global City offers world-class utilities. Bonifacio Global City has underground drainage detention structure necessary to prevent floods in the area, and underground lines of electric power to ensure continuous supply of electricity in BGC.
  2. Bonifacio Global City has large water reservoirs and uninterrupted water supply 24/7.
  3. Bonifacio Global City is a perfect location to access various  areas in Metro Manila. The place is very accessible to Makati, Laguna and Quezon City. The location is also a big advantage to a high volume of end-users and investors.
  4. Bonifacio Global City is considered a Central Business District. It does not only have the St Luke’s Hospital as primary health care providers, but also the Philippine Stock Exchange that truly depicts a unified trading floor! BGC is also circled with sophisticated hotels, good restaurants and cost-effective shopping centers.
  5. Bonifacio Global City has 25-storey call center building alongside outsourcing companies built to meet the growing demand of business space in the Philippines. BPO industry in the Philippines is also a major supplier of jobs in the country-wide.
  6. Bonifacio Global City has a solitary science museum that is not only for students and kids but also tourists won’t miss visiting the place. With The Mind Museum, the science comes alive! Not only the museum features over 250 interactive exhibits but visitors can personalize their experience by making a special occasion extra ordinary such as celebrating birthday party at the museum.
  7. Bonifacio Global City is a big commercial development. Existing and new developments that occur all over the place involves construction of 6-star hotels, condominiums, business centers and many more.

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  8. Bonifacio Global City has plenty of space for the leasing market. At present, BGC remains a top choice for BPOs due to the place’s good infrastructure development and wide office space area which are excellent elements for any project leasing market. In 2013, BGC has the highest take-up rate among 26 emerging business districts.
  9. Bonifacio Global City levies lower taxes. Compared to Makati, real properties around BGC not only have a perfect infrastructure development and good accessibility but also have attractive rental rates.
  10. Bonifacio Global City is near to educational institutions. Schools and universities in the area include Leaders International Christian School of Manila, International School Manila, British School Manila, Korean International School Philippines, Manila Japanese School, STI College, MGC-New Life Christian Academy, STI College, Global City Innovative College and Every Nation Leadership Institute.
  11. Bonifacio Global City is continuously developing and expanding. The main reasons why majority of the companies are moving out of Makati is because of high rental rates and lack of new developments in the city. As of 2013, rental rates in Bonifacio Global City ranges from P550-P650.

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What You Need to Know Before Leasing Commercial Spaces

A commercial space is an expanse that is left unoccupied for space products that are not necessarily for governmental purpose. These products include goods and services that are used by the general public. It should be mentioned that renting a commercial space is so much different from a residential variety; hence, there are essential things one needs to be familiar with before leasing commercial space.

Commercial Lease and Private Lease: How They Differ?

  • Commercial lease is oftentimes not subjected to consumer protection laws wherein the lessee’s privacy is guaranteed.
  • Commercial lease does not follow standard forms of agreements. Contracts are based on the landlord’s needs.
  • Commercial lease is a long-term binding. Once the the agreement is put down in white and black, he or she cannot easily change the terms and conditions of the contract.
  • Commercial lease involves longer negotiation process.

Essential Reminders when Leasing a Commercial Space

  1. Consider the budget and the length of the lease. As mentioned previously, leasing a commercial space is a long-term binding which can run up to 10 years! If unsure about the duration of lease, go for short-term agreement which is renewable.
  2. Read the fine prints of the lease agreement prior to affixing the signature. Peruse and examine the terms and conditions.
  3. See the space. Are there enough cabinets? Is the safe place? Is it a good spot for consumers? Are there many competitors in the place?
  4. Know how the lease charges are computed. Is the property tax included? How about the maintenance cost?
  5. Determine who will be financially in-charge of the modifications, or who will pay whenever improvements are made in the place. The same thing goes for maintenance and repair of the premise.
  6. For safer procedural process, consult a real estate specialist or a broker who will negotiate with the landlord.
  7. Find out what other possible expenses that may incur during the lease stay other than the monthly cost.
  8. Protect ones business. This can be done by adding clauses to the lease agreement. For example, sublease clause allows the lessee to sublet the commercial space to another business, or exclusivity (co-tenancy) agreement which restrains landlords from leasing the near spaces to other direct competitors of your business.

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According to the Americans with Disabilities Act (ADA), establishments or premises that employ workers of more than 15 people should add services for disabled people. For instance, construction of ramp area, or creation of entrance/exit doors exclusive for debilitated customers.

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