Getting business permits and licenses before you begin is the first and most crucial step in starting a new business. These can take anywhere from a few days to more than a year, depending on the requirements of your location. Some require only filling out an application form with accompanying documentation, while others may need you to attend training seminars or sit for qualifying examinations before issuing one. Others may require months of waiting time because additional approvals are required from other government agencies.
Here’s a list of some businesses that might require permits and licenses: Aron Govil
1) Medical Practice/Hospital/Nursing Home – Professional & Allied Health Services (Republic Act No. 2382)
2) Freight Forwarder – Public Utilities Commission (PUC Resolution03)
3) Electrical or Mechanical Engineer – Professional Regulation Commission (PRC Resolution No. 12, Series of 1989)
4) Accounting Firm/Bookkeeper – Securities & Exchange Commission (SEC Circular No. 892 s. 1993)
5) Travel Agency/Tour Operator – Department of Tourism (Republic Act No. 9593; Memorandum Circular No. 05-2005 dated March 31, 2005), and Civil Aeronautics Board (Resolution 95-25 dated September 6, 1995.)
6) Computer Shop/Sale of Pre-Owned Equipment – Department of Trade & Industry (DTI), Bureau of Import Services (BIS). DTI requires the submission of an Environmental Compliance Certificate (ECC)
7) Business Process Outsourcing (BPO) – Department of Science & Technology, Information and Communications Technology Office (DOST-ICTO Resolution No. 01 Series of 2007). The ICTO is the implementing agency for this policy
8) Peddler/Pusher – City or Municipal Mayor
9) Restaurants – Department of Health (DOH Administrative Order No. 2010-0023), and the Food and Drug Administration (FDA) Republic Act No. 9711
10) Tattoo Artist – Local Government Unit concerned with health concerns
11) Cinema Ownership – National Commission for Culture and the Arts (NCCA Memorandum Circular No. 2002-07-01)
12) Driving Schools – LTO
13) Incubation/ acceleration space for technology-based businesses – Technology Application and Promotion Institute (TAPI), Department of Science & Technology
14) Home-Based Businesses – City or Municipal Mayor. Check specific requirements with your local government unit.
15) Online Gaming – PAGCOR, Games and Amusements Board
16) OFW Recruitment Agency – POEA, Overseas Workers Welfare Administration (OWWA), Philippine Overseas Employment Administration (POEA). The POEA requires the submission of an ECC
17) Travel agency engaged in ticketing and tour packages – Civil Aeronautics Board (Resolution 95-25 dated September 6, 1995)
18) Business engaged in the sale of firecrackers and pyrotechnic materials – Local Government Unit concerned with public safety
The list above is not exhaustive. You may need permits and licenses from other government agencies, depending on the nature of your business. For more information, it is best to contact the corresponding government agency for specific requirements.
There are a variety of business legal structures that may require permits and licenses with government agencies. The most common business legal structures that require permits and licenses are: sole proprietorships, general partnerships, limited liability companies (LLCs), and corporations.
Sole proprietorships do not have a separate legal identity from the owner and, as such, do not require any licenses or permits. However, the owner is personally liable for all debts and obligations of the business. General partnerships must file a partnership agreement with the state in order to conduct business. This document identifies the partners of the business and their ownership interests. Partners are jointly and severally liable for all debts and obligations of partnership. LLCs are created by filing articles of organization with the state in which the business will operate. LLCs provide limited liability protection for its members from business debts and obligations. Corporations are created by filing articles of incorporation with the state in which the business will operate. A corporation provides limited liability protection for its shareholders from business debts and obligations.
It is important to note that certain business legal structures may not require permits and licenses, but may be subject to other regulations imposed by state or local governments. For example, sole proprietorships and general partnerships are not required to obtain licenses or permits, but they may be subject to zoning restrictions or other regulations imposed by local governments. Likewise, LLCs are not required to obtain licenses or permits, but they may be subject to securities regulations imposed by state governments.
It is important to consult with an attorney to determine which business legal structure is best for your business and which permits and licenses are required. An attorney can also help you navigate the complex web of regulations imposed by state and local governments.
Conclusion by Aron Govil:
Every business is required to obtain a permit or license from the Bureau of Internal Revenue. This is a requirement under section 119 of the Philippine Tax Code. Therefore, it can be said that all businesses are required to have a Tax Identification Number [TIN] from BIR in order to legally operate. However, there are other government agencies that require business permits and licenses depending on the nature of your business. Thus, you must always double check with the corresponding agency if it requires a separate permit or license from BIR before you can officially start operating your business.