Starting a Business in

Mandaluyong - Philippines

Below is a detailed summary of the bureaucratic and legal hurdles an entrepreneur must overcome in order to incorporate and register a new firm, along with their associated time and set-up costs. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

The information appearing on this page was collected as part of the Doing Business subnational project in Philippines. Download this Doing Business report or explore other cities and topics.

  • No. Procedure Time to Complete Associated Costs

    Verify and reserve the company name with the Securities and Exchange Commission (SEC)

    The company can verify the availability of the company name online. Verification is free but reservation of the name, once approved by the SEC, costs PHP 40 for the first 30 days. The company name can be reserved for a maximum of 120 days for a fee of PHP 120, which is renewable upon expiration of the period.
    1 day PHP 40

    Deposit paid-up capital in the Authorized Agent Bank (AAB) and obtain bank certificate of deposit

    The company is required by law to deposit paid-up capital amounting to at least 6.25% of the authorized capital stock of the corporation. This paid-up capital must not be less than PHP 5,000.

    Some banks charge a fee for issuance of the certificate of deposit.
    1 day No cost

    Notarize articles of incorporation and treasurer's affidavit at the notary

    According to Sections 14 and 15 of the Corporation Code, articles of incorporation should be notarized before filing with the SEC.
    1 day PHP 500

    Register the company with the SEC

    The company can register online through SEC i-Register but must pay on site at the SEC. The following documents are required for SEC registration:

    a. Company name verification slip;
    b. Articles of incorporation (notarized) and by-laws;
    c. Treasurer's affidavit (notarized);
    d. Statement of assets and liabilities;
    e. Bank certificate of deposit of the paid-in capital;
    f. Authority to verify the bank account;
    g. Registration data sheet with particulars on directors, officers, stockholders, and so forth;
    h. Written undertaking to comply with SEC reporting requirements (notarized); and
    i. Written undertaking to change corporate name (notarized).

    The SEC Extension Office charges a handling fee of PHP 30 to cover the cost of transmitting the documents to the SEC Head Office in Metro Manila.
    5 days PHP 2,695 (PHP 1,667.99 filing fee equivalent to 1/5 of 1% of the authorized capital stock or the subscription price of the subscribed capital stock, whichever is higher but not less than PHP 1,000 + PHP 16.68 legal research fee (LRF) equivalent to 1% of filing fee but not less than PHP 10 + PHP 500 By-laws + PHP 150 for registration of stock and transfer book (STB) required for new corporations + PHP 320 STB + PHP 10 registration for SEC bulletin + PHP 30 handling fee)

    After issuance of the SEC certificate of incorporation, pay the annual community tax and obtain the community tax certificate (CTC) from the City Treasurer's Office (CTO)

    1 day PHP 500

    Obtain barangay clearance

    This clearance is obtained from the barangay where the business is located and is required to obtain the business permit from the city or municipality. Barangay fees vary for each barangay since they have the discretion to impose their own fees and charges for as long as these fees are reasonable and within the limits set by the Local Government Code and city ordinances. Barangay fees may depend on:

    a. the location and the area (size in square meters) of the place of business; or
    b. the company’s paid-up capital and the area it occupies; or
    c. whether they issue clearance plates or certificates.
    1 day PHP 300 (between PHP 50 – PHP 500)

    Notarize the business permit and tax clearance application forms at the City Legal Office (CLO)

    The business permit application form may be downloaded at the Mandaue City website at www.mandauecity.gov.ph.

    The business permit application form is required to be notarized because the applicant makes a commitment to comply with all applicable laws, ordinances and rules and regulations.
    1 day No cost

    Acquire the tax clearance certificate of real property tax from the Realty Tax Division of the City Treasurer's Office (CTO)

    The company still needs to get the realty tax clearance so that the Mandaue City Government can check if the owner of the land, where the company leases the office, has paid the appropriate taxes for the property. If the owner of the land/real property has unpaid realty dues, the owner of the land/real property should pay them first before the business applicant (lessee) can process his/her business permit. On the other hand, if the owner of the land/real property is cleared with all realty payments, the assigned officer at the Realty Tax Division signs the application form of the entrepreneur. The company should get the photocopy of the tax declaration of the building from the owner.
    1 day No cost

    Obtain the locational clearance from the City Planning and Development Office (CPDO)

    The cost is computed based on the declared capital. The company only needs to pay the relevant fee for the locational clearance and obtain a signature from the officer at the CPDO.
    1 day PHP 770

    Obtain the business permit to operate from the Business Permits Section (BPS) of the City Administrator’s Office

    To obtain the business permit, the company must file the following required documents at the BPS:
    a. Duly notarized application form for business permit;
    b. SEC registration;
    c. Barangay clearance;
    d. Tax clearance certificate of real property tax;
    e. Locational clearance; and
    f. Sketch of location for site inspection.

    The applicant obtains the assessment of the business permit fees and taxes and pays at the CTO. The company is given forty-five (45) days upon receipt of the business permit to submit copies of the sanitary permit, FSIC, TIN and SSS registration to the BPS.
    4 days PHP 4,130 (PHP 417 business tax (1/20 of 1% of paid-up capital) + PHP 1,060.50 mayor’s permit fee + PHP 106.05 fire certificate fee (10% of the mayor’s permit fee) + PHP 825 garbage fee + PHP 181.50 public safety fee (10% of sanitary inspection fee, zoning fee and garbage fee) + PHP 440 sanitary inspection fee +PHP 550 zoning fee + PHP 550 business plate + PHP 106.05 FSIC (10% of all regulatory fees))

    Buy special books of account at bookstore

    Special books of accounts are required for registering with the BIR. The books of accounts are sold at bookstores nationwide. One set of journals consisting of four books (cash receipts account, disbursements account, ledger, general journal) costs about PHP 400.

    If the company has a computerized accounting system (CAS), it may opt to register its CAS under the procedures laid out in BIR Revenue Memorandum Order Nos. 21-2000 and 29-2002. The BIR Computerized System Evaluation Team is required to inspect and evaluate the company’s CAS within 30 days from receipt of the application form (BIR Form No. 1900) and complete documentary requirements.
    1 day PHP 400

    Apply for Certificate of Registration (COR) and Taxpayer Identification Number (TIN) at the Bureau of Internal Revenue (BIR)

    The company must register each type of internal revenue tax for which it is obligated by filing BIR Form No. 0605 and paying the annual registration fee of PHP 500. Upon registration, the BIR will issue to the company the certificate of registration—BIR Form No. 2303.

    To obtain the TIN, the company has to file:
    a. Barangay clearance;
    b. Mayor's permit; and
    c. Copy of its SEC registration.

    For company registrations filed with the SEC Head Office in Metro Manila, the BIR confirms the pre-registered TIN issued by the SEC.

    New taxpayers are required to attend a seminar.
    2 days PHP 115 (PHP 100 certification fee + PHP 15 documentary stamp tax)

    Pay the registration fee and documentary stamp taxes (DST) at the AAB

    The company must pay DST on the original issuance of shares of stock. The rate is PHP 1 on each PHP 200 or a fractional part thereof, of the par value of such shares of stock. This payment with the BIR should be made on the 5th of the month following registration with the SEC.

    The COR will be released only after all the DSTs are paid.

    The company must also pay DST on its lease contract at the rate of PHP 3 for the first PHP 2,000 or fractional part thereof, and an additional PHP 1 for every PHP 1,000 or fractional part thereof in excess of the first PHP 2,000 for each year of the lease as stated in the contract.
    1 day PHP 4,670 (PHP 500 registration fee + PHP 4,169.97 DST on original issuance of shares of stock. DST on the lease contract is not included in the computation of the cost)

    Obtain the authority to print receipts and invoices from the BIR

    The authority to print receipts and invoices must be secured before the sales receipts and invoices may be printed. The company can ask any authorized printing company to print its official forms, or it can print its own forms (i.e., it uses its computers to print loose-leaf invoice forms) after obtaining a permit from BIR for this purpose. To obtain the authority to print receipts and invoices from the BIR, the company must submit the following documents to the Revenue District Office (RDO):

    a. Duly completed application for authority to print receipts and invoices (BIR Form No. 1906);
    b. Job order;
    c. Final and clear sample of receipts and invoices (machine-printed);
    d. Application for registration (BIR Form No. 1903); and
    e. Proof of payment of annual registration fee (BIR Form No. 0605).
    1 day No cost

    Print receipts and invoices at the print shops

    The cost is based on the following specifications of the official receipt: 1/2 bond paper (8 ½ x 5 ½ cm) in duplicate, black print, carbonless for 10 booklets.
    7 days PHP 2,500 (between PHP 2,500 – PHP 3,000)

    Have books of accounts and Printer’s Certificate of Delivery (PCD) stamped by the BIR

    After the printing of receipts and invoices, the printer issues a Printer’s Certificate of Delivery of Receipts and Invoices (PCD) to the company, which must submit this to the appropriate BIR RDO (i.e., the RDO which has jurisdiction over the company’s principal place of business) for registration and stamping within thirty (30) days from issuance. The company must also submit the following documents:

    a. All required books of accounts;
    b. VAT registration certificate;
    c. SEC registration;
    d. BIR Form W-5;
    e. Certified photocopy of the ATP; and
    f. Notarized taxpayer-user’s sworn statement enumerating the responsibilities and commitments of the taxpayer-user.

    The company must also submit a copy of the PCD to the BIR RDO having jurisdiction over the printer’s principal place of business.
    1 day No cost

    Register with the Social Security System (SSS)

    To register with the SSS, the company must submit the following documents:
    a. Employer registration form (Form R-1);
    b. Employment report (Form R-1A);
    c. List of employees, specifying their birth dates, positions, monthly salary and date of employment; and
    d. Articles of incorporation, by-laws and SEC registration.

    Upon submission of the required documents, the SSS employer and employee numbers will be released. The employees may attend an SSS training seminar after registration. SSS prefers that all members go through such training so that each member is aware of their rights and obligations.
    4 days No cost

    Register with the Philippine Health Insurance Company (PhilHealth)

    To register with PhilHealth, the company must submit the following documents:
    a. Employer data record (Form ER1);
    b. Report of employee-members (Form ER2);
    c. SEC registration;
    d. BIR registration; and
    e. Copy of business permit.

    Upon submission of the required documents, the company shall get the receiving copy of all the forms as proof of membership until PhilHealth releases the employer and employee numbers within three months.
    1 day No cost