Ease of Doing Business in
Parañaque - Philippines
|Region||East Asia & Pacific|
|Income Category||Lower middle income|
|GNI Per Capita (US$)||3,540.00|
This page summarizes Subnational Doing Business in Philippines 2016 data for Parañaque. The first table shows its rank among 25 cities/regions in Philippines. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.
|Topic Rankings||Rank among 25 cities in Philippines||Top city in Philippines|
|Starting a Business||19||General Santos|
|Dealing with Construction Permits||18||Davao City|
|Indicator||Parañaque||East Asia & Pacific||OECD|
|Procedure – Men (number) info_outline||17.0||7.0||4.8|
|Procedure – Men (number) info_outline||20.0||7.0||4.8|
|Time – Men (days) info_outline||33.0||23.9||8.3|
|Time – Men (days) info_outline||35.0||23.9||8.3|
|Cost – Men (% of income per capita) info_outline||24.5||19.0||3.1|
|Cost – Men (% of income per capita) info_outline||26.0||19.0||3.1|
|Paid-in min. capital (% of income per capita) info_outline||6.0||12.3||9.2|
|Paid-in min. capital (% of income per capita) info_outline||6.9||12.3||9.2|
|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 depositThe 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||PHP 150|
Notarize articles of incorporation and treasurer's affidavit at the notaryAccording 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 and receive pre-registered Taxpayer Identification Number (TIN)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 Head Office issues pre-registered TINs only if the company’s application for registration has been approved. The company must still register with the Bureau of Internal Revenue (BIR) in order to identify applicable tax types, pay an annual registration fee, obtain and stamp sales invoices, receipts and the books of accounts.
|3 days||PHP 2,665 (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)|
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 clearanceThis 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 500 (between PHP 400 – PHP 1,000)|
Obtain the locational clearance application form from the City Planning and Development Office (CPDO) and notarize locational clearance application form at the City Legal Office (CLO)
|1 day||PHP 50|
Notarize the business permit application form at the CLOThe business permit application form can be downloaded from the Parañaque City website at www.parañaque.gov.ph.
|1 day||PHP 50|
Obtain the locational clearance from the CPDO
|1 day||PHP 4,450 (PHP 500 filing fee + PHP 15 per square meter + 25% of the payment for the area (PHP 15 X 200) + PHP 200 for certificate)|
Receive inspection from CPDO
|1 day||No cost|
Obtain the business permit to operate from the Business Permits and Licensing Office (BPLO)To obtain the business permit, the company must file the following documents at the BPLO:
a. SEC registration;
b. Barangay clearance;
c. Contract of lease;
d. Photocopy of Certificate of Occupancy;
e. Picture of establishment; and
f. Locational clearance.
The city collects initial business tax for the quarter covering the period of business registration. In the succeeding quarter(s), the tax is based on the gross sales for the preceding quarter.
|4 days||PHP 5,610 (PHP 417 business tax (1/20 of 1% of capitalization) + PHP 600 mayor’s permit fee + PHP 3,000 garbage fee + PHP 500 sanitary fee + PHP 50 building fee + PHP 26.60 electrical fee + PHP 60 signboard fee + PHP 29.50 plumbing fee + PHP 50 miscellaneous + PHP 876.61 FSIC (10% of all regulatory charges))|
Present the official receipt at the City Health Office (CHO) to obtain the sanitary permitInspection is not required. The company is only required to get the sanitary permit after the payment of the fees and before release of business permit.
|1 day||No cost (fees included in procedure 11)|
Buy special books of account at bookstoreSpecial 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 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 15 (documentary stamp tax)|
Pay the registration fee and documentary stamp taxes (DST) at the AABThe 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 BIRThe 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 (fees included in procedure 15)|
Print receipts and invoices at the print shopsThe 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 2,100|
Have books of accounts and Printer’s Certificate of Delivery (PCD) stamped by the BIRAfter 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.
|5 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|
* Takes place simultaneously with another procedure.