The Road to Financial Freedom Starts Here!

Tuesday, August 17, 2010

9 Things You Have to Know About Legalizing Your Business (Part 2 of 3)

5. How do you register your partnership or corporation with the SEC?

Here are the steps in registering your business with the SEC.
  • Verify and reserve a proposed name for your business with the Name Verification Unit (at the SEC Annex to the left of the main building) or do it online through i-Register. You can submit up to 3 business names for verification. Proposed names must not be:
    • identical or deceptively or confusingly similar to any existing corporation or any other name already protected by law
    • patently deceptive
    • confusing
    • contrary to existing laws
  • Draw up the Articles of Incorporation and By-laws in accordance with the Corporation Code of the Philippines. You don't have to draft these documents from scratch: ready forms are available from the SEC’s Company Registration and Monitoring Department (CRMD), also at the SEC Annex.

  • If required, get endorsements from other government agencies. For example, in the case of banks, pawnshops and other financial intermediaries with quasi-banking functions, a Bangko Sentral ng Pilipinas (BSP) endorsement is required. In addition, the CRMD obtains clearances from other SEC departments whenever these are deemed appropriate.
  • Deposit the required paid-up capital in a bank. The minimum requirement is 5,000 pesos, but there is no minimum or maximum authorized capital stock and you can freely define the par value of one share of your authorized capital. The deposit must be certified by the bank manager.
  • Present six sets of the required forms and documents for pre-processing at the CRMD. Only complete application documents are accepted for processing.
  • Pay the filing fees to Cashier.
  • Claim the Certificate of Incorporation from the Releasing Unit, Records Division upon presentation of the official receipt issued for payment of the filing fee.

6. How do you get a Barangay Clearance for your business?

The next thing you have to do is secure a Barangay Clearance for your business, which is one of the requirement's in getting a business permit.
  • Submit a filled-up application form.
  • Present the certificate of title of the business premises if it is owned by the business, or the contract of lease if it is rented.
  • Pay the clearance fee (around 500 pesos, but it depends on the city/town/municipality)
  • The Barangay Clearance may often be issued the following day.


Click here for Part 1.
Click here for Part 3.

This series is based on the presentation of J. Sedfrey S. Santiago, Esq. of the John Gokongwei School of Management, Ateneo de Manila University on July 28, 2010.