Topic 1 Flashcards
is the process of legally establishing your business entity, allowing it to operate
under the law.
Business Registration
Business Registration Purpose
- Ensures your business is recognized by the government.
- Allows you to sign contracts, hire employees, and pay taxes.
- Establishes legal identity and credibility.
- Enables access to government and private projects.
- Provides protection for your business name.
Importance of Business Registration in the Design and Construction Industry
- Ensures compliance with industry regulations.
- Builds trust among clients and stakeholders.
STEPS OF REGISTRATION
- DTI
- BARANGAY
3.MAYOR - BIR
- BUSINESS PERMIT
-Owned and operated by one
person.
-Easiest and least expensive to set
up.
-Owner assumes all profits and
liabilities.
Sole Proprietorship
Types of Business Entities
- Sole Proprietorship
- Partnership
- Corporation
In sole proprietorship Payment of fees (_____depending on the scope)
200-2,000
Other term for Mayo’s Permit
Business Permit
● Easy to set up and manage.
● Lower registration costs.
● Full control over the business.
Pros of Sole Proprietorship
Cons of Sole proprietorship
● Unlimited liability (personal assets are at risk).
● Limited funding options.
● Two or more people share
ownership.
● Profits and responsibilities are
divided based on the partnership
agreement.
Partnership
DTI is for____
SEC for ____
Sole proprietorship, Partnership and Corporation
SEC means
Securities and Exchange Commission
Pros of Partnership:
- Shared responsibilities and resources.
- More sources of capital compared to
sole proprietorship.
Cons of Partnership:
● Partners share liabilities.
● Potential for conflicts between
partners.
● A separate legal entity from its
owners.
● Provides liability protection but is
more complex to set up.
Corporation
Proof of capital subscription (minimum ₱____for stock corporations)
5,000
Pros of Corporation:
● Limited liability (shareholders’
personal assets are protected).
● Easier access to funding through
stocks or loans.
● Perpetual existence
Cons of Corporation:
● Higher registration and operational
costs.
● More regulatory compliance (e.g.,
annual reports to SEC, board
meetings).
Additional Requirements for All Types
- Social Security System (SSS) Registration:
- PhilHealth and Pag-IBIG Fund Registration
- Fire Safety Compliance
- Occupancy Permit
Required for businesses with employees
Social Security System (SSS) Registration
PhilHealth and Pag-IBIG Fund Registration
Mandatory contributions for employees
Fire Safety Inspection Certificate (FSIC) from the Bureau of Fire Protection
Fire Safety Compliance
Required for businesses operating in commercial spaces
Occupancy Permit
Responsible for
registering business names for sole proprietorships.
Department of Trade and Industry (DTI)
Handles the registration of partnerships and corporations.
Securities and Exchange Commission (SEC)
○ Required for partnerships and corporations.
○ Creates a legal entity separate from its owners.
○ Governed by the Corporation Code of the Philippines
SEC
The primary tax collection agency,
responsible for issuing Tax Identification Numbers (TINs) and registering
businesses for tax purposes.
Bureau of Internal Revenue (BIR)
BIR means
Bureau of Internal Revenue
PRC means
Professional Regulation Commission
Licenses and regulates
professionals, including architects and engineers.
Professional Regulation Commission (PRC)
Cities and municipalities issue
business permits and licenses to operate within their jurisdiction.
Local Government Units (LGUs)
Licenses and regulates contractors in the construction industry.
Philippine Contractors Accreditation Board (PCAB)
Official registration of a business name with DTI
(sole proprietorship) or SEC (partnerships and corporations)
Business Name Registration
A document from the barangay certifying that a business
complies with local community requirements
Barangay Clearance
Issued by the city or municipality where the business operates, ensuring compliance with zoning and local ordinances.
Mayor’s Permit (Business Permit)
A mandatory license for construction firms to legally operate.
Includes classifications for small, medium, and large-scale contractors.
PCAB License
Issued during project design to ensure
compliance with fire safety standards.
Fire Safety Evaluation Clearance (FSEC)
FSEC means
Fire Safety Evaluation Clearance
Granted after construction to certify that the structure meets fire safety regulations.
Fire Safety Inspection Certificate (FSIC)
FSIC means
Fire Safety Inspection Certificate
Certifies that a completed structure is safe and compliant
for use.
Occupancy Permit
For employee coverage
Social Security System (SSS)
For employee
health insurance
Philippine Health Insurance Corporation (PhilHealth)
For employee housing loans
Home Development Mutual Fund (Pag-IBIG Fund)
The agency that oversees
labor laws, including safety protocols and conditions on construction sites.
DOLE (Department of Labor and Employment)
Government Procurement Reform Act,
governs public bidding for projects to ensure transparency and fairness.
RA 9184
Certifies that a project
complies with environmental laws and will not significantly harm the
environment.
Environmental Compliance Certificate (ECC)
Ensures compliance with sanitation and hygiene
standards.
Sanitary Permit
for quality management systems.
ISO Certification
compliance certifications from DOLE.
Occupational Safety and Health Standards (OSHS)
OSHS means
Occupational Safety and Health Standards (OSHS)
DENR means
Department
of Environment and Natural Resources
ECC means
Environmental Compliance Certificates
____ from DENR for projects affecting
the environment
Environmental Compliance Certificates (ECC)
ISO means
International Organization for Standardization
