Cebu can be an ideal spot for commercial activities for it is a home to prominent business addresses, such as IT Park and Cebu Business Park, and a perfect source of hardworking people. Aside from these reasons, the city is also known as the finance and trading hub of the Visayas. Before we get in to the grueling details, please feel free to contact us directly if you have questions on any of the below details, or if you need a helping hand. We have been there, so we know how daunting this process can be.
Have your own company name verified and reserved with Securities and Exchange Commission (SEC).
Verification can be done online and is free of charge; however, reservation of the company name (which only takes place after the approval of SEC) costs 40 pesos for the first 30 days and 120 pesos for 120 days. The reservation is renewable upon expiration.
Deposit capital in the Authorized Agent Bank (AAB) and get bank certificate of deposit.
Your company should pay a paid-up capital of not less than 5,000 pesos to the AAB. This paid-up capital should be amounting to at least 6.25% of your company's authorized capital stock.
Go to the notary to notarize your treasure's affidavit and incorporation articles.
Register your company with SEC.
Online registration is possible through SEC's i-Register but payment must be done on site. These are the requirements:
- Verification slip of company name
- Articles of notarized incorporation and by-laws
- Affidavit from the treasurer
- Statement of assets and liabilities
- Bank certificate of paid-up capital deposit.
- Authority to verify bank account
- Registration data sheet with directors, officers, stockholders, and other particulars
- Written undertaking to comply with notarized SEC reporting requirements
- Written undertaking to change notarized company name.
Get a business permit application form and community tax certificate from a Cebu City Hall representative at the Department of Trade and Industry's National Economic Research and Business Action Center (NERBAC).
Notarize your business permit application form at the notary.
Go back to DTI NERBAC's City Hall representative to obtain a Business Tax Payment Certificate (BTPC)
Your company is then given 60 days to comply with the rest of the legal requirements, such as barangay clearance, Social Security System (SSS) , Philippine Health Insurance Company (PhilHealth) , and Bureau of Internal Revenue (BIR) registration. Aside from securing these requirements, your company should also be inspected within 60 days from the issuance of BTPC by representatives from the Zoning Department, Office of the Building Official, City Health Department, Bureau of Fire Protection, and Office of the Mayor.
Buy special books of account from the bookstore.
Apply for a Taxpayer Identification Number (TIN) and Certificate of Registration at the Bureau of Internal Revenue (BIR).
The BIR Form No. 2303 or certificate of registration is acquired by filing BIR Form No. 0605 and paying the annual registration fee of 500 pesos. The TIN, on the other hand, can be obtained by submitting a barangay clearance, a mayor's permit, and a SEC registration copy.
Pay the Documentary Stamp Taxes (DST) and the registration fee 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 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." (excerpt from Entrepreneur Philippines' 15 Steps to Starting a Business in Cebu City )
Acquire authority to print receipts and invoices from BIR.
The following documents must be submitted to the Revenue District Office (RDO) to obtain the authority to print receipts and invoices from the BIR:
- Application for authority to print receipts and invoices or the BIR Form No. 1906
- Job order
- Final and clear sample of receipts and invoices
- Application for registration or BIR Form No. 1903
- Proof of payment of annual registration fee or the BIR Form No. 0605
Have receipts and invoices printed at a printing shop.
Let BIR stamp your books of accounts and Printer's Certificate of Delivery (PCD).
The printing company that you have hired to print your official receipts and invoices shall provide a Printer's Certificate of Delivery of Receipts and Invoices, and your company shall then submit this certificate to the appropriate BIR RDO for registration and stamping. Aside from this certificate, your company should also secure the following documents:
- All required books of accounts
- VAT registration certificate
- SEC registration
- BIR Form W-5
- Certified photocopy of the ATP
- A notarized taxpayers-user's sworn statement that enumerates the responsibilities and commitments of the taxpayer-user
Register with SSS and PhilHealth.
To register with SSS and obtain the SSS employer and employee numbers, your company must submit the following:
- Employer registration form (Form R-1)
- Employment report (Form R-1A)
- List of employees with birth dates, positions, monthly salary, and date of employment
- By-laws, SEC registration, and articles of incorporation
To register with PhilHealth and acquire proof of membership as well as the employer and employee numbers within 3 months, you should submit:
- Employer data record (Form ER1)
- Report of employee-members (Form ER2)
- SEC registration
- BIR registration
- Copy of business permit
Whether you are a foreigner looking to set up a business in Cebu, or a local, feel free to contact us for advise. We have done this many times, and can provide you with the information you need to get it done right. Contact us via our Contact Us Page, or directly via email support[at]everythingcebu.com.