CHAPTER 1

CONCEPTUAL
FRAMEWORK OF A GE ELEC 6
BUSINESS
 LEARNING OBJECTIVES

 The students at the end of discussion will be able to

 Define the Regulatory Governance

 Explain the legal framework for Regulatory Governance
 Discuss the Importance of Regulatory Quality
 Apply the Regulatory Environment of Business Entities
 Discuss the Key Regulatory Agencies in the Philippines
 GOVERNANCE

Encompasses the system by which

an organization is controlled and
operates, and the mechanisms by
which it, and its people, are held to
account.

Governance ensures everyone in an

organization follows appropriate
and transparent decision-making
processes and that the interests of
all stakeholders
 KEY ACTORS IN GOVERNANCE

a) State
b) Civil Society
c) Private Sector
 REGULATION

Specific set of commands

ƒ Regulation is broadly
defined as imposition of
rules by government, backed
by the use of penalties that
are intended specifically to
modify the economic
behavior of individuals and
firms in the private sector.
 REGULATORY GOVERNANCE

Regulatory governance is
perceived as a new form of
governance away from
command-and-control type
regimes towards other
modes of collaboration
across a variety of policy
actors
 REGULATORY GOVERNANCE

State of governance is the

facilitative or enabling aspect of
regulation -- the national and local
government formulates policies
and lays down the local
government formulates policies
and lays down the ground rules for
the operations of individuals and
groups, most especially the
business sector, to promote order
and public safety
 IMPORTANCE OF REGULATORY
GOVERNANCE
Good regulatory governance is needed to
promote effective competition in the
companies being regulated.

 As well as facilitating the on-going process of

change and providing the public with an
efficient supply of services, at reasonable
prices.
 REGULATORY INSTRUMENTS:

Economic regulation - applies to markets

which are insufficiently competitive

Social regulation - deals more on the

promotion of public deals more on the
promotion of public welfare, health and
safety.
 LEGAL FRAMEWORK FOR REGULATORY
GOVERNANCE
1987 Constitution ƒ

 The state shall promote a just and

dynamic social order that will ensure the
prosperity and independence of the nation
and free the people from poverty through
policies that provide adequate social
services, promote full employment, a
rising standard of living, and an improved
quality of life for all. (Article II, Section 9)
 LEGAL FRAMEWORK FOR REGULATORY
GOVERNANCE
Spirit of free enterprise -- Section 20:

“The State recognizes the indispensable role

of the private sector, encourages private
enterprise, and provides incentives to needed
investments.
 LIMITATIONS:

A disadvantage of private sector jobs is the

insecurity inherent to the sector.

Failure to acquire project financing, company

acquisitions or low business performance all
can act against an employee
 THE REGULATORY POWERS OF LOCAL
GOVERNMENTS
 1. reclassify agricultural lands,
 2. enforce environmental laws and the Building Code,
 3. process and approve subdivision plans,
 4. inspect food products, and regulate the operation of tricycles.
 5. LGUs may also regulate the provision of health, social welfare,
agriculture, public works, & other services devolved to them.
 6. tax and to impose levies, fees and charges

 In terms of economic concerns, LGUs issue business licenses and

permits to establishments or enterprises before the firms can
operate in their respective local jurisdictions. The collection of
business taxes can also be viewed as a form of social regulation
 REGULATORY QUALITY 

 Captures perceptions of the ability of the

government to formulate and implement
sound policies and regulations that permit
and promote private sector development.
IMPORTANCE OF REGULATORY QUALITY 

Good regulatory quality helps fulfill several policy

objectives of the New Economic Model that include:

removal of barriers and reduction in the cost of

doing business,
• improvement in decision-making for policy
implementation, and
• improvement in economic efficiency through
enabling fair competition.
 REGULATORY ENVIRONMENT OF
BUSINESS ENTITIES
 External Environment is a set of all the exogenous forces that
have the potential to affect the organization's performance,
profitability, and functionality.

 Internal Environment refers to all the inlying forces and

conditions present within the company, which can affect the
company's working.
 EXTERNAL AUDIT

 The purpose of an external audit is to develop a finite list of

opportunities that could benefit a firm and threats that should be
avoided.

 The process of performing an external audit must involve as

many managers and employees as possible.

 As emphasized in earlier chapters, involvement in the strategic-

management process can lead to understanding and commitment
from organizational members.

 Individuals appreciate having the opportunity to contribute ideas

and to gain a better understanding of their firms’ industry,
competitors, and markets.
 THE INDUSTRIAL ORGANIZATION (I/O)
VIEW
 The Industrial Organization (I/O) approach to competitive
advantage advocates that external (industry) factors are more
important than internal factors in a firm achieving
competitive advantage.
CONTINUATION
 EXTERNAL ASSESSMENT

P- OLITICAL
E- ENVIRONMENTAL
S- OCIO-CULTURAL
T- ECHNOLOGICAL
L- EGAL
E- CONOMICAL
 LEGAL-POLITICAL

 Legal-political factors are the actions of the Government that

affect the operations of businesses or companies. These legal
actions may be in the form of different levels; local, regional,
national or international.

 Owners and managers must pay attention to this factor

because government actions gauge how the company will and
should operate.
 ENVIRONMENTAL

 Environmental assessment can be defined as identifying,

estimating, and evaluating the environmental impacts of
existing and proposed projects, by conducting environmental
studies, to mitigate the relevant negative effects prior to
making decisions and commitments.

 To establish all the impacts either positive or negative about

one particular project.
 SOCIO-CULTURAL

 Social, cultural, and demographic changes have a major

impact on virtually all products, services, markets, and
customers.

 The socio-cultural factors are the beliefs, customs, practices,

behavior, lifestyles and values that characterize a certain
community
 TECHNOLOGICAL

 Most businesses today use technology to determine

consumers’ needs and wants and to have an advanced
analytic data to enhance or develop their strategies.

 Technology is a term that refers to collection of skills,

methods, processes and techniques that are used in making
or producing goods or services to accomplish objectives.

 Technological processes are a means to make and improve

products and services
 ECONOMIC

 Economic factors have a direct impact on the potential

attractiveness of various strategies.

 Economic factors such as employment, income, inflation,

interest rates, productivity, and wealth influences consumer
behaviors. Managers of business must be quick to adapt to
extreme changes in the external environment
 COMPETITORS

 Someone who is trying to win or do better than all others

especially in business.

 Competition is everywhere for business owners engaging in

the Other Service Activities Industry.
 THE NATURE OF AN INTERNAL AUDIT

 All organizations have strengths and weaknesses in the

functional areas of business. No enterprise is equally strong
or weak in all areas.

 Maytag Appliances, for example, is known for excellent

production and product design, whereas Procter & Gamble is
known for superb marketing.

 SWOT ANALYSIS

 SW- INTERNAL
 OT- EXTERNAL
 THE RESOURCE-BASED VIEW (RBV)

 Some researchers emphasize the importance of the internal

audit part of the strategic management process by comparing
it to the external audit.

 The Resource-Based View (RBV) approach to competitive

advantage contends that internal resources are more
important for a firm than external factors in achieving and
sustaining competitive advantage.

 The Industrial Organization (I/O) approach to competitive

advantage advocates that external (industr y) factors are more
impor tant than internal factors in a firm achieving
competitive advantage.
 INTEGRATING STRATEGY AND CULTURE

 Organizational culture can be defined as “a pattern of

behavior that has been developed by an organization as it
learns to cope with its problem of external adaptation and
internal integration, and that has worked well enough to be
considered valid and to be taught to new members as the
correct way to perceive, think, and feel.

 Cultural products include values, beliefs, rites, rituals,

ceremonies, myths, stories, legends, sagas, language,
metaphors, symbols, heroes, and heroines. These products or
dimensions are levers that strategists can use to influence
and direct strategy formulation, implementation, and
evaluation activities.
 FUNCTIONS OF MANAGEMENT

Planning consists of all those managerial activities related to

preparing for the future.

Organizing includes all those managerial activities that result in a

structure of task and authority relationships.

Motivating involves efforts directed toward shaping human behavior.

Staffing activities are centered on personnel or human resource

management.

Controlling refers to all those managerial activities directed toward

ensuring that actual results are consistent with planned results.
 MARKETING

 Marketing can be described as the process of defining,

anticipating, creating, and fulfilling customers’ needs and
wants for products and services.

 There are seven basic functions of marketing: (1) customer

analysis, (2) selling products/services, (3) Marketing Mix, (4)
pricing, (5) distribution, (6) marketing research, and (7)
opportunity analysis.
 FINANCE/ACCOUNTING

 Financial condition is often considered the single best

measure of a firm’s competitive position and overall
attractiveness to investors.

 Financial ratios are computed from an organization’s income

statement and balance sheet. Computing financial ratios is
like taking a picture because the results reflect a situation at
just one point in time.
 PRODUCTION/OPERATIONS

 The production/operations function of a business consists of

all those activities that transform inputs into goods and
services. Production/operations management deals with
inputs, transformations, and outputs that vary across
industries and markets.

 A manufacturing operation transforms or converts inputs such

as raw materials, labor, capital, machines, and facilities into
finished goods and services.
 RESEARCH AND DEVELOPMENT

 Many firms today conduct no R&D, and yet many other

companies depend on successful R&D activities for survival.

 Firms pursuing a product development strategy especially

need to have a strong R&D orientation.
 MANAGEMENT INFORMATION SYSTEMS

 Information ties all business functions together and provides

the basis for all managerial decisions. It is the cornerstone of
all organizations.

 Information represents a major source of competitive

management advantage or disadvantage
 VALUE CHAIN ANALYSIS (VCA)

 According to Porter, the business of a firm can best be

described as a value chain, in which total revenues minus
total costs of all activities undertaken to develop and market
a product or service yields value.

 All firms in a given industry have a similar value chain, which

includes activities such as obtaining raw materials, designing
products, building manufacturing facilities, developing
cooperative agreements, and providing customer service.

 A firm will be profitable as long as total revenues exceed the

total costs incurred in creating and delivering the product or
service
 AGENCIES IN THE LOCAL REGULATORY
REGIME

 National government agencies form part of the local

regulatory regime most especially in the business licensing
system, due to their functions as defined by national laws or
executive orders.

 They grant certificates, licenses, or clearances to the

business firms or enterprises before they can engage in a
business activity in the locality.
 AGENCIES IN THE LOCAL REGULATORY
REGIME
 Among the more important national regulatory agencies are:

 Bureau of Fire Protection (of the DILG);

 Department of Trade and Industry;
 Securities and Exchange Commission;
 Bureau of Food and Drugs (of the DOH)
 Department of the Environment and Natural Resources.
 END OF PRESENTATION
 CHAPTER 2

DOING A BUSINESS IN
THE PHILIPPINES GE ELEC 6
 LEARNING OBJECTIVES:

The students at the end of discussion will be able to

Know the primary purpose of a business

Differentiate the Types and Forms of business
Understand and apply the business registration
process
Explain the process of registering a Property
 RECITATION

 FOR YOU, WHAT IS THE PURPOSE OF BUSINESS?

 WHAT IS THE PURPOSE OF BUSINESS?

 The purpose of business is to increase the general well-being

of humankind through the sale of goods and services.

 This requires making a profit in order to operate the business

and provide beneficial products to the marketplace. Profit is a
means to an end.

Businesses have two major functions:

1. production of goods or creation of services
2. sell those goods and services
FORMS OF BUSINESS ORGANIZATION

•Sole Proprietorship
•A sole proprietorship is a
business owned by only one
person. It is easy to set-up and is
the least costly among all forms
of ownership. The owner
faces unlimited liability;
meaning, the creditors of the
business may go after the
personal assets of the owner if
the business cannot pay them.
The sole proprietorship form is
usually adopted by small
business entities.
FORMS OF BUSINESS ORGANIZATION

A partnership is owned by two or

more persons who contribute
capital to conduct business. The
partners divide the profits of the
business among themselves based
on agreed terms. In general
partnerships, all partners are have
unlimited liability. In limited
partnership (or Limited Liability
Partnership, LLC), at least one
partner is a limited partner. The
creditors cannot go after personal
assets of limited partners.
•A Corporation is a business
organization that has a
separate legal personality
from its owners. Ownership in
a stock corporation is
represented by shares of
stock.
•The owners, known as
stockholders, enjoy limited
liability but have limited
involvement in the
company's operations.
The board of
directors elected from the
stockholders, controls the
activities and direction of the
corporation.
•A cooperative is a business organization owned by a group of
individuals and is operated for their mutual benefit. The persons
making up the group are called members. Cooperatives may be
incorporated or unincorporated. Some examples of
cooperatives are: utility cooperatives (water and electricity),
cooperative banking, credit unions, and housing cooperatives.
 TYPES OF BUSINESS
ACCORDING TO ACTIVITIES

Service business - Service

companies are firms that
generally use their employees
to provide intangible products
or services to customers. These
services include professional
skills, advice, expertise, and
other related products. (e.g.
accounting firms, law firms,
and dry cleaning
establishments, etc. )

Chapter 1: Introduction to Accounting (FAR by: Millan)

 TYPES OF BUSINESS
ACCORDING TO ACTIVITIES

Merchandising Business-
Merchandising companies sell
tangible products. This type of
business buys finished or
almost finished goods from
their suppliers and resell the
same to customers. Primarily
earn revenues from the sale of
the goods of merchandise, also
known as sales revenue or
sales.
 TYPES OF BUSINESS
ACCORDING TO ACTIVITIES

Manufacturing Business -
Manufacturing companies or
simply manufacturers, buy
materials, convert them into
products, and then sell the
products to other companies or
to the final consumers.
BUSINESS REGISTRATION PROCESS IN
THE PHILIPPINES
 STARTING UP A BUSINESS

Incorporating a business in the Philippines requires

transaction with at least six (6) government
agencies.

 There will be more government agencies to deal

with if the business activity is regulated like in the
case of banks, non-banking financial institutions or
insurance companies.
 SECURITIES AND EXCHANGE
COMMISSION

The Securities and Exchange Commission (“SEC”) is

the corporate regulatory body in the Philippines.
Corporations and partnerships are registered with
SEC.

Domestic corporations like subsidiary are issued a

certificate of incorporation while foreign
corporations (branch office, regional operating
headquarters and regional headquarters) are issued
a license to transact business in the Philippines.
 LOCAL GOVERNMENT UNIT

 Once the company is incorporated or issued its license to do

business, it is required to secure a mayor’s permit from the
local government unit that has jurisdiction over its principal
place of business.

 At this stage, securing a barangay clearance, sanitary permit,

locational clearance, zoning certification, and community tax
certificate are some of the supporting documents that need to
be submitted before a mayor’s permit is issued by the Business
Permits and Licensing Office of the city or municipality
concerned where the company has its place of business.

 Note: A company that has more than one place of business is required to
secure its mayor’s permit in every locality where it operates.
 BUREAU OF INTERNAL REVENUE

 After securing the mayor’s permit, the company then goes to

the tax authority of the Philippines, Bureau of Internal
Revenue, for registration. In particular, registration has to be
done in the Revenue District Office that has jurisdiction over
the place of business of the company. A company is likewise
required to register in every Revenue District Office where it
operates.

 The company will be issued its certificate of registration and

its authority to print its receipts or sale invoice booklets.
Further, the company is required to register its manual books
of accounts or computerized accounting system or apply for
authority to use loose leaf.
 SOCIAL SECURITY SYSTEM (SSS),
PHILHEALTH, AND HDMF

Registration with these three (3) social agencies is

required as soon as the company hires its first
employee and is mandatory.
BUSINESS REGISTRATION PROCESS -
CORPORATION
 HOW TO REGISTER A REAL ESTATE
PROPERTY BOUGHT IN THE PHILIPPINES
Every tract of land or property acquired should be
registered with the land registry office.

Otherwise, problems with land ownership and

penalties might occur.

A person who lawfully owns a real estate property is

the ‘better’ owner than the one who abandons and
neglects the land
 HOW TO REGISTER A REAL ESTATE
PROPERTY BOUGHT IN THE PHILIPPINES
Step 1: Prepare the Deed of Sale
 The deed of sale is the legal evidence of the purchase of the land or
property.

Re q u i r e m e n t s :
 A b u y e r s h o u l d a l s o s e c u r e so m e o f t h e se l l e r’ s p ert i n en t d o c u m en t s su c h a s
r ec e n t C T C , a c o p y o f TI N a n d v a l i d I D s.

Step 2: Go to City’s Assessor’s Office

Function: assesses and prepares real properties for taxation
purposes

 Requirements:
 >CTC of tax declaration
 >certificate of no improvement for vacant lot only
 HOW TO REGISTER A REAL ESTATE
PROPERTY BOUGHT IN THE PHILIPPINES
Step 3: Land Tax Division of City Treasurer’s Office
Function: collection of real property tax

To obtain tax clearance, the seller must be able to pay

all arrears on property tax not only in the present year
but also in the previous years.
 HOW TO REGISTER A REAL ESTATE
PROPERTY BOUGHT IN THE PHILIPPINES
Step 4: Proceed to the Bureau of Internal Revenue
Function: active collection of revenue taxes

Req uire ment s :

> Tax Ide nti fi cation nu mber (se lle r and buyer)
> Notar ize d de ed of absol ut e sale
> CTC of the mos t re ce nt tax decl arat ion
> cer ti ficat e of ti tl e (or igi nal and photocopy)
> cer ti ficat e of ‘wi th impr ovemen t’

What to Receive:
>Certificate authorizing registration
>original copy of the deed of absolute sale (with BIR stamp)
>original copies of BIR return forms (with stamp)
 HOW TO REGISTER A REAL ESTATE
PROPERTY BOUGHT IN THE PHILIPPINES
Step 5: Municipal Treasurer’s Office
Function: manages revenues and cash flows; were
transfer tax is paid (responsibility of the buyer).

Note: transfer tax should be paid no later than 60 days

from the time the Deed of Absolute Sale was executed.

 Requirements:
 > C e r t i f i c a t e Au t h o r i z i n g R e g i s t r a t i o n ( f r o m t h e B I R )
 >Tax clearance certificate
 >BIR’s official receipt with the documentary stamp tax
 >Deed of sale (photocopy)
 >Transfer Certificate of Title (photocopy)
 >Tax declaration (photocopy)
 HOW TO REGISTER A REAL ESTATE
PROPERTY BOUGHT IN THE PHILIPPINES
Step 6: Registry of Deeds
 Fu nc ti on : pr oces s es , fin a l ize s a nd m a in ta in s th e pu blic r e gi str a tio n of th e la n d

 N ote : pa ym e n t fo r th e r egi st ra tio n fe e is t h e r e s pon sibili ty of t h e bu ye r, wh ic h

is 25% of th e se llin g price .

 Requirements:
 >Deed of absolute sale (photocopy)
 >Official receipt of payment of transfer of tax
 >Certificate Authorizing Registration from BIR
 >Real property tax clearance from the City’s Treasurer’s Office
 >Transfer of Clean Title (original)
 >CTC of the latest tax declaration

 Wh a t to Re ceiv e
 - N e w C e rti fi cat e o f T itle (N e w o wn e r’ s n a m e ). M a k e su r e t o do uble - c h e c k th e
s pe llin g of na m es a n d ot he r e s se nt ia l i nfo rm ati on
 HOW TO REGISTER A REAL ESTATE
PROPERTY BOUGHT IN THE PHILIPPINES
Step 7: Municipal Assessor’s Office
Functions: ensures that laws and policies are
properly maintained and executed in terms of
appraisal of real properties

 Requirements:
>New Tax Declaration
>Notarize d Deed of Sale (Photocopy)
>Tax Clearance Certificate
>Certificate Authorizing Registration (from the BIR)
>Official receipt of transfer tax payment (original and photocopy)
>Transfer of Certificate of Title (from the Registry of Deeds )
 CHAPTER 3

LAWS AND
REGULATIONS:
DTI AND SEC
 LEARNING OBJECTIVES:

 The students at the end of discussion will be able to

 Know the objectives of DTI and SEC

 Distinguish the Roles and Services of DTI and SEC
 Discuss the applicable laws in relation to a business
registration and requirements
 Know the Key Regulatory Requirements and Penalties for
Non-Compliance
 Discuss some updates and News of DTI AND SEC
DEPARTMENT OF TRADE AND INDUSTRY
(DTI)
The Department of Trade
and Industry (DTI) aims to
increase access to capital,
manufacturing networks,
and markets. It also
improves productivity,
effectiveness, and security,
as well as providing
consumers with quality
assurance in products and
services.
 ROLE OF DTI

The DTI is the primary

agency in the promotion
and development of MSMEs
through the provision of
various assistance and
interventions, e.g.,
financing, marketing and
promotion, human resource
development, product
development, and advocacy.
 WHAT SERVICES DOES DTI OFFER?

DTI promotes income opportunities through a

comprehensive development and promotion
program for micro, small, and medium
enterprises (MSMEs) or the 7Ms of MSME
development: Mindset, Mastery, Mentoring,
Machine, Money, Market, and Models of
Negosyo.
 APPLICABLE LAWS IN RELATION TO A BUSINESS
REGISTRATION AND REQUIREMENTS

 A Business Name (BN) refers to any name, other than your

true name, that you use in connection with your business.

 If you are doing business using a name other than your true
name, then you are required to register that business name
with the Department of Trade and Industry.

 Any Filipino who is at least 18 years of age can register a

business name. Foreign nationals who are authorized to do
business in the Philippines under existing statutes may also
register.
 APPLICABLE LAWS IN RELATION TO A BUSINESS
REGISTRATION AND REQUIREMENTS

 A Non-Philippine national also needs to obtain a Certificate of

Registration of Sole Proprietorship/Certificate of Authority to
Engage in Business in the Philippines pursuant to RA 7042
(Foreign Investment Act).

 For a Refugee or stateless person, he/she needs to be issued

a written recognition from the Refugee and Stateless person
Protection Unit of the Department of Justice (DOJ-RSPPU), and
whose recognition is not subject to cancellation, revocation,
or cessation, in accordance with applicable government rules
and regulations.
 APPLICABLE LAWS IN RELATION TO A BUSINESS
REGISTRATION AND REQUIREMENTS

 Registration fees will be based on your chosen territorial scope:

 Barangay - PhP 200

 City/Municipality - PhP 500
 Regional - PhP 1,000
 National - PhP 2,000

 All registration fees are subject to an additional PhP 30 Documentary

Stamp Tax.

 An additional 50% will be charged for late filing of your Business Name
Registration.

 The BN registration is valid for five (5) years from the date of
registration.
 TERRITORIAL SCOPE

 Territorial Scope refers to the extent

of the geographical area within which
the pertinent business may locate its
offices, stores, shops, branches,
manufacturing or processing plants,
or other business structures, or where
the pertinent BN may be used without
prejudice to engaging in business
elsewhere.

 It is not to be considered as the

geographical limit in which to
transact business.
 LAWS AND POLICIES -DTI

 Your Business Name will not be accepted under the following

instances:

1. Those that connote activities or norms that are unlawful,

immoral, scandalous or contrary to propriety;
2. Those names, words, terms or expressions used to designate
or distinguish, or suggestive of quality, of any class of goods,
articles, merchandise, products or services;
3. Those that are registered as trade names, trademarks, or
business names by any government agency authorized to
register names or trademarks;
 LAWS AND POLICIES -DTI

 Your Business Name will not be accepted under the following

instances:

4. Those that are inimical to the security of the State;

5. Those that are composed purely of generic word or words;
6. Those that by law or regulation are restricted or cannot be
appropriated;
7. Those that are officially used by the government in its non-
proprietary functions;
 LAWS AND POLICIES -DTI

 Your Business Name will not be accepted under the following

instances:

8. Those names or abbreviations of any nation,

intergovernmental or international organization unless
authorized by competent authority of that nation, inter-
government or international organization;
9. Those ordered or declared by administrative agencies/bodies
or regular court not to be registered;
10. Those names of other persons;
11. Those names which are deceptive, misleading or which
misrepresent the nature of business.
 CANCELLATION OF A BN REGISTRATION

 DTI may cause the mandatory cancellation of a BN

registration in any of the following instances:

 1. For violations enumerated in Rule X, Section 1 (Grounds for

Revocation) of the DAO 18-07 after due notice and hearing;

 2. Upon order by an administrative body, court or tribunal,

which has become final and executory;
 CANCELLATION OF A BN REGISTRATION

 DTI may cause the mandatory cancellation of a BN

registration in any of the following instances:

 3. Upon receipt of notice of cancellation of the BN owner’s

business permit or license issued by any government
regulatory agency for the conduct of business;

 4. Cancellation, revocation or cessation of recognized refugee

or stateless person status in accordance with the DOJ
Department Circular No. 58 dated 1 October 2012 including
all future amendments, modifications, or revisions thereof.
 LAWS AND POLICIES -DTI

 DTI also has the authority to cancel a registered BN under any

of the following instances:

 1. Failure to renew the BN registration within the grace

period;

 2. Death of the owner – upon receipt of information about the

death of the registered BN owner from a relative (informant).
They shall sign and submit Other BN-Related Application Form
together with a clear certified copy of the death certificate of
the registered BN owner and a copy of the relative’s valid ID.
 VOLUNTARY CANCELLATION OF BN
REGISTRATION
 you can apply for a cancellation of BN registration at any DTI
office for any of the following reasons

 1. Cessation of business operations prior to the expiry date of

the existing registration;
 2. Sale or transfer of the business to any other person;
 3. Upon BN owner’s conclusive determination that a prior
owner and lawful user of an identical or confusingly similar
BN exists;
 4. Upon transfer of the business to another geographical
location beyond or outside the registered BN's territorial
scope.
 UPDATES AND NEWS ABOUT DTI

 DTI monitors the prices of BNPCs, school supplies in Caloocan

 Following the release of the latest Suggested Retail Prices

(SRP) or price guide bulletin, the Department of Trade and
Industry (DTI), through its Fair Trade Enforcement Bureau
(FTEB), keeps a close watch on basic and prime commodities
including school supplies within Caloocan on 19 August 2022.
Consumer Protection Group (CPG)
 UPDATES AND NEWS ABOUT DTI

 DTI urges consumers to be environmentally aware; look for

the Green Choice Philippines (GCP) Seal of Approval when
buying products

 The increasing awareness of consumers on the need to

protect the environment has been driving the growing demand
for sustainable products.
 UPDATES AND NEWS ABOUT DTI

 PH expects over 22,000 jobs from USD14.36B investment

deals in Indo, Singapore state visits

 The Philippines is open for business. Recent policy reforms,

particularly on foreign investment ownership and other
restrictions, as well as on incentives, have made the
Philippines more conducive for foreign businesses

 Sectors of renewable energy, data centers, e-commerce,

broadband technology, start-ups, government housing, and
agriculture.
CONTINUATION
 OBJECTIVES OF SEC

The SEC's long-standing tripartite mission—to

protect investors, maintain fair, orderly, and
efficient markets, and facilitate capital
formation—remains our touchstone .
 VISION AND MISSION OF SEC

VISION
 By 2025, the SEC with its driven, highly-trained, agile and
customer-centric team of professionals, equipped with digital
technology and adaptive registration and data management
systems, is the premier investor champion and catalyst of a
deep, broad and informed investor-based capital market and
more empowered business sector considered among the best in
the Southeast Asian (SEA) Region.

MISSION
 We are the gateway to doing business in the Philippines. We
provide a competitive and secure environment for fast and easy
company registration, efficient capital formation, broad investor
participation and business innovation.
 CORE VALUES OF SEC

INTEGRITY
 We are ethical, honest, fair, and sincere in our private and public lives.

PROFESSIONALISM
We are capable and competent in performing our mandate, we excel in our
fields of expertise, and we possess high ethical principles and standards
which are essential in providing timely, quality, and committed public
service.

ACCOUNTABILITY
We are responsible for our actions and decisions.

TEAMWORK
We collaborate to achieve our common goals and tasks in a seamless and
efficient manner.

INDEPENDENCE
We act without fear or favor, and render sound judgment in the
performance of our duties and responsibilities.
 ROLE AND SERVICES OF SEC

The Securities and Exchange Commission

(SEC) or the Commission is the national
government regulatory agency charged
with supervision over the corporate sector,
the capital market participants, and the
securities and investment instruments
market, and the protection of the investing
public.
 MANDATE OF SEC

The SEC is mandated to promulgate

rules to facilitate and expedite, among
others, corporate name reservation and
registration, incorporation, submission of
reports, notices, documents required
under the Code, and sharing of pertinent
information with other government
agencies.
APPLICABLE LAWS AND REGULATIONS OF SEC
APPLICABLE LAWS AND REGULATIONS OF SEC
 REGISTER WITH THE SECURITIES AND
EXCHANGE COMMISSION (SEC)

Key Regulatory Requirements for Corporation

 Name Reservation and Payment Form.

 Notarized Articles of Incorporation and By-laws.
 Treasurer's Affidavit.
 Bank Certificate of Deposit or Proof of Inward Remittance.
 REGISTER WITH THE SECURITIES AND
EXCHANGE COMMISSION (SEC)

Key Regulatory Requirements for Partnership

 Name Verification Slip (Can be obtained on SEC's website)
 Articles of Partnership.
 Joint Affidavit (Not required if already stated in Articles of
Partnership)
 Registration of data-sheet.
 Certificate of Bank Deposit.
 Name of the partnership.
 Principal office address.
 The contact number of the partner.
 FINES OF SEC

When the Securities and Exchange Commission (SEC)

enforces a civil action against a corporation or an
individual found guilty of violating SEC regulations,
there's a good chance that some sort of fine will be
imposed.

The money from these fines goes back to investors

who have been victims of securities law violations.
PENALTIES OF SEC
UPDATES ABOUT SEC
UPDATES ABOUT SEC
UPDATES ABOUT SEC
 CHAPTER 4

LAWS AND
REGULATIONS:
LOCAL GOVERNMENT UNITS
 LEARNING OBJECTIVES:

 The students at the end of discussion will be able to

Know the objectives of Local Government Units

Distinguish the Role and Services of Business
License and Permit Division
Explain the process and list of requirements in
securing Mayor’s Permit
Discuss the Penalties for Violators and Non-
Compliance
  LOCAL GOVERNMENT UNITS

 Local government units are institutional units whose

fiscal, legislative and executive authority extends
over the smallest geographical areas distinguished
for administrative and political purposes

LGU means a local government unit which is a

political subdivision of the Republic of the
Philippines at the provincial, city, municipal, or
Barangay level
 OBJECTIVES OF LGU

Republic Act No. 7160 or the

Local Government Code of 1991
has devolved to all LGUs the
administration of basic services,
including agriculture,
environmental protection,
health, maintenance of public
works and highways, social
welfare, and tourism.
ILLUSTRATIVE EXAMPLE:
LGU – CITY OF SAN FERNANDO PAMPANGA
 ROLE AND SERVICES

Business License and Permit Division

 Responsible for the issuance of business/mayor’s permit, permit
to operate and special permit, revocation and closure of
businesses;

 Responsible for the issuance of business retirement certificate;

 Responsible for the investigation and evaluation of eligibility for or

conformity with laws and regulations governing contract
compliance in relation to the requirement of licenses and permits
 ROLE AND SERVICES

Business License and Permit Division

 Responsible for the revocation of May or’s Permit endorsed by other
regulatory offices;

 Responsible for the calibration of gasoline stations and LPG refilling

plants;

 Responsible for the effective implementation of plans/work programs

and activities for the improvement of services delivered to the public;

 Responsible for the supervision on the issuance of generated reports and

other information as requested by different entities or individual
certification, certified true copy of business registration and other
documents on business
 RECORDS MANAGEMENT AND
INFORMATION SECTION
 Responsible for the preparation of
information and other reports that can
be generated in the e- BPLS
computerized system;

 Responsible for updating business

information (owner’s name, business
name; change of business name and
activities;

 Responsible for the recommendation

of policies and other systems that can
upgrade and help the present system to
be more effective and efficient;
 RECORDS MANAGEMENT AND
INFORMATION SECTION
 In-charge for the incoming and outgoing
communication letters/memos from
other offices and agencies;

 Responsible for managing records and

filing of documents;

 Responsible for the inspection of new

business and retirement of business.
 EXAMINATION AND REVIEW SECTION

 Responsible for the review/examination

of all documents submitted, based on the
taxes to be paid by the taxpayers;

 Responsible for the examination of books

of accounts of business establishment in
order to ascertain and assess the correct
amount of tax, fee and other charges;

 Responsible for the research and study

on continuous delivery of fast and
professional services to the taxpayers,
maximization of business tax collection,
and granting reassessment and tax credit
to the taxpayers (if any);
 EXAMINATION AND REVIEW SECTION

 Responsible for the

recommendation of new method
that would improve the present e-
BPLS system.

 Responsible for the processing and

issuance of special permits such as
streamers, motorcades, concerts.
INSPECTION AND REGULATORY SECTION

 Responsible for the inspection of Mayor’s Permit in different

barangays, offices and establishments;

 Responsible for the preparation of investigation reports,

suggestions/ recommendations based on the problems filed
by the taxpayers;

 Responsible for the calibration of gasoline stations and LPG

refilling plants;

 Responsible for serving of notices and closure orders to

business establishments, filing/ withdrawal of cases to the
Office of the Prosecutor pertaining to delinquent taxpayers.
STREAMLINING OF PROCESSING OF BUSINESS
PERMITS ISO 9001: 2008 CERTIFICATION

 The Business License and Permit

Division (BLPD) of the City exists
to provide quality business
registration services to the
taxpayers thru the business permit
application.

 The time of the processing of

business permits was reduced
from 2 weeks to 25 minutes.
BUSINESS PROCESSING PERMIT PROCEDURE

 Secure Business Permit Application Form at the BLPD Office

 Fill out all entries on the application form and have it
notarized
 Secure all the Requirements for Business Permit.
 Attach all required supporting documents to the properly
filled out application form then submit to BLPD
 When everything is in order, taxes, fees and charges will be
assessed by the BLPD
BUSINESS PROCESSING PERMIT PROCEDURE

Assessment shall be paid to the City Treasurer

Office
Forward Official Receipt to the BLPD for the
printing of Mayor's Permit
The Mayor's Permit
The Mayor's Permit will be released on the date
specified on the claim stub to be provided by
BLPD.
 LIST OF REQUIREMENTS

 Community Tax Certificate (for business)

 Barangay Business Clearance
 Acknowledgement Slip from City Environment
and Natural Resources Office (CENRO)
 Sanitary Permit from the City Health Office (CHO)
 Fire Safety Inspection Slip / Fire Safety
Inspection Certification from the Bureau of Fire
Protection (BFP)
 Zoning Clearance
 Local Building Official Division (LBOD) Clearance
 SUPPORTING DOCUMENTS:

 DTI / SEC / CDA Registration

 Location Sketch
 Contract of Lease (if renting)
 CEED Clearance (if located at New Public Market / Old
Public Market)
 Clearance from Community Affairs Division (for
Jeepneys / Tricycle Association, Junkshop, Videoke Bar)
 Professional Tax Receipt (for exercise of profession)
 For Internet Cafe (Affidavit / Undertaking on Non-
Operations of games)
 For Bingo gaming operations (Grant of Authorities from
Congress / PAGCOR / Sangguniang Panlunsod
Franchise)
 FOR RENEWAL

 Community Tax Certificate (for business)

 Barangay Business Clearance
 Acknowledgement Slip from CENRO
 Sanitary Permit from the CHO
 Fire Safety Inspection Slip / Fire Safety Inspection
Certification from the BFP
 SUPPORTING DOCUMENTS - RENEWAL

 Photocopy of previous year's Mayor's Permit / Certificate of

full Payment from CTO - for business paying on installment
basis for the previous year.
 Affidavit of Gross Sales (for Non-BIR registered taxpayers)
 Income Tax Returns of the Preceding Quarter and/or Year;
 VAT or Percentage Tax Returns;
 BIR Registration Certificate (BIR Form 2303);
 Annual Registration Fee payment (BIR Form 0605) - (for BIR
registered taxpayers)
 SUPPORTING DOCUMENTS - RENEWAL

 Clearance from Philhealth

 CEED Clearance (if located at the local New Public Market /
Old Public Market)
 Contract of Lease (if renting)
 Clearance from Community Affairs Division (for Jeepneys /
Tricycle Association, Junkshop, Videoke Bar)
 Professional Tax Receipt (for exercise of profession)
 PENALTIES FOR VIOLATORS AND NON-
COMPLIANCE
 Mayor’s Permit to Operate or Engage in Business or Trade
Activities

 Any violator of any of the provisions discussed shall be

penalized by a fine of five hundred pesos (P500.00) but not
exceeding five thousand pesos (P5,000.00) or imprisonment
of one (1) month but not more than six (6) months, or both, in
the discretion of the Court.