TAX CONSIDERATION

Register with the government and BIR To become an officially recognized business entity, you
must register with the government. Corporations will need an " articles of incorporation" document,
which includes your business name, business purpose, corporate structure, stock details and other
information about your company. Otherwise, you will just need to register your business name, which
can be your legal name, a fictitious "Doing Business As" name (if you are the sole proprietor), or the
name you've come up with for your company. You may also want to take steps to trademark your
business name for extra legal protection. After you register your business, the next step is obtaining an
employer identification number (EIN) from the IRS. While this is not required for sole proprietorships
with no employees, you may want to apply for one anyway to keep your personal and business taxes
separate, or simply to save yourself the trouble later on if you decide to hire someone else. The IRS has
provided a checklist to determine whether you will require an EIN to run your business. If you do need
an EIN, you can register online for free. Regardless of whether or not you need an EIN, you will need to
file certain forms to fulfill your federal and state income tax obligations. The forms you need are
determined by your business structure. A complete list of the forms each type of entity will need can be
found on the SBA website . You can also find state-specific tax obligations there. Some businesses may
also require federal or state licenses and permits in order to operate. You can use the SBA's database to
search for licensing requirements by state and business type. Learn which tax identification number
you'll need to obtain from the IRS and your state revenue agency.

LAY OUTS
IMPORTANCE OF LAY OUTS
The ability to design and operate manufacturing facilities that can quickly and effectively adapt to
changing technological and market requirements is becoming increasingly important to the success of
any manufacturing organization. In the face of shorter product life cycles, higher product variety,
increasingly unpredictable demand, and shorter delivery times, manufacturing facilities dedicated to a
single product line cannot be cost effective any longer. Investment efficiency now requires that
manufacturing facilities be able to shift quickly from one product line to another without major
retooling, resource reconfiguration, or replacement of equipment.
Investment efficiency also requires that manufacturing facilities be able to simultaneously make several
products so that smaller volume products can be combined in a single facility and that fluctuations in
product mixes and volumes can be more easily accommodated. In short, manufacturing facilities must
be able to exhibit high levels of flexibility and robustness despite significant changes in their operating
requirements.
In industry sectors, it is important to manufacture the products which have good quality and meet
customers demand. This action could be conducted under existing resources such as employees,
machines and other facilities. However, plant layout improvement, could be one of the tools to response
to increasing industrial productivity. Plant layout design has become a fundamental basis of todays
industrial plants which can influence parts of work efficiency. It is needed to appropriately plan and
position employees, materials, machines, equipment, and other manufacturing supports and facilities to
create the most effective plant layout.
The intended products to be manufactured influence the choice of layout.

Obtain Business Licenses and Permits

Get a list of federal, state and local licenses and permits required for your business.
Basic permits
The following are the business permits and licenses that are generally required to all business industries.
1. Barangay Clearance The barangay clearance is a certificate that your business complies with the
requirements of the barangay where your business is located. To get a barangay clearance, you may visit
the barangay office where your business is located.
2. DTI Business Name (BN) Registration Certificate This is the certificate of registration of your
business trade name. It gives you the power to use your registered business trade name for business
operation. It also protects your business name against being used and registered by other business
establishments. However, take note that DTI registration only gives you the authority to use your
business trade name, but it doesnt give you the license to start operating your business without getting
the required licenses from other government offices, such as BIR and Local Government Office (Mayors
Office). Check out our post on how to register a business trade name with the DTI.
3. SEC Certificate of Registration Corporations (stock or non-stock) and partnerships have to secure a
certificate of incorporation or certificate of partnership with the Securities and Exchange Commission
(SEC) to be considered as legal or juridical entities. These certificates are also used as a requirement for
registering with the BIR, Mayors Office, and other government offices. Take note that sole
proprietorship businesses are not registered with SEC, but they are registered with the DTI. To register
with SEC, you may reach the following SEC address and contact information.
SEC Building, Edsa, Greenhills, Mandaluyong City
Tel. Nos.: (+632) 726.0931 to 39
Email: mis@sec.gov.ph
Website: www.sec.gov.ph
or http://iregister.sec.gov.ph/MainServlet (for online registration)
4. Mayors Business Permit. Businesses have to secure a Mayors Business Permit or the Local
Government Office where their business are located and operated. Requirements in obtaining a Mayors
Business permit vary from different cities or municipalities. This permit is also a requirement by the BIR
in issuing a BIR certificate of registration. You may read our post on how to get a Mayors Business
Permit for more information.
5. BIR Certificate of Registration . Any business must be registered with the Bureau of Internal Revenue
to comply with the Philippine tax requirements. BIR registration will assign a TIN (Taxpayer Identification
Number) to the company or business owner, will give the business authority to print its official receipts
and invoices, and registered its books of accounts. To register with the BIR, you have to go to the BIR
office which has the jurisdiction of the place where your business is located. You may check out our post
here about registering a business with the BIR .
6. SSS Employers Registration. Republic Act No. 8282 or otherwise known as the Social Security Act of
1997 requires businesses or business owners who use the services of another person or employees in
business, trade, industry, or any undertaking to be registered with the SSS (Social Security System). For
more information, check out our post on how to register a business with the SSS.
7. PhilHealth Employers Registration. All businesses and employers are also required to register with
PhilHealth to enable them to provide social health insurance coverage to their employees.
8. Pag-IBIG Employers Registration. Employers also have to register with the Home Development
Mutual Fund (HDMF) to secure their Pag-IBIG Employer ID Number and to provide the required benefits
to their employees, who should be Fund members. Please visit Pag-IBIG website for the registration
process.
9. DOLE Registration. Businesses with five or more employees are encouraged to register with the
Department of Labor of Employment (DOLE) for the purpose of monitoring their compliance with labor
regulations. For companies with 50 or more workers, they are required to register with DOLE, under the
Bureau of Local Employment which administers the registration of establishments.
Special permits
The following are the special or secondary permits that are usually required for business establishments
with special operation or industry.
10. Bangko Sentral ng Pilipinas (BSP) for banks, financing companies, pawnshops, money changers,
and other financial institutions.
11. Bureau of Food and Drugs (BFAD) for business related in the manufacturing, trading, repacking,
importing, exporting, distributing of any products related to food and drugs.
12. Bureau of Animal Industry (BAI) for business related to animals.
13. Bureau of Fisheries and Aquatic Resources (BFAR) for business related in fishing and aquatics
products.
14. Bureau of Forest Development for exporters of forest products (e.g. logs, lumber products,
plywood, etc.).
15. Bureau of Plant Industry (BPI) for business related to plants and vegetable crops.
16. Commission on Higher Education (CHED) and Department of Education (DepEd) for entities
involved in providing education.
17. DTI-Bureau of Product Standards (BPS) For commodity clearance for producers, manufacturers or
exporters, whose product quality after due inspection, sampling, and testing, is found to meet
established standards.
18. Fiber Industry Development Authority (FIDA) for business related in fiber producing products.
19. Forest Management Bureau (FMB) for business related in lumber, logs, and other wood product.
20. Garments and Textile Industry Development Office (GTIDO) For all manufacturers of garments
and textile for exports.
21. Insurance Commission (IC) for insurance and other IC regulated entities.
22. Intellectual Patent Office (IPO) for registering your trademarks, logos, slogans, processes and
secret formulas.
23. National Food Authority (NFA) for rice, corn and flour dealers.
24. National Subcontractors Exchange (SUBCONEX) for those interested to tie up with export oriented
firms as sub-contractors/suppliers, provided they fall under any of the following sectors: garments and
handwoven fabrics, gifts and housewares, furniture and fixtures, footware and leather goods, fresh and
processed foods, and jewelry.
25. National Tobacco Administration (NTA) for business related to tobacco products.
26. Philippine Coconut Authority (PCA) for businesses related in grain-rice farming and trading.
27. Technical Education and Skills Development Authority (TESDA) for institutions involve in technical
education and skills development.