Professional Documents
Culture Documents
Title Page
Foreword
Introduction
Part I. Investing in the Philippines
1. Investment in Government Securities
2. Establishment of Banks and Other Lending Institutions
3. Development of Tourist Resorts and Other Facilities
4. Purchases of Housing and Condominium Units
5. Development of Housing and Condominium Projects
6. Development of Memorial Parks
7. Investing in the Construction Industry
8. Agribusiness Entreprise
9. Export Marketing
10.Retail of Oil Products
11.Investing in Franchise
12.Establishment of Educational/ Vocational Training Institutes
13.DTI-Recommended Sectors by Region/ Province
14.Investing in other Services
15.Competitiveness Ranking of Philippine Cities in 2003
Part II. Doing Business in the Phippines
16.Securing Business and Other Permits
17.Registration of Partnerships and Corporations
18.Registration of Cooperatives
19.One-Stop Action Center for Investments
20.Omnibus Investment Code of 1987
21.Retail Trade Liberalization Act
22.Land Acquisition and Ownership
23.Conversion of Lands to Industrial and Commercial Use
24.Financing Small and Medium Enterprises
25.Salaries and Wages
26.Insurance and Pension Plans
27.About CFO
Acknowledgement
Malacanan Palace
Manila
Foreword
The Filipinos' physical separation from the Philippines has not weakened
in the least the ties that bind them to out Motherland. They contribute
in many important ways to stability at home and maintain an active
interest in the progress of our country.
(signed)
GLORIA MACAPAGAL-ARROYO
President of the Philippines
It is often said that almost one in every ten Filipinos lives or works overseas, an
assertion that reflects the estimated number of 7.76 million overseas Filipinos as of
December 2003. Overseas Filipinos will be found in more than 160 countries and
territories around the world, with their number expected to continue increasing along
with the growth of the Philippine population in years to come.
The migration of our countrymen to other shores which started more than two and a
half centuries ago, has more recently given rise to a transnational community of
Filipinos who continue to maintain their ties with the Philippines. Filipinos overseas
actively communicate, network and transact a host of relationships with those at
home as part of their daily lives, manifesting a thriving community that exists among
Filipinos across the world’s national boundaries.
Other than their growing number, the familiar knowledge about overseas Filipinos is
that usually associated with their foreign currency remittances, whether from
permanent residents settled abroad, or from overseas workers. True, about $58
billion was remitted by overseas Filipinos to the Philippines in the ten-year period
from 1994 to 2003, contributing in no small way to the country’s foreign exchange
reserves, stability of the Philippine peso and improvement in living standards in many
parts of the country. The Banko Sentral ng Pilipinas also estimates that $556 million
in gifts or donations from overseas Filipinos came into the country over the same
ten-year period. In addition, P1.37 billion in grants and donations to needy
beneficiaries in 73 provinces and cities across the country were channeled through
the LINKAPIL (Link for Philippine Development) program of the Commission on
Filipinos Overseas from 1994 to 2003. It is also observed that the most significant
source of remittances and grants in aid to the country over the years has been the
United States, where most overseas Filipinos continue to reside. Other countries
and territories with significant numbers of Filipino immigrants and permanent
residents are Australia, Austria, Canada, Germany, Guam, Japan, New Zealand,
Spain, and the United Kingdom.
What would be a relatively unexplored area lies in mobilizing overseas Filipino capital
for enterprises that could contribute to economic growth in the Philippines. Such
investments also have the potential to contribute more directly to creating
employment, dispersal of economic activity outside of Metropolitan Manila and
accelerated development of agri-business enterprises, all of which are part of the 10
point program of the Government.
The enactment of Republic Act 9225 otherwise known as the Citizenship Retention
and Reacquisition Act in 2003, and the recent approval of its implementing
guidelines has provided a new window of opportunity for many overseas Filipinos to
become involved in economic activities in the Philippines. This is particularly so for
former Filipino citizens who can now reacquire their Filipino citizenship and once
again enjoy full economic rights in the country. Among these are Filipinos who left
starting in the mid 1960s, became naturalized in their host country, and who have
accumulated considerable savings and disposable income on account of their long
permanent stay abroad. They can now become dual citizens, own unlimited real
property, have the right to exploit natural resources in the Philippines, as well as
engage in activities which are restricted to Filipino citizens such as operation of rural
banks, educational institutions or mass media enterprises, among others.
It is in this light that the Commission on Filipinos Overseas has prepared this
compendium, as an initial step to provide accurate information about investing and
doing business in the Philippines, particularly to those reacquiring their Filipino
citizenship. It is an initial step because it will necessarily undergo expansion, and
updating and revision from time to time. It is also a first step because the
Commission is exploring and pursuing other actions with financial institutions that
would lead to the underwriting of an investment trust, tailored for individual overseas
Filipino investors who are more inclined to opt for portfolio type investments.
Meanwhile, overseas Filipinos with investible savings are invited to seriously look into
prospects for investing, and perhaps also retiring back home in the Philippines.
This compendium has initially put together information to help assess prospects for
investing and doing business, particularly in small to medium scale enterprises. It
provides leads about agencies or offices where more specific data could be
obtained. It also gives examples, where available, of specific industries or
enterprises with attractive potentials for the information of prospective investors. Just
as importantly, the compendium provides information about the requirements for
doing business, from the standpoint of a number of relevant government agencies
including local government units.
Like other similar material, the investment compendium does not presume to know
all about the profitability or returns on an investment, nor does it identify or favor
specific enterprises to invest in. This compendium is meant to serve as a source of
general information to help in knowing about where investment and business
potentials exist, leaving it for prospective investors to further examine prospects,
before deciding where their capital should go into.
INVESTING IN THE
PHILIPPINES
1.
INVESTMENT IN GOVERNMENT
BONDS AND SECURITIES
Treasury Bills are government securities which mature in less than a year.
There are three tenors of Treasury Bills: (1) 91 day (2) 182 day and (3) 364 day Bills.
The number of days is based on the universal practice around the world of ensuring
that the bills mature on a business day. They are quoted by their yield rate or by
price based on 100 points per unit. Treasury Bills which mature in less than 91 days
are called Cash Management Bills.
On the other hand, Treasury Bonds are government securities which mature
beyond one year. At present, there are 5 maturities of bonds: (1) 2 year (2) 5 year
(3) 7 year (4) 10 year and (5) 20 year Bonds. These are sold at their face value on
origination and the yield is represented by the coupons, expressed as a percentage
of the face value on a per annum basis, payable semi-annually.
Securities Dealer
3. SLP
Philippine
Equity
Fund:
• provides
long
term
capital
apprecia
-tion
and
purcha-
sing
power
protectio
n for
long-
term
savings
4. SLP
Dollar
Fund:
• Provide
s total
returns
by
investin
g in a
diversifi
ed
portfolio
of
Mini- 1. P50,000 1. P100,00 P1,000,000 1. P50,000 P5,000
mum 2. P500,00 0 2. P50,000
Place- 0
ment
Contacts Land Bank PNB Treasury Makati Main Head office Sun Life
of the PNB Sales Branch Sen. Gil Prosperity
Philippines Financial Division Paseo de Puyat Ave., Fund
Treasury Center, CCP 6th Floor, Roxas cor. cor. Makati 10th Floor.
Marketing Complex Metrobank Villar St. Ave., Makati Tower II,
Unit, Local Pres. Plaza, Makati City City The
Currency Diosdado P. Makati Tel. Nos.: Enterprise
Department Macapagal 885-5555 Mailing Center,
Land Bank Blvd., Pasay Fax No.: address: 6766 Ayala
Plaza, 1598 City 892-0220 P.O. Box Ave., Makati
MH Del Pilar Tel. Nos.: Binondo 1996 Makati City
St., Malate, (632) 891- Center Central Post Trunklines:
Manila 6040 to 70 Dasmarinas Office, 1200 849-9999,
Trunklines: Website: cor. Juan Makati City 849-9744
450-7011 www.pnb.com.ph Luna Sts.
551-2200 E-mail: Binondo, Trunkline:
Treasury_mktg
Direct lines: @pnb.com.ph Manila (632) 818-
405-7268 Tel. Nos.: 9511 to 20;
405-7267 242-5601 to 818-9611 to
405-7266 40 20
Fax Nos.:
241-7058; E-mail:
815-4762 Info@devban
kphil.com.ph
Additionally, the Philippine National Bank offers the Dollar Punla Fund, a US
dollar denominated common trust fund for overseas Filipinos. The fund is invested
in high grade dollar-denominated financial instruments locally and abroad. The fund
calls for a minimum investment of US$1,000.
ESTABLISHMENT OF BANKS
AND OTHER LENDING INSTITUTIONS
2. At least 25% of the total authorized capital stock shall be subscribed by the
subscribers of the proposed bank, and at least 25% of such subscription shall
be paid-up, provided that in no case shall the paid-up capital be less than the
minimum required capital stated in Item 1 above.
1. Within sixty (60) days from receipt of advice of approval by the Monetary
Board/Governor of their application for authority to establish the bank, the
organizers shall:
a. Submit the Articles of Incorporation, Treasurer’s Sworn Statement and
By-Laws in seven (7) copies; and
b. Deposit with any commercial bank (for commercial banks and thrift
banks) and any bank (for rural banks) the initial paid-up capital of the
proposed bank.
2. Within thirty (30) days after the Articles of Incorporation and By-Laws had
been passed upon by the Office of the General Counsel and the
corresponding certificates of Authority to Register had been issued, the
organizers shall effect the filing and registration of said documents with the
Securities and Exchange Commission.
3. Within six (6) months (for commercial banks and thrift banks) and eight (8)
months (for rural banks) from receipt of advice of approval by the Monetary
Board/Governor of their application for authority to establish the bank, the
organizers shall:
a. Complete the construction and furnishing of the bank building, which shall
be equipped with vault and appropriate security devices such as lighting
system, time delay device, tamper-resistant locks, alarm systems, etc.,
and provided with furniture, fixtures, equipment and bank forms;
b. Effect and complete the recruitment and hiring of officers and employees
of the bank;
c. Submit the following documentary requirements at least thirty (30) days
before the scheduled start of operations:
d. File with Supervisory Reports and Studies Office a request for ocular
inspection of the bank premises at least thirty (30) days before the
scheduled start of operation.
3.
Tourism for domestic and international travelers maintains its potentials for
further growth and expansion in the Philippines. This is particularly so because of
the natural attributes of the country (such as long stretches of beaches, numerous
islands and ecological preserves) cultural and historical sites of major importance,
the expected growth in regional tourism, as well as population growth in the country.
Investment in tourism facilities includes development of resorts, hotels and homestay
facilities, local and specialty restaurants, catering, picnic excursion sites, convention
and events facilities, native goods/ products and tour and transportation services.
The tourism sector in particular offers potentials for high rates of employment and
job opportunities due to its service and specialty orientation.
The following matrix provides some options for business and investments in
tourism in different provinces in the Philippines:
Napsan Beach Napsan, Puerto Princesa City For sale for The Palawan
Resort 4.5 hectares P150/sq.m. Bank, 167 Rizal
• near the national highway Ave., Puerto
• 500 meters of beach front, Princesa City,
with wild flora and fauna and Palawan
with mild and tropical Tel. No.: (048)
weather 433-2489 / 2589
• highly suitable for resort
development
San Rafael San Rafael, Tanabag, Puerto For sale for The Palawan
Beach Resort Princesa City P250/sq.m. Bank, 167 Rizal
136,704 sq.m. Ave., Puerto
• long flat beach front and Princesa City,
unpopulated Palawan
Tel. No.: (048)
433-2489 / 2589
Nagtabon Nagtabon, Puerto Princesa City Joint venture c/o Puerto
Mountain 22,000 sq.m. for P1M Pension, 35 Malvar
Resort • mountain resort with St., Puerto
clubhouse and swimming Princesa City,
pool Palawan
• restaurant, aircon rooms and Tel. No.: (063)
conference hall 816-6666
Samal Island Cogon Talikud Island, Kaputian For sale/lease 2631 Rockefeller
Property District, Samal Island St., Sison
(Sison's) a. 22.12 hectares For sale: Mansion, Makati
b. 7.54 hectares a. P44,245, City
c. 4.49 hectares 200 Tel. No.: (632)
b. P22,603,20 843-4463 / 889-
• The island garden of Samal 0 2397 / 843-6311 /
is one of the country's c. P8,987, 812-8911
flagship project areas for 200
tourism in Mindanao
• White and pristine beaches For lease:
excellent for scuba diving a. P184, 355
and snorkeling b. P94, 180
• Marine and fish sanctuaries c. P37,
and rare coral gardens 466.66
• Mountain resorts, waterfalls,
unique flora and fauna are
among the island's best
Siargao Beach Brgy. Malinao, Gen. Luna, For sale Brgy. 1, Poblacion
Property Siargao Php500/sq. m. Hospital Road,
(Boncaro's) 16,788 sq. m. Siargao, Surigao
• 40-nautical miles from del Norte
Surigao City and 16
kilometers away from the
municipality of Dapa, the
entry point to the island
• includes waterfalls, caves,
mountains, lagoon, beaches
and rich marine life
• ideal for beach resort
development
Sharifa 7 and Siasi Lapak Island, Jolo, Sulu Joint venture 424 Sta. Teresita
Regina Resort 32.6 hectares US$300M St. cor. G. Tuazon
• accessible by plane and St., Sampaloc,
superferry Manila
• ideal location for an Tel. No.: (632)
integrated resort complex 749-4863 / 714-
due to its proximity with the 3421
rapidly growing economies
of Southeast Asia
• tourist attractions like: caves,
wildlife, white sand beach,
mountain, abundant flora
and fauna, lagoons and
coves
Camiguin Barangay Agoho, Mambajao, For sale Camiguin Seaside
Seaside Lodge, Camiguin Lodge, Inc.
Inc. 27,692 sq.m. Cost is Agoho, Mambajao,
• fine gray sand and water is negotiable Camiguin Province
ideal for swimming and Tel. No.: (088)
snorkeling 387-9031
• includes 16 private cottages,
16-room dormitory, a
canteen and a social hall
• 3 pump boats
5. List of all officials and employees with their respective positions, nationalities and
home addresses, certified by the general manager and notarized. Separate list
for main and branches, if any. In case of new agency, bio-data of at least two
permanent staff with at least two years experience in tour operations.
6. For new general manager, application for permit to work and documents to prove
a minimum of three years managerial experience in travel and tour agency
operations. In the absence thereof, proof that she/he is a graduate of Bachelor
of Science in Tourism or has successfully completed a travel agency
management course or a tour operator's course.
7. List of tour guides, travel representatives, consultants, sales agents or persons
who are regularly engaged in soliciting and booking of passengers with their
nationalities and home addresses.
8. For alien personnel, valid busy from the Bureau of Immigration (ICR for native
born/resident aliens and visa for prearranged employees) and permit from the
Department of Labor and Employment (Alien Employment Registration
Certificate for resident aliens and Alien Employment Permit for non-resident
aliens). Submit papers for resident aliens only once unless there are
amendments.
10. Audited Financial Statements and Income Tax Return for the preceding year.
12. Tour packages with name of tour guides, hotels, resorts, transport operators,
restaurants, entertainment establishments and tariff rates (those accredited only
by DOT).
13. In case of new tour operator, proof of compliance with the P500,000.00 working
capital requirement. (Original Bank Certification)
14. Notarized contract of lease of office space or a sworn statement by the lessor
that the agency is a lessee thereof including branches, if any. (Not applicable if
renewal unless there is a change in address.)
15. For tour operators with branches, affidavit executed by the general manager of
the main office acknowledging the existence of said branch office; assuming full
responsibility for its operations, and certifying that it is not managed nor operated
by the persons/entities other than the duly accredited employees and officers of
the main office.
16. Photocopy of surety bond policy submitted to the Local Government Unit.
18. Payment of the following fees: (If check, pay to the order of the Department of
Tourism.)
Accreditation Fee
P1, 400.00
Branch Office
P1, 400.00
ID Fee (Optional)
P 30.00
Sticker
P 100.00
Department of Tourism
DOT Building, T.M. Kalaw, Rizal Park, Manila
Tel. Nos.: (632) 522-7057 / 4561 / 523-8411 / 525-3029 / 524-7734
Fax. No.: (632) 521-8113
Website: www.wowphilippines.com.ph
4.
PURCHASE OF HOUSING
AND CONDOMINIUM UNITS
The growing population in urban and suburban areas in the Philippines has
increased demand for housing, as well as pushed up in the long term prices of single
unit and condominium residential facilities. Increase in property values as a result of
demand offers excellent possibilities for secure investment in residential subdivisions
and condominium units, depending on area preferences. While development of
single unit residential subdivision tend to move away from urban centers,
condominium units are usually built closer to commercial areas and place of work.
Examples of land and property developers are Ayala Land, Bonifacio Land,
Empire East, Robinson Land and Rockwell.
General Requirements
Specific Requirements
A. For Individual Buyers
Procedure
West Parc 31-37 sq.m. studio units 1.8M-5.6M Filinvest Alabang, Inc.,
Condominiums, or 69-73 sq.m. 2- Reservation Filinvest Corporate City,
Filinvest bedroom units Fee of Alabang, Muntinlupa City
Corporate City, Situated at the heart of P50K
Alabang Filinvest Corporate City, Tel. No.: (02)850-
Southern Metro Manila’s 0888/809-5425
premier satellite city E-mail:
5-minute away from the westparc@filinvestcorpcity.com
luxuries of the city’s main
commercial hub while
providing the comforts of
the countryside where
greens and fresh air
abounds
Situated in an area
zoned for
commercial/retail
developments
Pioneer Pointe, 20.5 sq.m.-148 sq.m. P1.0M- Pioneer St. (35 meters
Mandaluyong 28-storey residential P9.4M from the corner of
City condominium in the heart For as low Reliance), Mandaluyong
of a booming business as P12.0K+ City
metropolis a month, no
Malls and shopping hubs lump sump Tel. Nos.: (02) 687-1155/
are practically outside and no 687-1177
your doorstep down E-mail:
With an innovative payment sales@pioneer-
concept called “Shared pointe.com
Development,” one can Website: pioneer-
own his studio or two- pointe.com
level, 2-bedroom unit at
cost
DEVELOPMENT OF HOUSING
AND CONDOMINIUM PROJECTS
The growing demand for different types of residential (as well as commercial)
units has made property development a profitable and attractive venture, although
requiring larger amount of capitalization.
The Housing and Land Use Regulatory Board (HLURB) is the planning,
regulatory and quasi-judicial national government body tasked to regulate land use
and, real estate and housing development.
The owner or the real estate dealer interested in the sale of lots or units in a
subdivision project or condominium project, respectively, shall register the project
with the Housing and Land Use Regulatory Board (HLURB) by filing the following:
10. Electrical plan duly signed and sealed by a licensed electrical engineer
11. Permit to operate a deep well and water resistivity and potability test
results from concerned government agencies
Additional Requirements
b. Building Permit
The owner of the real estate dealer interested in the sale of lots or units in a
subdivision or condominium project shall apply with the HLURB for a License to Sell
by submitting the following documents:
a. Segregation of the individual titles for all lots or units within the
project;
b. Submission of proof that titles to the saleable lots or units have been
issued; and
c. Submission of certified true copy of title of the common areas / open
space.
Note:
The performance bond required for the issuance of the license to sell may
be in any of the following forms:
The HLURB Regional Office, which has jurisdiction over the place where the
subdivision or the condominium is located, or
6.
The Housing and Land Use Regulatory Board (HLURB) is the national
government agency that regulates the development of memorial parks. The Rules
and Regulations for Memorial Park/Cemetery approved per HLURB Board
Resolution No. 681 Series of 2000 on 21 September 2000 have prescribed the
following guidelines.
Site Criteria
Location
1. Areas zoned as open space and not within the Strategic Agriculture and
Fisheries Development Zones (SAFDZ) as certified by the Department of
Agriculture (DA).
2. Areas zoned as agricultural, provided that the site is not tenanted and not
covered by operation land transfer and not considered as prime
agricultural land and located in areas covered by the Comprehensive
Agrarian Reform Program (CARP) as certified by the Department of
Agriculture (DA); and not irrigated as certified by the National Irrigation
Administration (NIA).
Physical Suitability
Accessibility
All relevant provisions of BP Blg. 344 e.g. dropped curves, curb cut-outs, etc.
shall be observed.
Land Allocation
There shall be no fixed ratio for saleable area, provided that the required
areas for roads, pathways, parking and other facilities and amenities are reserved.
Likewise, at least 50% of the saleable area shall be utilized for underground
interment in order to retain park-like character of the project.
Application for the Approval of the Application for the Approval of Final
Preliminary Memorial Park Plan Memorial Park Plan
1. Site Development Plan/Scheme 1. Final Memorial Park/Cemetery Plan
2. Vicinity map/location map duly signed 2. Engineering Plans duly signed and
by a geodetic engineer sealed by a licensed civil engineer
3. Topographic Plan 3. Storm drainage duly signed and
4. Zoning Certification issued by the sealed by a licensed sanitary
HLURB or city/municipality engineer
concerned 4. Centralized or combined storm and
5. Certified True Copy (CTC) of sewer system duly signed and sealed
Environmental Compliance by a licensed sanitary engineer
Certificate (ECC) or Certificate of 5. Site grading plan duly signed and
Non-Coverage (CNC) duly issued by sealed by a licensed civil engineer
the DENR 6. Electrical plan and specifications
6. CTC of conversion order or 7. Landscaping plan
exemption clearance from the 8. Summary of Project Study indicating
Department of Agrarian Reform market, source/s of fund, statement
7. CTC of Title and Survey Plan of income, cash flow and work
program
9. CTC of title or other evidence of
ownership or intent to sell and
authority to develop signed by the
owner, Tax Declaration and current
real estate tax receipt
10. Clearances/Permits/Certifications
from other agencies applicable to the
Project
11. Joint affidavit of owner/developer and
licensed environmental planner that
the memorial park/cemetery plan
conforms to the standards and
requirements of HLURB rules
12. List of names of duly licensed
professional who signed the plans
and other similar documents in
connection with the application filed
with HLURB
If the application for the project is physically feasible and the plan complies
with the zoning ordinance of the city or municipality where it is situated, the project
shall be issued a development permit issued by the HLURB or the city/municipality
concerned upon payment of the prescribed processing fee.
4. The names and addresses of all directors and officers of the business firm if
the owner and/or dealer is a corporation, association, trust or other entity,
and all the partners, if it is a partnership;
5. The general character of the business actually transacted by the owner; and
1. A copy of the Transfer Certificate of Title in the name of the applicant if none
was submitted in the application for plan approval;
3. Affidavit stating that the property is free from liens and encumbrances
The HLURB, at the expense of the applicant, shall cause the publication of
the registration statement for the lease/sale of the project in two newspapers of
general circulation (one published in English and another in Filipino), upon finding
that the project may be registered in accordance with the rules.
Performance Bond
The performance bond required for the issuance of the license to sell may
be in any of the following forms:
For more information on the licensing and registration of memorial parks, please
contact any of the following:
The HLURB Regional Office, which has jurisdiction over the place where the
project is located, or
The construction industry performance during the first quarter of 2004 has
been cited as “the strongest since 2001”. This is fueled by strong economic growth,
particularly in the real Gross Domestic Product, remarkable performance of the
agricultural sector, continuing strength of the service sector, and expansion in the
industry sector.
Construction Prospects
Due to improved investment climate and increase in housing construction,
the National Economic and Development Authority (NEDA) forecasts that the growth
in the construction industry will be between 5.0% to 5.8% in 2004.
The housing backlog in 2001 rose to 2.1 million units of shelter. To address
the backlog, about 500,000 housing units are targeted annually for the next 4 years.
The POCB develops, promotes and regulates the activities of the overseas
construction industry. It aims to implement the state policy of actively
encouraging construction activities that lead to the export of Filipino goods
and services, particularly, technical and managerial expertise.
The CIAC was established under the Executive Order 1008 as a quasi-
judicial body tasked to provide the necessary facilities for the speedy and
equitable settlement of construction disputes.
Contractor’s Licensing
In order to promote the safety and protect the interests of the general public
from risks of dealing with ill-prepared, unreliable and incompetent contractors, the
CIAP maintains and implements a licensing system through the PCAB. Republic Act
No. 4566 or the Contractor’s Licensing Law requires all persons/entities engaged in
the construction contracting business in the country to be licensed to undertake such
operations.
A. Legal
1. Duly accomplished PCAB Form Nos. 101a and 102
2. Certified True Copy of BTRCP Certificate of Registration with pertinent
BTRCP Form No. 16 (for sole proprietorship) or Certified True Copy of SEC
Certificate of Registration and Articles of Partnership/Incorporation and By-
Laws and subsequent amendments thereto showing construction as a
primary purpose
3. Authorized Managing Officer (AMO) Affidavit (PCAB Form No. 13) with a
passport size picture of AMO
4. Original NBI clearance of Filipino AMO
B. Financial
1. Audited Financial Statements dated within the last six (6) months immediately
preceding the filing of application signed on each and every page by
independent CPA and supported by the following documents, if applicable:
• For old companies, copy of the quarterly or annual Income Tax Return
certified true by the BIR, covering the income reported in the Audited
Income Statement submitted for the quarter or taxable year immediately
preceding the filing of application, whichever is applicable;
• Original copy of Bank Certification/Bank statement of account certified by
Bank Manager of cash deposits as of the Balance Sheet date and
Authorization to Depository Bank (PCAB Form No. 105);
• List of land and building/s owned by the company and registered in its
name (PCAB Form No. 106a) and Certified true copy of TCT including
back page;
• List of Construction and/or Transportation/Delivery Vehicles/Equipment/
Machineries/Plants owned by the company and registered in its name
(PCAB Form No. 106b);
• Certified true copy of the LTO Certificate of Registration and current
Official Receipt of Registration of registrable Construction and/or
Transportation / Delivery vehicles/Equipment reported;
• Certified true copy of Deed of Sale for non-registrable construction
equipment/machineries/plants;
• Authorization to BIR and other agencies (PCAB Form No. 105a)
C. Technical
• STE Affidavit/s (PCAB Form No. 107) with a passport size picture/s of the
nominated STE/s;
• Certified true copy by of valid PRC ID of STE as licensed professional or
original Certification of Good Standing from PRC;
• Original NBI Clearance/s of STE/s;
• STE Affidavit/s of Construction Experience (PCAB Form No. 108);
• Personal Appearance Form duly accomplished and signed by the STE/s
appearing before the designated officer of the PCAB or the nearest DTI
regional/provincial office (PCAB Form No. 109)
Note: Original Signature of AMO on each and every page of the application forms
including supporting documents except in the PCAB Form No, 109 is required.
Processing of Application
Categorization of Contractors
2. For a joint venture, a subscribed joint venture agreement making the parties
jointly and severally liable for a particular contract and compliance with LOI
630 (at least 75% Filipino capital) and a separate Joint Venture License per
RA 4566 on a project to project basis; and
AGRIBUSINESS ENTERPRISES
1. Leasehold Agreement
In some cases, the Purchase Order (PO), issued by the anchor firm, takes
the place of an MA and can be used as a bank collateral.
4. Joint Venture
In a joint venture arrangement, the agribusiness firm and the cooperative
agree to form a joint venture (JV) company. The JV leases the land from the
cooperative while the agribusiness firm provides the technology, financing
and management of operations. The cooperative members now become
hired laborers in the farm or the processing plant. The market could be the
JV company and/or the agribusiness firm.
• Cooperative-Managed Farm
The following options are offered for agribusiness investments that involve
construction of service facilities, such as terminal markets, slaughterhouses, post-
harvest facilities, irrigation systems, and other related infrastructures:
1. Build-Operate-and-Transfer (BOT)
2. Build-Own-and-Operate (BOO)
The proponent is authorized to finance, construct, own, operate and maintain
infrastructure or development facilities. In order to recover the investment as
well as operating and maintenance costs, the proponent is entitled to collect
rentals, fees, tolls plus a reasonable gain from facility-users. Proponents
under this scheme may assign facility operators.
4. Rehabilitate-Operate-and-Transfer (ROT)
5. Rehabilitate-Own-Operate (ROO)
This modality option refers to the turn-over of an existing facility to the private
sector for it to refurbish and operate with no time limit imposed on ownership,
provided that the operator does not violate the conditions of the franchise.
The operation of the facility can be perpetual.
6. Build-Lease-and-Transfer (BLT)
The pioneer enterprise is listed in the Investment Priority Plan of the BOI.
Under the “pioneer status”, the foreign investor can own 100% while under the “non-
pioneer status” the allowable ownership is only 40%.
Although the agricultural and fisheries sector remain to be the core of the
Philippine economy, very few Filipinos are able to invest in commercial scale
agribusiness due to lack of capital.
PROCESSING
COMMERCIAL PRODUCTION
EXPORT MARKETING
The following are the major products for exports in the Philippines:
The One Stop Export Documentation Center (OSEDC) houses under one
roof the following government agencies engaged in the processing of Commodity
Clearances and Certificates:
OSEDC clients are encouraged to attend the seminar on OSEDC to know the
procedures and documentation required for accreditation.
1. Pre-Loading Attachments
2. Bureau of Customs
Supporting documents:
a. commercial invoice
b. bill of lading (non-negotiable signed by the shipping lines)
c. copy of approved / processed export declaration
d. amendments (if necessary)
Procedure:
As per Customs Memorandum Circular CIC No. 182-96 GSP Form A bound
for Canada and USA will no longer require the official certifying authorities to
stamp and sign Certificates of Origin covering beneficiaries’ shipments.
b. Garments and Textile Export Board (GTEB) – The GTEB was created
to integrate and rationalize government policies and procedures
governing the Philippine garments industry. It is in charge with the
overall administration and allocation of export quota, processing and
issuance of garments and textile export clearances, bonded
manufacturing warehouse licenses, and authority to import raw
materials.
For more information on requirements and procedures for export activities and
marketing, please contact:
• Income Tax Holiday (ITH) or Exemption from Corporate Income Tax for four
years, extendable to a maximum of eight years; After the ITH period, the
option to pay a special 5% Tax on Gross Income, in lieu of all national and
local taxes;
• Exemption from duties and taxes on imported capital equipment, spare parts,
supplies, raw materials. Also breeding stocks and/or genetic materials or the
equivalent tax credit on these items, when sourced locally;
• Domestic sales allowance equivalent to 30% of total sales;
• Exemption from wharfage dues and export taxes, imposts and fees;
• Permanent resident status for foreign investors and immediate family
members;
• Employment of foreign nationals;
• Simplified import and export procedures;
Other incentives under Executive Order 226 (Omnibus Investment Code of 1987), as
may be determined by the PEZA Board.
For more information on economic zones, please coordinate with the following:
The SBMA continues to develop its Central Business District by devoting its
181-hectare area to commerce and tourism, allotting 5 hectares to a mini-
business park, 1.27 hectares for multi-story mixed-use project, 8,500 m2
additional office spaces, 15 hectares ship repair facility and waterfront
residential area.
This site, situated along Argonaut Highway, is ideal for a 12-hectare shopping
mall, 8-hectare convention center and 1.5-hectare business hotel to house
convention participants. The convention center is envisioned to be a two-
module type center with state-of-the art convention equipment. The first
building would be a 3,500 capacity Plenary Hall with 20 meeting rooms
varying from 200 to 1,500 seating capacity. The second module will be a
10,000 square meter multi-purpose hall as venue of local and international
exhibits, trade shows, performances, concerts and other indoor assemblies.
It features a Techno Center (Area A) with two standard factory buildings and
an administration building, and Techno Park (Area B), an industrial estate.
The administration building provides temporary office spaces to prospective
locators. It also hosts one local bank (affiliate of Japanese bank) that
provides full banking service to STEP locators.
D. ILANIN RESORTS
Linking the Freeport to the Bataan Techno Park (BTPI) is the former
NAVMAG, now known as Ilanin Forests, reserved for recreational and
tourism use under the National Integrated Protected Areas System (NIPAS).
The area is envisioned to be transformed into a Subic Bay Nature Park, a low
density and high value resort complex which shall feature, among others,
adventure tourism activities, a Marine Park and other ecologically sound
projects.
The area has been subdivided into project sites: Ilanin II refers to the four-
hectare Camayan Point. The area is an ideal site for a 400-room resort hotel
complemented by watersport facilities. Ilanin III or the 5,000 sq. m.
Commercial Tourism Area at Camayan Wharf is located at the center of
Ilanin Resorts. The site may serve as a transportation depot and is a suitable
location for souvenir shops, restaurants, health clubs and other services and
amenities. Ilanin IV or the 3-hectare hidden beach may include facilities such
as villas, hotels with restaurants, bars and swimming pools. Hidden Beach is
partly forested and partly grassland.
E. HILL 394
Hill 394 is found in the eastern part of Ilanin Forest. Called as such because
it used to be a secret helipad 394 feet above sea level, intentionally
constructed in the forest for military secrecy. It is home to 51 species of birds
and 151 species of trees. A panoramic view of the lush forests, Zambales
and Bataan mountains can be enjoyed at the top of the hill. The hilltop is
accessible by a four-wheel drive vehicle or is a 45-minute trail hike, and is
perfect for picnics, trail ride, mountain biking, camping and bird watching.
F. GRANDE ISLAND
Located at the mouth of Subic Bay is the tempting Grande Island, a self-
contained recreational center off the shores of Subic Bay. Because of its
location, it has held a significant role in the defense of the Philippines since
the 16th century. It was the former Fort Wint, with a heavily fortified and
armed outpost guarding the entrance of Subic Bay. Remains of history can
still be found like the anti-aircraft battery bunkers and cannons.
The island is being tapped for hotels, restaurants, golf course, and other
recreational facilities. A ferry boat will bring you to this beautiful island.
G. REDONDO PENINSULA
The management and control of Bataan Techno Park, Inc. (BTPI) has been
formally turned over to SBMA. The 365-hectare area can be utilized for the
establishment of, among others, manufacturing, tourism-related businesses,
centers for research and education, center for agriculture and aquatic
resource and retirement villages. The development of the BTPI complex will
enable its locators to gain access to Subic's world class facilities and
infrastructure including the seaport and the airport.
For more information on the SBMA, please coordinate with the following:
Promotions and Marketing Department
Subic Bay Freeport Zone
Building 225, Dewey Avenue, Subic Bay Freeport Zone
Tel. Nos.: (06347) 252-4626 / 4627 / 4354 / 4216
Fax. No.: (06347) 252-4216
Email Add.: promo@sbma.com
Website: www.sbma.com
A former U.S. military base, Clark’s location is right at the center of growing
markers in the Asia-Pacific region. The zone’s modern infrastructure facilities,
fiscal and non-fiscal incentives, professional support services, amenities, and
other advantages make it an ideal place for investments. The 4,400-hectare
main zone and 29,213-hectare sub-zone transforms the area into an airport-
driven urban center with information and communications technology,
aviation support, commercial trading, agro-industrial opportunities, tourism
and other sectors.
The following advantages are being offered in the Clark Special Economic
Zone:
Among the industrial and technology parks located in Clark are the following:
For more information on the Clark, you may coordinate with the following:
Marketing Department
Clark Special Economic Zone
Building 2127, C.P. Garcia St. cor. E. Quirino St., Clarkfield,
Pampanga
Tel. No.: (06345) 599-4652
Fax. No.: (06345) 599-2642
Email Add.: infor@clark.com.ph
Website: www.clark.com.ph
3. MACTAN EXPORT PROCESSING ZONE
For more information on the MEPZ, please coordinate with the following:
For more information on Baguio City Economic Zone, you may contact:
Officer-In-Charge
Baguio City Economic Zone
Loakan Road, Baguio City
Tel. No.: (06374) 447-3334 / 3330
Fax. No.: (06374) 447-3331 / 3683
Email Add.: bcez@bgo.csi.com.ph
Zone Administrator
Bataan Economic Zone
Mariveles, Bataan
Tel. No.: (06347) 935-4009 / 4004; 731-3272
Fax. No.: (06347) 561-2449 / 2451
Email Add.: bez@unet.net.ph
10.
Other than gasoline and oil production, the companies ventured into other
business activities such as franchising, and operation of gift and grocery shops. For
example, Petron has “Treats” and Caltex has “Starmart”. An individual who wants to
invest in the gasoline station business now also has an opportunity to be in the retail
of grocery, gift and other items.
A. Petron Corporation
Petron is the Philippines’ leading oil refining and marketing company. Its
refinery in Limay, Bataan has a capacity of 180,000 barrels per day – the
largest in the country. It can process imported crude oil into a full range of
petroleum products. It also operates a fully automated lubeoil plant in
Pandacan.
Today, Petron supplies more than one-third of the country’s all requirements.
It sells fuel oil and diesel in bulk to customers in power generation,
construction, land and marine transport, fishing, and various manufacturing
sectors. It also supplies jet fuel to airlines. Likewise, it retails gasoline, diesel
and kerosene to motorists, public transport operators, and sells its own LPG
brand to consumers through a dealership network. Almost half of Filipino
households use the LPG brand “Gasul”.
Manager
Materials Procurement and Services Department
Petron Corporation
32nd Floor, Petron Mega Plaza
358 Sen. Gil Puyat Avenue, Makati City
B. Seaoil Philippines
Over the years, Seaoil has continuously served the bulk of the fuel
requirements of multinational corporations, as well as those in the grass roots
level. This long and vast experience has equipped the company with an
enriched knowledge and understanding of the international and local market.
As a result, the company is able to produce innovative products and services
tailored-fit to the needs of the market, thus remaining uncontested in its claim
as the leader among the independent oil companies.
In 1980, Seaoil took a bold step towards its development when it opened its
first distribution depot facility in Mandaluyong, serving industrial requirements
for storage of bunker fuel oil. Later on, additional tanks were constructed to
serve the varied storage requirements of local and multinational companies.
Marketing Department
Ground Floor, Meridien Bldg.
#29 Anapolis St., Greenhills, San Juan, Manila
Tel. No.: (632) 723-5272
Fax. No.: (632) 531-6462 or
C. Pilipinas Shell
The Shell Marketing Retail of Shell Philippines oversees the retail trade and
Shell’s national service station network, and offers products and services to
our customers which includes: Shell fuels and lubricants, Select convenience
stores, Proserve lubrication service and Rainbow carwash. It offers the
following services to potentials retailers and dealers:
Asia Corporate Select (ACS) handles the pre-screening of all applicants and
recommends to Shell qualified applicants.
Stage 1
1. Attend the applicant’s briefing and pay a processing fee of P3,300.00
(VAT included) for Stage 1 processing fee.
2. Third party to do Credit and Background investigation.
3. Applicant will be scheduled to take a Psychological Examination. ACS will
inform applicant regarding the schedule of psychological examination.
Stage 2
1. For applicants who pass Stage 1, they shall undergo an “In-depth
interview” and pay P3,300.00 (VAT included) as Stage 2 Processing fee.
2. Home interview will be conducted by ACS at applicant’s residence.
Stage 3
1. For applicants who pass Stage 2, they shall be interviewed by Shell’s
Retailer Selection Panel (RSP).
2. All applicants who pass the Retailer Selection Panel (RSP) will be entered
into the “Active Retailers Pool” and pay P5,500.00 (VAT included) as
processing fee for Stage 3.
3. All applicants in the “Active Retailers Pool” shall await station availability.
4. Retail District will choose from the pool of candidates to fill any
requirements for new Retailers. They shall be interviewed by the Retail
District to confirm if he is FIT for the trading area where the available
station is located.
5. The chosen applicant will then undergo an OJT program for one (1)
month and pay P10,000.00 (VAT inclusive) as Training Fee under Stage
4.
6. Applicants who pass the OJT program will be formally appointed by the
Retail District as Retailer of a specific service station.
7. Shell retains the prerogative of appointing qualified applicants.
INVESTING IN A FRANCHISE
• Size/area of establishment
• Location
• Equipment
• Outlet type
• Stock inventory
• Office / space rental
• Insurance
• Permits and licenses
• Other working / operating expenses
• Franchise fee
• Marketing study
• Store design
• Layout assistance
• Training programs
• Leasehold improvements ( outlet construction )
• Equipment
• Pre-opening marketing expense, and pre-opening supplies
The franchisor or the Mother Company will provide continuing support to its
franchises including the initial training program. Before the franchisee gets started
with his business, he will undergo a Basic Operations Training Program (BOTP).
This, along with other programs, will enrich the franchisee's management and
analytical skills needed in the operation of the restaurant. The full time training
program lasts for 3 months and is conducted in a designated training store.
Other forms of assistance include:
• Letter of Intent (LOI) - containing the exact address of your proposed site,
your exact mailing address, contact numbers, etc.
• Vicinity Map of Proposed Site - for on-site evaluation
• Legal document certifying applicant's ownership of the site
• Detailed resume or bio-data
A minimum area
of 10 sq. m. or
allocated area to
receive mails
and packages.
Parcel Select
outlet has a
protected
territory that
ensures no other
Parcel Select
outlet will be
placed in the
immediate
territory.
However,
determination of
size of protected
territory varies
per location.
This is subject to
zoning and
market research,
determining the
volume of
business that
can be
generated per
immediate area.
Investment 1. Franchise The estimated Mini-Cart = P32, Franchise Fee:
Costs fee: initial investment 500.00/P42, 1. International
Php200,000 is ranging from 000.00 Franchise =
• Includes use P200,000 to US$5, 000.00
of name, P250,000 Mall-Cart =
service P149, 000.00 2. Local
marks, salon Breakdown: with monthly Franchise =
system, staff 1. P75,000 for 1 royalty of P2, P24, 000.00 +
evaluation year 250.00 P25, 000.00 as
and training, accreditation cash bond to be
salon design applied for
and other 2. P25,000 for goodwill, repair
services that training and commitment.
are incidental The cash bond is
to franchise 3. P50,000 for refundable upon
operation Initial Marketing termination of
Supplies and agreement.
2. Initial Inventories
franchise Other Expenses:
deposit: 4. P20,000 Initial Expenses
Php10,000.0 consumable Construction or
0 deposit for Rental Deposit
• Valid for 2 Domestic Signage
months; non- Shipments Equipment
refundable Inventory
5. P30,000 Uniforms
3. Security consumable Training
deposit: deposit for Insurance
Php50,000.0 International Business
0 Shipments License/Permit
• Refundable Working Capital
after the term 6. P50,000 Salaries
budget for fax Utilities
machine, Maintenance and
weighing scales, Repairs
office supplies, Supplies
minor
improvements
*Actual costs
vary depending
on individual
locations and
circumstances.
Return of 6 months to 2 Not indicated 4 months or Not indicated
Investment years shorter
depending on
the following
factors:
management
location
marketing
Telefax:
(0632) 913-
66252
Email:
reyeshaircutters@yahoo.com
E-mail:
msfranchise@fastmail.fm
Fax No.: (0632)
672-0923
• Fax a vicinity
map or
sketch of the
site with
details, i.e.
store size, for
a feasibility
study
Site/locati Heavy Shipping cost Ministop stores Not indicated
on pedestrian foot for provincial require a
requireme traffic, like areas are to be minimum of 80
nt jeepney, tricycle, shouldered by square meters
and bus the franchisee. and maximum of
terminals, public Although 120 square
markets, shipping costs meters
shopping malls, have been
groceries, school proven to be Ministop can
canteens, minimal. provide a
churches, location for a
lobbies of office Provincial sites prospective
buildings, etc. are subject to franchisee
ocular
inspection and
evaluation of the
company
Investmen Capital P280, 000.00 = P1.2M to P2.8M Minimal capital
t Costs investment for a new setup, cart depending on investment
Mister Donut system the franchise required
Franchise varies
- package
according to the
- P500, 000.00 = Loan assistance
type of shop best counter system - helps you
fit the proposed
- secure a
location. - P1M to P1.5M = franchising loan
full size store from Bank of
Indoor Take Out Southeast Asia
Booth (BSA) or any
Approximately other bank
P220T for indoor
spaces In-house
measuring financing
approx. 4-6 sq. program -
m. (E.g. cart applies only to
spaces inside 56% of the total
malls) cost of
machinery and
Take Out Shop does not include
Approximately the franchise fee
P400T for and renovation
enclosed costs.
commercial
spaces Amortization
measuring 4-9 schedule are as
sq. m. follow: 12 month,
24 month and 36
Dine In Shop month
Approximately
P700T or higher Franchise fee:
(depending on P200,000
store space and
extent of Equipment:
construction and P450-800,000
renovation).
Mister Donut With training of
Dine in Shops personnel
require a floor (cashier and
area of at least sapatero)
25 sq. m.
(The figures
above are
inclusive of the
franchise fee,
security deposit,
display
showcase,
signage, and
equipment to be
Return of The gross profit 6 months to 12 2-3 years Average payback
Investmen margin is 30%. months period of 2-3
t Per piece, the years with a
franchisee will profit rate of 20
earn P4.20 from to 40%
a regular donut
that sells for Buy-Back
P14.00 guarantee - Mr.
Quickie will buy
back the entire
package at a
pre-agreed
amount if you
decide to give up
your franchise
within your first
year of operation
new.shop@misterdonut.ph
For In-person
Visits:
Banner St.
corner Danny
Floro Street,
Bagong Ilog,
Pasig City
Website: Plaza
bench@benchtm.com Telefax No.
#10 Emerald
(0632) 533-2050
Ave., Ortigas
Center, Pasig
City
Network
Development
Manager for
South Luzon
9/F Jollibee
Plaza
#10 Emerald
Ave., Ortigas
Center, Pasig
City
OIC, Network
Development
Group for
Visayas and
Mindanao
2/F Jollibee P.
Del Rosario cor.
Pelaez Sts.,
Cebu City
Website:
www.jollibee.com
.ph
Tel. No.
(632) 898-8181
Fax No.
(632) 634-1191
12.
One of these is the establishment of day cares, learning centers and pre-
schools during the last decades. This has been brought about by the need of
working parents to put their children in reputable establishments, where the children
can be taken cared of in the absence of parents or guardians, at the same time they
are in a learning environment. Many parents also opt to send their children to
privately-run pre-schools because of the conceived “better” quality of education, as
evidenced by the availability of modern facilities, the student-pupil ratio, competence
of educators, etc.
Staff Requirements
Staff Requirements
Physical Environment
School site in this standard refers to school site for Kindergarten only and
does not include grade school.
1. School site must have a minimum lot area of 500 square meters. The area may
be divided into a minimum of 140 square meters for the classroom and 360
square meters for the playground. This area is only good for not more than 4
classes.
2. Space for playground must be provided, otherwise, easy and safe access to the
nearest part or open space not more than 200 meters walking distance from the
school site may be presented as an alternative. This arrangement must be
approved in writing by the authorized representative of the park or open space.
3. The school site must be used for educational purposes only. It must not serve as
the residence of the owner. It should not also be a “convertible school,” that is
during the day it is used as a school and after class hours converted into a
residence or used for commercial purposes.
4. Provision for office, teacher’s room, music and library rooms combining any two
of these must be considered.
Class Size
Ideal class size is 25-30 children per teacher. Class size may be increased
to 30-40 pupils per teacher if there is a teacher aide.
Classroom Size
Equipment
1. Playground and Garden – Playground apparatus must be installed in the school
ground such as jungle gym, sandbox, slide, balance beams and simple
obstacles.
2. Classroom Equipment and Fixtures – Furniture such as tables, chairs, shelves
lockers and cabinets should be proportionate to children’s sizes.
3. Health Facilities and Provision for Safety – Health facilities such as toilet, safe
drinking and washing facilities must be adequate and suitable to children’s
height, size and other special needs. First aid kits must be available. A rest area
may be provided for the children. The area should be free from hazards and
proper and adequate lighting and ventilation should be provided.
4. Activity Centers – The classroom should have activity areas for the following:
Day Care Centers are widely operated not only by the local government units
but by the non-government organizations, the private sector, national government
agencies, people’s organizations and other social welfare development institutions.
There are several laws and policies that mandate the setting-up of day care
service. Republic Act No. 6972 provides for the establishment of Day Care Centers
in every barangays. Executive Order No. 441 directed all government agencies and
government-owned corporations to provide day care services to children of their
employees below five years of age. Since the passage of the Local Government
Code, the operation of day care centers has been devolved to LGUs.
The provision of the day care service may vary in form and settings as
follows, depending on the needs of a specific community:
2. Center Based Infant Care or Child Minding Centers – are for children
ages 0-3 years old with provision for the conduct of stimulating activities
and feeding
3. Supervised Neighborhood Plays – are for children 2-5 years old that
facilitates the conduct of play activities
4. Family Day Care Centers – provide 0-5 years old children with temporary
care in the home of an accredited family child care worker
Procedures in the Accreditation of Day Care Centers and Day Care Workers
The Department of Social Welfare and Development, consistent with the
mandate of Republic Act No. 6972 prescribes the minimum criteria for accreditation
and licensing of Day Care Centers (DCC) and Day Care Workers (DCW).
Star Rating
Scores
Duration
5 stars
200
5 years
4 stars
199-167
4 years
3 stars
166-134
3 years
2 stars
133-101
-
1 star
100-01
-
4. For those with five (5) star rating, the accreditation is valid for five (5)
years; four (4) years for four (4) stars; three (3) years for three (3) stars.
Day Care Centers with 1 and 2 star rating shall not be issued
accreditation certificates but instead shall be continuously provided
technical assistance until they are able to meet the set standards.
The following are the required qualifications of a person who shall provide
substitute parental care to children aged 5 years and below left under the custody of
day care centers:
Minimum Standards for Day Care Center and Day Care Worker
1. Structural Design
The Center must be in a separate single story structure or in the ground floor,
if occupying 2 or more story building and must conform to safety building
standards with updated fire and safety certificate. It must have accessibility
features for physically disabled or special children as provided for in B.P. No.
344 or the Accessibility Law. Adequate lighting and ventilation, separate
indoor toilets, washing facilities and safe drinking water should be provided.
2. Location
The site must be far (at least 200 meters) from high risk areas such as rivers,
dump sites or main thoroughfares. It must also be located away from
gambling dens and other ill-repute establishments. A space for playground,
communication and community welfare facilities must also be provided.
3. Space
The site must provide enough indoor and outdoor space for every child to
move freely for their social, cultural, recreational and physical activities.
4. Furnishings
5. Services
The Center must provide for activities geared towards the holistic
development of the child, such as free and structured indoor and outdoor
play; news sharing and story telling that promotes good values and character;
and arts, crafts, games, etc. that promote physical, mental and creative
development.
Annual health services for the child such as physical and laboratory
examination, oral and dental examination and immunization should be
provided. The provision of first-aid management to the child is also expected.
6. Program Materials
Day care workers shall make use of program materials that will enhance the
physical, social and cognitive development of the child particularly those that
are intended for spiritual development, family life orientation, music, arts and
crafts appreciation.
For more information on the setting-up of Day Care Centers, please contact:
3. All special programs with short-term duration and are fee-charging, e.g.
English language for special purposes, courses which caters to the
performing artists (local and abroad), caregiver, security, among others;
4. Academic Rules
• Schedule and breakdown of tuition fees and other program costs
• Documented grading system
• Entry requirements for the program to comply with the relevant
training regulations (if applicable)
• Rules on attendance
5. Support Services
• Health services
• Career guidance / placement services
• Community outreach program (optional)
• Research that supports the operation of the school is carried out (e.g.
surveys, consultations, meeting with local industry and community
representatives, technical research (optional);
Registration Procedures
1. The applicant Training Institute shall file a Letter of Application with the TESDA
District / Provincial Office in whose area of jurisdiction the institution operates, at
least six (6) months before the institution will offer the program;
7. If the TVET Institution fails to meet the requirements for a TVET program that is
intended to develop a particular level of competencies, the program may be
adjusted to develop lower level competencies. If the TVET Institution meets the
requirements to offer the adjusted program, the appropriate Certificate of TVET
Program Registration shall be granted to the applicant institution;
8. The denial of the application for registration shall be subject to appeal to the
Office of the Director General, TESDA. The decision of the Director General shall
be final and executory.
Accreditation under the PTQA shall use the seven-point education criteria for
performance excellence:
1. Leadership
2. Strategic Planning
3. Student, Stakeholder and Market Focus
4. Information and Analysis
5. Faculty and Staff Focus
6. Process Management
7. Organizational and Performance Result
The PTQA shall have four levels of recognition, to wit:
• Bronze level for commitment to quality management
• Silver recognition for proficiency in quality management
• Gold recognition for mastery in quality management
• Platinum award for performance excellence
For schools offering a TVET Program, visit the nearest TESDA Office or the TESDA
website at www.tesda.org for online registration, or please contact:
The assortment of Philippine products, the diversity of marine, natural and biological
resources, and various Filipino needs and preferences present an array of
opportunities for investors who wish to establish businesses in areas other than
Metro Manila or highly urbanized cities. Investing in different provinces and regions
is one strategy, which can make products and resources more accessible to the
countryside, minimize production and transportation expenses, and decongest the
high density urban cities, especially Metro Manila.
The Department of Trade and Industry Provincial Offices are promoting the growth
of at least one priority industry cluster in each province. For businessmen and
potential investors in search of business opportunities, DTI has identified some
specific trade and investment ventures in the priority industry clusters. Additional
business opportunities related to other industry sectors in the provinces may be
obtained from the Regional Resource Profiles of the Bureau of Domestic Trade
(RRP-BDT). The RRP may provide prospective investors with the list of available
raw materials, products and skills in the provinces.
For the purpose of the Act, “services” shall exclude those rendered by any
one, who is duly licensed by the government after having passed a government
licensure examination, in connection with the exercise of one’s profession.
Republic Act No. 9178 or the Barangay Micro Business Enterprises Act of
2002 is a law signed on November 13, 2003 to encourage the formation and growth
of barangay micro business enterprises by granting them incentives and other
benefits.
Strengthening BMBEs would mean more jobs and livelihood, and a better
quality of life for Filipinos.
1. Income tax exemptions from income arising from the operations of the
enterprise;
Funding Agencies
How to Register
Registration Requirements
1. Duly filled-up application form (BMBE Form 01) in triplicate, signed by the
owner or manager of the entity for registration; and
2. Three passport size ID pictures
Procedures
Registration Costs
The East ASEAN Growth Area sub-regional forum for cooperation was
initiated in 1994 for the purpose of increasing trade, investment and tourism. At its
onset, the sub-region saw many encouraging cross-border initiatives between Brunei
Darussalam (the whole area), Indonesia (including all provinces of Sulawesi and
Kalimantan, Maluku and Irian Jaya), Malaysia (Sabah, Sarawak and Labuan) and the
Philippines (the Mindanao-Palawan regions).
This cooperation agreement stalled in the wake of the Asian crisis in 1997
and various political troubles in the Philippines and Indonesia. Overcoming
seemingly insurmountable odds, BIMP-EAGA's members appear to be moving on
the renewed initiative with the urgency of a swiftly-recovering brotherhood of
similarly-motivated nations.
These positions are logical as far as they are based on the natural resource
endowments, geographically strategic locations, and other existing conditions of the
regions for development.
ZAMBOANGA
DAVAO
• Investment in the
development of
international/
inter-regional
ports
• Freight and
forwarding
services
• Export of
products from
other BIMP-EAGA
• Novelty items member countries
from tourist • Mountain guides • Pearl farming
destinations such
as Mt. Apo and
the Philippine
Eagle • Shops for local
Conservation and foreign
Center tourists
• Small canteens
for travelers
• Novelty shops
SOCSARGEN
Key Area/s And Key Players Market Opportunities
Product/s
• Marine products • Fishermen • Domestic and • Investment in the
like tuna, • Traders foreign regions fisheries
shrimps, lobsters, • Exporters and aquatic
seaweed, etc. • Manufacturers resource
• Dried fishes and • Production and
other marine processing
products facilities for
marine products
• Seaweed farming
• Cold storage
facilities
• Drying facility
CAVITE
LAGUNA
BATANGAS
RIZAL
14.
1. Janitorial services
2. Security management
3. Plumbing, fumigation and air-conditioning services
4. Messengerial and liaison services
5. Other maintenance services (window cleaning, etc.)
In recent years, assets and property management ventures have also been
undertaken by private individuals or companies who purchase from lending
institutions their foreclosed properties, and develop and re-sell them at a profitable
price.
The increasing number of motor vehicles in the Philippines has brought about
a need for more motor vehicle repair and maintenance shops, which are
indispensable in keeping transport vehicles in good operating condition. This need
provides opportunities for small and medium entrepreneurs to engage in this
particular type of service activity, which calls for employment of shop supervisors,
skilled workers and apprentices.
The smaller ones may specialize in specific jobs such as electrical works,
body-building works, body painting, air-condition repair and maintenance, engine
overhaul, etc. The bigger shops may perform a wider range of services required by
any type of motor vehicle. Services done at the shops located within gasoline
stations would also be wide-ranging to include cleaning, engine tune-ups, wheel
alignment and balancing, etc.
The “main repair” services included those tasks and activities that require
one-day to one-week repair time. These would include:
•
repair of fixable equipment (e.g., brake calipers/rotors/drums, alternators,
fuel pumps, carburetors, power train components, airconditioning)
• repairing, rebuilding or installation of engines, and other major
components such as transmissions and differentials
• repairing, restoring and painting vehicle bodies
• replacement of underchassis and suspension parts/components
OVERSEAS CONTRACTING AND PLACEMENT FOR OVERSEAS EMPLOYMENT
a. Filipino citizens or at least 75% of the capital stock is owned by a Filipino in case
of partnerships and corporations;
c. Those who are qualified by law or other government regulations to engage in the
recruitment and placement of Filipino workers for overseas employment.
c. Corporations and partnerships, when any of its officers, members of the board or
partners, is also an officer, member of the board or partner of a corporation or
partnership engaged in the business of travel agency
d. Those who have derogatory records such as, but not limited to, the following:
e. Any official or employee of DOLE, POEA, OWWA, DFA and other government
agencies directly involved in the implementation of R.A. 8042 or the Migrant
Workers and Overseas Filipinos Act of 1995 and/or any of his/her relatives within
the fourth degree of consanguinity
1. Single Proprietorship/Partnership
• Income Tax Returns (ITR) of the proprietors for the past 2 years
• Savings Account Certificate showing a maintaining balance of not less
than P500,000.00
3. Existing corporation
• Verified financial statement
• Corporate tax returns for the past 2 years
• Savings Account Certificate showing a maintaining balance of not less
than P500,000.00
d. Clearance from the NBI and other government agencies of all persons
involved in the business
e. Undertaking from the applicant stating the following: (in case of corporation
and partnership, members are jointly liable with the company over claims
arising from employee-employer relationship)
• The agency may require the worker to undergo trade testing and
medical examination only after the worker has been pre-qualified for
employment.
2. Full and complete responsibility for all claims and liabilities in connection
with the use of the license
3. Joint liability with the employer for all claims and liabilities in connection
with the implementation of the contract
h. List of all officials and personnel involved in the recruitment and placement
agency with the following:
• The Administration shall inspect the site and facilities of the office before
issuance of license
3. Action upon the Application. Applications will be acted upon within 15 working
days upon receipt of an application. Denial of an application will result to
forfeiture of the filing fee.
4. Payment of Fees and Posting of Bonds. Upon approval of the application, the
applicant shall:
a. pay a license fee of P50,000.00;
b. submit an Escrow Agreement in the amount of P1,000,000.00;
c. confirmation of escrow deposit with an accredited reputable bank; and
d. a surety bond of P100,000.00 from a bonding company acceptable to the
Administration and accredited by the Insurance Commission.
The coconut industry is very important in the Philippines because one third of
the population depend on coconut production for livelihood. Recently, new coconut
products as well as new markets that offer excellent potentials have also been
identified.
Prospective investors may wish to put their capital into the industry. The
table on pages 39 and 93 list the specific industry activity from commercial
production to post-harvest to processing which are open to investors. Most of the
possible investments identified by the Agribusiness and Marketing Assistance
Service of the Department of Agriculture are in the form of joint venture or build-
operate-transfer schemes because of large project costs, which averages $2 to 5
million.
1. Micro-Finance credit
2. Upgrade insurance
3. Basic commodities access
4. Farm diversification
5. Direct copra marketing
6. Bio-fuel development
7. Integrated farming system development
8. Bio-technology or varietal improvement and crop protection
9. Coconut farmers institution building
10. Industry and corporate promotions
For more information on PCA programs and services, please contact:
15.
COMPETITIVENESS RANKING
OF PHILIPPINE CITIES IN 2003
The Asian Institute of Management Policy Center’s City Competitiveness
Program pioneered a project to determine the competitiveness of Philippine cities. It
studied the capacity and capability of Philippine cities for effective governance,
human development and business growth, using research methodologies requiring
quantitative and qualitative data.
The project presents the complete ranking of fifty cities, and includes the
strengths of the top ranking cities per category. The publication serves as a
reference for knowing more about business and other conditions in Philippine cities.
The information about Philippine cities will be very helpful to investors who
are particularly interested in establishing their businesses outside Metropolitan
Manila.
The AIM Policy Center used the following as criteria in identifying the
competitiveness of Philippine cities:
Cities are vital hubs for national economic development because they
function as centers of economic development. The strength and overall
attractiveness of the cities economy for business have great impact to its
competitiveness.
• The city’s revenues will considerably increase in the next six months
• The city’s regulatory environment such as licensing procedure and
fees, taxes and other regulatory requirements, is conducive to
business
• Tourism is vibrant
• Average household income
• Local inflation rate
• Percentage of top 200 companies in the city
• Population vs. fast-food chain locators
• Market size
• Consumer Price Index
3. Linkages and Accessibility
• Raw materials and other production inputs are located near the city
• Transportation system for moving raw materials from domestic
sources to the city and finished goods to other domestic markets
works very well
• International entry and exit points such as airports, seaports, and
other transshipment points are located near the city
• Availability of support services, such as product or process
development, marketing, and business strategy making
The presence of trainable and adaptive labor pool puts a city at the forefront
of business ventures. Businessmen are likely to invest in cities where there is
competent labor force and readily available knowledge support services that
will guarantee smooth operation of their businesses.
5. Infrastructure
7. Quality of Life
• The city, especially its roads and public open spaces, and open
bodies of water, is always clean
• Air quality in the city is clean
• The city’s rest and recreational facilities (cinemas, bookstores, mall,
etc.) are adequate
• Security environment is conducive for business
• Incidence of theft and murder per 100,000 population
• Hospital beds per 100,000 population
• Life expectancy
DOING BUSINESS
IN THE PHILIPPINES
16.
SECURING BUSINESS PERMITS
AND BUSINESS REGISTRATION
Requirements
9. Proceed to the waiting area and wait for the number to be called by
the examiners at windows 1-10
Investors setting up business in the country have to comply with the following
general requirements:
Operational Requirements
Export of products will need clearances and permit prior to every shipment:
For taxation purposes, every business enterprise has to register with the
Bureau of Internal Revenue (BIR). The procedures in registering at the BIR are the
following:
12. Secure a permanent record file number of Tax Identification Number
(TIN) from the BIR National Office in Diliman, Quezon City
13. Register the business/trade name at the nearest BIR office. Secure and
file an application form together with the following supporting papers:
• Mayor's Permit
• Certificate of Business Name Registration from DTI
• Articles of Partnership or Corporation
• Residence certificate
14. Secure authority to print books of account, invoices, receipts, and other
accounting records by filling out four copies of an application form with
attached draft copies of the material to be printed as well as copy of the
job order.
For more information on acquiring TIN and registering with the BIR, please contact:
He may also apply for coverage as an OFW, if he was an SSS member and
was separated from employment. If he is already paying voluntarily, he may also
apply to change his membership status to a voluntary OFW member.
A person registering with the SSS for the first time as an employee, self-
employed, non-working spouse or OFW should submit, together with the SSS
registration form, a photocopy of his/her birth or baptismal certificate or passport. In
the absence of these documents, any two of the following documents:
• record of employment
• GSIS member's record
• certificate from the National Archive
• birth/baptismal certificate of children
• marriage contract
• driver’s license
• school records or voter’s ID card
• Alien Certificate of Registration, or
• joint affidavit of two disinterested parties attesting to the correct name and/or fact
of birth of the person concerned
A married person should also submit his or her marriage contract upon
registration. If reporting children, he or she should submit the birth or baptismal
certificate of the child, if legitimate; proof of filiations showing acknowledgment of the
child, if illegitimate; or decree of adoption, if legally adopted.
REGISTRATION OF PARTNERSHIPS
AND CORPORATIONS
In compliance with Republic Act No. 8792 or the E-Commerce Act, the SEC
has made available to the public the convenience of online registration through the
SEC-iRegister system. It is a quick, affordable and user-friendly service that is
available to the public 24 hours a day, 7 days a week. An easy, step-by-step guide
allows everyone to use the web-based registration system from the convenience of
their desktop. With SEC-iRegister, clients can do the following online:
• Cashier forwards the application for records set up assignment work cell,
sorting, encoding, and assignment of registration number. Then
forwarded to the Express Lane Unit for recording, typing of certificate of
incorporation and review.
• Resident agent’s
acceptance of appointment
• For representative –
Affidavit executed by the
President or the Resident
Agent stating that the
applicant is in sound
financial condition
Schedule of Fees
The examining and filing fees of some basic registration documents are as
follows:
• Articles of Incorporation
• Stock corporation with par value 1/5 of 1% of the authorized capital stock or
the subscription price of the subscribed capital
stock whichever is higher but not less than
P1,000
• Stock corporation without par
value 1/5 of 1% of the authorized capital stock
computed at P100 per share or the
subscription price of the subscribed capital
stock whichever is higher but not less than
P1,000
REGISTRATION OF COOPERATIVES
Board of Investments
Ground Floor, Industry and Investments Building
385 Sen. Gil Puyat Avenue, Makati City
Telefax No.: (632) 895-8322
E-mail: OSAC@boi.gov.ph or DRMiralles@boi.gov.ph
20.
Republic Act 7042, also known as the Foreign Investments Act of 1991,
defines and outlines the procedures and conditions under which foreign nationals,
including former Filipino citizens, may invest and do business in the Philippines with
a required paid-in capital of at least US$200,000. The law was amended by
Republic Act 8179 to further liberalize the entry of foreign investments into the
country.
While most areas of business have limits for foreign investors, Section 9 of
the amended Foreign Investments Act of 1991 lists the following types of businesses
where former natural-born Filipinos, who have not elected dual citizenship, can enjoy
the same investment rights as Philippine citizens:
1. Cooperatives
2. Rural banks
3. Thrift banks and private development banks
4. Financing companies
Former natural-born Filipinos can also engage in activities under List B of the
Foreign Investments Negative List. This means that their investments shall be
treated as Filipino or will be considered as forming part of Filipino investments in
activities closed or limited to foreign participation.
1. Exercise of profession
2. Defense-related activities
3. Security agency
4. Small-scale mining
5. Rice and corn industry
6. Cockpit operation and management
Former natural-born Filipinos who have elected dual citizenship shall not be
covered by the prohibitions set forth above, by virtue of Republic Act 9225. Dual
citizens are not prohibited from enjoying the same investments rights as Philippine
citizens.
The revised Foreign Investments Act also deleted List C of the Foreign
Investments Negative List. List C contains investment areas already adequately
served by existing enterprises and in which foreign investments need not be
encouraged further. Deletion of this list is expected to open further the market to
foreign investments and keep existing firms efficient and responsive to the needs of
consumers. Consumers will also benefit through wider choices of products in terms
of quality and prices.
Additional Requirements
Former natural-born Filipinos who wish to do business in the Philippines must
also submit a copy of birth certificate, certified by the local civil registrar or the
National Statistics Office. For those born abroad, a certificate of birth from the
appropriate government agency of the country where the birth is recorded will be
required. It must show the father or mother to be a Filipino at the time of birth or if
the citizenship of the parents is not indicated, additional proof that the parent is a
Filipino citizen or has not lost his/her Filipino citizenship at the time of the applicant
investor’s birth.
Those born before January 17, 1973 of Filipino mothers must also submit all
of the following:
e. Copy of birth certificate of mother or father certified by the local civil registrar
or the NSO
The IPP is a list of various areas of economic activities for investment eligible for
government incentives as provided for in the Omnibus Investments Code of 1987, as
amended. This is drawn up and revised every year in consultation with concerned
government agencies and the private sector. Generally, the IPP seeks to attain the
following goals:
An enterprise may still be entitled to incentives even if the activity is not listed in
the IPP so long as:
• at least 50% of production is for exports, if Filipino-owned enterprise; and
• at least 70% of production is for exports, if majority foreign-owned enterprise
(more than 40% foreign equity)
Tax Exemptions
• Export traders may be entitled to the ITH only on their income derived
from the following:
- Export of new products, i.e., those which have not been exported
in excess of US$100,000 in any of the two (2) years preceding the
filing of application for registration, or
- Export to new markets, i.e., to a country where there has been no
recorded import of a specific export product in any of the two (2)
years preceding the application for registration.
• Mining Activities
In no case shall the registered pioneer firm avail of this incentive for a
period exceeding eight (8) years.
3. Exemption from wharfage dues and export tax, duty, impost and fees
All enterprises registered under the IPP will be given a ten (10) year period
from the date of registration to avail of the exemption from wharfage dues
and any export tax, impost and fees on its non-traditional export products.
Registered enterprises will be exempted from the payment of all taxes and
duties on their importation of breeding stocks and genetic materials within ten
(10) years from the date of registration or commercial operation reasonably
needed in the registered operations.
Tax Credits
1. Tax credit on tax and duty portion of domestic breeding stocks and genetic
materials
A tax credit equivalent to one hundred percent (100%) of the value of the
tariff duties and taxes on local breeding stocks within ten (10) years from
date of registration or commercial operation for agricultural producers.
A tax credit equivalent to the national internal revenue taxes and duties paid
on raw materials, supplies and semi-manufacture of export products and
forming part thereof shall be granted to a registered enterprise.
For the first five (5) years from registration, a registered enterprise shall be
allowed an additional deduction from taxable income equivalent to fifty
percent (50%) of wages of additional skilled and unskilled workers in the
direct labor force. This incentive shall be granted only if the enterprise meets
a prescribed capital to labor ratio and shall not be availed simultaneously with
ITH.
Non-Fiscal Incentives
15. Importation of consigned equipment for a period of ten (10) years from date of
registration, subject to posting of re-export bond.
Considering the multitude of OFWs, and the magnitude of foreign exchange that
they continue to contribute to the economy, the Board of Investments (BOI) believes
that OFWs are excellent sources of investment into the Philippines, hence, the
inclusion of overseas Filipinos among BOI’s target investors.
To make its investment promotions effort for this sector effective and gain more
impact, the BOI has integrated its overseas promotions program with the Overseas
Workers Welfare Administration’s (OWWA) Reintegration Preparedness Program.
Among the activities and services of the BOI for OFWs are:
Depending on the preference or need of a particular job site, the BOI may
conduct either a general investment briefing or a more advanced seminar
workshop dealing with entrepreneurship and business/investment counseling.
3. Assistance in the preparation of project report/project feasibility for BOI
registration
Board of Investments
Department of Trade and Industry
Industry and Investments Bldg.
385 Sen. Gil Puyat Ave., Makati City
Tel. Nos.: (632) 890-9332 / 897-6682 / 895-3640
Fax Nos.: (632) 895-3512 / 890-3172
Republic Act 8762, also known as the Retail Trade Liberalization Act of 2000,
was enacted to promote consumer welfare by attracting and promoting productive
investments of foreign nationals and Filipinos overseas to stimulate economic
growth, and enable Philippine goods and services to become globally competitive
through the liberalization of the retail trade sector.
The law defines retail trade as any act, occupation or calling of habitually
selling merchandise, commodities, or goods directly to the general public for
consumption.
Under Sec. 4 of the law, natural-born citizens of the Philippines who have lost
their Philippine citizenship but who reside in the Philippines, are granted the same
rights as Filipino citizens in the retail trade business.
Transferee
Both laws define former Filipinos as citizens of the Philippines from birth
without having to perform any act to acquire or perfect their Philippine citizenship,
who lost said Philippine citizenship, and who have the legal capacity to enter into a
contract under Philippine laws.
Land • either of the spouses may avail • either of the spouses may avail
Acquisition of the privilege of the privilege
for Both
Spouses • in case both spouses wish to • in case both spouses wish to
acquire lands for this purpose, acquire lands for this purpose,
the total area acquired should the total area acquired should
not exceed the maximum not exceed the maximum
allowed allowed
• liability to prosecution
under the applicable
provisions of the
Revised Penal Code
and subject to
deportation in
appropriate cases
4. permanent
disqualification from
availment of the
privilege under this
Act
The application for land registration should be filed in triplicate with the Clerk
of the Regional Trial Court of the province/city where the property is located. The
following documents should be attached to the application:
The following documents are required for the filing of land transfer:
23.
d. Conversion may be allowed if the land is not among those considered non-
negotiable for conversion (e.g. lands granted to tenants through the
Comprehensive Agrarian Reform Program).
e. When the land ceases to be economically feasible and sound for agricultural
purposes or the locality has become urbanized and the land will have greater
economic value for residential, commercial, industrial, or other non-agricultural
purposes.
f. Conversion of lands within Strategic Agriculture and Fisheries Development Zone
(SAFDZ) shall consider the following:
• The conversion of land use is consistent with the natural expansion of the
municipality or locality, as contained in the approved physical framework and
land use plan.
• The area to be converted is not the only remaining food production area of the
community.
• The land use conversion shall not hamper the availability of irrigation to nearby
farmlands.
• The areas with low productivity will be accorded priority for land use conversion.
• Sufficient disturbance compensation shall be given to farmers whose livelihood
are negatively affected as provided for by existing laws and regulations.
6. When the agricultural land which is the subject of the application for conversion
has been acquired under RA 6657, its conversion shall be allowed only if the
applicant is the agrarian reform beneficiary thereof, and after he has fully paid his
obligation under Section 65 of RA 6657.
Documentary requirements
7. The applicant shall submit six copies of the following documents in six separate
bound folders (one original set and five photocopy sets) with table of contents
and page numbers of all documents including photographs, sequentially
numbered, except for maps and development plans which shall likewise be in
sextuplicate but shall be submitted in six separate envelopes.
8. Of the six folders, two will be transmitted to the Municipal Agrarian Reform
Officer (MARO), containing only the filled-out application form and documents
(TCT, True copy of the Certificate of Title, directional map)
9. The remaining four folders shall contain all the documents enumerated and are
applicable.
e. Official receipt showing proof of payment of filing fee and inspection cost
4. Applicant is required to post a cash bond equivalent to two point five percent of the
zonal value of the land in form of cash or manager's check posted in favor of the
DAR
5. In lieu of a cash bond, the applicant may post a surety bond, issued by the GSIS,
equivalent to at least fifteen percent of the total zonal value of the land
6. DAR shall forfeit the bond in favor of the Agrarian Reform Fund when the applicant
carries out actual conversion activity on the land prior to the application's approval
7. After compliance with the terms and conditions of the bond, the applicant may opt
to refund or convert the bond into a performance bond after issuance of the
conversion order
8. The following projects shall be exempt from posting of bond:
• Socialized housing projects certified by the Housing and Land Use Regulatory
Board (HLURB)
• Resettlement projects for families displaced by development of government
projects certified by the National Housing Authority
• Community Mortgage Program (CMP) projects certified by the National Home
Mortgage Finance Corporation (NHMFC)
h. True copy of the Original Certificate of Title (OCT) or Transfer Certificate of Title
(TCT) certified by the Registry of Deeds not earlier than 30 days prior to
application filing date.
l. Joint venture agreement or any other business arrangement on the use of the
land between the landowner and the developer (if the developer is other than the
landowner) or between the EP/CLOA holders and the developer (if the land was
awarded under the agrarian reform program
4. statement of project cost and availability of potential funding sources for the
development of proposed project
• At least 4 photographs taken from the center of the landholding: one facing
north, one facing east, one facing south and one facing west
• At least one photograph per corner of the landholding's borders
• At least 2 photographs each for all man-made structures on the land taken from
opposite angles
• At least 2 photographs each of the front view of the billboard/s. The applicant
shall set aside the second copy of said photograph/s for submission to the
MARO
• Sufficient number of photographs of the most conspicuous landmarks from the
nearest barangay center and leading to and from the entry and exit routes at the
subject landholding to assist the ocular inspection team
q. Affidavit/Undertaking of the applicant stating the following:
5. The number and names of the farmers, agricultural lessees, share tenants, farm
workers, actual tillers, and or occupants in the land holding. In the absence of
such persons, submit a statement attesting to such fact.
6. That the applicant has paid or shall pay disturbance compensation to these
persons
7. That the applicant has erected the required number of billboards
8. That the applicant shall not undertake and has not undertaken premature
development prior to issuance of a Conversion Order
9. That he authorizes the DAR forfeiture of his bond if the need arises
10. That the subject land is not in any form of dispute in courts or outside of it
s. Certification from the Housing and Land Use Regulatory Board (HLURB)
Regional Officer on the actual zoning or classification of the land
z. Topographic map
• Filing fee:
• For lands with an area of less than or equal to 5 hectares: P1,000.00
• For lands with an area larger than 5 hectares: P2,000.00
• Inspection cost:
6. P10,000.00 - if the subject landholding is in the same island as that of the Office
of the Regional Director
7. P15,000.00 - if the subject landholding is not within the same island as that of the
Office of the Regional Director
• P10,000.00 - if the subject landholding is within the main island of Luzon, except
the Bicol peninsula
24.
To adopt to the financing needs of SMEs, two types of loans are available
under the program: short term loans payable in one year, and long term loans that
are payable up to five years.
Objectives
• For short-term loans, the entrepreneur may tap the program either for export
financing (export packing credit) or a credit line for temporary working capital.
• For long term loans, SMEs may apply for loans for permanent working capital, or
to purchase equipment, a lot or to construct a building/warehouse.
• For short-term loans, the program can fund up to 70% of the value of the LC/PO
(export packing), or 70% of working capital requirement (temporary working
capital); maximum of P5 M.
• For long-term loans, 80% of the incremental project cost, maximum of P5 M.
The program will not decline a loan only on the basis of inadequate collateral.
However, the borrower must be willing to mortgage any available business and
personal collateral, including assets to be acquired from the loan, to secure the
borrowing.
The debt-equity ratio must at most be 80:20 after the loan. For franchisees,
the required ratio is 70:30. In addition, the borrower must show positive income for
the preceding year. Should the SME borrower's financials show negative income in
the past year, the GFI may consider their average income for the last two or three
years.
The participating GFIs will charge the same rate for the program based on a
regular review. In its program launch, the interest rate for loan releases until June
30, 2003 shall be: 9% for short-term loans; 11.25% for medium-term loans of up to
3-years and 12.75% for loans over 3-years to five years.
Registered/Unregistered Real
Estate Mortgage/Chattel
Registered/Unregistered Real
Mortgage
Estate Mortgage/Chattel
Assignment of LC or PO (if
Mortgage
applicable)
Corporate Guarantee (if
Collateral** Guarantee cover
franchisee)
Corporate Guarantee (if
Assignment Of lease rights (if
franchisee)
franchisee)
Assignment of lease rights (if
Other acceptable collaterals to
franchisee)
GFIs
Other acceptable collaterals
to GFIs
Borrower:
At most 80:20 after the loan
Debt- At most 80:20 after the loan
At most 70:30 (if franchisee)
Equity
Ratio
Positive income for last year Positive income for last year. (If
(If past year's income is past year's income is negative,
negative, the average income the average income of past 2 or 3
Profitability
of past 2 or 3 years should be years should be positive). It is
positive). It is implied that implied that projects are
projects are operational for at operational for at least a year
least a year.
Other
Based on Industry standards Based on industry standards
Ratios
**Collateral Policy
**The Program will not decline a loan only on the basis of inadequate collateral. However, the borrower
must be willing to mortgage any available business and non-business related collateral, including
assets to be acquired from the loan to secure the borrowing. The program shall adopt a differentiated
minimum/partial collateral policy as dictated by loan purpose and loan amounts.
* Interest rates may be reviewed quarterly.
For more information on financing of small and medium enterprises, please contact:
• For Cooperatives
9. Earning asset level rating at least C per LBP cooperative accreditation criteria
10.Maturity level rating at least C per LBP cooperative accreditation criteria
11.Regional Gawad PITAK Winner
12.No outstanding past due (this can be waived if the proposed project will
strengthen or rehabilitate the coop partners)
Eligible Borrowers
Acceptable Collaterals
In some cases, the Bank also accepts the guarantees of the following as part
of collaterals: Quedan and Rural Credit Guarantee Corporation (QUENDANCOR),
Small Business Guarantee and Finance Corporation (SBGFC), Philippine Export-
Import Credit Agency (PHILEXIM), Home Insurance Guaranty Corporation (HIGC).
Debt-Equity Requirements
§ Industrial
17.Large manufacturing and non-manufacturing industries
18.Small and medium manufacturing and non-manufacturing industries
19.Industrial Estate Projects
§ Public Utilities
21.Land, air and water transportation
22.Telecommunications
23.Power generation and distribution
24.Water supply and distribution
§ Community Development
26.Housing
27.Hospitals
28.Schools
29.Infrastructure
30.Eco-Tourism
§ Agro-industrial
32.Post harvest-facility
33.Agri-business
§ Focused Lending Programs
35.Environmental
36.Pollution control and abatement
37.Waste minimization and recycling
38.Efficient use and/or management of natural resources
39.Occupational health & safety
40.Establishment of Environmental Management System (EMS) and
certification under ISO 14000
41.Micro-financing
42.Lending program for franchises
43.Program towards obtaining ISO 9000 certification
44.New and renewable energy (NRE) projects
45.Technology development and commercialization
46.LGU financing program
47.Sustainable logistics development program
48.Road/Roro Ferry Network
49.Grains Bulk
§ Other Programs
51.Factoring
52.Loans Against Hold Out on Deposit
For more information on financing of small and medium enterprises by DBP, please
contact:
25.
Salaries and wages vary depending on several factors like nature of work,
location of work and time of work. Salaries in the urban areas are higher than those
working in the rural areas. There are, however, laws implemented in relation to
employment to give equitable compensation and benefits to employees. Examples
of these are the minimum wage, health and insurance benefits, and holiday pays.
Minimum Wage
*Include COLAS
a/ Covers the cities of Caloocan, Las Piñas, Makati, Mandaluyong, Manila,
Marikina, Muntinlupa, Pasay, Pasig and Quezon and the Municipalities of
Malabon, Navotas, Paranaque, Pateros, San Juan, Taguig & Valenzuela.
> Also receive the P30.00 ECOLA are workers receiving a daily wage rate of
P213.00 in the Agricultural Sector (plantation and non-plantation), Private
Hospitals with bed capacity of one hundred (100) or less, Retail/Service
Establishments regularly employing fifteen (15) workers or less, and
Manufacturing establishments regularly employing less than ten (10) workers
and all other establishments previously covered under (WO-NCR-08 regularly
employing ten (10) workers or less).
> The wage ceiling of P290.00 applies only to workers in the Non-agriculture
Sector.
> Issued on 19 October 2001 and published at the Philippine Star News on
21 October 2001.
Effective July 10, 2004, the amount of P20.00 ECOLA shall be added to the
daily minimum wage of employees in the private sector.
26.
Insurance and pension plans offer alternative source of finances for overseas
Filipinos particularly upon reaching retirement age. Investment in insurance and
pension plans assure them and their families of readily available finances in cases of
death, health problems and emergency. Companies offering insurance and pension
plans offer a variety of benefits accompanying the plan, such as transferability of
benefits to heirs, minimum amount for premiums, and assured continuity of benefits
and guaranteed full payment even in cases of untimely death or disability during the
paying period.
PruLife Plus –
P3,000 /
month
PruCash –
P2,066 /
month
PruMaxi Save
– P4,380 /
month
Maturity 15 years 15, 20, 25 5, 7, 10 years Payment PET $ Gold –
years terms is 5, 7, with a cash
10 or 20 allowance of
years up to 20% of
the maturity
Maturity value at the
period is 10 – end of the 10th
30 years – 14th year
and with full
maturity on
the 15th year
PET $10 –
10th year
maturity plan
PET $15 –
15th year or on
maturity
period
Other Full Payment PruLink Complete Credit Group Optional
benefits Guarantee Investor* insurance Life ensures Support Fund
is a single- benefits that all unpaid – The
In case of pay variable through: installments planholder’s
death during life product will be paid family or his
paying period, denominated • Credit life and the legitimate
remaining either in • Waiver of beneficiaries beneficiaries
balance of the Philippine premium will still get a portion
plan is fully Peso or US upon receive the of the maturity
paid. Dollars, which disability pension value, in
provides a • Accidental benefit upon advance, in
Waiver of guaranteed death and maturity. case of the
Installment death benefit dismem- planholder’s
Due to of 125% of berment Credit Groups untimely
Disability the single benefits Disability demise
premium or • Non-medical ensures that
In case of the value of insurance all unpaid Pension Loan
disablity for 6 units, installment Assistance
• Flexible
consecutive whichever is will be paid in
pension
months during higher. The the event that Transferability
benefit pay-
paying period, insured can the plan
out schemes
subsequent avail of the holder Dividend
• Incontes-
installments living benefits, becomes earnings
tability
are waived. which consist totally and
of partial or • Respon-sive permanently
Accidental full withdrawal service disabled
Death and values, which during the
Dismember- are sourced paying period.
ment from the
policy’s share Dividends –
In case of in the unit on top of the
accidental funds. pension fund,
death or Additional the plan
dismember- premiums holder will get
ment during called top-ups dividends in
paying period, may be added the form of
the to the policy. cash or apply
Planholder to
shall receive PruLife installments.
a maximum of Assurance
total Account is a
installments regular
paid. premium
variable life
Family product
Assistance denominated
Fund in Philippine
Peso which
In case of provides for
death before varying
the maturity benefits. Sum
of the plan, a Assured is
cash benefit quoted as
equivalent to multiples of
the total the regular
installments premium. The
paid shall be insured can
Contact Prudential Philam Plans, Sun Life PET Plans
Information Plans, Inc. Inc. Financial Centre
118 Gamboa TN: (0632) Plans, Inc. 114 Aguirre
St. 823-1222 St., Legaspi
Legaspi TN: (0632) Village,
Village www.bcbuddy 887-1071 Makati City
Makati City .com FN: (0632)
887-2008 / TN: (0632)
TN: (0632) 843-2907 892-5546
864-8000
sunlink@sunli www.petplans
fe.com .com
www.sunlife-
ph.com
The table shows how the PruLink Investor Account works. The values are based on
projected performance of the fund where the policy is linked
One must first be an SSS member before becoming a member of the Flexi-
Fund. First time members should ensure that their monthly contribution to the
regular social security program is at the maximum bracket.
27.
Of the total number of overseas Filipinos, more than 2.8 million or more than
one third are emigrants or permanent residents overseas, as of December 2003.
They live mainly in Australia, Austria, Canada, Guam, Japan, Germany, Spain,
United States of America, the United Kingdom and New Zealand.
The Commission on Filipinos Overseas would like to thank the following for
their invaluable contribution in the preparation of the Investment and Business Guide
for Overseas Filipinos:
Government Agencies
Department of Agriculture
Agribusiness Investment and Enterprise Development Division
Department of Tourism
Private Sector
Documentation Department
Petron Corporation
Seaoil Philippines
Franchising Divisions:
Bench
Fix Bench
Jollibee
Mini-Stop
Mr. Quickie
Nacho King
Parcel Select
Reyes Haircutters
Pru-Life U.K.