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Legal and Taxation Aspect
Legal and Taxation Aspect
One of the commanding parts of a business enterprise is the legal and taxation
aspect. These certify that the business is legally approved by law to operate as an
economic entity. It specifies various legal necessities that the planned development
should observe with and simplifies the different taxes that it will be subjected to.
Moreover, the business should be profound in determining how much and when to pay
its tax obligations. With the support of business operators especially taxpayers, the
government would adequately delegate the much needed services to its residents.
Thus, the effects of these aspects of a business should be carefully assessed and be
given an acceptable deliberation to make sure that the certainty of the business is in
accordance with the law. Moreover, the government has the right to legislate obligatory
involvements to any of its accomplishments that will affect the public. A business is
considered effective in the eyes of the act if it has been able to track certain
the business owner to secure the essential documents and arrangements to apply
lawfully the entity. As a result, it protects the organization from obligations such a (as)
penalties.
LEGAL ASPECT
organization. The legitimacy of a business is required all throughout its existence. Legal
matters concerning its actuality should always be addressed for it to be continuous and
industries for this would contribute assurance to prospective customers of (a) well and
better products and services. Business is illegal and the prospective owner would be
complied with the necessary requirements set forth by the duly authorized government
agencies. This would enable the business to freely operate under the limitations laid
The Enorka Company is a sole proprietorship and the Department of Trade and
that there is no other individual or business entity may legally use the same name of the
Department of Trade and Industry (DTI) is the agency responsible for the
approval and registration of business name. This is important for the business to be
publicly known and to make sure that no other business establishments carry the same
name, that it is unique and distinct from any existing businesses. The requirements for
1. Obtain application forms (duplicate copy) and fill these up completely. Only the
citizenship: birth certificate, PRC ID, voter’s ID, or valid passport. If the applicant
provided by law, he must submit any of the following proof of his Filipino
b. Certain types of business may have other requirements such as service and
provided by professionals.
3. Submit (an) application form to the DTI Processor. The DTI Processor will check
if the Business Name is still available, if yes, you will be asked to pay the
application fee.
Permits must be availed first for a certain business to function legally its
operation. (The business) Business permit shall be acquired at the City Treasure’s
Office of Talisay City. The permit is renewable and must be filed annually. The following
Mayor’s Permit
Talisay having complied with all the necessary legal requirements. This permit is
obtained from the Mayor’s office in the city where the proposed business is
situated with a fee of P500.00, renewable every year. In applying for a Mayor’s
2. Barangay Clearance
3. DTI Registration
4. Sanitary Permit
Barangay Clearance
Barangay clearance is obtained from the Barangay where the proposed
business will be established, in this case (case,) Barangay Biasong, Talisay City,
Cebu. The owner shall pay P50.00 as the cost of such document. It will certify
that the owner of the said business has no record of criminal irregularities and
Police Clearance
This clearance will certify that a person has no criminal record in the police
department of Talisay City Station and that the person is of good moral
1. Barangay Clearance
Sanitary Permit
This permit will serve as a proof that the proposed project depicts
wellness, proper disposal of wastes and sanitation. Moreover, it certifies that the
business has passed the inspection conducted by the health inspector. The
permit can be obtained at the Talisay City’s Sanitary Office for P60.00 which is
Building Permit
A building permit can be obtained from the Office of the Building (OBO).
1. Certified true copy of Original Certificate of Title (OCT)/TCT on file with the
Registry of Deeds
4. Five (5) sets of design plans, survey plans, specifications and other related
CPDO)
The Fire and Safety Department is one who issues a certificate which
serves as a proof that the prospective building to be acquired has complied with
all the necessary safety requirements. The certificate will cost P20.00.
The business permit fee will be based on the amount of the capital.
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Zoning Clearance
The zoning clearance can be obtained after accomplishing all the
registration of workers’ association organized for the mutual aid and protection of its
members or for other legitimate purposes. Every employer is required to register his/her
business to the Regional Labor Office. Such organization complies with the
To register with DOLE the company must submit the following requirements:
4. List of Members
6. If less than 1 year, and has not collected any amount, a certification to this
effect.
ratifying members.
8. Attach layout plan of the place of work floor by floor, in a scale of 1:100
meters white or blueprint, showing all the physical features of the workplace
location.
authorized by law to assess and collect all national internal revenue taxes and to
enforce all forfeitures and penalties. Every business has to register with the BIR for
taxation purposes. The Bureau will furnish the business with its own tax identification
number (TIN) and the authority to print receipt, invoices, and others. Any person who
wants to engage in any form of business shall register with the Revenue District Office
(RDO) within ten (10) days from the formation of the business. The following
● Documentary Requirements
✓ Mayor’s Permit
In compliance with Republic Act 8282 or the Social Security Act, it is mandatory
for the prospective implementer to register his employees with the Social Security
System. This participation gets to its individual members funds for security and different
advantages.
✓ Passport
✓ Driver’s License
✓ PRC Card
✓ Employment record
● For Employers
Each business sector must be a part of the Phil Health Program as a requisite of
the law upon application with the Social Security System. This program responses
(would respond) not only for the health care (healthcare) services of the employers but
also of the employees. The following are the necessary requirements needed for
registration:
● For newly formed establishment who are not yet issued Phil Health
applicable:
In accordance with Republic Act 7742, the companies are required to register
Bangko, Industriya at Gobyerno). It is obligatory for all SSS and GSIS members earning
Php 4,000.00 and above of his monthly return to register with PAG-IBIG. The following
● DTI Registration
TAXATION ASPECT
In able for the Government to keep on running, Taxation is imposed. For every
running of the state. Taxation is the government’s way of generating revenue so that it
can improve and sustain its officials or personnel as well as to regulate the project and
operations it oversees.
The money is generally collected from the citizens in the name of the tax.
Taxation plays a vital role in the state. Through tax, the government raises revenues for
the benefit and welfare of the people of the state. It is very important that individuals and
business establishments should pay taxes in order for the government to operate.
Income tax
Under the Tax Code of 1997, income tax is a tax on person’s income, profits
personal and additional exemptions, if any, authorized for such types of income, by the
Tax Code, as amended, or other special laws. Personal Income tax is often collected on
a pay-as-you-earn basis, with small corrections made soon after the end of the tax year.
These corrections as stated above are government payments, for taxpayers who did not
pay enough tax for the year; and tax refunds is given from the government who have
overpaid.
properties or services in the course of business whose gross annual sales or receipts
exceed P1, 919,500 and are VAT-registered. The business is subject to value added tax
right or property incident thereto. In the proposed business, since the company site to
obtain the lease contract. Stamp tax on Leases and Other Hiring Agreements there
shall be collected a documentary stamp tax of Three pesos (P3.00) for the first Two
thousand pesos (P2, 000), or fractional part thereof, and an additional One peso (P1.00)
for every One Thousand pesos (P1, 000) or fractional part thereof, in excess of the first
Two thousand pesos (P2, 000) for each year of the term of said contract or agreement.