SUBMITTED BY: Alyssa Dela Cruz Jasmin Ruby Delos Santos Jenny Galisfrancisco Lalaine Ignacio Jeanky Lou

Cerillo

SUMITTED TO: Mrs. Helen Baesa

REGISTRATION OF BUSINESS

 REGISTRATION OF BUSINESS
A business name is simply a name or title under which a person, or other legal entity, trades. It not only identifies you to your customers, but also allows you to differentiate yourself from your competitors and enables your customers to make an emotional connection to your business and brand. For many businesses, the name is often the most valuable assets. When setting up your business, if you choose to operate;

I.

For Sole Proprietorship Certificate

1. Business Name Registration Certificate Visit Department of Trade Industry (DTI) Provincial Office where the business is located or log on to www.bnrs.dti.gov.ph Validity: 5 years Requirements: Accomplished Business Name Registration Form (Single Proprietorship/Partnership)-Optional 2 pcs. 2x2 colored ID Picture Tax Identification Number (TIN)-Optional List of 5 business names ranked according to preference Registration fee of P300.00 2. Mayors/Business Permit Local municipality where the business is located Validity: 1 year Requirements: Accomplished Business Permit Application Form DTI Business Name Certificate Sketch of business location 2 pcs. 2x2 colored ID Picture Registration fee the amount of which depends on the type of the business 3. Tax Identification Number (TIN) Agency: Bureau of Internal Revenue (BIR) National Office, Agham Road, Diliman Quezon City Trunkline: (632) 981.7000 / 981.8888 Email: contact_us@cctr.bir.gov.ph Website: www.bir.gov.ph Requirements: (to be submitted to BIR Revenue District Office where the business is located) Accomplished Form 1901 DTI Certificate of Registration of Business Name Mayors Permit Registration fee of P500.00, P15.00 for the Certificate Fee and P15.00 for the Documentary Stamp Tax The RDO shall issue the Certificate of Registration (Form 2303)

4. Social Security System (SSS) Certificate Social Security System (SSS) Loans and Investment Office SSS Building, East Avenue, Diliman, Quezon City Tel. nos.: (632)920.6401 / 920.6446 Email: member_relations@sss.gov.ph Website: www.sss.gov.ph Requirements: Accomplished R1A form (Employment Report) DTI Business Permit Photocopy of Article of Partnership/Incorporation (for Partnership and Corporation) Mayors Permit 5. Department of Labor and Employment (DOLE) Registration (with 5 or more employees) Agency: Department of Labor and Employment (DOLE) Labor Standard and Enforcement Division Address: 2nd Flr. Dy International Building, Sam Marcelino cor. Gen. Malvar St., Malate, Manila Tel. nos.: (632) 339.2013. Hotline No.: 527 .8000 Email: osec@dole.gov.ph Website: www.dole.gov.ph Requirements: Accomplished Rule Lay-out of business location Vicinity map

II.

For Partnership
1. Security and Exchange Commission (SEC) Certificate Agency: Security and Exchange Commission (SEC) Address: SEC Building, Edsa, Greenhills, Mandaluyong City Tel. nos.: (632) 726.0931 to 39 Email: mis@sec.gov.ph Website: www.sec.gov,ph or http://iregister.gov.ph/MainServlet (for online registration) Requirements: Verification Slip Form Accomplished Registration Data Sheet Article of Partnership (for limited partnership, this should be executed under oath) Written Undertaking to Change Corporate Name; Clearance Form other government agencies, (if needed) Registration fee of Php510.00 or more depending on real property, additional requirement is needed: Deed of Assignment executed by the stockholder who is the owner.

III.

For Corporation
1. Security and Exchange Commission (SEC) Certificate Agency: Security and Exchange Commission (SEC) Address: SEC Building, Edsa, Greenhills, Mandaluyong City Tel. nos.: (632) 726.0931 to 39 Email: mis@sec.gov.ph Website: www.sec.gov,ph or http://iregister.gov.ph/MainServlet (for online registration) Requirements: Articles of Incorporation and By-Laws Verification Slip Form (Re: Corporate Name) Accomplished Registration Data Sheet Treasurers Affidavit Bank Certificate of Deposit (notarized in where bank is located) Authority to Verify Bank Accounts Written Undertaking to Change Corporate Name, when necessary Subscribers Information Sheet Clearance from other government agencies (if needed) Foreign investment Application Form (for subsidiaries of foreign corporations) If the paid-up capital is a property, submit the following additional requirements: Statement of Assets and Liabilities; Deed of Assignment executed by the stockholder who is the owner of the property in favor of the corporation. (If the property contributed is a building or land, the deed must be presented to the register of Deeds for registration); If the property being contributed is a building, submit detailed of the building/s giving a brief description of each; If the property being contributed is a parcel of land, submit detailed list of the parcel of land showing the OCT/TCT numbers, registered owner, lot and block numbers, area, location and encumbrances, if any; and Registration fees Name verification/Reservation Fee Php40.00; Articles of Incorporation filing fee is 1/5 or 1% of the authorized capital stock; By-Laws Php210.00; Stock Transfer Book Php150.00 Membership Book Php75.00; Other fees are applied for foreign corporation; Legal Research Fee equivalent to 1% of filing fee but not less than Php10.00 on Requirements Business Registration

IV.

Other Agencies
1. Department of Education (DepEd) (For operator of Pre-School, Day-Care Center, Primary & Secondary School) Agency: Department of Education (DepEd) Address: DepED Complex, Meralco Ave., Pasig City Tel. nos.: (632)632.1361 to 71 Email: osec@deped.gov.ph; detxt@deped.gov.ph Website: osec@deped.gov.ph Validity: 1 year

Requirements: Accomplished GPR-4 Form Articles of Incorporation and By-Laws duly registered with the SEC Copy(ies) of the Transfer Certificate of the Title of the school site Statement on the location of the school in relation to recreational places and other factors that are not conducive to the learning process Campus development and landscaping plans Documents (s) of ownership of the school building Certificate of occupancy of the school building from the proper city/municipal authorities Pictures of the school site building, classroom, laboratories, libraries, medical and dental health facilities, canteen, sports and recreational area, etc. Proposed budget/annual expenditures for the succeeding school year approved by the Board of Trustees/Director List of school administration, i.e. president, vice president, deans, department heads, etc.; List of academic non-teaching personnel; List of athletic facilities, equipment, and supplies and materials; and Bond agreement in the amount of Php1,000.00 per course which should not exceed Php5,000.00 per school irrespective of the number of courses.

2. TESDA Certificate
(For operator of short course programs, e.g. care giving training center , computer learning center, training school, etc.) Agency: Technical Education &Skills Development Authority (TESDA) Address: TESDA Complex, East Service Road South Super Highway, Taguig, Metro Manila Tel. nos.: 881.2854 to 57. Hotline No. 887.7777 Email: misd@tesda.gov.ph Website: www.tesda,gov.ph Validity: Lifetime Requirements: Accomplished UTPRAS Form; Letter of Intent which contains name of training center, address, program & courses; Additional requirements will be discussed upon meeting/s with TESDA; and Application and Registration fee of Php2,000.00 per course

PATENT, TRADEMARKS AND COPYRIGHTS

I.

PATENT

A patent is a grant by the government of the right to stop others from making, using or selling an invention within its jurisdiction for a limited period of time. A patent is granted to protect an article that is essentially better in some way than what was made before, or for a better way of making it.

What can be patented?

Machines, articles of manufacture, methods, (processes), compositions of matter (chemicals, cells lines), any field of human activity which is new or involves an inventive step and is industrially applicable is patentable. An invention shall not be considered new if it forms part of prior art. Special kinds of patents cover the appearance of useful objects (industrial design) or a technical solution of a problem in any field of human activity that is new and industrially applicable (utility model).

What cannot be patented?

Discoveries, naturally occurring (unaltered) scientific theories & mathematically methods, purely mental processes, schemes, playing games, methods of doing business, programs for computer, aesthetic creations, arrangements of printed matter, plant varieties or animal breeds or essentially biological process for the production of plants and animals; inventions solely useful in making atomic weapons or anything contrary to public order or morality, and human beings cannot be patented.

How long is patent valid?

In the Philippines, invention patents are valid for a term of twenty (20) years from the filing date of the application. This means that the owner of the invention or process essentially has a 20-year monopoly to exclude others from making, using, selling or importing the new invention in return for which the owner fully discloses the information. However the patent shall cease to be in force and effect if any prescribed annual fee is not paid within the prescribed time or if the patent is cancelled in accordance with the provision of the Intellectual Property Code. However, for a utility model, the term is seven(7) years without renewal; and for an industrial design, the term is five (5) years plus two (2) renewals of the five years each.

Who is entitled to a patent?

The Philippines follows the first-to-file rule in the granting of the patents. Essentially, this means if two (2) or more person have made the same invention independently of each other, the right to the patent shall belong to the person who filed for such an invention. In other words, where two or more application are filed for the same invention, the right of the patent shall belong to the applicant who has the earliest filing date. The patent belongs to the inventor, his heir or assigns. When two or more persons have made an invention, they will own the patent proportionately (i.e. if there are two inventors, each one is entitled to one-half share). In case where an employee creates an invention during the course of his employment contract, the patent shall belong to the employee, if the inventive activity was not part his regular duties even though he uses the time, facilities and materials of his employer. However, if the invention is the result of the employees regular duties, it belongs to his employers, unless there was a prior express or implied agreement to the contrary. In the case when the invention is commissions the work shall own the patent unless otherwise stipulated in the contract.

What are the requirements of filing a patent?

Basically, the patent application should be in English or Filipino and shall include the following: 1. Request for a grant of patent 2. Specifications containing the ff: a. b. c. d. e. f. g. h. Title of invention Disclosure and description of the invention Drawings necessary for the understanding of the invention A brief explanation of the drawings, if any A distinct and explicit claim or claims of the invention An abstract Priority claim, if any Filing fees

II.

TRADEMARK

A trademark is a word used by a person or business to identify his goods or services and distinguish them from similar goods and services offered by others.

What marks may be registered?

To be registered, a mark must first of all be a visible sign. Secondly, it must be capable of distinguishing one's goods and services from those of another. Some common examples of marks are: words (invented or belonging to a known language); names and first names; signatures; numbers; acronyms, letters or combinations of letters, number and signs, logos; slogans; designs, figure and pictographs; portraits of people; collections of words and graphics and complex signs associating verbal and graphic signs, e.g. labels; among others.

What mark may not be registered?

A mark may not be registered if it is immoral, deceptive or of a scandalous matter; if it is the flag, coat of arm or insignia of the Philippines or any of its political symbol; a name, portrait or signature identifying a particular living individual without his written consent; identical with a registered mark whether or not registered in the Philippines but well known internationally; if it misleads the public; signs that are generic for the goods or services; shapes that may be necessitated by technical factors; color alone, unless defined by a given form and/or anything contrary to public order or morality.

Who may apply for a trademark?

An applicant for a trademark may be a natural person, or juridical person and all applications should be in the name of the applicant, who may sign the application. If there are more than one applicant, all of them should be named as applicant but anyone may sign the application for and in behalf of all applicants. If the applicant is a juridical person, any officer may sign the application.

What are the requirements in filing a trademark?

The requirements in filing a trademark application are: 1. A Request for Trademark Registration form containing the following:

a. Title of the Mark b. Name & Address of Applicant c. Citizenship or state of incorporation d. List Goods or Services e. Class or Classes according to the NICE classification f. Claim of Priority, if any g. Translation/Transliteration, if any h. Disclaimer, if any i. Specific Description of the mark j. Claim of Color, if any 2. Formal drawings & small facsimiles containing the mark in the required IPO format 3. Power of Attorney

What is the term of registration of a trademark?

A certificate of registration shall remain in force for ten (10) years; provided that, without need of any notice from the Bureau of Trademarks, the applicant shall file a Declaration of Actual Use (DAU) and evidence to that effect within three years from the filing date of the mark. If the DAU is not filed within the prescribed period, the mark may be refused or removed from the registry. The registration may also be renewed for a period of ten (10) years after its expiration and there is no limit as to the number of times the registrant may request for the renewal of his registration provided the prescribed fees are paid.

III.

COPYRIGHT

A copyright is a property right in the expression of an idea, whether published or unpublished. A copyright establishes ownership of "original works of authorship fixed in any intangible of expression."

What types of works can be copyrighted?

Copyright registration is available for books, poetry, plays, short stories, newspapers and newspaper articles, magazines and magazine articles, comic books, musical compositions (words and/or music), recordings, choreographic works, pantomimes, motion pictures, filmstrips, television programs, photographs, paintings, drawings, prints, maps, architectural plans, scale models, sculptural works, craft works, jewelry designs, fabric designs, computer programs, and databases.

How long does a copyright last?

In general, a copyright lasts for the life of the author, plus 50 years. The term is different for commissioned works and works where a corporation is the author.

ENTREPRENEURIAL PROCESS

 ENTREPRENEURIAL PROCESS
Entrepreneurial Process the process of pursuing a new venture, whether it be new products into existing products into new markets, and/or the creation of a new organization. The process of pursuing of new venture is embodied in the entrepreneurial process which involves more than just problem solving in a typical management position. An entrepreneur must find evaluate and develop an opportunity by overcoming the forces that resist the creation of something new. The process has four(4) distinct phases: 1. 2. 3. 4. identification and evaluation of opportunity, development of the business plan, determination of the required resources, & management of the resulting enterprise (see the table)

Aspects of the Entrepreneurial Process

Identify and evaluate Opportunity
Opportunity assessment Creation and length of opportunity Real and perceived value of opportunity Risk and returns of opportunity Opportunity versus personal skills and goals Competitive environment

Develop Business Plan

Title page Table of contents Executive summary Major Section 1. Description of Business 2. Description of Industry 3. Technology Plan 4. Marketing Plan 5. Financial Plan 6. Production Plan 7. Organizational Plan 8. Operational Plan 9. Summary Appendixes (Exhibits)

Resources Required
Determined resources needed Determine existing resources Identify resources gaps and available suppliers Develop to access to needed resources

Manage the Enterprise

Develop management style Understand key variables for success Identify problems and potential problems Implement control system Develop growth strategy

TYPES OF START UP BUSINESS

TYPES OF START UP BUSINESS

Distributorship
An independent entrepreneur, company or individual enters into agreement or contract to offer, sell or distribute a particular product , but is not entitled to use the manufacturers trade name as part of its own trade name

Rack Jobber
Involves an agent or buyer entering into an agreement with a parent company to market its goods to various stores by means of strategically located store racks.

Wholesaler
Businessperson who buys directly from a producer or its agent, and sells the same product in bulk.

Subcontracting
An entrepreneur who is responsible for a particular aspect in the operations of the principal. The basic advantage of this type is that on the part of the subcontractor, there is already a market for the product. The disadvantage, however, is that the price for the entrepreneurs product is dictated upon by the party who subcontract the job of manufacturing or producing the goods.

TYPES OF START UP IDEAS Type A ideas

Providing customers with a product or service that does not exist in their market but already exists somewhere else (new market).

Type B ideas
A technical new process (new technology).

Type C ideas
There are concepts for performing old function in new improved ways (new benefit).

CATEGORIES OF ENTERPRISE

 CATEGORIES OF AN ENTERPRISE
Microenterprise
A small business that employs a small number of employees. A microenterprise will usually operate with fewer than 10 people and is started with a small amount of capital. Most microenterprises specialize in providing goods or services for their local areas.Microenterprise serve as a vital purpose in improving the quality of life for people in developing countries.

Micro, Small and Medium Enterprise (MSMEs)

Micro, Small and Medium Enterprises (MSMEs) are defined as any business activity/enterprise engaged in industry, agri-business/services, whether single proprietorship, cooperative, partnership or corporation whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business entitys office, plant and equipment are situated, must have value falling under the following categories: Buy assets size Micro: Small: Medium: Large: Up to P3,000,000 P3,000,000 P15,000,000 P15,000,000 P100,000,000 above P100,000,000

Alternatively, MSMEs may also be categorized based on the number of employees: Micro: Small: Medium: Large: 1 9 employees 10 99 employees 100 199 employees More than 200 employees

LEGAL FORMS OF BUSINESS ORGANIZATION

 LEGAL FORMS OF BUSINESS ORGANIZATION

I. Sole Proprietorship

The vast majority of small businesses start out as sole proprietorships. These firms are owned by one person, usually the individual who has day-to-day responsibility for running the business. Sole proprietorships own all the assets of the business and the profits generated by it. They also assume complete responsibility for any of its liabilities or debts. In the eyes of the law and the public, you are one in the same with the business. Advantages of a Sole Proprietorship Easiest and least expensive form of ownership to organize. Sole proprietors are in complete control, and within the parameters of the law, may make decisions as they see fit. Profits from the business flow-through directly to the owners personal tax return. The business is easy to dissolve, if desired. Disadvantages of a Sole Proprietorship Sole proprietors have unlimited liability and are legally responsible for all debts against the business. Their business and personal assets are at risk. May be at a disadvantage in raising funds and are often limited to using funds from personal savings or consumer loans. May have a hard time attracting high-caliber employees, or those that are motivated by the opportunity to own a part of the business. Some employee benefits such as owners medical insurance premiums are not directly deductible from business income (only partially as an adjustment to income).

II.

Partnerships

In a Partnership, two or more people share ownership of a single business. Like proprietorships, the law does not distinguish between the business and its owners. The Partners should have a legal agreement that sets forth how decisions will be made, profits will be shared, disputes will be resolved, how future partners will be admitted to the partnership, how partners can be bought out, or what steps will be taken to dissolve the partnership when needed; Yes, its hard to think about a break-up when the business is just getting started, but many partnerships split up at crisis times and unless there is a defined process, there will be even greater problems. They also must decide up front how much time and capital each will contribute, etc. Advantages of a Partnership Partnerships are relatively easy to establish; however time should be invested in developing the partnership agreement. With more than one owner, the ability to raise funds may be increased. The profits from the business flow directly through to the partners personal tax return. Prospective employees may be attracted to the business if given the incentive to become a partner. The business usually will benefit from partners who have complementary skills.

Disadvantages of a Partnership Partners are jointly and individually liable for the actions of the other partners. Profits must be shared with others. Since decisions are shared, disagreements can occur. Some employee benefits are not deductible from business income on tax returns. The partnership may have a limited life; it may end upon the withdrawal or death of a partner. Types of Partnerships that should be considered: 1. General Partnership Partners divide responsibility for management and liability, as well as the shares of profit or loss according to their internal agreement. Equal shares are assumed unless there is a written agreement that states differently. 2. Limited Partnership and Partnership with limited liability Limited means that most of the partners have limited liability (to the extent of their investment) as well as limited input regarding management decision, which generally encourages investors for short term projects, or for investing in capital assets. This form of ownership is not often used for operating retail or service businesses. Forming a limited partnership is more complex and formal than that of a general partnership. 3. Joint Venture Acts like a general partnership, but is clearly for a limited period of time or a single project. If the partners in a joint venture repeat the activity, they will be recognized as an ongoing partnership and will have to file as such, and distribute accumulated partnership assets upon dissolution of the entity.

III.

Corporations

A Corporation, chartered by the state in which it is headquartered, is considered by law to be a unique entity, separate and apart from those who own it. A Corporation can be taxed; it can be sued; it can enter into contractual agreements. The owners of a corporation are its shareholders. The shareholders elect a board of directors to oversee the major policies and decisions. The corporation has a life of its own and does not dissolve when ownership changes. Advantages of a Corporation Shareholders have limited liability for the corporations debts or judgments against the corporation. Generally, shareholders can only be held accountable for their investment in stock of the company. (Note however, that officers can be held personally liable for their actions, such as the failure to withhold and pay employment taxes. Corporations can raise additional funds through the sale of stock. A Corporation may deduct the cost of benefits it provides to officers and employees. Can elect S Corporation status if certain requirements are met. This election enables company to be taxed similar to a partnership. Disadvantages of a Corporation The process of incorporation requires more time and money than other forms of organization. Corporations are monitored by federal, state and some local agencies, and as a result may have more paperwork to comply with regulations. Incorporating may result in higher overall taxes. Dividends paid to shareholders are not deductible from business income; thus this income can be taxed twice.