Steps in business registration and securing a business permit in Davao City

Our step by step guide to business registration in Davao City. In this article you will discover exactly what you need to do in order to legally register your business in the Philippines, from business entity registration all the way to securing a Mayor’s business permit and barangay clearance.

Davao City, the economic and commercial center of the Philippines’ deep south, is experiencing tremendous economic growth thanks to the outpour of projects by the National Government and partly because of President Duterte, the city’s former long-time mayor, who made his home city the new second center of power.

With this economic boom, many businesses have considered Davao City their new hub of operations. Moreover, investors are exploring the expansion of operations in the city, opening new doors of business opportunities for small and medium enterprises (SMEs) to thrive.

As the number of SMEs is expected to increase in the city, we have received numerous queries on how to register businesses in Davao City. The registration process is quite tedious, but once all the documentary requirements are adequately done and prepared, it is only a matter of patience for one to successfully register a business in Davao City and secure a business permit.

Here are the steps in business registration in Davao City:

Step 1. Business entity registration

For registering the business entity, it depends on the form chosen, to wit:

  • Sole proprietorship – register with the Department of Trade and Industry (DTI);
  •  Partnership and corporation – register with the Securities and Exchange Commission (SEC); and
  • Cooperative – register with the Cooperative Development Authority (CDA).

To assist you with the business registration with the above-stated agencies, we at Davao Accountants provide assistance packages that would include preparation of the documentary requirements, subsequent review, and coordination and filing with the appropriate agencies. Please contact us to get a quote for our business registration services.

Please bear in mind that specialized and technical documents or files require legal and administrative expertise.

Step 2. Business permit application with Davao City Government

Registration with the City Hall is the next step after registering the business organization with the respective national offices. This is another tedious process, as it would require securing a clearance from the barangay where the business will be located and notarizing the lease contract (in case the business premise is rented) to prove presence in the locality.

Before going to the City Hall, the following documents are to be secured:

  • New Application Form, to be obtained from the City Hall’s Business Bureau, and consequently notarized after completion of details;
  • Community Tax Certificate (CTT) or commonly known as cedula;
  • Barangay Clearance, from the barangay of the area having jurisdiction of the business’ office;
  • Special power of attorney (SPA), if the registration will be processed by a person other than the business owner or top officer, in case of a corporation;
  • Valid identification documents (IDs), of the applicant, or in the case of Item 4, of the one with the SPA;
  • List of Employees, which is notarized;
  • Sketch of the business address;
  • Lease Contract or Agreement or Consent or Certificate with tax Declaration, if any;
  • Solid Waste Certificate, to be obtained from the City Environment and Natural Resources Officer CENRO); and
  • Photocopy of the business registration, i.e., DTI registration form, SEC certificate of registration, with Articles of Incorporation (AOI), and By-Laws/franchise agreement, etc. (if applicable).

Given that the business is already registered the requirements above are completed, kindly proceed to the Business Bureau for submission of the same. After this, you will be given a date to claim your paper, generally three (3) days after the filing date.

Once you get the paper, proceed to the Office of the City Treasurer for assessment of the applicable fees and payment of the same. After such payment, you will have to forward the application form to the Bureau of Fire Protection (BFP), which will schedule within three (3) days the ocular inspection of the business premises.

Upon clearance by the BFP, submit the BFP signed paper to the Business Bureau where you will be given a specific date to claim the business plate and permits.

Please note that there is also a need to register the business’ book of accounts within fifteen (15) working days from the time of filing the application to avoid the Php5,000 penalty, which is provided under Article 2 Section 404 of Davao City Ordinance No. 158-05 series of 2005.

After claiming the business plate and permits, proceed immediately to the Bureau of Internal Revenue (BIR) registration.