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The Proverbial Chicken or the Egg: Which comes first, the business license or the work permit?


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Those of you who have experience or knowledge regarding work permits and businesses please chime in.  I received my 13A visa (provisional) on Monday.  If you have read my fairly recent rant regarding that very subject you may be asking yourself, “WTF?”  Well, you can join me in the regard.  I am finished asking “why” in regards to officialdom?  I have the visa. Now, my wife and I want to open a small business. The business will actually be in her name and I will be an employee.  So, which comes first?  Do we get the business permit/license/etc, or do I get the work permit first?  And what am I overlooking or not considering here in regards to approval, licenses, paperwork?  All relevant advice will be appreciated.  All non-relevant advice will be tolerated (what other option is there anyway?)  Thanks. 

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This from the BID


 


You can have a legal partnership with your spouse if you so wish.  As you are a ' legal entity'  you can apply for business permit and register for a TIN number with BIR 


 


 


 


Dear Sir:


 


Under Sec 13 of the Philippine Immigration Act of 1940, as amended, a non-quota immigrant is granted the following rights:


 


  1. He is allowed to stay indefinitely in the Philippines .
  2. He can establish a business.
  3. He can invest in shares of stock.
  4. He may form an association and corporation.
  5. He has the right of access to the courts.
  6. He is allowed to work without securing an alien employment permit.
  7. He may leave private lands or purchase a condominium.
  8. He may purchase an automobile.

 


On the other hand, he is subject to the following:


 


  1. He is required to respect and obey the laws of the Philippines .
  2. He is required to register at the Bureau.
  3. He shall inform the Bureau, at all times, of any change of residential or domiciliary address.
  4. He is subject to income tax.

 


Should you have other immigration-related queries, please do not hesitate to call the BI Helpdesk Hotline at (632) 524-3769.



 


Edited by spooks
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Spooks, thanks.  Now, just some simple questions:  What is "BID".  I guess "BIR" is the Bureau of Internal Revenue. I thought that the business permit and tax paperwork went through city hall (in may case Lapu Lapu).  Is the BIR something else?

 

 

Thanks

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Is the BIR something else?

 

Yes, correct.

 

BIR = Bureau of Internal Revenue

TIN = Tax Identification Number

 

The BIR deals with government/nationwide taxes (e.g. income tax, corporate tax, etc.)  The Municipal (City) Hall deals with land taxes, operating permits, etc.

Edited by GoHuk
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stevensanph

The easiest way is as a sole proprietorship. First get a dti permit from the local department of trade. After that, its city hall for the business permit. Then, bir (tax) for the tin number, receipts etc etc.

 

As you have a 13a there is no need for a work permit. To become a legal employee you need to e registered with sss (social security), philhealth and pagibig. The business will get an employer number at each. Your new personal number will be filed each month when the business files returns. You must file with bir, sss, pagibig and phil health every month even if you have no employees or no income. Bir are by far the worst.

 

When you register with bir is go vat registered. More paperwork when filing returns, but taxes for non vat business is computed on revenue not profit.

 

Sent from my Nexus S using Tapatalk now Free

 

 

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Spooks, thanks.  Now, just some simple questions:  What is "BID".  I guess "BIR" is the Bureau of Internal Revenue. I thought that the business permit and tax paperwork went through city hall (in may case Lapu Lapu).  Is the BIR something else?

 

 

Thanks

Apologies

 

BID is bureau of immigration & deportation

 

The others are as identified by Go HUk

 

the process for you is

 

1/  Acquire legal identity. which is BID issuing 13A visa

 

2/  Apply to BIR for your tax number which is the TIN, they may require sight of your passport and Visa plus a xerox of those items probably 3/4 copies, takes no more than a week to issue can be done whilst you wait if they are not too busy.

 

3/  You may have to register the name if it is not a corporation through the Department of Trade office

 

4/ Apply city hall for business permit in the legal name that the business is to trade in.

 

 

5/ Take all copies and originals to BIR to register the business, there is a time limit which if you miss it will cost you late filing penalty.

 

If you are engaging an accountant they may run this process for you as part of the retainer fee or may charge in addition

Edited by spooks
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Apologies

 

BID is bureau of immigration & deportation

 

The others are as identified by Go HUk

 

the process for you is

 

1/  Acquire legal identity. which is BID issuing 13A visa

 

2/  Apply to BIR for your tax number which is the TIN, they may require sight of your passport and Visa plus a xerox of those items probably 3/4 copies, takes no more than a week to issue can be done whilst you wait if they are not too busy.

 

3/  You may have to register the name if it is not a corporation through the Department of Trade office

 

4/ Apply city hall for business permit in the legal name that the business is to trade in.

 

 

5/ Take all copies and originals to BIR to register the business, there is a time limit which if you miss it will cost you late filing penalty.

 

If you are engaging an accountant they may run this process for you as part of the retainer fee or may charge in addition. In addition once set up the accountant will register you with DOLE and then the SSS, Phil Health and PagiBig

 

Be prepared for an endless paper trail

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SkyMan

 

Now, my wife and I want to open a small business.

A bit off topic but good luck.
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