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Starting a Food Cart Business the Legal Way

3 posters

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acd1355


Arresto Menor

Dear Attorney,
I just want to ask the required permits and licenses, if any, to start a food cart business. Do we need to get BIR permit and other related agencies, like DOLE, SSS, PHILHEALTH, PAGIBIG, etc. before opening our business (or is there any exemptions)? Also, in case we are tax-exempted, do we need to issue receipt to our customers? Our business most likely will have less than 10 products, with employees of less than 10 people. Your response are highly appreciated. Thank you.

Regards,
Lucky

arnoldventura


Reclusion Perpetua

Secure business name registration from DTE in case of sole proprietorship), or SEC registration in case you intend to form a corporation. Secure a barangay business clearance and apply for a mayor's permit (in the process, you will be securing locational clearance, sanitary permit and fire safety inspection certificate, among others). Register as taxpayer with the BIR and apply for TIN for your new business (in case you are operating a corporation). Register also as employer with SSS, Pag-IBIG and PhilHealth, then you are ready to go. If your total assets do not exceed P3 million, you may want to consider registering as a Barangay Micro Business Enterprise where you may enjoy certain benefits such as tax incentives and exemption from minimum wage requirements. https://www.alburovillanueva.com/micro-business-bmbe

Lunkan


Reclusion Perpetua

In your case it seem best to register a BMBE (=Barangay Micro Business Enterprice). You seem to fullfil the deamnds to be approved as that. Ask the barangay/municipaly office which handle such.

BMBE is both some simpler and cheaper to register, and no INCOME tax for the OWNER. Other taxes and fees are the same as for instance SSS, PhilHealth and Pag-Ibig. VAT rules are the same as normal too.

Phil demands of SPECIAL printed reciepts and invoices are CRAZY. It's demanded FAST even in the cases when such never will be neede, or not needed in many years and when the business actions aren't started yet!!! (If I remember corect it has to be done within a month from registration.)
And punishment fees for not having such or file BIR forms in time can become high...

I don't know if Phils have exception from such by for instance have cash register mashine.

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