Licenses & Certifications
Approval of business licenses and certifications in the Philippines take a lot of time and patience. It involves a lot of documents, long hours of falling in line for stamps and fees in different government agencies, and it eats precious business hours.
As a business owner, you should not go through this process. It is better to outsource this function so that you can focus more on projects that will give value for your company. At GL Inc., we are committed in bringing this service to you via a thorough and strict compliance with government requirements.
We want to register your business’ licenses and certificates as fast as possible that’s why we developed a 7-step process to ease the procedure. For more information about out process, contact us here.
Board of Investments (BOI)
The Philippine Board of Investments (BOI), an attached agency of Department of Trade and Industry (DTI), is the lead government agency responsible for the promotion of investments in the Philippines. Taking the lead in the promotion of investments, BOI assists Filipino and foreign investors to venture and prosper in desirable areas of economic activities. Investors are welcome to experience the potentials of the booming Philippine Industry sectors. Profitable business opportunities abound in the food processing, construction, metal products, telecommunications, and power and infrastructure projects among others.
Benefits Enjoyed By Those Registered Under BOI
Fiscal Incentives (Income Tax Holiday)
- BOI-registered enterprise shall be exempt from payment of the income taxes reckoned from the scheduled start of commercial operations, as follows:
- New projects with a pioneer status for six (6) years;
- New projects with a non-pioneer status for four (4) years;
- Expansion projects for three (3) years. As a general rule, exemption is limited to incremental sales revenue/volume;
- New or expansion projects in less developed areas for six (6) years, regardless of status; and
- Modernization projects for three (3) years. As a general rule, exemption is limited to incremental sales revenue/volume.
- New registered pioneer and non-pioneer enterprises and those located in the less developed areas (LDAs) may avail of a bonus year in each of the following cases: 6 years ITH for Pioneer Project.
- The indigenous raw materials used in the manufacture of the registered product must at least be fifty percent (50%)of the total cost of raw materials for the preceding years prior to the extension unless the Board prescribes a higher percentage; or
- The ratio of total imported and domestic capital equipment to the number of workers for the project does not exceed US$10,000 to one (1) worker; or
- The net foreign exchange savings or earnings amount to at least US$500,000 annually during the first three (3) years of operation. In no case shall a registered pioneer firm avail of this incentive for a period exceeding eight (8) years.
- Exemption from taxes and duties on imported spare partss – A registered enterprise with a bonded manufacturing warehouse shall be exempt from customs duties and national internal revenue taxes on its importation of required supplies/spare parts for consigned equipment or those imported with incentives.
- Exemption from wharfage dues and export tax, duty, impost and feess – All enterprises registered under the IPP will be given a ten (10) year period from date of registration to avail of the exemption from wharfage dues and any export tax, impost and fees on its non-traditional export products.
- Reduction of the Rates of Duty on Capital Equipment, Spare parts and Accessories.
- Tax Credits – Tax credit on raw materials and supplies. A tax credit equivalent to the national internal revenue taxes and duties paid on raw materials, supplies and semi-manufacture of export products and forming part thereof shall be granted to a registered enterprise.
- Additional Deductions from Taxable Income – Additional deduction for labor expense (ADLE). For the first five (5) years from registration, a registered enterprise shall be allowed an additional deduction from taxable income equivalent to fifty percent (50%) of the wages of additional skilled and unskilled workers in the direct labor force. The incentive shall be granted only if the enterprise meets a prescribed capital to labor ratio and shall not be availed of simultaneously with the ITH. This additional deduction shall be doubled if the activity is located in an LDA.
- Employment of Foreign Nationals – A registered enterprise may be allowed to employ foreign nationals in supervisory, technical or advisory positions for five (5) years from date of registration, extendible for limited periods at the discretion of the Board. The positions of President, General Manager and Treasurer of foreign-owned registered enterprises (more than 40%) or their equivalent shall, however, not be subject to the foregoing limitations.
- Simplification of customs procedures for the importation of equipment, spare parts, raw materials and supplies and exports of processed products.
- Importation of consigned equipment for a period of 10 years from date of registration, subject to posting of a re-export bond equivalent to 100% of the estimated taxes and duties.
- The privilege to operate a bonded manufacturing/trading warehouse subject to customs rules and regulations.
Philippine Drug Enforcement Agency (PDEA)
All business that uses or selling chemical (e.g. acetone, acetic arhydric etc) and other dangerous chemicals controlled under RA 9165 are required to register to PDEA to have a license to use and sell.
CONSEQUENCES OF FAILURE TO REGISTER AT PDEA
Using and selling dangerous chemicals without proper knowledge and permit of using it may cause damage and harm to anyone and may lead to face legal constraint from the authority.
Importation Permit (IMPORTER)
Bureau of Customs a government agency that implement a relevant technology for an efficient and effective customs management aligned with the international customs, to facilitate the import and export products and to prevent in all forms of customs fraud.
CONSEQUENCES OF FAILURE TO REGISTER AS IMPORTER
Failure to register at Bureau of Customs as Importer may result to holding of your import goods as informal entry, this may cause delay to the operation of your business.
Philippine Exporters Confederation Inc. (EXPORTER)
PHILEXPORT helps its members to open opportunities for their business even it is new or an established exporter in the market. Philexport strengthen the capabilities of the exporters so that they will be well positioned to have all the advantage and opportunities in the market, and to succeed in international trade.
CONSEQUENCES OF NOT REGISTERING AS EXPORTER:
Failure to register at PhilExport as Exporter will disallow your goods to be exported and will cause delay for your business’s operations.
One of the ways you can do to at least avoid the headache in processing those required permits and licenses is to hire a firm which offers a business registration services. GL, Inc. does not just specialize in accounting works but also we are much aware and capable of doing registrations. We guarantee you that when it comes to business registration, you have nothing to worry about because if you let us do the work, you just have to wait for your business registration and as soon as we hand it to you, you can now start to operate.