March 16, 2010

Steps In Registering An I-Café Business

This is the first in a series of articles about the steps in the registration of an i-café business with the proper government agencies. It has been echoed many times in different forums and there is truth to the reports that there are many i-cafés operating without the proper permits and licenses. Reasons cited by owners of unregistered i-cafés range from being on trial stage to not knowing how to register their business. Our series of articles on the registration of an i-café business are aimed to  give proper guidelines on how to be legally operating the business right from the start. These guidelines would also be useful to those already operating an i-café but may have missed some legal requirements of the business.

The image on this article shows the steps in registering an i-café business. While procedure may vary depending on the town or city where the business will be conducted, the steps shown are more or less representative of how it is done in many localities. Briefly, the steps in registering an i-café business are as follows:

1) Business Name Registration - Depending on the kind of business organization, the name of a proposed Internet café must be registered with the Department of Trade and Industry (DTI) for a single-owned entity and with Securities and Exchange Commission (SEC) if it will be a partnership or a corporation.

2) Barangay Clearance - A clearance or certification authorizing the owner of an i-café to operate in a specific area of a community or barangay has to be secured before proceeding with the next steps.

3) BIR Registration - Upon registration with DTI or SEC, the i-café business must be registered with the Bureau of Internal Revenue within thirty (30) days. This is for taxation purposes and for the business to be able to print its official receipts (OR).

4) Registration With Other Government Agencies - While some local government units (LGUs) may not require clearances from SSS and Pag-Ibig, our national laws mandate compulsary registrations of businesses to these agencies.

5) LGU Business Permit - Also called as Mayor's Permit, an i-café owner must secure this before operating his shop. Various requirements like Fire Safety Inspection, Health Clearance, Solid Waste Management and others must be satisfied by an i-café owner before an LGU Business Permit is issued to him.

As stated above, the subject of registering an i-café business will be discussed on a series of articles so that the steps will be clear to everybody. Watch for the detailed description of each step as they get posted here. If needed, you may now ask any question about each step by using the comment box below.

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