April 11, 2010

Securing Business Permit Of An I-Café From An LGU

Unless the process being followed by the local government unit (LGU) allows a business to be registered with other government agencies later, the Business Permit (sometimes called Mayor's Permit) is the last to be secured by an i-café owner before he can operate his shop legally. The procedure in securing the business permit of an i-café from an LGU is more or less similar in most cities and municipalities in the country. The requirements, fees and taxes being imposed on the business may also vary depending on how the LGUs implement the provisions of The Local Government Code of the Philippines in their respective areas.

The Business or Mayor's Permit is issued by the city or town where the i-café business is located after its owner has paid the fees being imposed by the different departments of the LGU aside from the local tax based on paid-up capital by the first-time business registrants and on annual gross revenues for those renewing their business permits. The usual fees, clearances and/or certificates that an LGU may require before a Business Permit is issued to an i-café are as follows:

  • Fire Inspection Fee - The Fire Department of a city or town is already devolved and is now under the Bureau of Fire Protection but the inspection fee is usually paid together with the other fees enumerated below to the LGU. The amount to be paid is usually fixed against the area of a business establishment.

  • Engineering Inspection Fee - The amount of Engineering Inspection Fee is based on the electrical loads of an establishment. Air-conditioned areas of business will naturally pay more than non-aircon ones.

  • Garbage Collection Fee - The Solid Waste Management Office of an LGU imposes this fee based on the area being used by the business in its operation.

  • Sanitary Inspection Fee - This fee is assessed by the Health Department of a town or city and the amount is collected together with the other fees during the registration and renewal of the permit of a business.

  • General Public Liability Insurance Coverage - Some LGUs have local ordinances mandating businesses whose customers stay inside their premises while getting served by the establishment to insure them against accidents that may occur during their business hours. The amount of premium for this insurance coverage are paid to the insurance company and normally varies according to the area being used by the business.

  • Accreditation with an ICA - There are some LGUs that require an i-café to be accredited by an internet café association duly-recognized by them. This is usually part of the self-regulation policy that an LGU may impose on i-cafés under their jurisdiction.

  • Local Tax - Depending on the local revenue ordinance that an LGU has for its constituents, a new business may be tax a percentage of its declared paid-up capital. One-fourth of one (1%) of the paid-up capital of an i-café business is a typical amount being imposed by an LGU. During renewal of business permit, a maximum of three (3%) percent of the annual gross revenue of an i-café is imposed.

  • There could be some fees that we fail to include in the above list so we request our readers to tell us about it by way of a comment to this article.

    1 comment:

    1. Entree CybercafeMay 7, 2010 at 12:48 AM

      Sa LGU namin P100.00 kada computer sa isang araw ang basehan ng local tax. Binibilang nila yung units pag bisita nung inspektor. Mahirap lumusot.


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