Get a handle on the various fees you have to pay to put up your business.
Q: My family is about to open a small trading business. We have made an estimate of our required investments in fixed and working capital. I am told there are pre-operating expenses we have to reckon with. Do these refer to the business registration costs? What other expenses should we prepare for? About how much all in all should be set aside?
— JESSICA, San Fernando, Pampanga
A: Yes, definitely: As part of your pre-operating expenses, permits, licenses, and registration fees need to be paid. Specifically, there are costs incurred for the barangay clearance and registration with either the Department of Trade and Industry, Securities & Exchange Commission, or Cooperative Development Authority, depending on the legal form of the business you have — whether a sole proprietorship/partnership, corporation, or cooperative.
There will also be expenses to secure a municipal license and other required permits.
These expenses should not exceed P20,000, but we can't really peg it down to a fixed amount. The rates vary according to the nature and capitalization of the business and according to the city/municipality where the business is located.
Other expenses which may be required are:
* Professional fees, which are those paid for the services of a certified public accountant (to set up the chart and books of account); an attorney to give legal advice or prepare legal documents; and a professional or group of professionals to prepare the business plan.
* Other organizational expenses, which may cover desk research, travel to and from suppliers of raw materials and machinery, administrative expenses incurred in recruiting and training personnel, and plant trial runs.
Source: Philstar
Q: My family is about to open a small trading business. We have made an estimate of our required investments in fixed and working capital. I am told there are pre-operating expenses we have to reckon with. Do these refer to the business registration costs? What other expenses should we prepare for? About how much all in all should be set aside?
— JESSICA, San Fernando, Pampanga
A: Yes, definitely: As part of your pre-operating expenses, permits, licenses, and registration fees need to be paid. Specifically, there are costs incurred for the barangay clearance and registration with either the Department of Trade and Industry, Securities & Exchange Commission, or Cooperative Development Authority, depending on the legal form of the business you have — whether a sole proprietorship/partnership, corporation, or cooperative.
There will also be expenses to secure a municipal license and other required permits.
These expenses should not exceed P20,000, but we can't really peg it down to a fixed amount. The rates vary according to the nature and capitalization of the business and according to the city/municipality where the business is located.
Other expenses which may be required are:
* Professional fees, which are those paid for the services of a certified public accountant (to set up the chart and books of account); an attorney to give legal advice or prepare legal documents; and a professional or group of professionals to prepare the business plan.
* Other organizational expenses, which may cover desk research, travel to and from suppliers of raw materials and machinery, administrative expenses incurred in recruiting and training personnel, and plant trial runs.
Source: Philstar
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