It seems like freelance contractors who are working from home and have business "establishments" are required to have a business permit.
If I remember it right, when I register with BIR under a new name last January, 2018, one requirement that I had to comply with is this type of permit.
So what is the status of my application now?
I am currently waiting for the 2 x 3 feet permanent signage to be framed by the tarpaulin printer/signage maker in my area. For cash payment, I was given a Php 100.00 worth of discount. The whole signage costs Php 1,200.00. I am grateful to my clients who sponsored my signage. How can I publish them as my sponsors in my business page? I am a dummy when it comes to these things.
I have already been issued an "Order of Payment" for my Certificate of Zoning Compliance Fee and it costs Php 1,200.00.
When I get to have the permanent signage sort of "attached" to the wall facing the street, I will be required to pay the above-mentioned amount.
So what are the requirements for the Certificate of Zoning?
Here are the details:
1) Zoning Certificate
2) Zoning Clearance for Business (Photocopy)
The second document will only be given when the following are satisfied:
1. DTI permit/SEC Certificate (For the SEC Certificate, there is aneed to submit the Article of Incorporation, Board of Resolution, and Secretary's Certificate as well);
2. Barangay Clearance (attachments such as the official receipt and the Community Tax Certificate are optional);
3. Homeowner's Clearance (if applicable);
4. Location of the Sketch of the Site (Google maps are acceptable);
5. Picture of the site (showing the signage);
6. Permanent Signage (2 x 3 ft., with frame);
7. Proof of Ownership (Photocopies of the Land Title/Transfer Certificate of Title, Tax Declaration of Real Property and Official Receipts of Real Property Tax payments);
8. Notarized Application for Certificate of Zoning Compliance;
9. Notarized Deed of Undertaking; and the
10. Certificate of Occupancy/Permit to Occupy
Note: If the house is owned by the Developer, there is a need to attach a Deed of Sale/Contract to Sell. Tax receipts must indicate that real property taxes have been paid on time. In my case, the Developer shouldered these taxes as agreed upon when the Contract to Sell was accomplished. I am grateful to the Marketing Document Specialist and the Customer Service Reprsentative who assisted me in this procedure.
Four of the above-mentioned documents will be necessary for the Zoning Certification phase. These include the following:
a) Photocopy of Land Title/Transfer Certificate of Title
b) Photocopy of Tax Declaration
c) Photocopy of Official Receipts of Real Property Tax payments
d) Location of Vicinity map
The notarized Deed of Undertaking specifically states that I will be holding office at home. This makes me think that nowadays, freelance contractors without a business establishment are required to have a business permit. But I guess that just like with taxes, the requirement draws its strength from love. Some business individuals may not comply with these requirements but they are able to feed mouths as they have employees. Others who can comply may not have the financial strength to feed mouths. Without my sponsors, will I even experience this business permit stuff? I am not saying that the business permit, or tax payment route, is the perfect way. I am not a judge of how people do their businesses.
It must have been exceedingly difficult for my former employers to engage themselves in business and balance things off when it comes to their responsibility towards the people under their care and their financial duties to the government.
I can feel them right now. I am grateful to all of them who gave me a chance for employment. I am grateful to Upwork and my clients as well for supporting me in my business endeavors and for forgiving me when I fail to give them due credits.
So a real estate agent came to the house a while ago and asked about my signage which has already been framed. I told her that the main issue that is being considered is the thing about using the property for "residential purposes" because I gather that the Affidavit of Undertaking seems to limit the business activities of a freelance contractor to "holding an office" only. Has anyone encountered this dilemma before?
It looks like the business permit is equal to the W8-BEN Form in terms of weight. Although we, freelance contractors, are encouraged to have an alternative source of income, we are not required to submit a business permit just to have our profile approved or have an Upwork account.
While I was packing school supplies yesterday and delivering the goods to my clients a while ago, it has dawned on me that the Affidavit of Undertaking might, in effect, be granting a freelance contractor to hold an office inside a residential unit and do other business stuff as long as the unit does not have stocks of school supplies for say, three months, without any movement at all.
Although the said document is not necessary for us to have our profiles approved, it is a necessary step in order to be granted a Mayor's business permit.
The only thing that seems to bother me now is with regard to the signage. I have seen signages only in commercial areas.
Also it (my option to write my contact details in the signage) seems to be in conflict with my lifestyle as a freelance contractor as the ringing of the phone steals my attention from whatever it is that I am working on using my PC.
So I still find this a dilemma afterall. Who can solve this riddle?
When Upwork went public ten days ago (isn't it obvious that I am inclined to delay my sense of communal gratification? hahaha!) I had a new Affidavit of Undertaking notarized. I realized that there was nothing dramatic about the feat. It got approved the same day although I obtained my clearance last October 9, 2018. The decision-on-zoning document reflected my full name with a hyphenated family name (is this a mortal sin in the business arena?), the name of my future corporation (hahaha!), my residential address, type of the project (in my case, it's a business office), the area and location of the housing unit, the zone classification which is coded as R-3-MUZ referring to a high-density (as in HD) residential-mixed use type as well as the decision of the zoning staff in regard to my application.
Then I accomplished my Business One Stop Shop document which was processed immediately by the Zoning Office and the Fire Department.
The next step would be to proceed to the DPOS Unit which is requiring me to come up with hard copies of business-office-with-signage pictures.
I am not sure about the SSS unit requirements since I don't have employees under me yet. I have yet to know what Tourism, Sanitary/Health units would require from me.
For the next phase of my business permit application process, I have prepared the following documents:
a) fully accomplished Business One Stop Shop document;
b) 2 pictures of the business office with signage;
c) 3 pictures of the site;
d) photocopy of the Decision on Zoning;
e) application form for business (4 colored sheets);
f) 2 x 2 colored ID picture bearing full name at the back;
g) photocopy of the verification and inspection report;
h) photocopy of the barangay clearance for business;
i) photocopy of the community tax certificate;
j) photocopy of the official receipt (barangay clearance);
k) photocopy of the DTI permit;
l) photocopy of the Contract-to-Sell (3 sheets); and a
m) sketch of the site via Google maps.