Kitchen Test

I have almost everything ready. Everything but the kitchen sink, literally. The sink is there but it doesn't have the faucet attached to it yet. But all other equipment is set and all ingredients are ready. So I decided to do a test run.

I baked my first batch of pandesal today. I tried to recall lessons learned from 4 months ago, and it wasn't easy. Inexperience won today and needless to say, the first batch was a flop. 

Here's a picture...

But it was expected and it has not changed my determination. I just learned that I can't do without a baker. That, or I need to practice a lot more. 

TIN Transfer

I made my way to Makati to transfer my TIN from RDO 50 (Makati) to RDO 41 (Mandaluyong). 

It was very easy. It took me longer to fill up the form than the interaction with the BIR representative. He didn't ask me any questions or anything. Which makes me wonder, why couldn't the same be done online? If all I had to do was fill up a form and submit it then there shouldn't be a reason why I had to go all the way to Makati for it. 

However, my main complaint about the whole experience was that the BIR representative did not mention that it would take 5 business days before the transfer would take effect. I had to learn about it from BIR Mandaluyong when I tried to register my business. 

BIR Registration Requirements

After securing the Mayor's Business Permit, the next step was to register with the BIR. These are the requirements for registration for a Sole Proprietor. 

Mayor's Business Permit

DTI Registration

Lease Contract (if renting) / Proof of Ownership (if owned)

While filling out BIR Forms 1901, 0605 and 2000 (if renting)

As per the BIR representative, fees will be computed based on the rent but I was told that it won't be more than P1000. 

The Sole Proprietor's TIN also need to be in te same Regional District Office (RDO) as the business. In my case, my TIN is registered in Makati and I need to have it transferred to Mandaluyong. I need to fill-up a BIR Form 1905 and submit it to the originating RDO. 

Mayor's Business Permit - Second Attempt

I called the Engineering Department as instructed yesterday to check if my application has been signed and it was. So I again went to Mandaluyong City Hall to continue with the process. 

From the Engineering Department, I went back down to the Business Permit and Licensing Department (BPLD). They reviewed the form and I was instructed to have the form signed by the Health Department. They didn't ask me any questions, they just scanned the form and signed it. 

Then I was asked to have a blank Memorandum of Agreement, which they provided, photocopied. I went back down to BPLD where they again reviewed my form. I was then asked to pay P1,500 for insurance and P100 to have the MOA notarized. I find the insurance dubious though. It wasn't discussed what the insurance was for. There was an OR for it but I have yet to review the documents that came with it. I'll post a separate entry covering the MOA and Insurance. 

BPLD then directed me to pay all the fees all the previous departments have been writing down on the form. The fees depend on the type of business, equipment, floor area, etc. The fees for the bakery amounted to P4,394.83. 

I was told that I'm now eligible to operate as far as the BPLD is concerned. But I won't get the business plate until I'm finished getting the Fire Safety Inspection Certificate. 

I proceeded to the BFP building right next to the City Hall. There, I was asked to pay for the fee, which was P380.60. Then I was asked questions about the place for the bakery and was instructed to purchase a fire extinguisher and a smoke detector. I was told that they would inspect the bakery once I've purchased the said items. 

All in all, today's activities took around an hour and a half. Which was fairly decent.

Mayor's Business Permit - First Attempt

I finally got the notarized copy of the lease contract and was finally able to continue with applying for the permits.

I went to Mandaluyong City Hall, Business Permit and Licensing Department this morning. The Officer of the Day was pretty helpful. He reviewed all the requirements which took just about 3 minutes; he had minimal questions.
Tip: Always be ready with photocopies of all documents.

He then asked me to go to the Engineering Department. In e Engineering Department, the Officer of the Day questioned whether I'm allowed to put a bakery in the site because he thought it was a residential zone. My heart skipped a beat because I have not checked zoning before I leased the place and I didn't want to be stuck with a unit I can't use. Fortunately, he corrected himself and said zoning allows a bakery there.
Tip: Check with zoning prior to leasing.

He then asked me to have my application form signed by different engineers. Each engineer would review my application form and check the pictures of the space. They would then write an amount and sign their name.
Tip: Take enough pictures to show the entire space as well as establishments beside it. It helps them find what they're looking for faster and it there are fewer questions.

After all of the engineers finished signing, the Officer of the Day asked me to have it signed by the Boss. Who was not around at the time. I was told that the Boss had several engagements throughout the day and that I had to return.

I was done in less than an hour. Except I have to go back.

Pitfall of being a sole proprietor

Last week, I was bitten by a cat. All work related to the bakery was put on hold because I could barely walk. And so I had a lot of time to think. These are my realizations:

• If I'm sick, my business should not be affected. There has to be continuity plans so that income would not stop.
• Covering employees with a health card is probably a good idea. This is worth exploring. 
• Philhealth does not cover cat bites.