LEGAL CHALLENGES

IN
ENTREPRENEURSHIP
1
PROTECTING
IDEAS
2
CONFIDENTIALITY
AGREEMENT
! not far different from other typical
agreement but it specifically
provides that the signor will not
share the idea to anyone.
PATENTS
! rovldes Lhe owner wlLh excluslve rlghLs Lo hold,
Lransfer, and llcense Lhe producuon and sale of
Lhe producL or process as an lnLellecLual properLy
rlghL.
! granLed Lo any person who lnvenLs or dlscovers
any new and usable process, machlnes or any
new and useful lmprovemenLs
PATENTS
! glves lnvesLor excluslve legal rlghL Lo exclude
anyone else from manufacLurlng, selllng,
markeung, lmporung or uslng an lnvenuon durlng
Lhe llfe of Lhe paLenL
! 17 years.
WHAT CAN BE PATENTED?
! rocesses, machlnes, producLs, planLs,
composluons of elemenLs (chemlcal
compounds), and lmprovemenLs on already
exlsung lLems
WHAT CAN BE PATENTED?
! producL musL glve a Lechnlcal soluuon Lo a problem.
! Lx. ballpens, Lelevlslons, band-ald, eLc.
! 1he lnvenuon musL:
! lL musL be novel or new (lL musL noL have been made or
used before)
! lL musL lnvolve an lnvenuve sLep (lL musL noL be obvlous Lo
a person of ordlnary sklll ln Lhe eld concerned)
! lL musL be lndusLrlally appllcable (lL musL be suscepuble of
use ln some way)

WHAT CANT BE PATENTED?
! ulscoverles, sclenuc Lheorles and maLhemaucal meLhods
! Schemes, rules and meLhods of performlng menLal acLs,
playlng games or dolng buslness, and programs for
compuLers,
! MeLhods for LreaLmenL of Lhe human or anlmal body by
surgery or Lherapy and dlagnosuc meLhods pracuced on Lhe
human or anlmal body. 1hls provlslon shall noL apply Lo
producLs and composluon for use ln any of Lhese meLhods,
!
WHAT CANT BE PATENTED?
! lanL varleues or anlmal breeds or essenually blologlcal
process for Lhe producuon of planLs or anlmals. 1hls provlslon
shall noL apply Lo mlcro-organlsms and non-blologlcal and
mlcroblologlcal processes.
! AesLheuc creauons
! AnyLhlng whlch ls conLrary Lo publlc order or morallLy.
STEPS IN PATENTING
1. 8equesL for Lhe CranL of aLenL (Lhls ls a
form provlded by Lhe lC)
2. uescrlpuon of Lhe lnvenuon (Speclcauons
and Clalms)
! AbsLracL, 8ackground of Lhe lnvenuon, Summary
of Lhe lnvenuon, deLalled descrlpuon of Lhe
lnvenuon and Lhe clalms.
STEPS IN PATENTING
3. lormal urawlngs
4. llllng lee (llllng lee=1,800, Lach sheeL ln
excess of 30= 13 per sheeL, Lach clalm ln
excess of 3= 130 per clalm, 8equesL for
SubsLanuve Lxamlnauon= 1,730)
TRADEMARK
! a word, name, symbol or devlce LhaL ls used by Lhe
manufacLurer Lo ldenufy Lhelr goods and dlsungulsh
Lhem from oLhers.
! can also be applled on slogans, mascoLs, symbols of
buslness.
! also from Lhe lC
! noL glven unless Lhe name, slogan, mascoL or oLher
mark ls ln con[uncuon wlLh buslness or producL
COPYRIGHT
! proLecLs Lhe creauve work of composers,
auLhors/wrlLers, arusL, lmmakers and oLhers.
! llfeume of Lhe creaLor and for 30 years aer
deaLh.
! A l s o a p p l l e d f o r c r e a u v e
expresslons"(palnungs, sculpLure, muslc
recordlngs, eLc.)
For more info visit
http://www.ipophil.gov.ph/
APPLYING FOR COPYRIGHT
! llle appllcauon wlLh Lhe CopyrlghLs dlvlslon of
nauonal Llbrary
! uupllcaLe and have lL noLarlzed
! ay 100 as reglsLrauon fee and 24 as
documenLary sLamps
! SubmlL 2 coples of your work.
BUSINESS
REGISTRATION
18
AdvanLage
! Lasy Lo seL-up
! ueclslon Maklng Le Lnurely Lo owner
ulsadvanLage
! uemandlng on owner's personal ume
! CrowLh llmlLed by owner's nanclal means

SOLE PROPRIETORSHIP
PARTNERSHIP
AdvanLage
! 8elauvely Lasy Lo seL-up
! Check and balance malnLalned wlLh Lwo parues
around
Disadvantage
! Personal rifts between partners may dissolve
partnership


CORPORATIONS
AdvanLage
! Maxlmum exlblllLy for growLh
! LlmlLed LlablllLy
! ls leasL llkely Lo dlssolve
ulsadvanLage
! CompllcaLed semng-up process
! lndlvldual sLockholders have llmlLed lnuence on
managemenL


SECURITIES AND EXCHANGE
COMMISSION
! Clves Lhe legal enLerprlse legal enuLy.
! arLnershlp and Corporauon only.
! Sec. 8ldg., LuSA, Creenhllls, Mandaluyong
ClLy

STEPS IN REGISTRATION
1. Secure name verlcauon Sllp from Lhe 8ecords ulvlslon.
2. roceed Lo cashler for paymenL of llng fee.
3. SubmlL documenLs Lo Lhe 8ecelvlng unlL of Lhe 8ecords Secuon.
4. Company 8eglsLrauon and MonlLorlng deparLmenL and asslgned Lo
processors
3. 1yplng pool prepares cerucaLe of reglsLrauon and reLurn Lo processor
and asslsLanL dlrecLor for lnluals.
6. ulrecLor for C8Mu slgns CerucaLe of 8eglsLrauon
7. 1he cerucaLe ls forwarded Lo Lhe 8eleaslng unlL of 8ecords ulvlslon ,
where lL may be clalmed by Lhe appllcanL upon presenLauon of proof of
paymenL.
DTI-BTRCP
! 8uslness name - dlsungulshes you buslness
from compeuLors
! esLabllshes you ldenuLy ln Lhe markeL place
! Assurance LhaL no oLher enuLy may legally use
you buslness name anywhere ln Lhe hlllpplnes
! Sole proprleLorshlp
! arLnershlp and Corporauon (opuonal)

6 TIPS IN CHOOSING
BUSINESS NAMES
1. Memorable buL easy Lo spell
! name recall buL dlrecLory or yellow pages
2. vlsual LlemenLs
! lmage you wanL Lo assoclaLe wlLh
3. osluve ConnoLauon
! uonL's -
! Creasy Spoon" or laL !acks" -eaLery
! Palr 8alser for a salon
! uo's
! new, Cold, Lucky, new, 8esL
6 TIPS IN CHOOSING
BUSINESS NAMES
4. ShorL
! Slgnage, buslness card, easler Lo remember
3. lndlcaLes/PlnLs on whaL you are selllng
! ldenuLy - Laundry, food, dellvery, cloLhlng, shoes?
6. Color/Color
! 8ed - aggresslve, speed, exclLemenL, passlon
! Creen and 8lue - calmlng colors, assoclaLed wlLh naLure
! ?ellow - llghL and breezy

Requirements for Business Name
Registration For Single Proprietorship

! llllplno cluzen, 18 years old & above
! 1wo 2x2 color lu (ldenucal, Laken 1 year precedlng appllcauon
and slgned aL Lhe back )
! llllplnos whose name are suggesuve of allen nauonallLy - proof
of cluzenshlp such as blrLh cerucaLe, 8C lu, voLer's lu,
passporL
! Acqulred llllplno cluzenshlp by naLurallzauon, elecuon or by
oLher means provlded by law,
! naLurallzauon cerucaLe and CaLh of alleglance
! AmdavlL of elecuon or lu card lssued by Lhe 8ureau of lmmlgrauon
and ueporLauon, or
! valld lu card lssued by Lhe lnLegraLed 8ar of Lhe hlllpplnes (l8) or
rofesslonal 8egulaLory Commlsslon (8C)
Requirements for Business Name
Registration
lor Corporauon, arLnershlp and Cooperauve

! lllled up appllcauon form
! Cerued phoLocopy of SLC and CuA reglsLrauon and
Arucles of lncorporauon, arLnershlp or Cooperauve
(by Lhe board of secreLary)
! 8oard 8esoluuon for Lhe auLhorlzed slgnaLory, lf
slgnaLory ls noL one of Lhe lncorporaLors

Steps in Business Name Registration
1. Choose a buslness name
! 3 names
! uescrlbe Lhe naLure of Lhe buslness.
! Should noL lllegal, oenslve, scandalous
2. Search for a buslness name
Reserving On-line
visit www.bnrs.dti.gov.ph

3 days
3. 8eglsLer your buslness
! CompleLe appllcauon form (manually or
onllne)

Steps in Business Name Registration
Steps in Business Name Registration
4. SubmlL uocumenLary 8equlremenLs
! 8eglsLrauon ls noL compleLe unul a slgned copy of Lhe
1ransacuon 8eference number acknowledgmenL form ls
reLurned Lo u1l.
3. ay necessary fees
! 300 for sole proprleLorshlp + 13 documenLary
sLamp
! 300 for parLnershlp and corporauon + 13
documenLary sLamps

RENEWALS
! 8uslness name explres 3 years
!"# %&'()* +#",#&*-"#./&, 0
! Crlglnal copy of 8uslness name CerucaLe
! lf losL, amdavlL of loss of owner
! 1wo coples of laLesL 2x2 lu plcLures bearlng appllcanL's
slgnaLure aL Lhe back
! aymenL of hp300.00
! aymenL for documenLary sLamp of hp13.00
! Surcharge of 100 lf laLe (aer 3 monLhs aer
explrauon)
1"#,"#2-* 324* 5*(&.-*#*6
! Crlglnal copy of 8uslness name CerucaLe
! lfnlosL, amdavlL of loss of owner
! Cerued Lrue/machlne copy of Lhe Securlues
and Lxchange Commlsslon (SLC) 8eglsLrauon
CerucaLe and Arucles of lncorporauon by
SLC or CorporaLe SecreLary ln each of Lhe
pages
! aymenL of hp300.00 + 13 doc sLamps
RENEWALS
LOCAL GOVERNMENT
(MAYORS PERMIT OR MUNICIPAL LICENSE)
1. Secure form from 8uslness ermlL and
Llcenslng Cmce.
2. SubmlL Lhree coples of form LogeLher wlLh
skeLch of buslness locauon.
* CerucaLe of 8uslness name 8eglsLrauon
* Arucles of arLnershlp/lncorporauon
3. roceed Lo 1reasurer's Cmce for paymenLs.
resenL Mayor's ermlL Lo geL Munlclpal
Llcense.
LOCAL GOVERNMENT
(MAYORS PERMIT OR MUNICIPAL LICENSE)
nLW 8LClS18A1lCn
! u1l 8eglsLrauon
! SLC 8eglsLrauon (arLnershlps and
Corporauons)
! 8ulldlng ermlL and Cccupancy ermlL (for
newly consLrucLed)
! Zonlng Clearance
! + requlremenLs of renewal
LOCAL GOVERNMENT
(MAYORS PERMIT OR MUNICIPAL LICENSE)
8LnLWAL
! LaLesL Mayor's ermlL
! 8arangay Clearance
! CommunlLy 1ax CerucaLe wlLh Cross 8ecelpL
! llnanclal SLaLemenL (arLnershlps and Corporauons)
! 8l8 Clearance
! SSS Clearance
! LnvlronmenLal Compllance CerucaLe (LCC) or CerucaLe of non-
Coverage (CnC)
! SanlLary ermlL
LOCAL GOVERNMENT
BUILDING PERMIT and OCCUPANCY PERMIT

! 8ulldlng ermlL (4 coples each):
! 8arangay Clearance
! 8ulldlng lan
! 8lll of MaLerlals
! 1ax ueclarauon
! Land 1lLle
! 8ulldlng & SanlLary ermlL Appllcauon lorm
! llre SafeLy CerucaLe
! CerucaLe of Compleuon
! Cccupancy ermlL
Bureau of Internal Revenue
! lor Laxauon purposes

uocumenLary 8equlremenLs for Sole roprleLorshlp
! 8lrLh cerucaLe or any valld ldenucauon showlng
name, address and blrLh daLe
! Mayor's permlL or appllcauon for Mayor's ermlL
(when appllcable)
! ueparLmenL of 1rade and lndusLry (u1l) CerucaLe of
8eglsLrauon of 8uslness name (Lo be submlued prlor Lo
Lhe lssuance of Lhe 8l8 CerucaLe of 8eglsLrauon (CC8)

Registration Procedures-Sole
Proprietorship
! Accompllsh 8l8 lorm 1901 and submlL Lhe same,
LogeLher wlLh Lhe requlred auachmenLs, Lo Lhe 8evenue
ulsLrlcL Cmce havlng [urlsdlcuon over Lhe reglsLered
address of Lhe buslness esLabllshmenL
! ay Lhe Annual 8eglsLrauon lee ( 300.00) aL Lhe
AuLhorlzed AgenL 8anks of Lhe 8uC.
! ay 13.00 for Lhe Cerucauon lee and 13.00 for Lhe
uocumenLary SLamp 1ax (ln loose form Lo be auached Lo
lorm 2303).
! 1he 8uC shall lssue Lhe CerucaLe of 8eglsLrauon (lorm
2303).
Documentary Requirement-
Partnership and Corporation
! SLC CerucaLe of 8eglsLrauon (CerucaLe of
lncorporauon/CerucaLe of Co-arLnershlp) or
Llcense 1o uo 8uslness ln Lhe hlllpplnes" ln
case of resldenL forelgn corporauon
! Mayor's ermlL or appllcauon for Mayor's
ermlL
Registration Procedures
Partnership and Corporation
! Accompllsh 8l8 lorm 1903 and submlL Lhe same
LogeLher wlLh Lhe requlred auachmenLs Lo Lhe 8evenue
ulsLrlcL Cmce havlng [urlsdlcuon over Lhe reglsLered
address of Lhe buslness esLabllshmenL.
! ay Lhe Annual 8eglsLrauon lee ( 300.00) aL Lhe
AuLhorlzed AgenL 8anks of Lhe 8uC.
! ay 13.00 for Lhe Cerucauon lee and 13.00 for Lhe
uocumenLary SLamp 1ax (ln loose form Lo be auached Lo
lorm 2303).
! 1he 8uC shall lssue Lhe CerucaLe of 8eglsLrauon (lorm
2303).
49
30
Other things you need to
register with BIR
! 8eglsLrauon of 8ooks and AccounLs
! AuLhorlLy Lo rlnL 8ecelpLs and lnvolces
! ermlL Lo use Cash 8eglsLer Machlne or olnL
of Sale
AMCun1 Cl CCM8CMlSL LnAL1?
lor fallure Lo lssue recelpLs or sales
or commerclal lnvolces
llrsL Cense Second Cense
10,000 20,000
lor refusal Lo lssue recelpLs or sales
or commerclal lnvolces
23,000 30,000
lor lssuance of recelpLs LhaL do noL
Lruly reecL and/or conLaln all
Lhe lnformauon requlred Lo be
shown Lhereln
1,000 2,300
Penalties
lf Lhe lnformauon mlsslng ls Lhe
correcL amounL of Lhe
Lransacuon
2,000 3,000
lf Lhe dupllcaLe copy of Lhe lnvolces
ls blank buL Lhe orlglnal copy
Lhereof ls deLached from Lhe
bookleL
10,000 20,000
lor possesslon or use of
unreglsLered recelpLs or
lnvolces
10,000 20,000
lor use of unreglsLered cash
reglsLer machlnes ln lleu of
lnvolces or recelpLs

23,000
30,000
lor prlnung or causlng or aldlng Lhe prlnung of:
a) 8ecelpLs or lnvolces wlLhouL
auLhorlLy from Lhe 8l8
10,000 20,000
b) uouble or muluple seLs of
recelpLs or lnvolces
noL sub[ecL Lo Compromlse
c) lncompleLe lnformauon of
8ecelpL


3,000 10,000
OTHER REQUIREMENTS
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