LEGAL

STUDY

Determines whether
the proposed project
will meet all legal and
ethical requirements.

LEGAL ASPECT OF THE

PROPOSED BUSINESS OR
PROJECT

Business Registration
Act
of
incorporating
a
company under a particular
jurisdiction.
It establishes the business
as a legal entity.

Business Registration
STEPS:
Name Registration

Securities and Exchange Commission (SEC)

Department of Trade and Industry (DTI)
Local Barangay/Municipal Office (Permit)
Social Security System (SSS)
Philippine Health Insurance Corporation (Philhealth)
Home Development Mutual Fund (Pag-IBIG Fund)
Mayors Office (Permit)
Bureau of Internal Revenue (BIR)

LEGAL REQUIREMENTS
For Construction Projects
Architect Contract
Bid Bond
Bid Form
Equipment Lease
Guaranty Agreement
Flooring Contract
Electrical Service Agreement

LEGAL REQUIREMENTS
For Schools and Hospital
A. Residence Tax Certificates A and B for the
current year of the President or officer
authorized to sign the mortgage contract and
other documents.
B. Corporate Tax Certificates C and C-1 of the
applicant-corporation for the current year.

LEGAL REQUIREMENTS
For Schools and Hospital
C. Board Resolution as certified by the
corporate
secretary,
adopted
by
the
corporation approving the negotiation of the
transaction and authorizing the proper official
to sign such documents as are necessary to
implement the transaction.
D. Certificate of title or Photostat copy therof.
If lot is encumbered, a copy of the mortgage

LEGAL REQUIREMENTS
For Schools and Hospital
E.
For
properties
under
Administration, submit the Letters of
Administration and Order of the Court
authorizing the Administrator to
borrow the amount needed and to
mortgage the property under the

LEGAL REQUIREMENTS
For Schools and Hospital
F. For properties under Guardianship,
submit the Letters of Guardianship
and secure an Order of the Court
authorizing the Guardian to mortgage
the property of the minors to sign the
promissory
note
and
mortgage

LEGAL REQUIREMENTS
For Schools and Hospital
G. For Interstate Estate:
1. Secure an Administrators for the
Estate of the deceased and follow the
same procedure as in E (for properties
under administration): or
2. Effect an extra judicial partition of
the estate transferring the properties
both real and personal in the name of

LEGAL REQUIREMENTS
For Schools and Hospital
H. If there are several owners of the
same property, all co-owners should
be made to sign to the mortgage
contract and the promissory note or
financing agreement.

LEGAL REQUIREMENTS
For Schools and Hospital
Other legal requirements that may have to
be compiled with depending on the
peculiarity of each case.
a.Application Fee of 1,000 pesos for every 1
million pesos subject of refinancing or a
minimum of 5,000 pesos which application
fee is not refundable on failure to quality or

LEGAL REQUIREMENTS
For Schools and Hospital
b. Board Resolution authorizing the filing of this
application and authorizing the person to
undertake the application and to represent the
company in all conferences and on other matters
related thereto.
c. Certification to the effect that application-firm
offers no objection to DBP making available to
outside technical consultants any
papers/documents which the firm may have in
DBPs file

LEGAL REQUIREMENTS
For Schools and Hospital
d. A sworn statement to the effect that the
applicant has no case pending before the Bureau
of Internal Revenue or Bureau of Customs, or has
no criminal or civil case in any Court pending or
finally decided against him or it, involving nonpayment of any Tax, duty or undertaking with the
Government.

LEGAL REQUIREMENTS
For Schools and Hospital
e. Latest copy of BIR Letter of Confirmation Form
No. 19.65 E-1 and BIR tax clearances Form No.
17.61.
f. In the event that said applicant or other parties
concerned shall be found to have pending cases,
submit the Secretary of Finances certification
that the pendency of such case is without fault on
the part of the party concerned.