Auto repair shop business plan template for the Philippines

1. Summary

[Shop name] Auto Service will do preventive maintenance, brake and suspension work, [aircon servicing / electrical diagnosis / tune-ups] for cars and light vehicles at [address], [city]. Bays: [number]. Owner: [name], [background]. Technicians: [number], each with a TESDA National Certificate or Certificate of Competency.

Start-up capital: ₱____ (lifts and jacks ₱____, tools and diagnostic scanner ₱____, compressor ₱____, garage lease deposit ₱____, insurance ₱____, DTI accreditation and permits ₱____, parts stock ₱____, reserve ₱____). Funding: owner ₱____, loan ₱____.

2. Services and the workshop

List the jobs you will take and the ones you will refuse at first. A short list done well builds trust faster than "all repairs". For each job, note the time it takes, the tools needed and the parts you will keep in stock.

Workshop. Floor area [size] square metres, [number] bays, customer waiting area, parts room, and a place for used oil and old parts until they are collected by [hauler].

Covered work. DTI accreditation covers enterprises engaged in servicing and repairing motor vehicles, heavy equipment, engines and engineering works, among other categories. An auto repair shop sits squarely in this group.^[6]

3. Market and competition

Fill this with what you learn from vehicle owners and other shops.

Example fill-in. "Within [distance] there are [number] repair shops, [number] of them DTI-accredited, plus [number] casa service centres. Owners we interviewed ([number]) said their main problem is [long waits / unclear pricing / no warranty]. Change oil and filter at nearby shops costs ₱____ to ₱____ in labour. We will offer [written estimates before work / a 30-day workmanship warranty / pick-up and drop-off] to [Grab and taxi operators / company fleets / households]."

• Which vehicles are common near you: older sedans, AUVs, delivery vans, taxis and TNVS units?
• Where do their owners go for repairs now, and what do they dislike?
• Which nearby shops are DTI-accredited? Look for the certificate on their wall or ask the DTI provincial office.
• What do they charge for common jobs like change oil, brake pads or aircon cleaning?
• Are there fleets (delivery companies, schools, offices) you can contract with?

4. Operations and people

Job flow. Customer drop-off and inspection → written estimate → customer approval → repair → quality check and road test → release with invoice and warranty note. Keep a job card for every vehicle.

Technicians and insurance. DTI's accreditation checklist asks for a valid TESDA National Certificate or Certificate of Competency for technical employees, and a comprehensive insurance policy covering customers' property left for repair (or an affidavit if all work is done at the client's premises). Write who holds which certificate and attach copies.^[5]

Parts. Suppliers [names], payment terms, and your policy on customer-supplied parts. Keep a parts log so each part can be traced to a job.

5. Accreditation, permits and their cost

Follow the registration guide for DTI name, barangay, mayor's permit and BIR. DTI charges ₱200 to ₱2,000 for the business name depending on scope, plus ₱30 documentary stamp tax. BIR stopped collecting its ₱500 Annual Registration Fee from 22 January 2024.^[1,2]

Then the step specific to repair shops: no service or repair enterprise may be licensed or permitted to operate without first being accredited by DTI. The fee runs from ₱350 for One Star to ₱500 for Five Stars, plus a ₱50 filing fee and ₱30 documentary stamp tax. The certificate is valid for one year and must be renewed by 31 January, with a 25% surcharge if late; DTI's Fair Trade Enforcement Bureau lists the One Star late surcharge as ₱87.50. Applicants for Three to Five Star accreditation must post a performance bond of at least ₱50,000 in favour of DTI.^[3,4,5]

6. Financial plan

Published amounts are in: DTI accreditation One Star ₱50 + ₱350 + ₱30, DTI business name ₱500 + ₱30, BIR ₱0.^[4,1,2]

Revenue. Jobs per day [number] × average labour charge ₱____ + parts margin ₱____ per job × days [number] = ₱____ per month. Separate labour from parts so you can see which earns.

Break-even. Fixed monthly costs ₱____ ÷ average gross profit per job ₱____ = [number] jobs per month.

• Lifts, jacks and stands ₱____
• Hand tools, power tools, scanner ₱____
• Compressor and air lines ₱____
• DTI service and repair accreditation, One Star: ₱50 filing + ₱350 + ₱30 DST
• Performance bond premium (Three to Five Star only) ₱____
• Insurance on customers' vehicles ₱____ per year
• DTI business name ₱500 + ₱30; BIR ₱0
• Barangay clearance, mayor's permit and any environmental requirements ₱____ (assessed locally)
• Monthly: rent ₱____, power ₱____, technicians ₱____, consumables ₱____, used oil disposal ₱____

7. Risks

Write the risks and the habits that reduce them.

• Customer disputes over charges. Written estimate approved before work; photos of damaged parts.
• Damage to a customer's car in the shop. Insurance required by DTI; careful handling; job card sign-offs.
• Accreditation lapses. Renew by 31 January to avoid the 25% surcharge.
• Good technicians leave. Fair pay, training, and a share of labour charges.

Auto repair shop: accreditation and permit fees

Questions people ask

Does an auto repair shop need DTI accreditation?

Yes. No service or repair enterprise may be licensed or permitted to operate without first being accredited by DTI.

How much is DTI accreditation for a repair shop?

One Star is ₱50 filing plus ₱350 accreditation; Five Stars is ₱500. Add ₱30 documentary stamp tax. Renew by 31 January each year.

Do my mechanics need TESDA certificates?

DTI's checklist asks for a valid TESDA National Certificate or Certificate of Competency for technical employees.