A hardware store plan is mostly about stock and credit, but two rules shape it. DTI requires price tags on consumer products sold at retail, and selling wood preservative or household pesticides may need an FPA licence, with the fee set by FPA. This sample fills in DTI and BIR fees, and leaves stock and sales blank.[3,4]
Executive summary
Example: [Store name] Hardware will sell construction materials, plumbing and electrical supplies, paint, tools and wood preservative at [street], [municipality], close to [new subdivision, public market, highway]. Owner: [name], sole proprietor. Customers are homeowners doing repairs, small contractors and [farms or fishponds] nearby.
Funding needed: ₱____, most of it for opening stock and a delivery vehicle. Owner ₱____; supplier credit ₱____ on [terms]; loan ₱____ from [lender].
Store, yard and stock
Describe the selling floor [size], the yard for cement, steel bars, hollow blocks and lumber, and the storeroom. Note road access for delivery trucks and space for loading.
Write your stock plan by category: [cement and aggregates, steel, plumbing, electrical, paint and chemicals, tools]. Name the main supplier for each and the credit terms they offered in writing. Paint, solvents and wood preservatives need a separate, ventilated shelf away from food items if you sell any.
Customers and other stores
Fill in: Homes within [distance]: [number]. Construction projects currently visible: [number], counted on [date]. Contractors we spoke to: [number]; they buy [items] and want [delivery, credit, bulk prices]. Do not quote national construction figures here.
Competitors: [number] hardware stores within [distance]. For each: what they stock, delivery terms, whether they give credit, and prices for [cement, a box of nails] by your visit on [date]. Your angle: [delivery same day, open Sundays, contractor accounts].
Operations
Pricing and tags. Consumer Act Art. 81 requires tags, labels or markings showing the price of products sold at retail. DTI cites fines of ₱200 to ₱5,000 and/or one to six months in jail. In a hardware store with thousands of small items, use shelf labels and a printed price list, and retag after every supplier price change.[3]
Basic necessities. Under the Price Act, selling a basic necessity or prime commodity without a price tag is prima facie evidence of profiteering. Ask DTI which of your items, if any, fall on that list.[3]
Inventory and credit. Count fast-moving items weekly and the whole store quarterly. Contractor credit: limit ₱____, terms [days], signed account form.
People. [Number] sales staff, one helper for the yard, one driver. Register as an employer before the first payroll.
Permits and fees
FPA licences, if you carry these products: FPA licenses dealers and retailers of fertilizer and pesticides and sets the fee. Ask FPA which licence fits wood preservative and household pesticides. Decide which products you will stock before you apply.[4]
Financial plan
Start-up. Shelving and racks ₱____; yard roofing and fence ₱____; delivery truck ₱____; opening stock by category ₱____; POS and labels ₱____; FPA licence ₱____ for wood preservative or household pesticides if carried; DTI name ₱500 plus ₱30 stamp tax; barangay clearance ₱____; mayor's permit ₱____; reserve ₱____.[4,1]
Monthly. Rent ₱____; wages ₱____; fuel and truck upkeep ₱____; power ₱____; restocking ₱____; supplier credit payments ₱____.
Sales and margin by category. Use a table: category, monthly sales ₱____, margin ____%. Cement and steel usually carry thin margins; tools and fittings carry more. Fill in your own from supplier price lists.
Risks
Bad debt from contractors. Written credit limits and stop-supply rules. Dead stock. Review slow movers quarterly. Theft. CCTV and counted yard stock. Unlicensed chemical sales. Ask FPA about a licence before stocking wood preservative.
Permit and registration costs: hardware store
| Registration or rule | Office | Fee | Source |
|---|---|---|---|
| DTI business name (sole proprietor) | DTI | ₱200–₱2,000 by scope, city scope for one store | DTI BNRS FAQ |
| Documentary stamp tax on DTI fee | DTI | ₱30 | DTI BNRS FAQ |
| Barangay business clearance | Barangay hall | Set by the barangay | Ask the barangay |
| Mayor's permit and city fees | City or municipal hall | Assessed by the city | Ask the BPLO |
| BIR registration (Annual Registration Fee) | BIR | ₱0, not collected since 22 Jan 2024 | BIR RMC 14-2024 |
| Price tags on all retail items | DTI rule, no permit | No fee; fines of ₱200–₱5,000 and/or 1 to 6 months if missing | DTI price tag notice |
| FPA licence, wood preservative | Fertilizer and Pesticide Authority | Set by FPA; ask FPA | FPA Citizen's Charter |
| FPA licence, household pesticides | Fertilizer and Pesticide Authority | Set by FPA; ask FPA | FPA Citizen's Charter |
Questions people ask
- Do I need an FPA licence to sell anay or wood treatment?
- Ask FPA. It licenses dealers and retailers of fertilizer and pesticides and sets the fee.
- Does every hardware item need a price tag?
- Consumer Act Art. 81 requires price tags or markings on products sold at retail. DTI cites fines of ₱200 to ₱5,000 and/or one to six months in jail.
- How much does it cost to register a hardware store?
- DTI charges ₱200 to ₱2,000 depending on scope, plus ₱30 stamp tax. BIR no longer collects the ₱500 annual registration fee. Barangay and city fees are set locally.
Sources
Checked 14 November 2026. We link the agency's own page for every requirement. Rules change; confirm with the office before you pay.
- Frequently Asked Questions · DTI Business Name Registration System
- Digest of Revenue Memorandum Circular No. 14-2024 · Bureau of Internal Revenue · 24 January 2024
- Citizen's Charter 2025 (External Services) · Fertilizer and Pesticide Authority · November 2025