Puhunan guide: what goes into your starting capital

What goes into starting capital, and where each amount comes from

Why we do not give one puhunan figure per business

Two sari-sari stores can start with very different money. One opens in a room the owner already has, with a shelf and a week of stock. Another rents a corner unit, renovates it and buys a chest freezer. Both are correct. A single "puhunan for a sari-sari store" number would be wrong for most readers, so we do not publish one for any non-franchise business.

What we do publish is the list of permits each type needs, in the business kits. Start there, then price each line for your own location.

The fees you can look up today

DTI business name registration is ₱200 for barangay scope, ₱500 for city or municipality, ₱1,000 for regional and ₱2,000 for national, plus ₱30 documentary stamp tax. BIR registration carries a ₱30 documentary stamp tax on the Certificate of Registration.^[1,2]

Product and activity permits have their own schedules. Examples from our kits: FDA licence fees follow AO 2024-0016, so ask FDA for yours; BAI's initial animal facility registration for farms is ₱1,000; an FPA fertilizer dealer licence is ₱1,800, renewable every three years; DOT spa accreditation is ₱1,000 a year plus a ₱100 sticker.^[6,7,8,9]

Barangay clearance and the mayor's permit are set by each barangay and city. Ask the city treasurer's office for an assessment before you budget. Some cities also want proof that you may use the location, such as the owner's consent, which can matter for your lease talks.^[5]

The costs only you can price

1. LocationAsk at least two landlords for rent, deposit and advance terms in writing. Add repairs and signage.
2. EquipmentList every machine and tool your kit implies, then get two supplier quotes for each.
3. Opening stockPrice one full shelf or one week of ingredients from your actual supplier, not from an online list.
4. Working capitalAdd up rent, utilities, wages and loan payments for the months before sales cover them. Decide how many months to cover and write down why.

How to read a franchise figure

Franchise figures are the one place we show amounts, because the brands publish them. Read the fine print in each. The PCSO lotto outlet (an agent programme, not a franchise) lists a ₱2,500.00 application fee, with the ₱10,000 installation fee and a bond extra. Sam's Everything On Stick lists "Php 480K (provincial) / Php 350K (Metro Manila)" in the PFA directory. Famous Belgian Waffles lists a different price per format. Microtel by Wyndham lists "Php 3M/room".^{[10,11,12,13]}

Our franchise band pages list brands by their lowest published figure, with their sources: under ₱300,000 (12 offers), ₱300,000 to ₱500,000 (32), ₱500,000 to ₱1M (46) and ₱1M to ₱3M (54).^[10]

Keep an eye on the ₱3 million line

A Barangay Micro Business Enterprise must have total assets of ₱3 million or less. BMBE registration is free and gives an income tax exemption on the business's income, so if your puhunan is close to that line, ask an accountant how your equipment and stock count before you buy.^[4]

Questions people ask

Magkano ang puhunan sa negosyo?

It depends on the business type, your location and your equipment. Government fees are published and modest; rent, equipment and stock make up most of it and only quotes can price them.

How much does it cost to register a small business?

DTI charges ₱200 to ₱2,000 by scope plus ₱30 stamp tax, and BIR charges ₱30 documentary stamp tax. Barangay and city fees are assessed locally.

Do I still pay the ₱500 BIR registration fee?

No. BIR stopped collecting the ₱500 annual registration fee on 22 January 2024 under RA 11976.

Why does the site show franchise prices but not other startup costs?

Franchise brands publish their figures, so we can cite them with a date. For other businesses there is no published figure that fits every location, and we do not estimate.