Starting a Rice Dealership Business in Rice Retailing (Bigasan) in the Philippines Rice Retailing is a profitable business because rice is the staple food in our country. There are many rice varieties that consumers can choose from at low cost The preferred varieties for daily meals are white, long grained, and aromatic. Glutinous or sticky rice (malagkit) are used for native sweets. Estimated Investment Cost (based on 2009 prices) A. Basic Equipment
Rice boxes, 6 pcs – 12,622.50
Scooper – 250.00
Pushcart – 600.00
Weighing scale – 900.00
Sub-Total – P4,250.00 B. Basic Weekly Supplies (from rice farmers/producers)
Sinandomeng, 450 kilos @P28.05/kg – P12,622.50
Dinurado, 400 kilos @34.00/kg -13,600.00
Wag-wag, 350 kilos @25.50/kg -8,925.00
Milagrosa, 250 kilos @25.05/kg -7,012.50
Long Grain, 350 kilos @25.50/kg -8.925.00
NFA Rice. 700 kilos @21.25/kg -14,875.00
MalagkH, 50 kilos @34,00/kg -1,700.00
Sub-Total – P67,660.00 C. Packaging
Sando Bags, 3000 pcs – P450.00
Estimated total investment cost – P72,360.00 D. Cost of Goods Sold
Merchandise Inventory Beginning (20%) – P13,622.00
Add: Purchases (80%) – 54,486.00
Total Goods Available for Sale – 68,110.00
Less: Merchandise Inventory, Ending – 13,622.00
Cost of Goods Sold – P54,488.00
Add: 15% Mark-up – 8,173.20
Sales – P62,661.20
Estimated Weekly Income
Sales – P62,661.20
Less: Cost of Goods Sold – 54,488.00
Gross Sales – P8,173.20
Less Operating Expenses:
Labor (P200 x 7 days x 1 worker) – 1,400.00
Water and Electricity (weekly) – 350.00
Transportation/Delivery – 500.00
Estimated total weekly income – P5,923.20
Assumptions:
80% of the items are being replenished weekly.
80% of Cost of Goods Purchased is considered sold weekly.
20% of the rice remains In the inventory per week.
15% is the mark-up per item.
Tips: Storage – Bukbok or weevil is a natural enemy of rice because it Is 90% starch. They make rice powdery so make sure the storage or warehouse is managed properly. Observe First-in, First-out Inventory method – Inventory of rice stocks should be kept track. The quality of rice will deteriorate if the storage exceeds three months.
Rice Dealer Business Registration Requirements Are you Planning to start your own Rice Dealership Here is a guide how to successfully establish your new business venture
For Single Proprietorship 1. Business Name Registration Visit Department of Trade & Industry (DTI) Provincial Office where the business is located or log on to www.bnrs.dti.gov.ph Validity: 5 years Requirements: • Accomplished Business Name Registration Form [Single Proprietorship/Partnership (Optional)]; • Registration fee of Php300.00 2. Mayor’s Permit Agency: Local municipality where business is located Validity: 1 year Requirements: • Accomplished Business Permit Application Form • DTI – Business Name Certificate • Sketch of the business location
• Barangay Clearance • Fire Safety Inspection Clearance • Sanitary Permit (from City Health Officer) • Lease Contract • 2 pcs. 2×2 colored ID Picture • Registration fee depends on the type of the business 3. Tax Identification Number (TIN) Agency: Bureau of Internal Revenue (BIR) National Office, Agham Road, Diliman, Quezon City Tel. nos.: (632) 981.7000 / 981.8888 Email:
[email protected] Website: www.bir.gov.ph Requirements: • Accomplish Form 1901 • Mayor’s Permit • Registration Fee of P500.00 Business Registration Requirements 4. Social Security System (SSS) Certificate Social Security System (SSS) Loans and Investment Office SSS Building, East Avenue, Diliman, Quezon City Tel. Nos.: (632)920.6401 / 920.6446 Email:
[email protected] Website: www.sss.gov.ph Requirements: • Accomplished R1 Form • DTI Business Name Certificate • Mayor’s Permit 5. Department of Labor and Employment (DOLE) Registration (with 5 or more employees) Agency: Department of Labor and Employment
(DOLE)-Labor Standard and Enforcement Division 2nd Flr. Dy International Building, San Marcelino cor. Gen. Malvar St., Malate, Manila Tel. nos.: (632) 339.2013. Hotline No.: 527.8000 Email:
[email protected] Website: www.dole.gov.ph Requirements: • Accomplished Rule 1020 Form • Lay-out of business location • Vicinity map
For Partnership Securities and Exchange Commission (SEC) Certificate Agency: Securities and Exchange Commission Address: SEC Building, Edsa, Greenhills, Mandaluyong City Tel. No.: (632) 726.0931 to 39 Email:
[email protected] Website: www.sec.gov.ph or http://iregister.sec.gov.ph/MainServlet (for online registration) Requirements: • Verification Slip Form (Re: Proposed Name) • Accomplished Registration Data Sheet • Articles of Partnership • Written undertaking to change corporate name • • If the contributed capital is in the form of real property, additional requirement is needed: – Deed of Assignment executed by the owner.
For Corporation Securities and Exchange Commission (SEC) Certificate Agency: Securities and Exchange Commission (SEC) Address: SEC Building, Edsa, Greenhills,
Mandaluyong City Tel. No.: (632) 726.0931 to 39 Email:
[email protected] Website: www.sec.gov.ph or http://iregister.sec.gov.ph/MainServlet (for online registration) Requirements: • Articles of Incorporation and By-Laws; • Verification Slip Form (Re: Corporate Name); • Accomplished Registration Data Sheet; • Treasurer’s Affidavit; • Bank Certificate of Deposit; • Authority to Verify Bank Accounts; • Written Undertaking to Change Corporate Name, when necessary; • Subscriber’s Information Sheet; • If the paid-up capital is in the form of a real property, submit the following additional requirements: – Statement of Assets and Liabilities; – Deed of Assignment executed by the stockholder who is the owner of the property in favor of the corporation. If the property contributed is a building or a parcel of land, the deed must be presented to the Register of Deeds for registration; – If the property being contributed is a building, submit detailed list of the building/s giving a brief description of each; – If the property being contributed is a parcel of land, submit detailed list of the parcel of land showing the OCT/TCT numbers, registered owner, lot and block numbers, area, location and encumbrances, if any; and • Registration fee of Php360.00.
Other Agency 1. National Food Authority (NFA) Certificate Agency: National Food AuthorityRegulatory Division
10th flr., Matimyas Building 101 E. Rodriguez Sr. Avenue, Quezon City Tel. nos.: 712.2527 / 712.1768 / 712.1924 Email:
[email protected] Website: www.nfa.gov.ph Validity : 1 year Requirements: • Accomplished Application Form for Retailing/Wholesaling • Passport size picture of the applicant • Tax Identification Number • Facilities and equipment requirement: calibrated weighing scale, adequate storage space, rice boxes painted white, price tags indicating price per kilogram, classification, variety, and grade or whether NFA rice • Signboard shall at least measure as follows: 45 cm. width and 75 cm. length bearing the business name of the licensee, the NFA control number and the words “Licensed Grains Retailer”, or “Wholesaler” • Sketch of business location • Application Fee of Php100.00 and registration fee (depends on the capitalization of the owner)
