UNIVERSITY OF PERPETUAL HELP SYSTEM LAGUNA

Graduate School

LEGAL REQUIREMENT FOR

STARTING A SECONDARY SCHOOL

A final paper requirement in the subject

Legal Aspect in Business
under the program
Doctor of Philosophy in Business Management

Submitted to:

ATTY. WILFREDO L. BEJASA

by:

SHERYL D. TOMAS
1STSem 2017-2018
 UNIVERSITY OF PERPETUAL HELP SYSTEM LAGUNA
Graduate School
BUSINESS OVERVIEW

From 1945 to 2011, basic education took ten years to completesix

years of elementary education and four years of high school education for
children aged six up to fifteen. However, after the implementation of the K12
Program of DepEd and subsequent ratification of Kindergarten Education Act
of 2012 and Enhanced Basic Education Act of 2013, the basic education today
takes thirteen years to completeone year of kindergarten, six years of
elementary education, four years of junior high school and two years of senior
high school for children aged five up to seventeen. As of 2017, the
implementation of Grade 12 has started.
Secondary school in the Philippines, more commonly known as "high
school" (Filipino: paaralang sekundarya, sometimes mataas na paaralan),
consists of 4 lower levels and 2 upper levels. It formerly consisted of only four
levels with each level partially compartmentalized, focusing on a particular
theme or content. Because of the K-12 curriculum, the high school system now
has six years divided into 2 parts. The lower exploratory high school system is
now called "Junior High School" (Grades 7-10) while the upper specialized
high school system is now called "Senior High School" (Grades 11 and 12).

There are two main types of high school: the general secondary school,
which enroll more than 90 percent of all junior high school students, and the
vocational secondary school. In addition, there are also science secondary
schools for students who have demonstrated a particular gift in science at the
primary level as well as special secondary schools and special curricular
programs.

Based on available data there are 12, 878 total schools in the country
and as of school year 2012 2013 there are 7,748 public and 5,130 private
schools. Private sectors fills a big slice of the industry with a market share of
39.8 %.

The data shows that Starting an educational institution is a lucrative

endeavor in the Philippines. With the limited resources of the government to
finance the establishment of public high schools that could cater to the
expanding needs of the country, there is a big gap that needs to be filled.
 UNIVERSITY OF PERPETUAL HELP SYSTEM LAGUNA
Graduate School
LEGAL REQUIREMENTS NEEDED

There are 3 categories of the requisites in starting a secondary school in the

country;
1. Business name Registration requirement
2. Regulatory Requirements from the Department of Education.
3. Licensing requirement from the LGU (License to operate)

BUSINESS NAME REGISTRATION

SECURITIES AND EXCHANGE COMMISSION (SEC)

The corporation shall be registered with the Securities and Exchange

Commission with a minimum paid up capital of 2,500,000 as required by SEC
for secondary schools. 25% of these paid up capital requirements shall be
subscribe by the incorporators and 25% of the subscribed capital shall be paid
in. The amount shall be deposited in a bank account under the corporation.
Once a certificate of registration is issued by the SEC the next step is to
secure for a government recognition.

REGULATORY REQUIREMENT

All secondary schools are being regulated by the Department of

Education to ensure the implementation of standards in the delivery of quality
education to the students across the country.
Before starting to operate a secondary school, there is a need to apply
for a Government Recognition /a temporary permit to operate from the
Department of Education. The checklist in applying for a government
recognition is attached as annex A at the last part of this document.

LICENSING REQUIREMENT

BUSINESS LICENCE/MAYORS PERMIT

This shall be secured from the licensing department of the local

government unit where the secondary school wants to operate. All businesses
are required to secure a mayor's permit or municipal license from the
municipality or city where they are located. Various cities and municipalities
have different registration procedures.
 UNIVERSITY OF PERPETUAL HELP SYSTEM LAGUNA
Graduate School
Where to File
1. Concerned Municipal or City Government Office
2. Municipal/City Hall (View Directory)

Requirements for Mayor's/ Business Permit:

Barangay Clearance
Community Tax Certificate with Gross Receipt
Financial Statement (Partnerships and Corporations)
BIR Clearance
SSS Clearance
ECC (or CNC)
Sanitary Permit
SEC Registration

Additional permits required for newly constructed building for your location
of business Zoning Clearance
Building Permit ;

o Barangay Clearance
o Building Plan
o Bill of Materials
o Tax Declaration
o Land Title
o Building & Sanitary Permit
Occupancy Permit
Fire Safety Certificate

Barangay Hall

You register with the specific barangay in the municipality or city where
you will operate your business. This office will issue the barangay clearance.
Usually, this certificate is used for applying for a business permit.

To apply for Barangay Clearance here are the requirements to get the
certificate:

1. Application Form
2. Application Fee (Usually varies around less than P100)
3. Recent Community Tax Certificate or Cedula of the representative
 UNIVERSITY OF PERPETUAL HELP SYSTEM LAGUNA
Graduate School
Bureau of Internal Revenue (BIR)

You register your business with this office and apply for your businesss
taxpayer identification number (TIN), registration of books of accounts,
authority to print.

For taxation purposes, every business enterprise has to register with the
Bureau of Internal Revenue (BIR) before the commencement of the business
operation. The procedures in registering at the BIR are the following:

1. Secure a permanent record file number of Tax Identification Number

(TIN) from the nearest BIR satellite or regional district office.
2. Register the business/trade name with the BIR Revenue District Office
(RDO) having jurisdiction over the registered address of the business
establishment. Secure and file an application form together with the
following supporting papers:
Mayor's Permit or Application for Mayors Permit
Certificate of Business Name Registration from DTI or SEC
Certificate of Registration for Partnership or Corporation
Residence certificate
3. Pay the following prescribed fees at the authorized agent banks of the
RDO:
Annual registration fee (P500.00).
Certification fee (P15.00)
Documentary Stamp Tax (P15.00)

Social Security System (SSS)

You register your business as an employer, yourself as a self-employed

or as employee, and your workers as employees. This office will issue an SSS
number for your business, for yourself, as well as for your workers.

An employer or any person who uses the services of another person in

business, trade, industry or any undertaking must be registered with the SSS.
Social, civic, professional, charitable and other non-profit organizations,
which hire the services of employees, are considered "employers"

Employees:
A person registering with the SSS for the first time as a prospective
employee should accomplish SSS Form E-1 (Personal Record) and submit it
together with the original/certified true copy and photocopy of any of the
following: baptismal, birth certificate, drivers license, passport,
Professional Regulation Commission (PRC) Card or Seamans Book. In the
 UNIVERSITY OF PERPETUAL HELP SYSTEM LAGUNA
Graduate School
absence of these documents, any two of the following, one of which
recent photo and date of birth, are acceptable.

Employer:
An owner of a single proprietorship business should accomplish and submit
SSS Form R-1 (Employer Registration) and R-1A (Employment Report).

Home Development Mutual Fund (HDMF)

RA 7742 requires all SSS members earning at least P4,000 a month to

register with this agency. HDMF administers the Pag-Ibig Fund.

Philippine Health Insurance Corp. (PhilHealth)

The New National Health Insurance Act (RA 7875) as amended by RA

9241 requires all employers of the government and private sectors and their
employees to register with this agency. PhilHealth manages and administers
the government health care system.
 UNIVERSITY OF PERPETUAL HELP SYSTEM LAGUNA
Graduate School

ANNEX A.
PROCESSING REQUIREMENTS FOR PRIVATE SCHOOL
APPLYING FOR TEMPORARY PERMIT/GOVERNMENT
RECOGNITION

A. BASIC REQUIREMENTS:
1. Board Resolution: Must be certified
by the Corporate Secretary
2. Feasibility study indicating the need or demand for the establishment of the school
and its relevance to the development of the community and the capability of the school to
achieve/ implement its objectives. It should also indicate viability of the course
particularly in terms of:
demand for graduates
prospective pupils/ students
existing schools offering the same course within the province/city
3. Articles of Incorporation and By-Laws duly registered with the Security and
Exchange Commission (SEC).

B. SCHOOL SITES, BUILDING AND FACILITIES:

4. Copy/ies of Transfer of Certificate of the Title of school sites (if
change/addition has been made)
in the name of the school (indicate ownership)
adequate total land area (indicate area)
5. Location of the school in relation to its environment (if
change/addition has been made):
Far from recreational places
Free from noise/unpleasant odor and dust
6. Campus development and landscaping plans (if
change/addition has been made):
Fully implemented
Partially implemented
Not implemented
7. Document(s) of ownership of school building(s) (if
change/addition has been made)
In the name of the school, (indicate ownership)
Total floor area adequate (state total area)
8. Certificate of occupancy of school building(s) (if
change/addition has been made)
Signed by proper authorities. (City/municipality)
9. Pictures of school building(s), classrooms, laboratories, libraries, medical and
dental health facilities, Canteens, etc. (if change/addition has been made)
Adequate
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Clean
10. List of equipment, furniture, athletic facilities, laboratory
facilities, supplies and materials, pre-school, Library holdings,
certified by the school head.

C. SCHOOL FACULTY LINE-UP, ADMINISTRATORS AND SUPERVISORY

STAFF:
11. List of the following staff:

School Administrators, Assistant Administrators, Department Head

Teaching/Academic staff (full time & part time)
Non-teaching personnel
Each has to include the following data:
Educational Qualification, what and when obtained
Position/designation
Fields of specialization by degree
Subject assignment in accordance with qualification
Number of teaching/contact hour per week
Rate of salary per hour/month
Valid contracts
Other employee benefits
12. Transcript of records of all personnel

D. CURRICULUM:
13. Description of proposed curriculum
14. Sample class program for the courses to be offered.

E. FINANCIAL:
15. Statement of the financial capacity of the applicant including
his resources to provide the requirements for the entire course
and to support its operation from year without depending
solely on students fees.
16. Statement of the itemized cost of the project covering the entire course in terms
of:
Site
Site development
School building and quarters
Classroom equipment and facilities
Library
Salaries of faculty and staff
Maintenance
17. Proposed budget/annual expenditure for the succeeding school year approved by
the Board of
Trustees/Directors
 UNIVERSITY OF PERPETUAL HELP SYSTEM LAGUNA
Graduate School

18. Proposed schedule of tuition and other school fees.

Approved by the DepED
In accordance with the guidelines
19. School Bond ( Php 500.00, proper document submitted)
20. Inspection and application fees
Inspection report
Registration fee: (Php 2,000.00 to be paid at the DepED Regional
Office)

F. ADDITIONAL REQUIREMENTS FOR SCHOOLS APPLYING FOR RENEWAL

OF TEMPORARY PERMIT TO OPERATE AND GOVERNMENT
RECOGNITION
a. Renewal of Temporary Permit to Operate
21. Photocopy of the latest Government permit issued to the school (3 years
back)
22. Report on the school enrolment, dropout, participation and cohort-survival
rate
23. Report on NAT, RAT and DAT
performance of the year b. Schools Applying
for government Recognition
In addition to the first three requirements (for schools applying for renewal of
Temporary Permit to
Operate), the following has to be submitted:
24. Report on the establishment and operation of the School Assessment
Program (SAP)
25. School Improvement Plan (SIP)
26.Participation to DepED and Non-DepED academic competitions with Means
of Verification (MOV)
27. Results of the National Achievement Test (NAT), Regional Achievement Test
(RAT), Division
Achievement Test,(DAT) or School Achievement Test (SAT)
for the last three years.
UNIVERSITY OF PERPETUAL HELP SYSTEM LAGUNA
Graduate School

PROCESSING OF DOCUMENTS FOR PRIVATE SCHOOL

APPLYING FOR TEMPORARY PERMIT/GOVERNMENT
RECOGNITION

Steps Pro Documentary Offices Officers Time Frame

ced Requirements
ure
Applicants folder
s shall be Renewal of
submitted to Temporary
1 the office of the Regional Permit RDs Office Secretary 1 Minute
Director and MARK Government
RECEIVED with the date Recognition
indicated herein. SEC Endorsement
Forward docs to the CLMD Folder(s) with lacking Curriculu
office for document(s) m
2 checking to the shall be returned to the Learning 3-5
completeness of the owner without delay for & Secretary Minutes
requirements. completion. Materials
(Applicant must be the one Developm
to hand in the docs) ent
(CLMD)
Registration/ Application fee Documents with CASHIER 1 Minute
3 complete
Requirements
Validate / Evaluate Refer to the Processing
4 Documents Requirements Private PSIC 1 HR
for Private School School
applying for
TPO/GR
Forward documents to Curriculum Validation:
the subject By Subject Areas CLMD Subject 30
5 coordinator for Courses, modules, Coordinator Minutes
comments (if necessary) Competencies, unit
requirement, Time
allotment.
Visit the school and On site validation of
6 validate the the team CLMD TEAM
authenticity of the school Evaluators Evaluato
records. rs
Recommend School met the minimum 3-5
7 approval/disapproval standard CLMD PSIC Minutes
based on the Requirements
evaluation/validation.
 UNIVERSITY OF PERPETUAL HELP SYSTEM LAGUNA
Graduate School

8 Permit for Signature Recommended RDs Office R

D
Record copy of approved Approved Permit Posted at PPRD Planning
9 permit to the E-BEIS Officer
PPRD office Website
Release Permit Approved permits shall be CLMD Secretary
1 endorsed to
0 the Division Office

Note: a. Deadline in submission of documents to R.O. for recognition/

renewal of permit shall be in August for succeeding year of
operartion.
b. All Documents should be based on DepED Order 88, s. 2010 and;
c. Enhanced Basic Education Act or Republic Act No. 10533.