Pawnshops Earn During Hard Times
(Originally published on Sunday, July 3, 2011; reprints previous original material published in this section)
Looking to start a business? You would want a venture where the income potential is unlimited; one that grows even during times of economic hardship; one whose products never go out of style; and is an enterprise that gives you plenty of perks.
All the mentioned benefits come together in a pawnshop business. A pawnshop business is expandable, and its earning potential is unlimited. When there is a financial crisis, more people will need a quick loan—ensuring that pawnshops prosper even during recessions. Its product being emergency cash loans will always guarantee a steady influx of demand. And if you are fond of gadgets and jewelry, you will have an endless supply when you foreclose pawned items.
Opening a pawnshop is easy, even if you do need to have enough capital. Putting up this business comes in these easy steps:
1. Register with DTI or SEC. If you plan to be a sole proprietor, go to the Department of Trade and Industry (DTI). But if you want to be a corporation or partnership, go to the Securities and Exchange Corporation (SEC). Comply with the list of requirements they will give you.
2. Get a Barangay Clearance. Nowadays, it is a requirement to get a barangay clearance before you can proceed to get a Mayor’s permit.
3. Get Mayor’s/Business Permit. Proceed to the local municipality or city hall, and comply with their requirements.
4. Register with the Bureau of Internal Revenue (BIR). Here you will get your Certificate of Registration (COR), which will indicate the schedule of your tax payments and filings. This is also where you will obtain the permit to print official receipts and your TIN number if it was not yet given to you by SEC.
5. Go to Bangko Sentral ng Pilipinas. Here is a list of the BSP’s requirements (please note that the data below may not be current):
a. Copy of City/Municipal License/Mayor’s Permit for the current period;
b. Copy of DTI Certificate of Registration of Business Name;
c. Copy of SEC Certificate of Registration for Partnership and Corporation;
d. Copy of Articles of Partnership/Incorporation and By-Laws;
e. Information Sheet duly accomplished by the president/managing partner/proprietor;
f. Biographical Data duly accomplished by the proprietor or partners or incorporators/directors/officers and individual stockholders owning 10 percent or more voting stocks;
g. Bank certification on amount deposited for pawnshop capitalization (at least P100,000);
h. Notarized Written Undertaking signed by the president/partner/proprietor;
i. Sample copy of pawn ticket;
j. Letter request for additional stipulations (if applicable);
k. Authorized signatories with biographical data;
l. Sketch of location;
m. Letter of Authority to receive Certificate of Registration;
n. Filing/Processing fee of P1,000.
As you can see, registering a pawnshop is almost the same as starting a regular business. The Central Bank requirements are the only additional hurdles to handle when compared to the usual requirements needed in other lines of business.
Visit http://www.businesscoachphil.com to check out other business seminars.
(All rights reserved. Copyright Manila Bulletin. May not be reproduced or copied without express written permission of the copyright holders.)