Starting A Rice Dealership Business in Rice Retailing

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. Mayors 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. 22 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
Mayors 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
Website: www.sss.gov.ph
Requirements:
Accomplished R1 Form
DTI Business Name Certificate
Mayors 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
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
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
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;
Treasurers Affidavit;
Bank Certificate of Deposit;
Authority to Verify Bank Accounts;
Written Undertaking to Change Corporate Name, when necessary;
Subscribers 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
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)

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What are the basic requirements to start a rice dealership business?

What are the basic requirements to start a rice dealership business?

What are the estimated costs involved in starting a rice dealership business?

What are the estimated costs involved in starting a rice dealership business?

Starting a Rice Dealership Business in Rice Retailing

(Bigasan) in the Philippines

Rice boxes, 6 pcs 12,622.50

Weighing scale 900.00

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

Sando Bags, 3000 pcs P450.00

Estimated total investment cost P72,360.00

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

Estimated Weekly Income

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

Estimated total weekly income P5,923.20

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.

Rice Dealer Business Registration

For Single Proprietorship

Accomplished Business Name Registration Form [Single Proprietorship/Partnership (Optional)];

Registration fee of Php300.00

Accomplished Business Permit Application Form

DTI Business Name Certificate

Sketch of the business location

Fire Safety Inspection Clearance

Sanitary Permit (from City Health Officer)

2 pcs. 22 colored ID Picture

Registration fee depends on the type of the business

Accomplish Form 1901

Registration Fee of P500.00

DTI Business Name Certificate

(DOLE)-Labor Standard and Enforcement Division

Accomplished Rule 1020 Form

Lay-out of business location

Verification Slip Form (Re: Proposed Name)

Accomplished Registration Data Sheet

Written undertaking to change corporate name

Deed of Assignment executed by the owner.

Articles of Incorporation and By-Laws;

Verification Slip Form (Re: Corporate Name);

Accomplished Registration Data Sheet;

Bank Certificate of Deposit;