Start A Rice Business!





Starting a Business in Rice Retailing (Bigasan)

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: contact_us@cctr.bir.gov.ph
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: member_relations@sss.gov.ph
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: osec@dole.gov.ph
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: mis@sec.gov.ph
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: mis@sec.gov.ph
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 Authority-
Regulatory Division
10th flr., Matimyas Building
101 E. Rodriguez Sr. Avenue, Quezon City
Tel. nos.: 712.2527 / 712.1768 / 712.1924
Email: nfa_admin@nfa.gov.ph
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)

Source: http://www.dti.gov.ph/dti/uploads/file/BRR-Rice%20Dealer.pdf

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