Putting up your own business can be very rewarding in many ways, but it can also be tricky and confusing particularly in the beginning when you are scrambling to obtain your certificates of registration and various licenses and permits.

Your first stop is, of course, the Department of Trade and Industry if you are registering your enterprise as a single proprietorship, or the Securities and Exchange Commission if you are registering it as a corporation or a partnership. Then your second and third stops are the municipal or city hall and the barangay hall for their respective clearances.

Your fourth stop all the way to the eighth stop are the following registration entities: the Bureau of Internal Revenue, the Social Security System, the Department of Labor and Employment (if you employ five workers or more), the Home Development Mutual Fund (for your workers’ housing fund), and the Philippine Health Insurance Corp. (for your workers’ health insurance).

Depending on your type of business, you may also have to register with other licensing entities. These, of course, are just for the licenses, clearances, and permits required by law for businesses in general. An even more important requirement—one that directly impinges on the kind of business you intend to pursue—are the requirements for where you will be doing your business.

As they say in the business community, the biggest success factor for any enterprise— the one that you really need to plan very carefully—is location, location, location!

Do you want to put up your business within an industrial or a commercial area? If you choose commercial, do you want it in a high-density or a medium-density commercial area? Do you want your business located directly in front of or beside your competitor?

Your choice of location obviously will depend on your target market and, consequently, will determine the level of your sales. The most important concept that you will encounter when searching for an appropriate business location is “zoning.” But what precisely is zoning?

Zoning is the division of a community into zones or districts according to the current potential uses of a certain land area. So, anyone who occupies, purchases, or leases property should be familiar with the zoning law in the area. Have you ever wondered why so many competing funeral establishments are lined up in a row on a specific street? Or why drive-in motels tend to be located in clusters in specific areas? The answer is zoning.

The laws on zoning, which usually come in the form of ordinances enacted by local governments, are designed to optimize and regulate the use of land.

Among the recognized benefits of zoning are the promotion of public health, welfare, and safety through segregation of residential areas from industrial areas; the promotion of public peace, comfort, and convenience by segregating noisy or malodorous industries; the prevention of unnecessary congestion of buildings and establishments; the promotion of the uniform use of real estate in the district or zone; and the promotion of real-estate values.

There are many zone classifications, but for business purposes, the following two types of zones are the most relevant: commercial zone (which is usually subdivided into areas of low, medium and high density); and industrial zone (subdivided into light, medium, and heavy). Depending on the nature of your business, you may also need to check out the following zones in your municipality or city: agricultural, institutional, residential, parks, and tourism sites.

Every local government unit has its own zoning ordinance, but most of them are merely modified copies of the Revised Model Zoning Ordinance issued by the Housing and Land Use Regulatory Board.

As a business owner, you must ensure that your establishment complies with the zoning ordinance in the area; otherwise, you might expose yourself to potential complaints from neighboring establishments, not to mention possible closure of your establishment as a nuisance.

Unless you are manufacturing fireworks, pesticides, toxic chemicals, and other dangerous or malodorous substances or those that necessitate the use of heavy or noisy equipment, or both, you can put up your establishment in virtually any commercial area of your choice. If your business is unusual, however, check your local zoning ordinance to be sure.

In particular, if your business involves the slaughter of animals or the handling or treatment of human cadavers, the following special restrictions apply:

• If you are planning to put up an abattoir (animal slaughterhouse), its location should be at least 200 meters away from residential areas, schools, churches, and other places of assembly, courts, or public office, and it should be accessible to transportation.

• Abattoirs should be at least 25 meters away from markets and other food establishments.

• If you are planning to put up a funeral establishment, you must not build it in flood-prone areas. Moreover,the site must be served by a road and must be accessible by public transport.

• Funeral establishments should be at least 25 meters away from restaurants, food centers, and other food establishments; at least 50 meters away from markets; and at least 200 meters away from abattoirs, schools, and hospitals.

Some business owners violate the above rules for convenience. If such a violator is in your neighborhood, report the matter immediately to your local government officials; otherwise, your water supply might become contaminated, or the stench from the offending establishment might pollute the air. Needless to say, both of these are very bad for your business and will drive away customers.

Reeza Singzon is a practicing lawyer. For comments and questions, send e-mail to reeza.singzon@gmail.com

Related articles:

Finding the right location for your business

How to resolve franchise territorial conflicts

Expanding your business to a new location