A Guide on How to Start a Hardware Business in the Philippines

Matagal mo na bang pangarap na magkaroon ng sariling hardware store, ka-bakal? Kung oo, we’re not surprised. Construction projects are everywhere, from simple room renovations to house or building formations. Basta maganda ang location at target market, malaki ang pwedeng kitain ng hardware business.

Ang tanong: paano magsisimula ng ganitong negosyo? 

Well, wonder no longer. In this infographic, we'll teach you how to start a hardware business in the Philippines. Dito, matututunan mo ang lahat ng kailangan gawin at ayusin at kung paano magpatakbo ng successful na hardware store. You can be a hardware business owner in a couple of easy-to-follow steps.

 

Requirements When Starting a Hardware Business in the Philippines

Before stocking your shelves and opening doors, ano pa ang mga kailangan mo sa pag-set up ng hardware store? Here are all the necessary permits and licenses. 

1. Securities and Exchange Commission (SEC) Company Registration

To legalize your business, kailangan mo munang i-register ito sa Securities and Exchange Commission (SEC). This process formalizes your business identity and determines its legal structure—whether sole proprietorship, partnership, or corporation.

Una, i-verify at i-reserve ang company name mo gamit ang SEC Electronic Simplified Processing of Application for Registration of Company system o eSPARC. Kapag pasado, diretso na sa actual registration process.

Enter your business purpose, address, capital structure, and company officers; then submit the following documents in PDF form:

• Cover sheet
• Articles of incorporation or partnership
• By-laws
• Treasurer's affidavit
• Secondary licenses
• Endorsements from other government agencies
• Name appeal: if you failed the name verification stage

The last step is to pay the SEC registration fee via eSPAYSEC. Pwedeng over the counter ka magbayad sa SEC cashier office o sa kahit anong branch ng Land Bank of the Philippines. Matatanggap mo ang business certificate after seven (7) working days.

2. Barangay Clearance

After selecting a location for your hardware business, securing a barangay clearance is next. This document proves that you follow local rules and meet all operational requirements, like sanitation, fire safety, and tax obligations. Importante ang barangay clearance para makakuha ng mayor’s permit.

When applying for a barangay clearance, you must have the following documents:

• Business registration papers, such as cedula, SEC/DTI registration, and articles of incorporation
• Valid government IDs
• Proof of address, like your business' lease agreement or utility bill with its name and address
• Clearance certificates, like tax and business licenses, as well as fire safety inspection certificate
• Other applicable permits or licenses

Then, visit the barangay hall and head to the captain's office or the Business Permit and Licensing Office (BPLO). Complete the application form, submit your documents, and pay the fees.

A barangay clearance certificate typically costs around ₱500, but it can vary depending on your hardware store's location, type, and size.

3. Fire Safety and Inspection Certificate from the Bureau of Fire Protection

Hardware companies are prone to fire hazards due to flammable materials and chemicals. That's why you must follow fire safety regulations para sa safety ng business, employees, and customers.

A key part is getting a Fire Safety and Inspection Certificate from the Bureau of Fire Protection (BFP). Kailangan ito to indicate na sumusunod ang business sa mga safety standard.

Ito ang mga dapat gawin sa pagkuha ng certificate sa BFP:

• Apply for a fire safety inspection at your local BFP office. Submit the following requirements:
• Application form
• Proof of ownership or occupancy
• Building plans
• Fire safety equipment and staff
• Wait for the bureau to schedule an inspection date. 
• On the inspection day, BFP inspectors will assess your fire safety measures, including exits, extinguishers, alarms, etc.
• Based on their findings, the BFP may suggest improvements.
• Make the recommended improvements within the given timeframe.
• The BFP may conduct a follow-up to ensure compliance. If you pass the reinspection, wait for the bureau to issue your certificate.
  

4. Bureau of Internal Revenue (BIR) TIN

As a business owner, one of your primary responsibilities is paying taxes. Kaya kailangan mo ng tax identification number (TIN) galing sa Bureau of Internal Revenue (BIR). 

To apply for a TIN, follow these steps:

• Go to the Revenue District Office (RDO) with jurisdiction over your business and submit the following documents to the New Business Registrant Counter:
• BIR Form 1903
• SEC Certificate of Incorporation or the Certificate of Recording (for partnerships)
• Articles of Incorporation or Articles of Partnerships and sample or printed receipts and invoices
• BIR-printed receipts or final and clear sample of principal receipts
• Pay the registration fee (₱500) and any applicable documentary stamp tax.
• Attend the mandatory initial briefing for new businesses.
• After processing, you'll receive your Certificate of Registration (BIR Form 2303) and other essential documents.

Kailangan makumpleto ang TIN registration bago magsimula ang business. Dapat makapag-secure ng TIN sa loob ng 30 days after makuha ang business permit o SEC Certificate of Registration.

11 Strategies and Tips to Start a Hardware Business in the Philippines

It's time to get your hardware business up and running. Here are more tips and information on how much to start a hardware store in the Philippines. 

1. Conduct thorough market research

As with any business, the first and most important thing is understanding the market you plan to enter. May demand ba para sa hardware products sa target location mo? Ilan ang competing hardware stores sa selected area mo?

These details can help you pinpoint market gaps and opportunities to adjust your business strategy effectively.

2. Build a comprehensive business plan

A well-crafted business plan is your roadmap to success. Dapat naka-indicate dito ang business goal, target market, product offering, marketing strategy, and financial projection to guide your operations, attract investors, and help you focus on your objectives.

3. Choose between franchising and opening an independent store

Once you have a clear business plan, decide whether to be an independent store or opt for franchising. While starting your own business is rewarding, it's often time and resource-intensive. On the other hand, franchising offers a ready-made business model and brand recognition.

Kung franchising opportunities ang hanap mo, kayeah yan i-provide ng Powerhouse. With the company’s help, you can have your own branch. Kahit bago ka pa lang sa hardware business, mas madaling magsimula ng franchise dahil we make sure you get the support you need.

4. Raise capital

Determine how much capital you need to start and run your business. A sufficient starting capital will help you cover initial expenses and sustain operations until your business becomes profitable. 

Pwede mong gamitin ang savings mo, mag-loan sa bangko, o magpatulong sa family o friends na pwedeng mag-invest sa negosyo mo.

5. Scout locations for your physical store

Location is everything when setting up a business. It's important to choose one that's near high foot traffic and accessible to your target market.

Usually, pag maganda o strategic ang location, maraming bibili sa’yo. More sales equals mas mabilis ang magiging growth ng hardware business mo.

I-consider mo na rin ang rental o property costs when choosing a location dahil importanteng ma-budget mo nang maayos ang operational expenses.

6. Apply for the necessary licenses and permits

Check if you have all the necessary documents to operate legally. For example, kailangan mo ng TIN para makapagbayad ng tax at mag-issue ng mga resibo. Similarly, you need a barangay clearance para mag-operate ng business sa target location mo.

7. Obtain additional documentation requirements

You may need additional permits, such as fire safety or environmental clearances, to start your business. Siguraduhing mag-check with local authorities kung anu-ano ang required documentation.

8. Register your business

Depende sa business structure, your business registration can be with the SEC or the Department of Trade and Industry (DTI). If sole proprietor ka, DTI will handle your registration. Meanwhile, the SEC is in charge of registrations for corporations and partnerships.

9. Source high-quality materials

High-quality materials are essential in construction, so it's important to stock your shelves with the right products.Pumili ka ng hardware items supplier na maganda ang reputation pagdating sa quality ng products, tulad ng Powerhouse.

Powerhouse offers only high-quality products, which is why customers trust us when they need tough tools for tough jobs.

10. Set up an office and hire staff

As your business picks up, you'll need more help than when you started. For one, your employees should know the hardware industry to provide excellent customer service.

Aside from customer service, dapat meron ding accountant and admin sa office to help you organize the store's operations. Remember, investing in your staff means investing in your business' success, too.

11. Invest in promotions before, during, and after launch

What else should you do after acquiring the legal documents, physical store, and staff? The next step is to promote the launch of your hardware business. Effective marketing will attract customers to your store and build brand awareness.

Pwede ka mag-invest sa iba’t ibang advertising strategy gaya ng social media campaigns, local events, at promotions. Pwede ka rin kumuha ng influencers sa construction o engineering market para mas lalong makilala ang business mo.

Build a Successful Business

A hardware business is a rewarding venture. With the Philippines' booming construction industry, a lucrative opportunity awaits. It should go without saying that you need dedication, hard work, and a deep understanding of the market for a successful hardware store.

If you're a ka-bakal passionate about the industry and want to know how to start a hardware business in the Philippines, consider franchising with us and become a Powerhouse owner today. Kayeah ka namin bigyan ng business model, brand recognition, at support para masimulan mo agad ang iyong negosyo.

Contact us today to learn more about Powerhouse's franchising options and products.