Starting a Delivery Company in the Philippines

With the astronomical rise of online shopping and businesses opening again, more and more goods need to be transported to and from destinations. In fact, the demand for delivery companies has been steadily rising due to the lack of available transport services to cater to this high demand.

Given the current situation of the market, there’s a big opportunity for those seeking to start a delivery company. But, just like any business, there are steps you’ll need to follow to get your new business off the ground. To help you with this, we’ve made a short guide to give you an overview of what to expect when opening a new logistics company.

Keep reading to learn more!

1. Create a Business Plan

Starting a business takes a considerable number of resources and effort, and it’s easy to feel overwhelmed if you don’t have a plan in place to guide you. Having a business plan isn’t just for you to present to potential investors, it’s also your map from setup to growth.

2. Raise Capital

Now that you have a business plan, you can now act towards turning it into a reality. Putting up a logistics company will require a considerable amount. If you have enough finances, you can fund your new venture out-of-pocket but, if you don’t, you’ll need to resort to finding investors or taking out a business loan.

If you’re looking for investors, you’ll need to iron out your business plan and show your potential investor your projected numbers. However, if you’re going to be taking out a business loan, you’ll need to have your financial status checked by the institution before getting granted your capital, and it may not always be approved.

3. Select Trucks

Once you’ve secured your funding, the next step is to find delivery transport trucks for sale. Make sure to look for units that suit the market you’ve selected and to purchase enough units for your projected operation capacity.

When you’ve found the right type of delivery truck for your business, you’ll need to acquire these units and have the Official Receipt (OR) and Certificate of Registration (CR) under your name to secure your business permits.

4. Protect Your Business

The best way to protect your business is to invest in insurance for your drivers, assistants, and vehicles. This is because vehicular accidents can happen at any time and when they do, they can take up a considerable amount of money to fix.

Having insurance right off the bat can guarantee that if something were to go wrong, you’re protected from financial liability.

5. Secure Courier Business Requirements

Starting a trucking business in the Philippines means that you’ll need to secure numerous documents and permits before you can operate.

We’ve listed below the list of requirements you’ll need to secure for your business:

Letter Request addressed to the Director General of the Philippine Economic Zone Authority (PEZA)
At least one endorsement Letters from prospective PEZA client/s
List of PEZA and non-PEZA clients
Notarized application form of Annex “A” – Anti-Graft Certificate
Notarized board resolution authorizing the filing of the application
Audited financial statements for the last three years or an audited balance sheet for new companies
Certificate of registration from the Securities and Exchange Commission (SEC) or Certificate of Registration from the Department of Trade and Industry (DTI)
For corporations and partnerships, articles of incorporation
Updated BIR clearance or certificate of registration
Mayor’s Permit
Annual permit to operate from the Philippine Port Authority (PPA)
For licensed customs brokers, Professional Regulation Commission (PRC) certificate and ID, and Bureau of Customs (BOC) accreditation
Common bond with BOC
For air freights, authority to operate from the Civil Aeronautics Board (CAB)
For sea freights, a certificate of accreditation from the Philippine Shippers’ Bureau (PSB)
For freight forwarding, the name and address of agents and principals abroad
Certified list of vehicles that’s signed by a company official
Copy of franchise of Land Transportation Office (LTO) with a decision from the Land Transportation Franchising and Regulatory Board (LTFRB)
Updated OR/CR of vehicles
Standard service rate schedule
Personal history statement of principal officers
List of employees with designations
List of drivers and assistants complete with personal history statements
National Bureau of Investigations (NBI) or barangay clearance for drivers and assistants
Certification of No Derogatory Information (CNDI)
Copy of Provisional Authority (PA)

Find a Trustworthy Partner

Now that you know how to start a logistics business in the Philippines, you can now put your plans into action.

If you’re looking for a trustworthy partner who can provide you with the units you need to start your business, you can rely on us at Civic Merchandising Inc. to provide you with durable trucks that can operate according to your company’s requirements.