How to Start a Trucking Business in the Philippines

Most of the businesses that currently operate utilize the internet in some way or another. What with the advent of online shopping, smartphone applications, and other services that use deliveries, it is the perfect time for a trucking business to be established!

The online shopping industry is worth billions in pesos in the Philippines alone. Seeing that it is at its infancy, there just a small number of trucking business that have yet to come into fruition. The other side of the trucking business is for moving out and hauling furniture in and out around the house.

If you have the mind of an entrepreneur this business is suitable for you, if you are smart enough to handle it. Indeed, if you want to start a trucking business in the Philippines, you should look below on some tips before you delve into a promising and profitable venture!

1. Be ready to shell out capital for investment

A trucking business involves mainly a truck, unlike other businesses that involve staying at the office or restaurant. The amount of equipment you need to run the business is relatively small, and mainly relies on having a maintenance equipment for the truck as there will be bumps (literally) along the way.

Do not be intimidated if you must take at least an average of P500,000 – P1,000,000 in order to purchase a truck, as this will pay off if you are a patient but determined individual.

2. Pick the right truck for the business

As the truck is the main factor in running a trucking business, it will be used frequently as it should for day to day operations. This is unlike working at other types of businesses that abide the 9 to 5 office hours.

Choosing a truck that does not meet the specifications for hauling might become a problem eventually such as running out of oil, or a frequency of breakdowns that occur every other day. Use only trucks that have been tried and tested for the business.

Sometimes, online deliveries have immediate shipping and that may apply to you. That would you have to haul stuff at midnight just to get it sorted into the parcel center. This is entirely dependent on whether or not you choose a specific kind of service.

3. Know how you will operate

There are two known ways you can run your business: by yourself or by hiring a driver.

Driving the truck means that you are able to get to know the ins and outs of operating the vehicle, with all the control and maintenance at your hands. What is more, is that you are in control of your own salary and do not have to pay any health benefits for anyone else. This advantages give you freedom to run the business how you see fit.

However, this also means that you are unable to oversee most of the time other administrative tasks such as inquiries, and may also affect operational expenses.

If you choose to hire a driver, you lessen your expenses, and they can provide you more leeway into focusing in other aspects of your business (see above). However, the truck may not also be maintained properly by the driver at the same standard as you want. They may also have a higher possibility of taking a cut of the profit than they should.

Choose a driver that has a history of good commendations from previous companies that have hired them.

4. Do not skimp out on insurance

Investing in insurance for the trucks, drivers, and yourself are always an utmost necessity part of the business. The likelihood for vehicular accidents during hauling cargo is very high and most of the time owners are unprepared in handling the liabilities and the damage incurred.

5. Follow the requirements

According to the Philippine Economic Zone Authority (PEZA), there are requirements you need to submit to fully comply and legally operate a trucking business.

They are as follows:

1. Letter Request addressed to: Director General LILIA B. DE LIMA
2. Endorsement Letters from prospective PEZA clients (at least 1 company)
3. Notarized Application Form (provided by PEZA) Annex “A” -Anti-Graft Certificate (notarized)
4. Board Resolution authorizing the filing of the application and the designation of representative (notarized)
5. List of Employees (Include designation)
6. Personal History Statement of Principal Officers – Bio-data
7. Audited Financial Statements for the last three years (for new companies which have started operating for only six months, an Audited Balance Sheet is enough)
8. Certificate of Registration from SEC (for Corporation and Partnership) and/or Certificate of Registration from DTI (for Single Proprietorship)
9. Articles of Incorporation (for Corporation and Partnership)
10. BIR Clearance (updated) / Certificate of Registration
11. Mayor’s Permit (for the current year)
12. Annual Permit to Operate from Philippine Port Authority
13. List of Non-PEZA clients
14. Schedule of Service Rates (standard)
15. For Licensed Customs Brokers: PRC Certificate and ID; and BOC Accreditation
16. Authority to Operate from the Civil Aeronautics Board (for Air Freight)
17. Certificate of Accreditation from the Philippine Shippers’ Bureau (for Sea Freight)
18. Name and Address of Agents and /or Principal abroad (for Freight Forwarding)
19. Common Bond with Bureau of Customs
20. List of Vehicles / Trucks certified and signed by the company’s official.
21. Copy of Franchise of LTO – Decision from LTFRB
22. OR/CR of Vehicles (must be updated and under the name of the applicant)
23. List of drivers and helpers – include bio-data, 2×2 ID picture, clearance from NBI, Police and Barangay
24. List of PEZA-clients
25. Certification of No Derogatory Record from Security Services Dept.
26. Xerox Copy of Provisional Authority

For the complete application fees for new and renewing businesses, see this official document.