1/11/2013

Licensing is part of cost of doing business

QUESTION: Rltr. John, what is the difference between licensing in Professional Regulations Commission (PRC) and licensing in Realter Society.

ANSWER: The key terminologies that differentiate the two are “License to Operate” versus “License to Use a Patented Professional Title”. Only government can grant license to operate a government-regulated real estate practice or profession. In fact, within the government, there are also several other regulating agencies other than PRC that the individual needs to get license and registration from in order to get license to operate — examples are Bureau of Internal Revenue (BIR) for official receipts, City/Municipal Hall for business permits, and Housing and Land Use Regulatory Board (HLURB) for permit to sell real estate development projects (condominium, subdivisions, burial lots).

Realter Society registers in the Trademarks Department of the Intellectual Property Office Philippines (IPOPHIL) to get the patent of the Realter and Rltr professional titles. IPOPHIL grants Rltr. John R. Petalcorin (aka the Rltr Realter patent inventor, registrant, patent owner, and founder of Realter Society) the exclusive license to commercially operate the manner of use of the Rltr Realter service mark. The identity of all individual persons who are granted an extension of Right to Use the Patented Professional Title are recorded by the patent owner in the Realter Society Registry. The registry is necessary so that government (particularly BIR) will have a reference to determine how much Tax on Royalties should the patent owner correctly pay each year.

Even if a person has license to operate, he/she cannot use the Rltr Realter professional title if he/she will not get license to use the patented professional title from Realter Society. On the other hand, even if a person has a license to use the patented Rltr professional title being a genuine registered member of Realter Society, he/she cannot operate a particular government-regulated profession if he/she will not get license to operate from the government agencies.

Compliance to requirements of government license to operate will cost an individual real estate practitioner at least P5,000 if the cost is equally distributed per year. If you prefer icing on the cake, Realter Society membership costs less than P730 per year.

The bottom line is, licensing is part of the regular cost of doing business.

This is a good question and I will post this in the FAQ section of the Realter website.

GLOBALIZATION is the main reason why I patented Rltr Realter. If Realter succeeds in penetrating the global arena, the tax on royalties that the Philippine Government will get is HUGE! But there is a lot of workload to do. Philippines is the HOMELAND of Realter Society and I want a Model Home; I don't want a dirty home when the world looks at us.

1 comment:

Paul Carantes said...

Section 139 of the Local Government Code of 1991 exempts all and any self-employed or practicing professionals from the required Business or Mayors' Permit. Lawyers, Doctors, Engineers, Accountants,etc., therefore, just apply for a PTR and never for a mayors/business permit. Since Real Estate professionals are also PRC- licensed individuals, it is to my opinion that they also should not apply for a business or Mayors' Permit but should secure a PTR instead.