“How to Start a Gas Station?”
Comment Page 6

@RAJESH KUMAR, The FIRST step in going to business is registering a business name with you securities and exchange commission (if you intend to put up a corporation or partnership) or with the trade and industry office/department in your local government office (if you intend to put up a sole proprietorship). SECOND you need to obtain business permit from your mayor's office/business licensing office, likewise you need to register for taxation with your local tax revenue office. THIRD, you have to scout for parcel/s of land suitable for service station that is near a traffic or along national and local roads. a junction or crossing area is the better. But the best is if you could get a land within the vicinity of the business district or down town area. FOURTH you should prepare a proposal and contract of sale (conditional or absolute) with the registered owner of said parcel of land offering him/her/them to purchase said property and stating your purchase price. The owner/s would then prefer a counter-offer and negotiation could proceed formally. FIFTH, upon obtaining the land, you need to contract the business development or franchising department of the petroleum/gas company that you want to franchise to discuss terms and conditions of their franchise agreement. now here, they shall qualify their required bond, sales quota per month, your profit per litter/kilo and initial investment (cash) for the construction of the service station. You see, branded companies have their own construction design which you have to adopt. its part of branding and corporate image/marketing. They shall provide you with all equipment and materials as they have their own suppliers. all you need to do is pay for it. they shall help you with commissioning as they shall help you with the training of your station officers and staff. NOTE: If you do not have enough cash to invest, you may acquire a personal or business loan with the bank nearest you or your place of business. you can use the land and/or business as security. Good luck

@Eleonor, Steps in Setting Up a Gas Station (Simplified)
1. Go to the DTI or SEC and get application form for registration of a business name. DTI for sole proprietorship. SEC for partnership or corporation.
2. Go to BIR and get a business Tax Identification Number.
3. Go to SSS and get a SSS Business Registration.
4. Go to Barangay Hall and get Barangay Clearance.
5. Once you have completed the above-mentioned four (4) steps, you may now go to the Municipal or City Business License and Registration of your municipality or city.
6. Armed with Certificates of Business Registration and other pertinent personal identification documents, you may now contact the marketing department of petroleum companies such as Chevron (Caltex), Shell, Petron, Total, or Phoenix to discuss franchising.
7. As to funding, you may seek personal or business loan from the bank of your choice near your residence of business establishment.
8. The business plan can be prepared depending on the circumstance of your community or market.
9. For further details, e-mail me.

Am in Ghana and travel a lot but love to do business too.I read all the comments but I saw that everyone is keen to open a gas and petroleum station. That good but ask yourself,am I ready when petroleum companies are not ready for me b'cos they are doing otherwise. There are rules to everything, organisations, companies and other big people are controlling the sectors.if u want a clear insight of all the sectors and how to do your business in order to move mountains without any sort of limitations. mail and I will talk to you on how to do it. thank you

@NEO KHAKHAU, i suggest that you establish your ownership or possession of the particular parcel of land you would want to put up a filing station. you can either buy it or enter into a contract of lease for a significant period with option of renewal. say for example for 15 years and renewable for another 15 years. Then you have to establish your own business name by filing the necessary application before your securities and exchange commission of department of trade and industry, as the case may be. Then you prepare a feasibility study and business plan in which you can present to petroleum companies for franchise agreement and banks for loans application, if you need a loan. the franchise agreement would provide that the petroleum company shall handle the construction of the service station and installment of all underground tanks, dispensers, pos and other pertinent equipments, whereas, as franchisee, you shall be required to pay the contract bond, franchise fee and other related expenses. READ THE FRANCHISE AGREEMENT THOROUGHLY AND INTELLIGENTLY. If you opt to operate a non-franchise service station, you need to establish your business name just the same but would shoulder your own construction and purchases fuels and lubes from nearby suppliers. this could be tedious. Good luck.

@Emmanuel Ade. First you have to ask the seller as to why he is selling his business. Is it not profitable? Is it under litigation or beset with obligations? Is the seller the real owner or just an agent (attorney-in-fact) of the owner? If there is no legal impediment then you can proceed with negotiation. Ask for a copy of all business document of the business so that you can make an objective and informed discernment as to the viability of the business. Do not swallow by hook, line and sinker the purchase price given by the seller. Obtain the services of an analyst for the valuation of the service station so that you know the reasonable purchase price with which to pegged your deal. Ensure that you have read and understood the terms and conditions of the deed of sale. If availing, you can have it financed by a bank to which the bank would be the one to handle the documentations. In this case, the bank would be the one to pay the seller and you would pay, in staggered scheme, under loan. Good luck.

@Niko van Rensburg. First, you have to register your own company (either a simple corporation or sole proprietorship) with your local business licensing office. Then, you contact the marketing office of any petroleum distributor, either international (branded like chevron, shell, total, etc.) or generic/local, whichever you prefer. You would mots likely than not be required to enter into a franchising agreement or sales contract in which case you shall be obligated to post a bond and/or credit limit security vis-a-vis terms and condition of construction of station and the provision of equipment. Surfing the internet or the directories would help you locate the nearest petroleum company within your area/region. Good luck.