How to Register your Business - Single Proprietorship (Part 1 - Reminders & Requirements)


Based on my experience in registering a retail and wholesale business NETHERGEAR ENTERPRISES, I should say that registering your business here in the Philippines is quite simple but it may take roughly a month or two to fully accomplish (usually because of the long wait for our government to accomplish their end of the deal).

Before going through the nitty-gritty, this first part of the guide will contain a few important requirements and reminders which may help hasten the process of registration:

  • WHERE ARE YOU AT? - You should have established your location of business, may it be a shop, an office, a branch, or a kiosk. Proof of occupancy on the said location will be required by the government.

    For me it was an office, my room to be exact. Due to the nature of business being online (E-commerce), I frankly just needed my computer to run the business. In this case, what I needed were some documents as proof that we owned the place and a signed letter (with ID's) from the title holder, stating I was given authority to establish an office at our location.

  • SAY MY.. COMPANY NAME! - In choosing a company name, the Department of Trade and Industry (DTI) might give you a hard time with this. Make sure to have a number of options ready for your company name. I learned this the hard way by picking a name on the spot because of what DTI told me.

    That time, I was about to register "BAGS-SPOT ENTERPRISES" because my previous E-commerce website was www.bags-spot.com (inactive). Funny enough, DTI said "Since you are will be selling bags, you should not have the word "bags" on your company name, it should be general in nature, like your name (Reynier Chua Enterprises) or whatever." - An advertising rule of some sort.

  • KNOW YOUR NEIGHBORS - For the Barangay Business Clearance, the government might require you to have your neighbors sign a certain document indicating that you will be setting up shop nearby. So... be kind to your neighbors. :)

  • MONEY MONEY MONEY! - For a small business, such as what I've established, you would need roughly around 15,000 Php - 20,000 Php to complete all government requirements. This may vary depending on your industry and the number of employees you have or are planning to hire.

  • PROVE THAT YOU'RE ALIVE! - Birth Cert, ID's, NBI Clearance, Cedula. Yeah, all the stuff you need when you're applying for a Job. But in this case, you're applying to be the employer. Beat that! Oh and by the way, it might be pretty much harder to register if you are a foreigner.

  • THINK TAX! - It's better to have an accountant friend to help you here. Unfortunately, in my case, I didn't have one, Bureau of Internal Revenue (BIR) will expect you to know something about taxation. Mostly, tax types, VAT or NON-VAT (PERCENTAGE TAX) and how to file it.

    I'm not an accountant, nor am I a math guru, but because of the fiasco with BIR I was forced to learn a few tricks! I promise to post about what I've learned on taxation and tax types some other day. For now, all I can say is that IF you're expecting your annual income to be less than 1.5 million pesos, you can go PERCENTAGE TAX wherein only 3% of your company's income shall be required by the government as of 2016. For annual income of more than 1.5 million, it is required to go VAT REGISTERED where you will have to learn the wonders of INPUT and OUTPUT tax (mine's currently VAT Registered and I find it quite amusing actually).

  • RECEIPTS! - It's much better if you have a trusted printing press that is accredited by BIR so that you can get a discount for your receipts. Prices would vary depending on the actual size of your receipt. Ranging from 1,000 - 3,000 PHP per 10 booklets, which would expire in 5 years.

    - SALES related companies often need SALES INVOICE, DELIVERY RECEIPTS, and COLLECTION RECEIPTS.

    - SERVICE related companies, you would need an OFFICIAL RECEIPT.

Stay tuned for PART 2
SHARE

Reynier Chua

Hi! Thank you for reading! Please share if you like the topic; you may also subscribe via email so that you wouldn't miss a post.

  • Image
  • Image
  • Image
  • Image
  • Image
    Blogger Comment
    Facebook Comment

0 comments:

Post a Comment