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Starting a business in the Philippines can be exciting. All the planning for the products and services you offer as well as the prospect for success can really juice up your motivation in running your enterprise. However, dealing with the legal aspects of setting up a venture can be daunting. With not much knowledge on these matters, you may just find yourself confused with the requirements and terminologies used for the paperwork.
If you were to go through so many processes, you might be exhausted even before your actual opening day. Do not let your efforts go to waste. Turn to Yap Kung Ching & Associates Law Office because we can help you with business registration in Metro Manila, Philippines. Whether your business is local- or foreign-owned, our experienced lawyers can provide professional assistance to help make this process go smoothly.
Why Is It Important To Undergo Business Registration Processes in the Philippines?
Registering your business in the Philippines allows you to operate legally, whether you have a physical shop or an online store. Under the Republic Act 3883 or the Business Name Law, it is illegal for a business to carry any name unless registered at the Department of Trade and Industry (DTI).
The failure to register leads to a penalty of P5,000 to P20,000 plus imprisonment of at least six months up to two years. If you have been doing business for so long and still have not registered your enterprise, you may be forced to stop your operations until you have paid for your deficiencies. The only people exempted from registering are those who only sell their products occasionally or sell homemade items as a hobby.
What Are the Steps in Registering a Business in the Philippines?
It is important to know about registering your business in the Philippines to avoid going around in circles processing these documents. We have listed steps on how you can do it:
Prepare Required Documents
The DTI registration permit is one of the most important documents you should have for your business. You can process this by going to their website and filling out their form with the necessary information. Aside from that, you should acquire a Barangay Clearance for your business, your mayor’s permit, a lease or land title certificate where your store stands, and a government-issued ID.
Visit Your Respective Revenue District Office
The Revenue District Office (RDO) is where you will submit your application, which will direct you to pay the registration fee to a BIR-accredited bank. Your respective RDO is the one that has jurisdiction over the area where your business is located.
Let’s say your store is in Makati. If you live within Barangay San Lorenzo and Legazpi Village, which are considered East Makati City, then you have a specific office you can go to for your application. You can view the dedicated offices here.
Claim Your Certificate of Registration
After succeeding with your application, you can now claim your Certificate of Registration, also known as the BIR Form 2303. It’s an official document in the Philippines that gives rights to owning a business.
Purchase and Register Your Books of Account
Buy a journal or ledger for recording your business’ original transactions. You can also choose to do your bookkeeping with a spreadsheet software or other digital programs. After having a book of accounts available, register them by filling out a BIR Form 1905 and submitting it to your assigned RDO.
Secure an Authority to Print
This is the last step so that your venture can properly be called a “registered business.” An Authority to Print, also known as ATP, is a BIR requirement that will allow you to print receipts and commercial invoices for your business. To secure one, you must fill out three BIR Form 1906s, prepare some samples, and submit those two to your RDO for approval.
Once you get an ATP, you may now purchase a BIR printer for your business and start selling or providing goods or services.
What Are the Requirements for Getting a DTI Permit?
With a DTI business name registration, you will have a legal document that keeps other people from using your business’s registered name. Keep in mind that you will have to renew this certificate every five years to keep your trademark. In addition, when you get a permit, customers can feel more secure knowing that your business is legitimate. Here are the requirements for obtaining a DTI permit:
Unique Business Name
With so many businesses in the Philippines, the first few names you come up with may have already been taken. You can start thinking of several names before registering and rank them based on your preference. Think of one that sounds nice or captures the type of service or product you provide. You should also avoid names with inappropriate connotations.
Accomplished Application Form
To register your business name, DTI will request information through their application form, which you can fill out on their website. They may ask a few things: a valid government ID, your basic information, and the specifics of the business you are starting.
You will be instructed to pay registration fees, which range from P200 to P2,000, depending on the scope of your business. They have many accessible payment options for your convenience
Business registration is important to operate your enterprise in the Philippines without being penalized. After all, going through the process means you get to keep your business, its name, and your customers.
Start your journey as an entrepreneur correctly. Get your business registered with the help of YKC Law today!