With the booming economy of the Philippines right now more and more “foreign investors” are eyeing the Philippines for business opportunities, we can see the result of this as more and more foreign businesses like Restaurants, BPOs, Retail Stores, etc. have started to populate the major cities and business districts of the Philippines. But as an entrepreneur how exactly do you register a business here in the Philippines and what are the benefits you get from doing so?
Before we go over the business registration process here in the Philippines let’s start off with why you need to register your business.
1. Be recognized by Law. Registering allows your business to be recognized as a lawful and legal entity that is allowed to operate here in the Philippines, Not only does it legitimize your business’s brand it also shows to your target audience or market that your business can be trusted.
2. Protect your Business. Protection, another great benefit that you will enjoy when you register your business. As a registered business you can take legal actions to businesses that uses/copies your name. Secure your company’s name, products & sales by being registered.
3. Avoid Lawsuits, Penalties & Forced Closure. The great things about operating as a registered business not only in the Philippines but in any other country is you don’t have to face charges that unregistered businesses may get. Second, you won’t experience paying fines and penalties that may come with the charges, and last but not the least you don’t have to forcefully seize your business’s operation and continue to earn money because you have the right and necessary permits and documents to do so.
4. Work with big companies. Who would work with an unregistered and unknown company, right? plus you won’t have the necessary documents they would ask for anyway.
5. Ability to get Loans & Funding. The same goes here, banks are all about credibility and whatnot.
Now that we had a rundown of some of the benefits that business owners enjoy when operating a lawful and registered business lets move on to the step by step process in which a person/individual can register their business here in the Philippines.
Step 1: Security & Exchange Commission
The Security & Exchange Commission or SEC holds jurisdiction over all corporations, partnerships or associations in the Philippines. Here is their website (http://www.sec.gov.ph/) to check and find the nearest SEC Offices as well as the online services that they have for more convenience and efficiency. Below are the processes one needs to accomplish with the SEC with regards to registering a business here in the Philippines.
a. Name Reservation
b. Preparation of Articles and by-laws
c. Filing of Articles of Incorporation and by-laws
d. Registration of Stock and Transfer Book
Step 2: City Hall
The City Hall is where the chief administration of a municipality or a city is located, below are the processes one needs to accomplish with the City Hall of the respective municipality or city the business being registered to is located.
a. Barangay Clearance
b. Locational Clearance
c. Business Permits
- Sanitary Permit
- Fire Inspection Clearance
- Mayor’s Permit
Step 3: Bureau of Internal Revenue
The Bureau of Internal Revenue or BIR is an agency of the Department of Finance in charged of Tax Collections, below are the processes one needs to accomplish with the BIR with regards to registering a business here in the Philippines. Here is their website (http://www.sec.gov.ph/) to check and find the nearest BIR Offices as well as the online services that they have for more convenience and efficiency
b. Filling and Payment of Documentary Stamp Tax
c. Registration of Books
d. Filling of Authorization to Print Receipts(ATP)
e. Printing of Official Receipts
Step 4: Employee Benefits (SSS, Philhealth, HDMF)
a. Social Security System (SSS)
b. Philippine Health Insurance Corporation (Philhealth)
c. Home Development Mutual Fund (HDMF)
Unsure how and where to start? Ask pinnacle now! For questions you may email us at firstname.lastname@example.org or call us at (+632) 576-9089.
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