Thursday, February 26, 2009

How to Register Your Business in the Philippines

If you are putting up a business in the Philippines, it is mandatory to register it before you start operating. If it is a sole proprietorship, you have to register with DTI (Department of Trade and Industry). If it is partnership or corporation, register with SEC (Securities and Exchange Commission).

I. Business Name

You have to choose your business name carefully to distinguish it from your competitors. Your name must describe the nature of your business. It is your identity in the marketplace.


A. Choose a business name - Think of at least 3 business names

Guidelines for acceptable business names:

  • The root word or words of the name shall be considered.
  • Describes the nature of business
  • Comprised solely of letters and/or numerals
  • Punctuation that are part of English and Filipino language

Names that are not acceptable:

  • Those which are or whose nature of business is illegal, offensive, scandalous, or contrary to propriety.
  • Those which are identical or which nearly resemble business names already registered with government office authorized to register names.
  • Names composed purely of generic words.
  • Names by which by law or regulation cannot be appropriated.
  • Distinguished or suggestive of quality of any class of goods, articles merchandise or service.
  • Abbreviation of names of any nation, inter-governmental or international organization
  • Names which are misleading, deceptive or which misrepresent the nature of business

B. Search for a business name - You may use DTI Online Search Engine to ensure that your preferred name has no similar or confusingly similar to existing registered names.


C. Register your Business Name - Visit the DTI Office in the area where you will put your business.

  • Fill out application form with your proposed business name signed by yourself, your representative, or authorized by a special power of attorney.
  • Submit 2 identical 2 x 2 id pictures taken not more than a year prior to your application.
  • If your name suggests an alien nationality, present a copy of your birth certificate, voter’s id or passport for proof of citizenship.
  • If you are naturalized citizen, present the original copy of your naturalization certificate and oath of allegiance or ID card issued by Bureau of Immigration and Deportation.
  • If you are a franchise holder, present a photocopy of franchise agreement.
  • Pay the processing fee of P300 and P15 for documentary stamp.

II. Register Online at www.bnrs.dti.gov.ph
  1. Fill out application form by typing the required information.
  2. Submit online and you will receive transaction reference number acknowledgment via e-mail.
  3. Submit the necessary documentation mentioned in the acknowledgment in DTI office in your area. The reserve business name online is valid up to 3 working days only.
  4. Pay your application. Processing fee of Php300 + Php15 documentary stamp.

For partnership and corporation register with SEC and submit the following:


Partnership:

  • Name verification slip
  • Articles of partnership
  • Affidavit of undertaking to change name
  • Filled out application form
  • Filing fee depends on your capitalization
  • Or gross receipts after operation
  • Other fees: bylaws fee p 210.00, stock & transfer book 300.00, documentary stamp 100.00

Stock Corporation

  • Name verification slip
  • Articles of incorporation and bylaws
  • Affidavit of undertaking to change name
  • Treasurer’s affidavit
  • Bank certificate
  • Authority to verify bank account
  • Filled out application form

Non-Stock Corporation

  • Name verification slip
  • Articles of incorporation and bylaws
  • Affidavit of undertaking to change name
  • Resolution of the board of directors that the corporation will comply with the requirements of non-stock corporations
  • Members undertaking
  • List of contributors certified by the treasurer
  • Certificate of bank deposit of at least P100,000
  • Representing initial contribution
  • Filled out application sheet

What’s next?


III. Mayor’s Permit

Now that you already have your business name, next thing to do is to secure local permits. For your Mayor’s Permit you will need:

  • Barangay clearance & Barangay Business Permit from where your business is located
  • Contract of lease, if any
  • Registration certificate from DTI or SEC
  • Sketch of your location
  • Community tax certificate
  • Fire safety certificate issued by the Bureau of Fire and Protection.

Mayor’s permit cost varies depending on your municipality and type of business.


IV. Tax Registration

After registering your business name and securing mayor’s permit, you have to get Tax Identification Number (TIN) from BIR (Bureau of Internal Revenue).


Documents needed for TIN application:

  • Filled out BIR forms 1901/1903
  • Sketch of your location
  • Photocopy of mayor’s permit
  • Registration certificate for DTI or SEC
  • Articles of incorporation or partnership (not applicable to sole proprietorship)
  • Branch/es must present certificate of registration of the main office
  • Other things to work with BIR:
    • Register book of accounts
    • Request authority to print receipts
    • Request authority to use cash register

Registration fee is P500 + documentary stamp tax 1% of the subscribed capital for corporation.


V. Social Security System

Business owners must secure employer registration number and report all employees for coverage at the Social Security System. Sole proprietors should submit filled out SSS form R-1 for employer registration and SSS Form R-1A for employees listing. While partnership and corporations must submit copies of articles of partnership or articles of incorporation and accomplished form R-1 and R-1a.

Now that you have finally and legitimately registered your business..it is now your chance to get ready for greater and bigger things to embrace.


source: pinoybusiness.org

2 comments:

business registration philippines said...

Thank you for giving that very helpful and informative information on how to register our business here in the Philippines. This information will guide us how to register properly.

lilywhite said...

Hi! Thank you too for dropping by :)

Introducing the All-new Samsung Galaxy S8 and S8+

The Samsung GALAXY S8 (5.8") and S8+ (6.2") is offered on Lazada thru pre-order only from April 17 to April 29, 2017. It comes w...