Businesses are integral to the progress of a nation’s economy. That’s why Filipinos need to support these brands. The government also encourage Filipinos to venture into entrepreneurship, regardless of the size.

There are various ways to start a business: you could build one from your savings or apply for a business loan. But after the plans are readied, make sure to accomplish your business registration immediately.

Types of Business Ownership

Before registering your business, it is important to identify first the type of business ownership. There are three and these are:

Sole Proprietorship

Solo or sole proprietorship refers to a business managed and owned by a single person. It also refers to self-employed individuals, freelance workers, and PRC-licensed professionals such as lawyers, doctors, engineers, etc.

Partnership

Partnership refers to a business co-owned by two or more individuals. It has two types: general and limited. General partnership places all liabilities, debts, and other financial responsibilities of the business to principal players. Limited partnership places responsibilities to partners that are limited to the capital they invested. Both types are recognized as legal persons obliged to pay for taxes.

Corporations

Corporation refers to a business owned by a group of people (minimum of 15). Thy are also known as shareholders that can either be natural or juridical persons and their identities are separate from the business they own. Also, a business is considered a corporation with a minimum paid-up capital of P5000.

There are two types: stock and non-stock. Stock corporations earn profits for shareholders while non-stock corporations serve with public functions (charities, foundations, etc). Eligible foreigners can also run business corporations in the country within legal provisions.

How to Register Business for Solo Proprietorship

1. Register a unique business name (DTI)

Businesses have Trade Names for target customers to remember your brand. The Department of Trade and Industry (DTI) requires each business to have a Trade Name to avoid duplicates.

The steps for Business name registration are as follow:

• Go to the Business Name Registration System of DTI: https://bnrs.dti.gov.ph/registration
• Accept the Terms and Conditions
• Input your personal details
• Choose industry or category of your business (example: Car Repair Shop)
• Submit the proposed business name (example: XYZ Car Repair Shop)
• Check for its availability
• If the business name passed the criteria, input the required details
• Pay the corresponding registration fee and documentary stamp
• Print your Certificate of Registration (COR)

Note that this process doesn’t apply to self-employed or freelancer who does not use a Trade Name.

2. Register to BIR

After downloading your DTI certificate, you may proceed to BIR for the next process of registration.

• Collate the requirements (DTI-COR, IDs, Mayor’s Permit, Barangay Business Clearance, Certificate of Lease or Land Title, whichever is applicable)
• Visit your respective Revenue District Office (BIR office that has jurisdiction where your business is located)
• Fill out the BIR Form 1901 (3 copies)
• Pay the Registration Fee and Proof of Payment of Annual Registration Fee (ARF).
• Clarify to the RDO if there’s any seminar about tax filing that you need to attend before releasing your COR.
• Claim your Certificate of Registration (COR) and make sure you also receive the “Ask for Receipt” sign.
• Buy your books of account.
• Register the books of account by filling out BIR Form 1905
• Submit the form and books of account to RDO.
• Get an Authority to Print (ATP) for your business receipts or invoices.
• Submit BIR Form 1906 (3 copies), BIR-COR copy, and sample receipts/invoices.
• Usually after a week, claim your ATP and submit it to an accredited BIR Printer.
• Usually after two weeks, you can claim your official receipts/invoices.

How to Register Business for Partnerships and Corporations

Here’s how Partnerships or Corporations register their businesses:

1. Prepare the documentary requirements

These are the general documents needed:

• Articles of Incorporation (AI)
• By-laws (BL)
• Cover Sheet for Registration
• Reservation Payment Confirmation

However, there are additional documents needed that are specific to each type of partnership or corporations.

2. Register to Security Exchange Commission

• Prepare the proposed business name and confirm its availability on the SEC iRegister system.
• When the proposed business name passed, you may also reserve the business name online.
• Print the application form.
• Confirm the business name at any SEC office within four (4) days. Otherwise, it will be forfeited.

3. Register to BIR, SSS, and other Government Agencies

Philippine laws mandate companies and their employees to register on various government agencies. This is to ensure that labor practices and employee benefits are given appropriately.

Having your business registered is not a walk in the part but it’s not an endless journey as well. For additional business capital using your vehicle’s ORCR, feel free to visit gdfi.com.ph.