List Of Government Requirements When Starting Your Business Philippines

List of Government Requirements When Starting Your Business Philippines

So you’ve got this brilliant idea for a business and you’re all set to kickstart it. But what do you do first? One of the most challenging parts of starting a business is the requirements you need to secure so you can legally operate. But that doesn’t mean this should stop you from pursuing your business. In this article, let’s cover these things so that you can turn that brilliant business idea into a reality, once and for all.

List of Government Requirements When Starting Your Business Philippines

Business Name
Your business name is important in starting your company. It helps you establish your brand and ensure that nobody else can steal yours. You may check online through DTI or SEC beforehand to make sure you’re not infringing on someone else’s business name. Also, it should be obtained based on your appropriate business structure – is it a sole proprietorship, partnership, or corporation?
DTI Registration or SEC Registration
If you’re a sole proprietor, you should file for a DTI Registration. If you opt to start a corporation, file for a SEC registration. The SEC registration number is given by the Securities and Exchange Commission to every registered business.

Both the DTI registration and SEC Registration act like a social security number for your business that identifies your company and its activities in the financial world. Also, having both of these certificates shows potential clients and investors that you’re not some fly-by-night operation and that you’re legit. Moreover, it’s necessary to register your business with them to legally do business, issue receipts, and be granted specific rights under the nation’s investment and corporate laws .
Articles of Incorporation and By-Laws
This is needed for corporations only. The Articles of Incorporation is like the birth certificate for your company. It’s a legal document that you file with the government to officially form your company. It includes important information like your company’s name, address, purpose, and who the directors and officers are.

On the other hand, the By-Laws are like the instruction manual for how your company operates. They lay out all the rules and procedures for things like meetings, voting, and how to make decisions. It’s highly important to have these in place, especially if you’ve got a bunch of people working together.
Tax Identification Number (TIN)
Obtaining a tax identification number for your business is a crucial step to ensure compliance with tax regulations and establish your business’s financial identity. It is typically required when filing tax returns, paying taxes, and hiring employees. Additionally, having a tax identification number may also be necessary when applying for business licenses, permits, and certifications. Moreover, by securing a tax identification number, you not only fulfill legal obligations but also facilitate efficient financial management and establish credibility within the business community.

You might like: List of Valid Government IDs accepted when applying Loans in the Philippines
SSS, PhilHealth, and PagIBIG Numbers
These are the employer’s identification numbers in terms of compliance with SSS, PhilHealth, and PagIBIG because these agencies legally mandate the business to contribute to the government’s welfare through paying contribution fees together with the business employees’ share.
Business Permits and Licenses
These permits and licenses ensure that your business operates legally and in compliance with the regulations and guidelines set by the governing authorities. Depending on the nature of your business and the jurisdiction in which you operate, the specific permits and licenses required may vary. Failing to secure the necessary permits and licenses can lead to severe consequences, such as fines, legal issues, and potentially even the closure of your business.

Additionally, keeping your permits and licenses in order builds trust with customers and suppliers, enhances your business reputation, and increases your chances of long-term success.

Process When Starting Your First Business

As you’ve learned earlier the various requirements, now, let’s talk about the process of starting a business in the Philippines as discussed below.

Draft your business’ AOI or Articles of Incorporation and By-laws. Have it ready to submit at the SEC or Securities and Exchange Commission office.
Once your AOI and By-laws have been checked, secure numbers of SEC registration, TIN, SSS, PhilHealth, and PagIBIG at the SEC.
Process the needed clearance, permits, and licenses to operate a business. This can be started at your business’ barangay location. Then, other permits and licenses like your business permit will be done at your business city or municipality as well. Be ready with the necessary fees.
Then, get your certificate of registration from the BIR office together with the applicable books of accounts of your business which are stamped for legality.
Finally, at the BIR office too, obtain the Authority to Print of the manual receipts or invoices so that you can have them printed at your preferred supplier. If applicable for your business, secure CRM (Cash Register Machine) or POS (Point of Sale Machine).

Before you jump into the process of starting your first business, make sure you secure all the necessary government requirements to get your business up and running legally. In case you didn’t know, these documents can also be used when applying for a loan once you decide to add more funding for your start-up capital or for your business expansion.

A pioneer in the lending industry is Radiowealth Finance Company (RFC) who has been helping SMEs and business owners for over 59 years with their financing needs. You may apply for a quick and affordable loan through this link or browse through their wide array of financing loans and solutions through their site www.rfc.com.ph.

List of Government Requirements When Starting Your Business Philippines

List of Government Requirements When Starting Your Business Philippines

Process When Starting Your First Business

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