1. Introduction
This is a guide on how to register a business in the Philippines. With this, a number of foreign entrepreneurs consider finally giving it a try to invest in developing or extending their business here in the Philippines. But business does not simply arrive overnight within the Philippine territory; it has to pass certain protocols, legalities, and a number of forms to fill up. The first thing to consider is to comply with the essential registrations for the Philippine government to finally recognize your business. This task may be seen as daunting for others, but with the right guidance and manual, business registration in the Philippines is a walk in the park.
The Philippines is becoming a competitive ground for burgeoning businesses from different parts of the world. Aiming to cater to the wants of the consumers, business developers from different parts of the world are lured by the diversified makings of the Philippine market. As they say, the Philippines has been a melting pot of different cultures, thus providing different opportunities for businesses. Be it the food industry, retail, services, or anything else, the Philippines always has something in store.
2. Understanding the Requirements
Setting up a business Philippines requires you to have the right permits and documents. Requirements for company formation in the Philippines include a paid-up capital of at least US $200. Laws have recently changed regarding this, and it is now necessary to have this amount in a bank account and to receive a bank certificate as evidence. De jure, there is no minimum amount specified, but it is the general consensus that you should have at least US $2000 to cover the requirements of setting up and maintaining a company in the Philippines. Step-by-step guide will help you evaluate minimum levels of capital for the type of business you wish to set up. This will be necessary to avoid rejection on the Business License application. Minimum capital refers to funds necessary to ensure company operation, but this may later change subject to fluctuations in capital. In the event of changes to capital, the paid-up capital amount in the bank is frozen for the specific business activity. Take your bank certificate to the Securities and Exchange Commission who will confirm the adequacy of capital and issue the certificate of registration of the company. Then acquire the internal revenue allocation. This can be acquired from the Bureau of Internal Revenue to whom your company is required to shade a copy of the SEC certificate.
3. Registration and Documents
An application form (F-106) shall be accomplished and submitted, together with the articles of incorporation. If the articles are not yet indicated, a duly signed cover sheet for name reservation stating the name to be reserved, names or name of incorporators, and the date and time of receipt for submission to the Commission shall suffice. Upon approval of the name or names, the corporation is given a Name Reservation Number, a copy of the approved name, and a Notice of Approval. A reserved name shall be effective for a period of thirty (30) days and shall not be renewed or extended. Any person or entity intending to register a corporation or to change the name of an existing corporation may at any time after the approval of the name reserve the same by indicating at the top of the application for incorporation the name reservation number and the date of approval. Note: A corporation name shall not be allowed if the proposed name is identical or deceptively or confusingly similar to that of any existing corporation or to any other name already protected by law. (Sec. 107)
Corporate name reservation is the first step in securing a name for a corporation. The corporate name to be reserved should be distinguishable to prevent duplication and confusion as to the identity of the corporations. Corporate name availability may be checked for the proposed name to determine if such a name is conflicting or confusing to a similar name of an existing corporation. Name reservation may be filed by a single person with the Securities and Exchange Commission.
The name of a corporation, partnership or any stock-issuing entity shall not be registered if the proposed name is identical or deceptively or confusingly similar to that of any existing corporation or to any other name already protected by law. A name is deceptive or confusingly similar when it gives such a wrong impression as to lead one to believe that the two entities are one and the same. Corporate names may be checked for availability and the approved name reserved for a period of thirty (30) days with the Securities and Exchange Commission through its official website.
Go to the nearest DTI office in your area and obtain or fill up a copy of Business Name Registration form or BN. The information you will provide in the form will be the sole basis for the issuance of the Certificate of Registration. This simply means that you should be aware of the nature of your business before going to the DTI. Fees may vary according to location. After this, you will have to verify if your business trade name is unique and original from existing corporations, partnerships or sole proprietorships. You can do that by searching your business trade name online through the DTI’s very own business registration system search facility. If found original, you will have to go to the DTI office for the verification of the availability of the business name you want. If your business trade name is available and original, the next step will be the payment of registration. After payment, the registration staff will encode the data and generate the certificate. You still have to apply for Mayor’s permit in your municipality or city and BIR Certificate of Registration considering that your business transaction will involve invoicing of goods and services. Starting a business in the Philippines is not an easy task, but with this guide, you’ll have a better perspective on the required steps
4. Conclusion
As an entrepreneur, you should learn the changes or the latest regulations when it comes to putting up a business here in the Philippines. Finding the right form of business and the requirements, rules and regulations of putting up a business is highly recommended. Seek someone who has the knowledge to make it easy for you. This article will explain briefly and thoroughly guide you on how to put up your business with the latest rules and regulations. The step-by-step process in registering your business will be made easy for you to understand, assuring you that you’re on the right track. Always remember to fulfill the necessary requirements for your application, as this may cause an unnecessary delay and who knows, it might cause your business to not operate. With this done properly and carefully, your business will surely operate without any fuss. Always remember to be honest about the details of your business and follow these rules and regulations. Hope this article helps you in establishing your business.