Business registration in the Philippines is an essential legal document that companies must possess before operating. It is essential because it complies with the Republic Act 3883, also known as the Business Name Law. The law states that using any business name that is not registered in the Department of Trade and Industry (DTI) is illegal.
It also states that a business name registration allows business owners to legally and solely use it within its validity period, which is renewable every five years. However, note having a business registration under DTI does not mean that you can already run your business. Other requirements, such as business permits and other legal documents from government agencies, are essential.
The Philippines is one of the top destinations for offshore companies. However, just like other domestic companies, they also need to comply with the business laws in the country. Without a business registration, any offshore company cannot operate in the Philippines. Proceeding with the operations illegally will incur harsh penalties and risks.
There are three ways on how an offshore company can set up its business in the Philippines.
Are you struggling in setting up your business? Worry not because there are companies that offer business registration services in the Philippines. KMC Solutions recruit and hire employees to build dedicated TEAMS in the Philippines. KMC handles company processes, such as HR & payroll, tax contributions, and administration. They also offer business registration services to help set up businesses in the country, especially those with headquarters abroad.
Business registration in the Philippines gives your company benefits, which are:
Tax Returns Act As Proof Of Income
Tax returns certify your ability to pay, and it serves as a proof that your business is regularly earning.
Business Registration Secures Reputation
Business registration signifies that you are a legitimate business, which secures your reputation in the industry and country.
Government Benefits
The government supports businesses by providing free seminars and briefings to let business owners know more information about the company and industry.
Avoiding Unnecessary Penalties and Risks
Failure to register your business and accomplishing legal documents will incur high penalties. Aside from the fines, having an unregistered company will also give you a risk of getting jail time.
This infographic contains the government agencies with specific documents that you need to accomplish to set up a business. It will help you know where to search the essential documents that you need.
Guided by the infographic above, here are the steps to file a business registration in the Philippines.
Choose your business structure.
Your business structure depends on your ability to pay taxes and to produce capital. Your business can either be a sole proprietorship, a one-person corporation, a domestic corporation, a general partnership, or other classifications. Your business structure is essential when you file your application.
Register your business name
The DTI business registration is essential for your business name; however, you may skip this step for those who are freelancers. For corporations and partnerships, you will register with the SEC instead of DTI. For those who want to file an application, you can utilize the online services to contact DTI.
Certificate of Registration from the BIR
All businesses in the Philippines are required to apply for a certificate of registration with the BIR. It enables taxpayers to pay their taxes and enjoy the benefits of having a legal business. Similar to DTI, you can inquire on how to file an application online as well.
Apply for a business permit from the LGU
Another business permit that you may need is the mayor’s permit, from the local government unit (LGU). For the mayor’s permit, it is usually submitted to the city hall physically or not online. Before you can start your business, the LGU will check your location and be assessed by the local fire department.
For additional requirements, such as SSS, PhilHealth, and PagIBIG, you can search their respective websites to know how you can file your application. Some government agencies already have online business registration Philippines to make the process more efficient. You can also contact them for more information.
For those searching on how to start a business in the Philippines, you need to accomplish this list of requirements.
Business Registration
Companies in the Philippines have different classifications, which are:
Office Address
An office address is essential information in processing many, if not all, business documents. Thus, you must have an office space in the Philippines before you can start your business.
Searching for a good office location can be difficult. Factors such as accessibility, parking, and traffic are significant in making your business successful.
Are you looking for an office address? KMC Solutions have something to offer for your business. KMC Solutions offers ready-to-use virtual office addresses in the Philippines. The locations are in business districts like BGC, Makati, Ortigas, Mandaluyong, Clark, and Cebu.
You can use the online or virtual office address to start your business in the country, then transfer to a physical space once you are ready. Their business addresses can be used for registration purposes if you chose a higher virtual office (VO) package.
They offer several packages where the starter only costs PHP 3,000 per month. The package states the following inclusions:
Check out our website for more information.
After accomplishing all the necessary documents, setting up your business is the next step. Here, you will need to prepare your company to run its operations by hiring employees, having an HR and payroll arrangement, and other administrative tasks. However, asking for help will enable you to focus on the core processes of your business.
As stated earlier, KMC Solutions do not just help you with your business registration. We also offer services, such as staff leasing, recruitment, HR and payroll, and admin work. In terms of staff leasing and recruitment, KMC Solutions can provide your company English speaking skilled college graduates. KMC Solutions will support your team by assisting you in other responsibilities and allowing you to use their facilities.
Contact us now through this link to kickstart your entrepreneur journey!
Our team takes pride in providing customer-centric solutions for our clients. We commit our time and effort to build our partners’ trust. Contact our experts today, and we look forward to taking part in your company’s growth and success
