Setting up a company is a long process for new and experienced business owners. Before the company can set up shop, there should be papers ready for application. These documents are important to know the company’s purpose, line of business, and key people. If there are no documents present, it can pose problems in the application process.
Keep in mind that every company should register every existing business. This is to ensure that your company is present in the local government’s system. Once they know that your business is registered, you get to conduct business properly. Consider these tips as you register your company.
Choosing Your Business Type
For countries like the Philippines, it is important to specify your business type. For example, a sole proprietorship works best if you want to own the business yourself. In addition, you get to spend fewer taxes after registration. If the business gets bigger, it can lead to a corporation. However, a corporation requires more funds to invest and you spend more taxes. So if you register corporation Philippines, you should have an investment reserved as you go through the process.
Registering Your Business Name
All companies should have a business name ready. It should reflect what the company provides, whether they are goods or services. For corporations, you should do the process with the Securities and Exchange Commission. This agency handles handling various corporations whether they are startups or well-established enterprises.
If you are a sole proprietor, you can use your name along with the type of business as the name. With this method, you can go through the Department of Trade and Industry to register your business name.
Securing A Permit
A business permit is one of the many documents that a company must secure. You can get one through your local government unit or the city hall. Before getting your permit, you prepare copies of your documents and pay for the fees. These fees vary depending on the permit you apply for. Keep in mind that these permits have a scheduled release date; it it best to get one as soon as possible.
Potential Costs To Spend
When you register a company, there are costs associated with the process. For example, the permits alone can cost around PHP5,000.00 or more. These can include fire and sanitary permits depending on the business you will run. Furthermore, taxes are also included in the registration such as the stamp tax, books of accounts, and sales invoices. If you lack these funds, then the process will not proceed. In addition, these permits may include renewal fees, so you should set aside cash for these costs.
It is important to have money for the registration along with your invested capital. It ensures that you have a financial safety net when you experience troubles in the future.
Registering a company is the first step in running your ideal business after a long process. If you are a new business owner, you get to choose your business type and it differs once it is a company. The process involves securing permits and documents and paying processing fees. Once you followed all the steps, you start doing business with your trusted clients.