At a Glance SINGLE PROPRIETORSHIP Proprietorship, concept: The establishment, management and operations of this form of business organization is not

governed by a special law, unlike in the case of corporations. However, resort to general laws governing civil obligations and contracts or business and commercial transactions may be made. As a general rule, foreigners may put up single proprietorship business in the Philippines in industries where the constitution and the laws do not impose any restriction or limitation on ownership equity. In the event that non-Philippine nationals are not allowed to form single proprietorship business in a particular industry, he may still proceed with his business venture through other forms of business organizations such as Single proprietorship, how formed; registration requirement: A single proprietorship is the simplest form of business organization in the Philippines. It is not encumbered by the strict regulatory laws and rules imposed upon corporations and partnerships. Government registration of a single proprietorship business is simple. It is made through the Bureau of Trade Regulation and Consumer Protection of the Department of Trade and Industry [DTI]. Single proprietorship, liability of proprietor: The single proprietor has unlimited liability in the sense that creditors of his business may proceed not only against the assets and property of his business but after his own personal assets and property. Creditors with whom he had incurred personal debts may also run after the assets and property of his single proprietorship business. Simply put, the law does not make any distinction between his personal affairs and his business transactions. Before the eyes of the law, they are one and the same, his business being a mere extension of his person.
http://www.chanrobles.com/legal5cc1e.htm#.Ujv1lH-Kxjc

BUSINESS ORGANIZATION

BUSINESS ORGANIZATION

At a Glance CORPORATION

Corporation, definition: Within the context of Philippine law, a "corporation" is treated as an artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence [Sec. 2, Corporation Code].
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Corporation, classes: Corporations may be classified as follows: [a] Stock corporations - [1] capital stock divided into shares; and [2] authorized to distribute profits [b] Non-stock corporations - organized not for profit Corporation, kinds by method of creation: [a] by special law or charter [b] by being organized under the corporation code Corporation, how organized: Philippine corporate entities are organized as follows: [a]Number of incorporators: Incorporators are required to be not less than five [5] but not more than fifteen [15].
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[b] Residency requirement: Majority of the incorporators are required to be residents of the Philippines. [c] Qualifications: All incorporators: [1] must be natural persons
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[2] must be of legal age A corporation or a partnership cannot be incorporators of a Philippine corporate entity. The only way a corporation or a partnership may become stockholder of a Philippine corporation is by acquiring a stock thereof but only after it shall have been duly incorporated.
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[d] Subscription requirement: All incorporators must subscribe to at least one (1) share of stock of the corporation being organized.
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Corporation, minimum subscription: The law requires that the total capital stock to be subscribed at the time of incorporation should at least be twenty five percent [25%] of the authorized capital stock of the corporation being organized.
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Corporation, minimum paid-up capital: The paid-up capital of a Philippine corporation must not be less than PhP5,000.00. Thus, it is required that at least twenty five percent [25%] of the subscribed capital stock should be fully paid up but the amount of which should not be less than said PhP5,000.00.
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Corporation, incorporation documents: The following incorporation documents are required: [a] Articles of Incorporation; [b] By-laws; [c] Treasurer's Affidavit which should state compliance with the authorized subscribed and paid-up capital stock requirements.
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[d] Bank Certificate that the paid-up capital portion of the authorized capital stock has been deposited with the issuing bank.
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There are "express lane" forms available at the Securities and Exchange Commission [SEC] for certain specified corporate business organizations.
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Corporation, where filed:

The incorporation documents should be filed with the Securities and Exchange Commission [SEC] of the Philippines.
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Corporation, what should be stated: [a] the name of the corporation which must not be identical or deceptively or confusingly similar to any existing corporation; [b] the purpose of the corporation; [c] principal office of the corporation; [d] the term or life of the corporation which should not exceed fifty [50] years. This corporate lifetime may, however, be extended for another fifty [50] years but the extension must not be effected earlier than five [5] years before the expiration of its term.
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Corporation, limitation on foreign equity holdings: The equity requirements should be strictly observed and followed in certain areas of business where the constitution and the laws of the Philippines impose limitation on foreign holdings.
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Generally, however, foreigners may invest as much as one hundred percent [100%] equity in areas not covered by the Negative List under the Foreign Investments Act.
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The following provisions thereof may serve as guide: List A : Includes those reserved to Philippine nationals by the Constitution of the Philippines.
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[a] exploitation of natural resources [100% domestic equity] [b] operation of public utilities [60% domestic equity] [c] mass media [100% domestic equity] [d] educational institution [70% domestic equity] [e] labor recruitment [65% dom. equity] [f] retail trade [100% dom. equity] [g] rural banking [100% dom. equity]

List B : Includes those regulated by law. [a] defense-related activities

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[b] manufacture and distribution of dangerous drugs [c] nightclubs, bathhouse and similar activities [d] small and medium-sized domestic market enterprises with paid-in equity capital of less than US$500,000.00 [e] export enterprises utilizing new materials from depleting natural resources with paid-in equity of less than US$500,000.00 Corporation, when corporate existence commences: The corporate life or existence of a Philippine corporation commences from the time a Certificate of Incorporation is issued in its favor by the Securities and Exchange Commission [SEC].
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Corporation, effect of non-use: [a] A corporation is deemed dissolved if the corporate charter granted in its favor expires by non-use for a period of at least two [2] years from issuance thereof.
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[b] A corporation is deemed suspended or its franchise revoked if it has been duly organized but it failed to operate for a period of five [5] years.
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Corporation, its organization: A Philippine corporation is organized by electing members to its Board of Directors, by electing the corporate officers thereof and/or by setting up an Executive Committee.
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Board of Directors, qualifications: The members of the Board of a Philippine corporation must possess the following qualifications: [1] owner or holder of at least one [1] share of capital stock; [2] majority of the members must be residents of the Philippines;

[3] they must be elected by the owners/holders of at least the majority of the outstanding capital stock.
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Board of Directors, corporate acts: For validity and legality of the corporate acts of the Board of Directors, a meeting should be fully convened and the same must be attended by at least a majority of its members. Any and all corporate acts must be duly approved by a majority of the members of the Board except when otherwise provided by Philippine laws or by the By-laws of the corporation.
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Board of Directors, self-dealing rule: A self-dealing transaction of a member of the Board of Directors becomes voidable except under the following circumstances: [1] When the presence of such director in the Board meeting is not necessary to constitute a quorum; [2] When his vote is not necessary for the approval of the contract or transaction [3] When the terms of the contract are fair and reasonable and had been previously approved by the Board of Directors.
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Corporate Officers, general rule: As a general rule, the corporate officers of a Philippine corporation consist of the President who is required to be a member of the Board of Directors; the Corporate Treasurer; and the Corporate Secretary who is required to be both a resident and a citizen of the Philippines.
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Other corporate officers may be designated under the By-laws of the corporation without getting afoul with the law.
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The only limitation imposed by law on corporate officers is that no person can be the President and the Corporate Secretary at the same time or the President and Corporate Treasurer at the same time.
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Corporate Officers, personal liability for damages: A corporate officer of a Philippine corporation becomes personally liable for certain corporate acts under the following circumstances:

[1] When he willfully and knowingly votes or assents to patently unlawful acts; [2] When he is guilty of gross negligence or bad faith in the conduct of the corporate affairs; or [3] When he acquires personal or pecuniary interest which is in conflict with his duty as such officer.
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Stockholders, limited liability: The liability of stockholders in Philippine corporations is limited only to the extent of their capital contribution thereto. Other properties, holdings or assets of stockholders are not within the reach of corporate creditors. To discourage abuse of this privilege, the Securities and Exchange Commission [SEC] imposes certain reportorial requirements which should be complied with on a regular basis. Stockholders, kinds of meetings: The kinds of meetings involving the stockholders of a Philippine corporation are as follows: [1] Regular meeting which is the equivalent of the annual stockholders' meeting required to be duly provided under the By-laws; [2] Special meeting which may be called anytime as may be necessary Stockholders' meeting, requisites for validity: In order to be valid, the stockholders' meeting should comply with the following requisites: [1] A notice of such meeting must be served to the stockholders [2] A quorum, [i.e., majority of the outstanding capital stock of the corporation] must be fully established.
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[3] Any and all acts of the stockholders in a meeting duly called and constituted, are deemed valid if approved by a majority of the outstanding capital stock or at least two-thirds [2/3] vote in certain cases specified under the law. Corporation, dissolution:

As a general rule, the corporate existence of a Philippine corporation may last up to fifty [50] years, renewable for another fifty [50] years. However, such lifetime may be shortened by a vote of 2/3 of the outstanding capital stock thereof through the process called dissolution.

BUSINESS ORGANIZATION

At a Glance PARTNERSHIP

Partnership, nature: Within the context of Philippine law, a "partnership" is treated as an artificial being created by operation of law with a legal personality separate and distinct from the partners thereof. It proceeds from the concept that persons may be allowed to pool their resources and funds to engage in the pursuit of a common business objective without necessarily organizing themselves into a corporation, upon which the law imposes a much higher form of regulation, limitation and standards. Philippine partnerships operate under the concept of unlimited liability and unless otherwise agreed upon by the partners, each one of them acts as manager and agent of the partnership and consequently, their acts bind the partnership.
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Partnership, governing law: Unlike corporations whose governing law is a special law - the Corporation Code of the Philippines, partnerships in the Philippines are governed by and covered under Articles 1767 to 1867 of the Civil Code of the Philippines [circa 1950]. These are the provisions of law which govern all aspects of partnerships - from their creation, formation, existence, operation and management to their dissolution and liquidation, including the obligations of the partners to one another, to the public or third persons and to the government. Partnership, how formed; registration requirement: Partnerships are required to be registered with the Securities and Exchange Commission [SEC]. Registration is done by filing the Articles of Partnership with the SEC. The Articles of Partnership set forth all the terms and conditions mutually agreed by the partners thereto. More specifically, the documents required are as follows:

[1] Proposed Articles of Partnership; [2] Name Verification Slip; [3] Bank Certificate of Deposit; [4] Alien Certificate of Registration, Special Investors Resident Visa or proof of other types of visa [in case of foreigner]; [5] Proof of Inward Remittance [in case of non-resident aliens]. It bears noting that corporations are not allowed by law to become partners in a partnership. Partners, liability: As a general rule, the liability of partners in a partnership organization is unlimited in the sense that the partnership creditors may run after them for any and all of their assets and property in payment of the partnership debts. Should one of the partners defray all liabilities of the partnership, he is entitled to be reimbursed by the other partners for their respective shares therein. In the case, however, of limited partnerships, the law allows the limitation of the liability of certain partners to the extent of the amount contributed to the partnership. Partnership, dissolution: Philippine law allows the dissolution of partnership for any reason, provided such dissolution does not amount to a breach of contract or is prejudicial to third parties. The death of a partner or the unauthorized transfer of ownership of his share in the partnership [in case there is a limitation to this effect] results in the dissolution thereof. In other words, any change in the composition of the partnership, unless so allowed, will result in the dissolution thereof. Consequently, the remaining partners may form a new partnership with less or more partners.

http://jlp-law.com/blog/forms-of-business-sole-proprietorship-partnership-corporation/ The choice of the form of business or business organization depends on various factors. In certain business, like banks, the law requires that the business entity must be a corporation. A small business, like your friendly sari-sari store, is better off as a sole proprietorship, although it could also be converted to another form of business if the circumstances require that shift. Sole proprietorship Also referred to as single proprietorship, a sole proprietorship is the most simple form of business and the easiest to register, through the Bureau of Trade Regulation and Consumer Protection (BTRCP) of the Department of Trade and Industry (DTI). It is owned by an individual who has full control/authority of its own and owns all the assets, as well as personally answers all liabilities or losses. The fact that it is run by the individual means that it is highly flexible and the owner retains absolute control over it. The problem, however, is that a sole proprietor has unlimited liability. Creditors may proceed not only against the assets and property of the business, but also after the personal properties of the owner. In other words, the law basically treats the business and the owner as one and the same. This uniform treatment also has important tax implications. Partnerships and corporations may lessen their tax liability through a myriad of business expenses and other tax avoidance techniques. These tax deductions may not be applicable to a sole proprietorship. Also, the potential growth and reach of a sole proprietorship pale in comparison with that of a corporation. Partnership A partnership consists of two or more persons who bind themselves to contribute money or industry to a common fund, with the intention of dividing the profits among themselves. The most common example of partnerships are professional partnerships, like in the case of law firms and accounting firms. Just like a corporation, it is registered with the Securities and Exchange Commission (SEC). A partnership, just like a corporation, is a juridical entity, which means that it has a personality distinct and separate from that of its members. A partnership may be general or limited. In a general partnership, the partners have unlimited liability for the debts and obligation of the partnership, pretty much like a sole proprietorship. In a limited partnership, one or more general partners have unlimited liability and the limited partners have liability only up to the amount of their capital contributions. Unlike a corporation, which survives even when a member/stockholder dies or gets out, a partnership is dissolved upon the death of a partner or whenever a partner bolts out. Corporation A corporation is a juridical entity established under the Corporation Code and registered with the SEC. It must be created by or composed of at least 5 natural persons (up to a maximum of 15), technically called incorporators. Juridical persons, like other corporations or partnerships,

cannot be incorporators, although they may subsequenly purchase shares and become corporate shareholders/stockholders. The liability of the shareholders of a corporation is limited to the amount of their capital contribution. In other words, personal assets of stockholders cannot generally be attached to satisfy the corporations liabilities, although the responsible members may be held personally liable in certain cases. For instance, the incorporators may be held liable when the doctrine of piercing the corporate veil is applied. The responsible officers may also be held soliarily liable with the corporation in certain labor cases, particularly in cases of illegal dismissal. The biggest businesses take the form of corporations, a testament to the effectiveness of this business organization. A corporation, however, is relatively more difficult to create, organize and manage. There are more reportorial requirements with the SEC. Unless you own sufficient number of shares to control the corporation, youll most likely be left with no participation in the management. The impact of these concerns, however, is minimized by the army of lawyers, accountants and consultants that assist the corporations management.

http://dti.gov.ph/dti/index.php?p=478 Types of Business Enterprise There are several types of business enterprises an investor can choose from in establishing operations in the Philippines. Organized under Philippine Laws 1. Sole Proprietorship - is a business structure owned by an individual who has full control/authority of its own and owns all the assets, personally owes answers all liabilities or suffers all losses but enjoys all the profits to the exclusion of others. A sole proprietorship must apply for a business name and be registered with the DTI-National Capital Region (NCR). In the provinces, application may be filed with the DTI regional/provincial offices.

2. Partnership - Under the Civil Code of the Philippines, a partnership is treated as juridical person, having a separate legal personality from that of its members. Partnerships may either be general partnerships, where the partners have unlimited liability for the debts and obligation of the partnership, or limited partnerships, where one or more general partners have unlimited liability and the limited partners have liability only up to the amount of their capital contributions. It consists of two or more partners. A partnership with more than P3,000 capital must register with the Securities and Exchange Commission (SEC).

3. Corporation - is composed of juridical persons established under the Corporation Code and regulated by the SEC with a personality separate and distinct from that of its stockholders. The liability of the shareholders of a corporation is limited to the amount of their share capital. It consists of at least five to 15 incorporators, each of whom must hold at least one share and must be registered with the SEC. Minimum paid up capital is P5,000. A corporation can either be stock or non-stock company regardless of nationality. Such company, if 60% Filipino-40% foreign-owned, is considered a Filipino corporation; If more than 40% foreign-owned, it is considered a domestic foreign-owned corporation. Stock Corporation This is a corporation with capital stock divided into shares and authorized to distribute to the holders of such shares dividends or allotments of the surplus profits on the basis of the shares held. Non-stock Corporation This is a corporation organized principally for public purposes such as charitable, educational, cultural, or similar purposes and does not issue shares of stock to its members. Organized under Foreign Laws 1. Branch Office - is a foreign corporation organized and existing under foreign laws that carries out business activities of the head office and derives income from the host country. It is required to put up a minimum paid up capital of US$200,000, which can be reduced to US$100,000 if activity involves advanced technology, or company employs at least 50 direct employees. Registration with the SEC is mandatory.

2. Representative Office - is a foreign corporation organized and existing under foreign laws. It does not derive income from the host country and is fully subsidized by its head office. It deals directly with clients of the parent company as it undertakes such activities as information dissemination, acts as a communication center, and promotes company products, as well as quality control of products for export. It is required to have an initial minimum inward remittance in the amount of US$30,000 to cover its operating expenses and must be registered with the SEC. Under Republic Act (RA) 8756, any multinational company may establish a Regional Headquarter (RHQ) or Regional Operating Head Quarter (ROHQ) as long as they are existing under laws other than the Philippines, with branches, affiliates, and subsidiaries in the Asia Pacific Region and other foreign markets.

3. Regional Headquarters (RHQs) - An RHQ undertakes activities that shall be limited to acting as supervisory, communication, and coordinating center for its subsidiaries, affiliates, and branches in the Asia-Pacific region. It acts as an administrative branch of a multinational company engaged in international trade. It does not derive income from

sources within the Philippines and does not participate in any manner in the management of any subsidiary or branch office it might have in the Philippines. Required capital is US$50,000 annually to cover operating expenses.

4. Regional Operating Headquarters (ROHQs) - An ROHQ performs the following qualifying services to its affiliates, subsidiaries, and branches in the Philippines. General administration and planning Business planning and coordination - Sourcing/procurement of raw materials components Corporate finance advisory services Marketing control and sales promotion Training and personnel management Logistic services Research and development (R&D) services and product development Technical support and communications - Business development - Derives income in the Philippines - Required capital: US$200,000 - one time remittance

Philippines Sole Proprietorship

http://www.dayananconsulting.com/philippines-sole-proprietorship/

Wednesday, March 16th, 2011

The definition of a Sole Proprietorship or single proprietorshipin the Philippines is a business structure owned by an sole individual who has full control/authority of its own and owns all the assets, personally owes and answers to all liabilities and losses. A sole proprietorship must apply for a business name and be registered with the DTI-National Capital Region (NCR). In the provinces, application may be filed with the DTI regional/provincial offices. The major disadvantage of a sole proprietorship is the unlimited liability of the owner. Creditors will not only try to obtain the assets of the business but also the personal property of the owner as payment for debts. The sole proprietorship uses the TIN of its owner and must apply for all the usual business permits required by a business in the Philippines. There are minimal capital requirements for Filipino citizens. Some types of business may need other endorsements from various government agencies.

General information needed to apply for a sole proprietorship. A. Business Details 1. Location. Indicate the barangay, city/municipality, and region where business is/will be located. 2. Tax Identification Number (TIN). Indicate TIN duly issued by BIR to you as individual taxpayer. B. Owners Details - First Name, Middle Name, Last Name, Suffix (if applicable). - Date of Birth. Owner must be of legal age (at least eighteen [18] years old). - Citizenship. For Filipino applicants, present two (2) primary ID or a combination of one (1) primary and one (1) secondary ID. Foreign Nationals must present the original and submit clear certified copy of the following, if applicable, namely: Certificate of Authority to Engage Business in the Philippines pursuant to Foreign Investment Act (Republic Act No. 7042 as amended); Certificate of Authority to Engage in Retail Trade per Republic Act No. 8762 (Retail Trade Liberalization Law), or such other applicable laws, as the case may be. C. Owners Address - House/Building No. This information include building name and floor number, Lot, Phase and Block numbers, and Subdivision, among others. Street, Barangay and Town/City, Province. - Zip Code. Check the Philippine Postal Service Web site for proper Zip Code DBC will assist you in obtaining all the necessary documents needed to apply for a Philippines sole proprietorship business registration and acquire all the necessary business permits. Contact DBC for a free assessment. A sole proprietorship is only recommended for very small business due to the unlimited liability of the owner. We recommend setting up a corporation for most business and for foreign investors.

Philippine Business Registry (PBR) The PBR is a government-initiated project that integrates the services of all agencies involved in business registration, such as the DTI, Securities and Exchange Commission (SEC), Bureau of Internal Revenue (BIR), Social Security System (SSS), Pag-IBIG Fund, PhilHealth, local government units (LGUs), and other

permit/license-issuing agencies to facilitate business registration. It allows applicants to get any one or any combination or all of the following business registration at a single location within 30 minutes:

Agency DTI* BIR* SSS

Information/Data Business Name Certificate Number Taxpayer Identification Number Employer's Registration Number

PhilHealth Employer's Registration Number Pag-IBIG Employer's ID Number

*Not applicable if registering through the SEC. The Company Name and the BIR TIN shall be provided to the partnership or corporation upon registration with the SEC. Click here to view the Frequently Asked Questions (FAQs) on PBR.

PBR is a teller-assisted service. For sole proprietorship, applicants can go to a nearest DTI Office and look for the PBR tellers to avail of such service. For SEC-registered companies, authorized representatives who already got a copy of their companys SEC Registration Certificate can proceed to the PBR Kiosk at the SEC Head Office, Mandaluyong City.

How to apply:

SOLE PROPRIETORS Walk-in application at the DTI Office 1. The applicant fills out the PBR application form and submits to DTI teller for encoding. 2. Applicants Taxpayer Identification Number (TIN) is required to proceed since PBR number (PBN) is based on the TIN. If theres an existing TIN, PBR will validate against records. If theres no TIN yet, PBR will generate for the client 3. The applicant pays for the BN registration at the Cashier, and presents the receipt to the teller.

4. The teller submits application to SSS, Philhealth, and Pag-IBIG, then prints and hands over Business Name Certificate, copy of BN Application form, and Official receipt. 5. The teller provides the employers registration numbers (ERNs) from SSS, Philhealth, and PagIBIG through a filled out application form. An e-mail notification indicating the ERNs issued by these agencies can also be retrieved by an applicant in his/ her email account. 6. Applicant may proceed to the said agencies to get certificate or employers ID. Just present the PBR-generated ERNs.

*PBR applications for sole proprietorship may be done through DTI offices nationwide.

PARTNERSHIPS OR CORPORATIONS Walk-in application at PBR Kiosk at the Securities and Exchange Commission (SEC) Main Office 1. Fill out PBR application form and submit it to the teller, including: o Photocopy of complete SEC registration documents (SEC registration documents, Articles of Partnership/Corporation) o Original copies of documents (for verification purposes only) 2. Teller submits application to SSS, Philhealth, and Pag-IBIG and provides the employers registration numbers (ERNs) from the said agencies. 3. Applicant may proceed to the said agencies to get certificate or employers ID. Just present the PBR-generated ERNs.

How to Register a Sole Proprietorship

(http://businessregistration.wordpress.com/2008/04/09/how-to-register-a-sole-proprietorship/) Posted in General Information,How to Register by mariedelatorre on April 9, 2008 Tags: bir, dti, sole-proprietorship

If youre a ve, you can register a sole proprietorship. What you should get, as a minimum:

Certificate of Business Name Registration DTI Certificate of Registration your BIR Revenue District Office (RDO) Mayors Permit at your City Hall Barangay Clearance your barangay hal SS Number (as an employer; or for yourself as self-employed) SSS branch covering your area Philhealth Philhealth in Quezon City

What you need

Name of your business to be registered through DTI Business Name Registration System (BNRS) Original & photocopy of proof of citizenship (e.g. PRC ID, birth certificate, voters ID, passport) Signed copy of undertaking from DTI BNRS (see #2 below) Payment of P300 for application (+P15 for documentary stamps) 2 recent identical passport size picture (with signature of owner at the back) For franchise holder: photocopy of franchise agreement, each page duly certified by the franchisor or franchisee For franchise holder: photocopy of Business Name Certificate of franchisor

Steps

Visit DTI Business Name Registration System (BNRS). If unavailable, call DTI Direct (751-3330). You will receive a Transaction Reference Number Acknowledgement email from DTI BNRS. With all the supporting documents mentioned, proceed to DTI Office.

Final notes: Your DTI registration has to be renewed every year. Theres a renewal fee of P300 and if you renew after 90 days from expiration, theres a surcharge of P100. Make at least 10 copies of your DTI Business Name Certificate, which youll need for other registrations and to open your business bank account.

How to Register a Sole Proprietor Business in the Philippines? http://mpm.ph/register-asole-proprietor-business/7

You may have a great business idea that you want to implement as soon as possible yet you dont have any idea how to start and register a business. This article aims to give you some pointers on how to register and start a Sole Proprietor business.

What is a Sole Proprietor?

Sole Proprietor is a type of business that is owned and managed by a single individual.

Benefits of a Sole Proprietor Business

Easier to set up and register

Requires minimal amount of capital Lower cost in registering for government permits and licenses Minimal regulations and monitoring requirements You can register and run your business on your own You can enjoy the profits on your own

Disadvantages of a Sole Proprietor Business

Risk and liability is shouldered by the owner (you) alone The loss is solely suffered by the owner (you) You manage and operate the business on your own which sometimes leads to exhaustion Shareholders, such as creditors or government agencies, can run after your own personal assets since the business is you.

Where to Register a Sole Proprietor Business?

Here are the government agencies where you are required to register your Sole Proprietor business.
1. Department of Trade and Industry 2. Local Government Units where your business is located: o Barangay o Mayors Office 3. Bureau of Internal Revenue 4. If you have employees, you need to register to the following: 5. o Social Security System o Philippine Health Insurance Corporation o Home Development Mutual Fund

Basic Requirements and Procedure in Registering a Sole Proprietor Business

In this part of the article, we will guide you on how to register your business in many different government agencies.
1. Register a business name at Department of Trade and Industry 1. Come-up with three (3) business names such as 1. XYZ Trading 2. XYZ Retail and Trading 3. XYZ Trading Enterprises 2. Search in the DTIs website if theres an existing name similar to yours 3. If your business name is available, fill-up Business Name (BN) Application Form. 4. Submit your completed BN application form to DTIs offices/branch 5. Wait for your DTI Certificate of Registration

After acquiring a DTI Certificate of Registration, you may now proceed and register to Local Government Units (LGU), such as Barangay and Mayors Office:
2. Registration with Barangay 1. Go to the barangay where your business is located to secure and fill-up application form 2. Submit your completed application form together with the following: o Certificate of Business Registration from DTI o Two (2) valid IDs o Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if owned) 3. Claim your Barangay Certificate of Business Registration 3. Register your business in the Mayors Office 1. Go to the municipal office where your business is located to secure and fill-up application form 2. Submit your completed application form together with the following: Certificate of Business Registration from DTI Barangay Clearance Certificate Two (2) valid IDs Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if owned) 3. Claim you Mayors Business Permit and Licenses

When you already got all the certificate and permits from DTI and LGUs, you may now register to the Bureau of Internal Revenue (BIR)
4. Register your business in the Bureau of Internal Revenue (BIR) 1. Go to the Regional District Office (RDO) where your business is located 2. Fill-up the BIR Form 1901 Application for Registration (for Sole Proprietor) 3. Submit completed registration form together with the following: Certificate of Registration form DTI Barangay Clearance Mayors Business Permit Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if owned) Valid IDs, if applicable. 4. Pay the Registration Form (BIR Form 0605) 5. Register your book of accounts and receipts/invoices. 6. Claim your Certificate of Registration (BIR Form 2303)

After completing all the steps above, you can now focus in operating and growing your business. If you are having a problem or too busy to do it, you can also outsource it to us at a very affordable price. Please see our business registration service.

Good luck.

Business Name Registration

A business name is a name used in business transactions other than true names of persons and / or judicial entities. Business Name Registration is one of the major frontline services that DTINCR handles. It regulates the requirements and procedures needed in registering a business name. There is a need to register business names to protect both the consumers and business owners. The process is able to identify the name and address of the establishment, and the identity of the owner. Thus, consumers are assured of fair trade transactions because they are provided with the mechanism to trace essential information on the firm and its owner. Likewise, business name registration protects business name owners because it entitles them to the exclusive use of the business name that they have chosen.
What Cannot be Registered

There are business names which cannot be registered with DTI:

1. Similar or confusingly similar with a registered business name 2. Prior registered names with Securities and Exchange Commission (SEC) and Intellectual Property Office (IPO) 3. Immoral sounding 4. Words which are scandalous, immoral and illegal in nature 5. Names used by the government in its official non-proprietary functions 6. The words: Company, Limited, Associates, Sons, Groups, Philippines, nation, state, barangay, Metro Manila, Philippines International, CALABARZON, and ASEAN, etc. 7. Bargain, Discount or similar words 8. Full name of another person (except when it is part of a duly registered business name, sells or transfers the business name) 9. Names of any nation, intergovernmental or international organization unless authorized by the competent authority of such (UN, UNESCO, etc.) 10. Names which misinterpret the nature of the business 11. Generic terms 12. Names, words, terms or expressions suggestive of quality of any class of goods, articles, merchandise, or service 13. The word Industry (except when engaged in manufacturing, processing, and farming)