Before you jump in your yard and set-up your new business, you first need to register and to apply for permits and licenses that serves as proof that your business is legitimate, authorized, and can benefit the citizens. After knowing this should be done, you have to know what type of business you are planning to put up: sole proprietorship, partnership, or a corporation because the three needs different permits and licenses before you can go.
In this article, you will be educated on the different types of permits and licenses you need to have before going on with your business.
Bureau of Internal Revenue (BIR)
Probably the most important document if you are planning to put up an individually owned business or a corporation, because having these documents will enable you to acquire other documents with ease. There are four (4) kinds of BIR forms that are used for registration:
- 1901 for Mixed-income and self-employed individuals
- 1902 for Employees with full compensation, nonresidents, and resident aliens
- 1903 for Corporations and partnerships
- 1904 for One-time taxpayer who just rendered business in the Philippines for a year.
All businesses, whether self owned, a partnership, or a corporation, must submit a tax payment at the end of each and every fiscal year; this is when TIN (Tax Identification Number) comes in.
Department of Trade and Industry (DTI) Business Name Registration Certificate (BN)
This department makes your own given business name legal. They also exist in order for your business names to be unique; in order for you not to use a business name that has already been established. Before you can secure your business name, without a TIN, Barangay clearance, and other licenses, you cannot secure one.
A. Be sure to have a list of business names
B. Applicants need to be 18 years old or above
C. Fees depend on the scope of your business:
- Barangay – Php200
- City/Municipality – Php500
- Regional – Php1, 000
- National – Php2, 000
Mayor’s Permit (Business Permit)
This permit is processed in the office of the mayor which is why it is called either Mayor’s Permit or Business Permit. Having this ensures other people that they mayor has approved your business, and it can operate under your city’s ordinance.
Do know that one can only have Mayor’s Permit after you have secured DTI (self-employed) and SEC (partnerships and corporations) registrations.
- DTI Business Name Certificate (Self-employed)
- SEC Registration Certificate (Partnerships and Corporations)
- Cedula or Community Tax Certificate
- Lease contract or Tax declaration
- Barangay Clearance
Securities and Exchange Commission (SEC) Certificate of Registration
As said earlier, if you are planning to set up partnerships and corporations, you need to secure and SEC Certificate of Registration to be considered as legal or juridical entities. This is also one of the best requirements for you to pass if you plan on getting a BIR Certificate. Do know that if you are planning to go and take solo flight, SEC is not the one for you but DTI.
Having Barangay Clearance is a statement in which it says that your business complies and follows rules and regulations of the local barangay where your business will operate. It is also one of the requirements for getting a BIR Certificate. To get your Barangay Clearance, you will have to submit the following:
- Barangay Clearance Application form
- Community Tax Certificate or Cedula
- Valid ID (SSS, Passport, Postal, or any government-issued ID)
Before you run your business, take a peek on what you documents you need in order to avoid problems, questions, and delays. Stay tuned for more relevant information made for Filipinos only here in EfrenNolasco.com.