How to register business in the Philippines? Business startup includes the process of registration with the right government agencies and authorities. This is an important step that must not be missed by any business, whether it is a small, medium or large enterprise. This is … [Read more…]
How to become a truly successful business person? Are you a business owner or an entrepreneur? Whether you’re a businessman or a businesswoman, or whether you’re already doing business or just planning to get into it, you need to achieve real business success. The following will … [Read more…]
How to make your employees happy? Each people have their own uniqueness. That is why it’s hard to please everyone, such as in the case of your employees. To ensure the happiness of your workers, subordinates and followers – you need to make the organization happy. This means you … [Read more…]
How to register your business name with the Department of Trade and Industry (DTI) in the Philippines? If you are planning to establish a business, a trade name is an essential part of your business existence. That is why you should take time for brainstorming to come up with a company name that is both unique and appealing to your potential customers. Your trade name is what you will always use when dealing with your clients or customers. It is the name that will be stated in your certificates of registration with different agencies, in your official receipts and invoices, in your contracts and in other business forms.
Registering your business with the BIR will give you the authority to print your official receipts and other invoices, provide you or your corporation a Tax Identification Number (TIN) and register the books you will use to record your business transactions. Furthermore, your BIR certificate of registration will state the types of taxes you will pay, such as business taxes, withholding taxes and income tax. The following are the requirements and steps to register your business or company with the BIR.
Starting, formalizing, legalizing, and registering a business in the Philippines could take time depending on the type of your company. But if the process of business registration takes time, business closure or cessation is even more difficult and could take longer time to actually accomplish, depending on the status of the business.
There are many reasons why a certain business will come to its end. It could be that the business is already causing the owner significant losses and decided to just stop the business or it could be that the business needs to be terminated in order to transform into a new type of business. Not all business closure brings negative news. For example, a single proprietorship business that is transforming into a corporation is required to be closed as a proprietorship. Thus, business closure could also mean expansion.
There are many business opportunities that we can start in 2013. There are business ideas that we can operate through the Internet, small businesses we can do without leaving our home, livelihood that we can start as a hobby or full-time business, and business startups we could run for a cause. If you are planning to start a business in 2013, here’s a list of 100 business ideas you may consider.
Below you will find a list of online business ideas you can do and work at home. If you’re an employee who wants to earn extra income, a mom who wants to work while being with her children, a college student who needs additional cash, or just an aspiring entrepreneur who wants to achieve big success in venturing into an online business, then these business ideas will be your guide in choosing the best online business for you. Most of them can be started without spending a drop of your money. As long as you have the expertise, skills, passion, a personal computer or laptop, and the connection to the Internet, you can begin trying one or more than just one of these online and home-based business ideas. Enjoy!
Here is a list of small home-based business ideas you can start in the Philippines with small capital. There are fifty one ideas you can choose on. But be sure that you have the sufficient skills, talents, experience and passion to do and run these concepts successfully. You can do them on part-time, or if time doesn’t pressure you, you can also try to concentrate and give your full time. If you are currently employed with a certain company or employer, you might consider holding a little more time before you leave your regular job. There is always a right time and season for everything, including the escape from your office cubicle. Now, if you’re unemployed, or even if you’re employed but have controlled the risk of investing your time to business, the following ideas are for your consumption.
A corporation can be a stock or a non-stock corporation. As their names suggest, stock corporations issue shares of stock, while non-stock corporations don’t. A stock corporation is a for-profit corporation which the ownership of the corporation is expressed by shares of stock. The owner of the shares of a corporation is called stockholder or shareholder. Now, if you’re on your way to incorporate your business as a stock corporation, the following are steps and guides on how to register it with the Philippines Securities and Exchange Commission (SEC).
1. Name Verification Slip (secure online or from SEC Name Verification Unit)
You can visit the SEC i-Register, the web-based Company Registration System of Philippines SEC, to verify and register online. SEC i-Register is a quick, affordable, and user friendly service that is available to the public 24 hours a day, 7 days a week. To use their online services, you need to sign-up to create an account. Once you’ve created an account, you can already verify and reserve your proposed company name and file application for company registration. Alternatively, you can visit the SEC Verification Unit, located at the SEC Building, EDSA, Greenhills, Mandaluyong City to secure your Name Verification Slip at the counter. If you’re residing near Cebu City, you can register your business or company at SEC Cebu located at V. Rama Avenue, Guadalupe Cebu City.
2. Articles of Incorporation and By-laws
You can ask for blank forms from the Company Registration and Monitoring Department (CRMD). For the preparation and drafting of Articles of Incorporation, By-laws and other requirements, you can consult a corporate lawyer to get assistance. If you have time and want to save from expensive professional fees, you may also draft the documents on your own, especially if you’re already familiar with them. You can just visit a lawyer for notaries.
3. Treasurer’s Affidavit
The Treasurer’s Affidavit also authorizes the Securities and Exchange Commission and Bangko Sentral ng Pilipinas to examine and verify the deposited amount in the bank, which is in the name of the treasurer in trust for the corporation, representing the paid up capital of the corporation on the process. The bank certificate of deposit is one of the documents that must be submitted with the SEC. Hence, you must obtain it from the bank.
4. Affidavit of incorporator or director undertaking to change corporate name (not required if Articles of Incorporation has provision on this commitment).
1. Endorsement/clearance from the following government agencies, if applicable.
a. Civil Aeronautics Board (CAB) – for Air Transport
b. Bangko Sentral ng Pilipinas – for banking, pawnshops & other financial intermediaries with quasi-banking functions.
c. Games and Amusement Board (GAB) – for Professional boxing
d. Philippine Charity Sweeptakes Office (PCSO) – for operation of games of chance (e.g. lotto)
e. Department of Education (DepEd) – for educational institution – elementary to high school
f. Commission on Higher Education (CHED) – for educational institution – college or tertiary course
g. Technical Skills Development Authority (TESDA) – for educational institution – technical or vocational course
h. Department of Energy (DOE) – for electric power plants
i. Department of Health (DOH) – for hospitals
j. Insurance Commission (IC) – for insurance
k. Land Transportation Franchise Regulatory Board (LTFRB) – for land transport
l. Maritime Industry Authority (MARINA) – for water transport, construction and building of vessels
m. National Telecommunications Commission (NTC) – for operation of radio, television and telephone
n. Philippine Overseas Employment Administration (POEA) – for recruitment of overseas employment
2. For corporations with foreign equity: Proof of remittance by non-resident aliens and foreign corporate subscribers who want to register their investment with the Bangko Sentral ng Pilipinas (BSP)
3. For corporations with more than 40% foreign equity: SEC Form No. F- 100
4. For corporations with Philippine Economic Zone Authority (PEZA), Subic Bay Metropolitan Authority (SBMA) or other economic zones application: Certificate of Authority or endorsement from said government agencies
5. Additional requirements based on kind of payment of subscription. If paid by cash below are the additional requirements.
a. Bank Certificate of deposit of paid up capital notarized in place where signed (as stated in no.3 Treasurer’s Affidavit)
b. For corporations with foreign subscribers who want to register their investments with the BSP: Proof of inward remittance or bank certificate
If paid other than cash (i.e., properties, inventories, shares of stock, etc.,), please see the complete requirement on this link page from the Philippines SEC.
Things to remember
1. Incorporators are required to be not less than five (5) but not more than fifteen (15). Incorporators are the original stockholders included in the application for registration. Stockholders can increase after incorporation.
2. Majority of the incorporators are required to be residents of the Philippines.
3. All incorporators must be natural persons and must be of legal age. A Corporation or a partnership can become a stockholder by acquiring shares of stock after the corporation has been duly incorporated.
4. All incorporators must subscribe to at least one (1) share of stock of the corporation being organized.
5. 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.
6. 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. Certain types of companies, such as financing and insurance companies are required to have different minimum paid-up capital based on their industry. To see the different minimum paid-up capital requirements published by SEC please click here.
7. Don’t forget to pay the documentary stamp tax on the original issuance of shares of stock. It must be filed and paid with the Bureau of Internal Revenue (BIR) or Authorized Agent Bank (AAB). Section 174 of the National Internal Code (as amended), requires a payment at the rate of Php1 on each Php200 or a fractional part thereof of the par value of the shares of stock. Payment must be made on or before the 5th of the month following the date of issuance of the registration certificate or issuance of shares. The documentary stamp tax return or BIR form 2000 is one of the document required to be submitted with the Bureau of Internal Revenue (BIR) when you register your corporation with them.
The SEC website has published a citizen’s manual on the registration of corporation and partnerships with the SEC. The pdf file can be downloaded here, you can save it in your computer and print it for your guide.