HOW TO REGISTER A BUSINESS IN THE PHILIPPINES | Sole Proprietorship, Partnership or Corporation?

Summary

In this video, Charm from Reddit Adult Philippines outlines the process and benefits of registering a business in the Philippines. She discusses the importance of distinguishing between a business name and a brand name, and the different business structures including sole proprietorship, partnerships, and corporations. Charm explains the registration process with agencies like DTI, SEC, and IPO, and the costs involved. She also highlights the necessity of obtaining a mayor's permit and a BIR permit, providing insights into the advantages of being a registered business, such as the ability to cater to larger clients and orders.

Takeaways

• 📝 Registering a business is crucial for legal operations and to avoid illegal activities.
• 🏢 The video is divided into three parts: business name registration, mayor's permit, and BIR permit.
• 🔍 The difference between business name and brand name is clarified, with the latter requiring registration with the Intellectual Property Office (IPO).
• 👩‍💼 Business structures discussed include sole proprietorship, partnerships, and corporations, each with varying levels of control, liability, and investment opportunities.
• 💼 Sole proprietorships are the simplest but carry the highest risk, while corporations offer the most protection and are attractive to investors.
• 💼 Partnerships offer a middle ground with the possibility of foreign ownership and limited liability for some partners.
• 🏦 The process for registering businesses with the DTI (for sole proprietorships) and SEC (for partnerships and corporations) is outlined, including online and in-person steps.
• 💵 Costs for business registration vary widely, from a few hundred for DTI registration to potentially thousands for SEC and IPO registrations.
• 📋 Business permits are required within 30 days of business name registration and involve various requirements depending on the city and type of business.
• 💼 The BIR permit is essential for tax purposes, and businesses must maintain specific financial records and books.
• 💰 The total cost of registering a business can range from around ten thousand to thirty-five thousand pesos, depending on the business type and location.

Q & A

What are the three major parts of business registration discussed in the video?

The three major parts of business registration discussed are business name registration, mayor's permit or business permit, and BIR permit.

What is the difference between a business name and a brand name?

A business name is the trade name registered for legal purposes, while a brand name is the name associated with a product or service and must be registered with the Intellectual Property Office (IPO) to secure it.

What are the three types of business structures mentioned in the video?

The three types of business structures mentioned are sole proprietorship, partnerships, and corporations.

Why is registering as a corporation advantageous for liability protection?

Registering as a corporation is advantageous for liability protection because the business is treated as a separate legal entity, meaning personal assets of shareholders are protected and cannot be seized for business debts.

What is the minimum number of people required to register a corporation in the Philippines as of 2019?

As of 2019, the minimum number of people required to register a corporation in the Philippines is one, allowing for one-person corporations.

What are the two types of corporations mentioned in the video?

The two types of corporations mentioned are stock corporations, which issue shares and may distribute dividends, and non-stock corporations, which do not issue shares and often operate for charitable, educational, or similar purposes.

How long is the validity of a DTI business name registration?

The validity of a DTI business name registration is five years, after which it must be renewed.

What is the penalty for not registering a business permit within 30 days of registering a business name?

The penalty for not registering a business permit within 30 days of registering a business name is a penalty fee, as it is assumed that the business has been operating without proper permits.

What are the general requirements for obtaining a mayor's permit or business permit?

General requirements for a mayor's permit or business permit include a DTI or SEC certificate, barangay clearance, and possibly a lease contract or proof of ownership for the business location.

Why is it beneficial for a business to be registered and legal?

Being registered and legal allows a business to cater to bigger orders and sales, as companies often require official receipts for significant transactions, which are only issued by registered businesses.