Things Every Aspiring Entrepreneur in the Philippines Should Consider
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Having you been thinking to start a business in the Pearl of the Orient Seas? If so, now is the best time as various multilateral institutions expect the country’s economy to grow more in 2013. But before you get excited with becoming your own boss, you should think about the things needed to actually set up your venture. You can refer to the list below for guidance:
1. Determine the type of enterprise you want to start. Decide on a specific market, discover the risks involved, and know about alternatives. Study the approved social norms and culture if you are not a local as these details will affect the success of your business.
2. Consider whether you want a sole proprietorship or a partnership. If you want to go with the former, you have to apply for a name and register with the Department of Trade and Industry (DTI). If you are more interested in the latter, get the details from the Securities and Exchange Commission (SEC) and follow their instructions.
3. Obtain a certificate of deposit from your Authorised Agent Bank (AAB) and a community tax certificate (CTC). The former is used to verify your paid-up capital while the latter is needed for acquiring a barangay clearance. As required by the law, you have to pay at least 6.25% of the capital stock of the corporation. The amount should not be less than PHP 5000.
4. Attain a municipal license and permit from the mayor’s office. You will have to provide the following documents, in duplicate: proof of having comprehensive general liability insurance; barangay clearance; receipts from transactions including lease contracts for serviced offices; proof verifying the paid-up capital; certificate of registration; authorisation for your company to conduct business; and your application along with a clear sketch of the location attached to the back.
5. Receive an inspection from the mayor’s office. This verifies that your enterprise is as you say it is. After completing and passing this, you will be issued proper permits and licenses.
6. Register for value-added tax (VAT) and other taxes. Apply for authorisation for printers to print invoices and sales receipts or receive a permit from the Bureau of Internal Revenue (BIR) to make your own documents. Also, get approval to use alternate means of accounting and bookkeeping and pay for documentary stamp taxes, if there are any.
7. Sign up with the Social Security System (SSS). Staff members, if there are any, have to attend a seminar scheduled within a week of application. Once this is completed, you will be issued a certificate of membership. Doing this will enable you to register with a commercial health insurance company and file its requirements.
Yes, there is much to do when you are opening a venture in the Philippines. However, given the state of the nation’s economy, the effort can be well worth the return.