Are you planning to start and open up your own business? If so, one of the things you need to do when opening up a business is to register with the BIR or Bureau of Internal Revenue. The process can be tricky, difficult, and taxing since will be numerous requirements and certifications that you’ll need to prepare. Make sure you’re ready to give a great amount of your time and effort if you embark on this journey.
It’s important for you to plan ahead, research, be aware, and be prepared to avoid costly mistakes. Staying informed and coming with the correct forms and documents ensure, you’ll be able to experience a seamless registration process with the Bureau of Internal Revenue. Alternatively, you can seek accounting services in the Philippines, as some firms provide business registration services. If you don’t know how to prepare for what lies ahead, the following are the 5 things you need to consider before you register your business with the BIR.
- Establish the Nature of Business
Understand and know the nature of your business. What kind of industry are you going to operate in? There are many industries here in the Philippines. Tourism, agriculture, real estate, retailing, manufacturing, and construction are some of the examples of the industries that thrive in the country. What kind of business will you operate? The kind of business is defined by the type of goods and services you plan to offer. For example, using the tourism industry, the kind of businesses that fall under it include Hotels, Resorts, Travel agencies, and many more.
This information is important because when you file for the registration of your business, you must indicate the nature of your business and ensure you fill out the correct category. Expert tax and accounting services in the Philippines assert that this is crucial. You must be aware of this because the laws and tax rules that will be applied to your business will depend on the type of industry and the kind of business you plan to operate.
- Identify the Business Structure
Next, you have to identify the the types of business structure you intend to operate. Expert tax services in Manila point out that there are three main business structures which are sole proprietorship, cooperative, partnership, traditional corporation, and one-persona corporation. These business structures have their own set of advantages and disadvantages.
Moreover, you must keep in mind that each business structure is also subject to different rules when it comes to taxes. It’s also important to note that before registering your business, there are requirements you need to comply with and these forms or documents depend on the type of business structure you will choose.
- Register Business Name to DTI or SEC
No matter what kind of business you intend to operate, it’s crucial for you to register your business name with DTI or SEC. You will not be able to register your business with the BIR without a certificate from DTI or SEC.
These credentials are important because they come with a certificate ensuring that the name of your business is unique to you. It makes sure that it will not infringe upon trademark and copyright laws of other company names that are similar to yours.
- Research Government Requirements and Additional LGU Requirements
It is easy to be caught off-guard by the requirements of the government. According to tax and audit services in the Philippines, tax laws and other regulations change frequently. This is because the government system in the Philippines is decentralized which means that the national government’s laws on commerce, taxation, trade, and local government ordinances may apply to your area.
That is why it is crucial to do your own research on the requirements ahead of time. Different local government units or LGUs can also require and add some more requirements. It would also help to consult with a professional to avoid hiccups that delay your plans.
- Create a Solid Business Plan
Writing a solid business plan is one of the most important steps in starting a business. Getting your plans into writing is crucial because it will help give you concrete steps on how you will manage your operations and may even help you identify potential pitfalls. Some of the details included in the business plan are the location of your business, your marketing plan, and your budget plan. Moreover, a business plan is essential if you need a loan.
The registration process with the BIR can be very draining. It indeed takes time and effort. If you need assistance and help with it, don’t forget to all call our firm. We provide expert tax and accounting services in Pasig, along with business registration services. We can offer you help whether its dealing with BIR paperwork, making financial projections, or finalizing your business plans.