If you are a business owner in the Philippines, you are always required to get a certificate of registration from the BIR or the Bureau of Internal Revenue. Whether or not the scale of your business is big or small, or if you are a freelancer or self-employed, the law in the Philippines requires you to get a registration certificate before you can start to operate. The Certificate of Registration (COR) is also known as the BIR Form 2303. It is a document that serves as proof that your business has the legal right to operate in the Philippines.
Form 2303 is a document that’s also required for all licensed professionals who have a valid license under PRC or Philippine Regulatory Commission including professionals or individuals who have digital careers like social influencers and online sellers. It also includes corporations, partnerships, and cooperatives. Tax services in Manila note that the registration certificate grants an entity a TIN or a Tax Identification Number which will indicate the type of taxes they need to pay.
If you just started your business, you may not feel the need to get your business registered since getting the BIR Form 2303 can be costly, and it can also be a very time-consuming process. Bear in mind though that having your business registered with the BIR is not only the right thing to do, but will also open more doors of opportunities whether you’re a business owner or a freelancer. Here are the advantages of business registration:
1. Gain Business Credibility With More Opportunities
Realistically speaking, clients or customers will always gravitate towards businesses that are legitimate to make sure that they have secure transactions. They can also get official receipts which is another important thing since they may need to compile them for their own financial records. Accounting services in the Philippines note that it is important to keep official receipts for accounting, bookkeeping, and taxes purposes. Hence, business registration not only gives your operations credibility but also opens you to more opportunities and more customers or clients.
Some corporations like to work with freelancers or small companies who have official receipts because they need them as well for their own financial records and when they file their taxes. Additionally, if you want to be granted a loan, financial institutions will have to check if your business is registered and will also check other records before you can be granted a loan. For you to expand your operations, you need proper certificates.
2. Inspire More Trust in Your Customers
If your business is registered and legit, your customers will trust in you and your business. Since businesses need to display all of their certifications, your customers will see it and be reassured that your company has quality standards that pass the requirements of the government.
With that, your customers will be confident in purchasing or getting services from your business. If you operate without having a certificate of registration, your company will appear shady and your customers will not trust you. This also applies to those who sell online. This is the reason why the BIR also requires all e-commerce businesses to get the BIR Form 2303.
3. Attain Market Advantage
If you legitimize your business, you will get more opportunities in advertising. You will feel more confident to market your product or service if your business has the legal rights to operate in the market. You can set up ad campaigns and join other forms of marketing that require your business to be certified such as billboard, newspaper, and television advertisements.
In addition, if you have customers who reach out to you to be a partner or supplier will be required to submit a copy of your registration certificate to ensure that your business is legit.
4. Have Peace of Mind
If you don’t legally operate your business, you won’t have peace of mind and it will poke your conscience. Operating legally means you don’t have to worry about BIR or LGU inspectors during spot inspections. Ensuring compliance means you can stay away from penalties and potential business closure. Additionally, legitimizing your business will prevent you from experiencing legal troubles in the future. Again, businesses that don’t register with BIR end up having to pay fines for non-compliance with the law.
Are you dilly dallying because the process of acquiring Form 2303 looks tedious? It would be best to seek professional help if you don’t know how and if you don’t have time to deal with the registration process. Call our firm for assistance because we don’t just offer accounting services in Pasig and beyond, but we also provide ancillary services from business registration to payroll.