When running a business, it is a must to have documents ready at all times. Each business has these papers before it can operate according to its terms. These papers legitimize that your business follows the rules and regulations. Furthermore, it follows a validity period throughout, and it is up to the owner to renew or finish. Either way, it is a must for all businesses to have them on hand.
Why do you need to gather business documents? It shows that your business exists according to the local government, and you can benefit from it. Some of these documents can change depending on your business; the business is your responsibility from start to finish.
Business Documents You Should Prepare
If this is your first business, then it is a must to prepare important documents. It follows the many business requirements Philippines that each entrepreneur should know. Having any of these papers ensures a smoother process and recognition of your business.
The documents you should prepare include the following:
- DTI Registration Permit – The Department of Trade and Industry requires all businesses to have a permit from the government. Furthermore, this document is the form you need if you plan to be a sole proprietor for your business. Once you have the permit, you can name your business and register it into the system.
One thing you should know is that the name of your business is separated into two: business name and trade name. You will use the business name to connect to traders and customers. On the other hand, the trade name is the one used for marketing and advertising purposes. It is why most corporations use a different name than repeating the name they use to market their product or service.
- BIR Registration – BIR registration is one of the most important documents that businesses should have. It is available for both individuals and corporations that want to set up their businesses in the Philippines. All invoices, receipts, tax transactions, and books of accounts are sent to the BIR for checking. Therefore, any business owner should include this document in every business they own, so the transactions get recorded accurately.
- Mayor’s Permit – All business need to have a mayor’s permit based on the location of the business. You get acknowledgement from the city hall, and you pay the local business taxes as compliance. The fee varies depending on the city your business is from, and it can include additional permits.
- Securities and Exchange Commission (SEC) Registration – If you plan to run a corporation or partnership, the SEC is the company’s go-to document. It also helps if your corporation is looking to expand more branches in the country. You may need the help of a lawyer and a board of directors to make the company’s rules.
Having these business papers is a must in any business, whether it is a start-up or an established company. You go through a long process, and the business gets acknowledged by the local government along with the transactions. Remember that some businesses may need more papers if the business has a certain income level. Ultimately, these documents ensure that you are following the regulations set by the local government.
Angelo Castelda works as a contributor for a news magazine in Asia. He loves to learn and understand diverse cultures and aims to share through his writing his experiences around the world.