Working from 9 to 6, 5 times a week is very draining for some people, as not everyone is born for a corporate life. Dreaming of having own time, own rules, own space and own strategy motivates newbie entrepreneurs to start their own business. It may sound cool and easy, but it’s risky.
For those who want to accept the risk and start your own business, here are some guides and tips to be a legit and law-abiding entrepreneur.
Think of a business name
For sole proprietors, it is important to think for at least 3 business names to be registered. Visit the Department of Trade and Industry’s website to check the availability of your preferred iterations. They have also a list of forbidden words for a business name. Once decided, go to the DTI office and file your application. You have to pay 2000 for national, 1000 for regional, 500 for provincial, while 200 for barangay level with additional 15 pesos for the documentary tax.
Process local permits
After filing for the business name, you have to process all local permits in order to register at the BIR. For those who will lease a space, you have to own a copy of the contract. For owners, you must have Building, Zoning and Occupancy permits together with the Land Title and Plan. A notarized ‘affidavit of no rental’ must be on hand if you’re not renting neither the owner of the space. Ensure that your space complied the Fire Safety requirements and must considered cleanliness for the Sanitary/Health Permit. You also need to get a Barangay Clearance and Community Tax (Sedula). Once completed, filed and paid, you will receive the Mayor’s Permit with a business plate.
Apply for the BIR Clearance
Since it’s the most complicated part of being a legit business, you have to prepare the necessary documents such as Mayor’s permit, contract or land title, filled-up form, etc. File your application immediately to avoid penalty. Ensure that your TIN is at the same RDO where your business is going to be registered, otherwise, you have to apply for it to be transferred to the current one. It normally takes 5-7 working days and can be done via FAX machine. The certificate can be claimed later on a week or two, depending how busy your RDO is. Afterwards, you can print your official receipts and sales invoice. Keep the ATP form (Authority to Print) for future re-printing.
Display all permits in your store/office and keep in mind with your duties and deadlines. I nearly forgot, go to SSS and update your status. They will also provide a plate and clearance.