Sole Proprietorship – Starting a business is easy particularly if you have enough startup capital. But, make sure to secure all the necessary business licenses and permits for your venture to operate legally. Likewise, you also need to register your business
There are different options to register your business depending on how it is owned or run. Any business that is owned and run by a single individual, then it should be registered under Sole Proprietor.
Advantage of Sole Proprietor Business
Starting up a sole proprietor business is easy and is cheaper to register for government licenses and permits. Aside from low capital requirement, you have full control on how you’ll run the business including the profits.
Disadvantages of Sole Proprietor Business
As you are the sole owner of the business, you alone will shoulder the risk, liability and potential losses of the business. As much as possible, you should separate your personal assets, otherwise government agencies or creditors may run after your assets in case you failed to repay your loans.
Requirements and Procedure
Registering your business involves several steps and requirements that may overwhelm you. You have no choice but to abide with the procedures set by the government agencies.
- Registration of business name at DTI
Before you proceed to DTI office, you should have prepared at least 3 business names. You can only register your business name only if there’s no name similar to yours. Fill out the BN application form and submit it to DTI the office. Wait for the release of the DTI certificate of registration.
- Registration with the Barangay
Once you acquire the Certificate of Registration, the next step is to register your business in the barangay where it is located. Aside from the certificate of business registration, you need to secure 2 valid IDs and proof of address.
- Secure business licenses and permits from the Mayor’s office
After you claim the barangay clearance certificate, you can proceed to the municipal office and apply for Mayor’s business licenses and permits.
- BIR registration
The last step of registering your sole proprietor business is the BIR registration. Proceed to the BIR regional district office that covers your area. Fill out the application form for Sole Proprietor Business registration and submit it along with other required documents. You also need to register your invoices/receipts and book of accounts before the BIR certificate of registration is released.
It’s important to register your business with the government agencies to avoid penalties and eventually operate your business legally.