Here are a simple guide on opening of new business for new entrepreneur to consider:
- identify what form of business you like to open (single proprietorship, partnership, corporation, cooperative)
-decide on the company or business name
-register with DTI(single proprietorship), SEC(partnership or corporation) or CDA( cooperatives).
-register with the barangay, city or municipality, BIR and other government agencies (SSS,Philhealth,HMDF etc)
-print and register reciepts for your business
Businesses to be considered as legitimate should be registered with the appropriate government agency. The government has the right to close your business in the cities or municipalities where you are operating. After deciding what type of business you want to open, you should register it with the proper agency of our government.
-Department of Trade and Industry (DTI)
-Securities and Exchange Commission (SEC)
-Cooperative Development Authority (CDA)
-Social Security System (SSS)
-Home Development and Mutual Fund (HDMF)
-Local Government (Barangay, Municipal, CityHall)
-Bureau of Internal Revenue (BIR)
There are four types of business enterprises that anyone can choose from. These are sole proprietorship, partnership, corporation and cooperative.
Sole proprietorship is a kind of business solely owned by and individual. It is the easiest to organize yet the most dangerous since your creditor like banks can run after all your personal properties should anything go wrong.
Partnership is a kind of business owned by two or more partners. It could be a professional of general partnership. Professional partnership involves the practice of one's profession like doctors, lawyers , engineers and etc. General partnership involves any kind of business other than practice of professions.
Corporation is a kind of business by a minimum of five incorporators and stockholders. Business is run by an officers of the corporation. It is governed by the corporation code of the Philippines and registered to the SEC.
Cooperative is a kind of business owned by a minimum of fifteen individuals. Members vote for the officers of the cooperative. It can have as many members as possible. It should be registered to CDA.