What is Sole Proprietorship?
A Sole Proprietorship is a business structure owned by individual (called “Sole Proprietor”) who has full control and authority over all the areas of the business. It is the simplest form of business and it is quite easier to run. The Proprietor generally owns all the assets and profits of the company and is also responsible for the liabilities the company might incur.
Why do you need to register?
The main reason is for your business to be legal. And having a legal business can give you advantages like;
- Customer’s Trust– Knowing you have licenses, your customers will feel safe in dealing with you.
- Avoid Fees and Penalties– DTI has imposed fine on those unregistered businesses, if you’re licensed, you’re spared from this trouble.
- Confidence– You can go out there and market your product without shame because you have nothing to hide.
- Loans and other Government Financial Assistance programs– DTI offers P3 Programs for those who have DTI permits.
I’m convinced, now what?
The first step is to name your business. Once you have a good name, you need to check on Business Name Registration Services Website (BNRS), if there’s a company that has the same name as yours. If there is, you have to think of a new one, if not, you may proceed with the next step.
The next step is, of course, registration. On BNRS website, you can just click “New Registration”.
- Then the PBR Terms and Conditions page will appear, all you have to do is read. Once you’re done, just click “I agree”. There will be series of forms you’ll have to fill out. Take note, you need TIN for this registration. When you’re finished, you can print the confirmation or the registration form, then head to the nearest DTI office. Bring the printed form with you and the photocopy and original of any of the following valid IDs:
- Driver’s license
- PRC ID
- NBI Clearance
- Police Clearance (in ID form)
- Postal ID
- Voter’s ID
- OWWA ID
- Seaman’s Book
- IBP ID
- Senior citizen ID
- PWD ID
- Government office ID
- Validated state college/university ID
The fees will vary depending on your business territorial scope– Php. 2000.00 (National), Php. 1000.00 (Regional), Php. 500.00 (City/ Municipality), Php. 200.00 (Barangay). Plus an additional Php. 30.00 for Documentary Stamp Tax. You may get your DTI permit within the day.
I hope you find this blog helpful. If you have further concerns, just leave a reply below and please subscribe for more updates.
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