Many Filipinos are currently not contented with working for someone, so they chase the dream of being their own boss and opening up their own businesses. However, starting a business in the Philippines is not a walk in the park.
Many things should be first accomplished. An example is obtaining business permits and licenses. Licenses and permits must be consistent with your business category; otherwise, you might end up facing lawsuits.
Before you even register for your business permits and licenses, you should identify first what type of business you have. Regardless of whether you’re registering for sole proprietorship, partnership, or corporation, you must familiarize yourself with the business permits and licenses that you should secure to prevent future loss.
Below are five essential business permits and licenses that are required to commence a business in the Philippines:
1. Bureau of Internal Revenue (BIR)
This is the most important requirement of all, because this is necessary to acquire other permits and licenses. All Philippine-based businesses, individually owned or corporation, must submit a tax statement at the end of each fiscal year; thus, having a tax identification number (TIN) is crucial.
Four (4) kinds of BIR forms are mainly used for registration:
|Forms||Who is it for?|
|1901||Mixed-income and self-employed individuals|
|1902||Employees with full compensation, nonresidents, and resident aliens|
|1903||Corporations and partnerships|
|1904||One-time taxpayer who just rendered business in the Philippines for a year|
2. Barangay Clearance
This clearance certifies that your business complies with the requirements of the local barangay where your business will operate.
These are the requirements needed to secure a barangay clearance:
- Community tax certificate or cedula
- Application form, and
- Valid ID (SSS ID, passport, postal ID, or any government-issued ID)