Registering your business is a vital legal requirement that strengthens the legitimacy of your enterprise. Depending on the business structure you choose, there are specific registration processes in the Philippines.
Let’s take a look at these options:
Sole Proprietorship
A sole proprietorship is the simplest form of business structure in the Philippines. In this setup, you are the sole owner and are responsible for all business decisions. Registering as a sole proprietor requires obtaining a certificate from the Department of Trade and Industry (DTI), which legally allows you to operate your business under the business name of your choice.
Partnership
If you are joining with other people to run your business, a partnership structure may be right for you. Partnerships can be general or limited, each with its own set of rules and responsibilities. Registering a partnership requires drafting a notarized partnership agreement and obtaining the necessary permits from local government agencies.
Corporation
For a more complex and scalable business, forming a corporation may be the right choice. A corporation is a separate legal entity from its owners and offers benefits like limited liability. Incorporating a corporation involves filing articles of incorporation with the Securities and Exchange Commission (SEC) and complying with various regulatory requirements.