Businesses that have been in business for a long time may not need to register with the Bureau of Internal Revenue (BIR). However, if you have been operating your business informally and held back registration for quite some time, it’s certainly a task you should complete right away if you are just starting out.
Many entrepreneurs do not register their businesses. There are many reasons for this. One of the biggest problems with starting a business is to register corporation in the Philippines, as it takes time.
Some companies are still waiting for their profits to stabilize before registering. The irony is that illegal operations make it hard for a company to grow. It has many advantages, however, to become legitimized. Among them are the following.
5 Benefits of a Registered Business
- It makes sure you don’t get into legal trouble with the government.
- Maintains your reputation as a legitimate company.
- Provides suppliers, customers, and employees with a sense of trust.
- You can fully market your business and brand everywhere.
- Allows large companies to transact business with you.
Here are some additional advantages and tips to have a legitimized business.
Testimonials
Your business should have testimonials to prove its trustworthiness to potential customers. You won’t have a problem convincing people that you are a reliable business once you have proven you can earn their trust.
Accessibility
You should always be happy to help your customers and show them that you have nothing to hide. Your service will be more trustworthy that way.
Value-Added Services
A genuine business offers services such as warranties, returns, and exchanges without hesitation. You will certainly receive positive feedback from your customers about these.
Hassle-Free
Legal hassles are not the only thing that annoys customers. In addition, it can result in poor ratings for your products and a bad reputation for your brand.
Setting Up A Company In The Philippines
Here are some factors to consider when forming a company:
Business Factors
It made starting a business easier in the Philippines by setting up a one-stop shop at the municipal level and streamlining communications between the Social Security System and the Securities and Exchange Commission, which expedited the issue of employer registration numbers. Among the business factors to consider when setting up a business are the following:
- The industry and type of business
- Nationality of the headquarters/individual(s) and
- Presence of existing trade agreements or relationships
Local Practices
Local practices may have an influence. Despite Filipinos’ high English proficiency and openness to western influences, local businesses rely on large power distances, weak uncertainty avoidance, and collectivist practices. Hierarchical models must therefore be developed, while group membership and harmonious relationships within the company must also be taken into account. Furthermore, business partners might use body language to convey information instead of using explicit channels.
Wrapping Up
In the Philippines, BIR registration is an essential part of doing business. You can only get a tax identification number or TIN through registration, which makes it impossible to operate. To identify and track registrants as well as keep records, the bureau assigns a nine-digit number to every individual and corporation taxpayer in the country.
Author’s Bio:
Angelo Castelda works as a contributor for a news magazine in Asia. He loves to learn and understand diverse cultures and aims to share through his writing his experiences around the world.
