The New Normal, a term that has been used to describe reality amid the COVID-19 pandemic, is a means of addressing the current state the world finds itself in, with most institutions and even businesses shifting to online platforms and other alternative avenues to continue operations under the harsh economic conditions due to COVID-19. The Philippines, as a developing nation, is not exempt from this.
To adapt to changing times, government institutions and processes have been altered to accommodate clients whilst still observing safety and health protocols. Additionally, previous amendments to business registration laws have allowed companies to continually apply for registration applications or renewal. What does this mean for entrepreneurs?
Policies to Safeguard Businesses from Bureaucratic Red Tape
The Ease of Doing Business in the Philippines Law, or Republic Act No. 11032, ensures a shorter timeline for processing transactions involved in registering businesses. The law is a safeguard against red tape and unnecessary bureaucratic processes. Simple transactions are required to take no longer than three working days.
Meanwhile more complex transactions are required to take no more than seven working days, and highly technical transactions are required to take no longer than twenty (20) working days. In response to the COVID-19 pandemic, the Anti-Red Tape Authority released Memorandum Circular No. 2020-03-A, which states that processing times of 3-7-20 working days should be suspended under localities under Enhanced Community Quarantine (ECQ).
Important Considerations to Take Note of When Doing Things Virtually
Additionally, you may now opt to register your business online by logging on to the Bureau of Internal Revenue (BIR) portal, the Department of Trade and Industry portal (DTI), or the Securities and Exchange Committee online portal (SEC). Below is a compilation of how to apply for business registration online depending on whether you are a sole proprietorship, corporation, partnership, and other crucial information.
Sole Proprietors may register their business name online through the DTI portal. Registration fees may apply depending on the locality the business will be set up in, as well as the business’ territorial scope (Trademarks, Copyrights, etc.).
–Partnerships and Corporations
Partnerships and Corporations must first be registered by opening an account with the Philippine Securities and Exchange Commission’s Company Registration System (CRS). This system allows companies to upload their documents directly and register with the SEC.
–Registering with the BIR
After registering your company name with the DTI or SEC, the next thing to do is register with the BIR, the Philippine tax authority. The Tax Code provides that every person or entity subject to internal revenue tax must register with the Bureau before commencing business operations. Businesses that fail to comply with BIR documentations and processes will be penalized and held legally liable. You may seek Business Registration Services to facilitate the process.
Registering with the Local Government Unit
Under the Philippine Constitution, all businesses are required to register with the local government (LGU). This is because LGU’s, by law, are given the right to instate ordinances, levy taxes and fees. In addition, the Ease of Doing Business in the Philippines Law provides that all Local governments must have their own one-stop-shop where businesses can register without needing to go through the barangay hall. For best results, seek expert advice on BIR problems and solutions to ensure you’re on the right track.
Seek Business Registration Services From Professionals
The pandemic may have brought setbacks to you or your prospective company; however, there is still a solution in this New Normal. It is still very possible for you to start your business now and succeed in doing so. All it takes is adaptability, compliance with laws, and a whole lot of grit!
If you are looking to get started on preparing documentation for your registration application, do not hesitate to seek professional help from Certified Public Accountants and Finance experts who provide seamless Business Registration Services. Our team of CPAs do more than accounting and bookkeeping. We ensure your documents and other requirements are ready so you can seamlessly operate your business. Our team also proffers help on BIR problems and solutions so give us a call for a free 30-minute consultation.