Business registration is a vital step in opening your new business in the Philippines. Without a business registration, you cannot legally carry out operations. This may cause you a multitude of difficulties, as it inhibits you from issuing official receipts for proper accounting and bookkeeping, prevents you from dealing with big-name clients, and can land you a lengthy legal battle.
That said, while business registration is a vital component of setting up your business, it is a bureaucratic process that may take a while. Moreover, it may seem tricky, especially amid a pandemic. You may also worry about carrying out the registration process if you are unable to physically process these documents. But, there is good news.
Recently, the Philippines Securities and Exchange Commission (SEC) has accepted virtual applications for business registration through the Company Registration System (CRS), their online portal. This portal also allows for virtual application for online payments, company name verification, and 24/7 access to all of the SEC’s online services, like amendment of registration documents and appeals for rejection of the proposed company names.
With this system in place, if you are looking to register your business in the new normal, you can do that from the convenience of home. You can also seek help from business registration services to facilitate the process. That said, you must stay informed on how to get things done correctly. Below are the steps that will guide you on how to do it.
Step 1: Open the SEC’s CRS platform and create an account
The first step for processing an online application is creating a CRS account in the SEC portal. Your basic information will be requested, like your address, contact information, and Taxpayer’s Identification Number (TIN) information.
Step 2: Choose your application type
The second step is selecting your application type. Select “Register a new company” from among the drop-down choices.
Step 3: Reserve a Company Name
During the process of company name reservation, the system will request you to provide your desired company name and industry sector. You will then be informed if a company of the same name and under the same sector is already existing. If; however, the name is still available, you may submit it for evaluation. But this is not a guarantee. It is recommended to have 2 to 3 alternative company names in case your first choice is not available.
Once your name has been approved, it will be reserved for you for up to 90 days, during which your business registration must be completed. If not, you may apply for an extension of registration. Noteworthy, your chosen name should follow SEC guidelines. The SEC disallows names with offensive and vulgar words or language or other words restricted by the law.
Step 4: Submit all required documents
A list will be provided by the CRS listing all requirements for the specific type of company you want to register. These documents include a cover sheet, the Treasurer’s affidavit, Articles of Incorporation, and By-laws.
These documents must be downloaded, filled out, and notarized before uploading to the CRS. In case you will be required to process documents with other government agencies, you can avail the services of a consulting firm or appoint a local representative to process such for you.
Step 5: Pay all filing fees and upload your proof of payment
Once your submitted documents, the SEC will email you stating the total filing fees or notification of compliance findings. If there are findings, you must follow the instructions for revision and re-upload the documents afterward. Once the order of payment is issued by the SEC, you must print it out and pay the filing fees through the following channels: Landbank Online Account, Debit Car Payment through the Landbank Portal, or GCash Payment through the Landbank Portal.
After paying, you must submit proof of payment to the CRS and wait for the notification of submission of documents and completion of the process.
Step 6: Submit hard copies of registration documents
Hard copies of registration documents must then be submitted to the SEC for stamping of the word “received”. You may carry this out with the assistance of consulting firms or a local representative.
Step 7: Claim your certificate of registration
Patiently wait for the SEC’s email on the release date of your company’s Certificate of Registration. You may send a follow-up email if you were not able to receive theirs. If you cannot claim this in person, you may hire help from a consulting firm or a local representative.
If you’re not sure about what to do, it would be best to seek help from a professional who offers business registration services to ensure you have the right requirements and start your business on rock solid foundation. Our team of CPAs can do that for you seamlessly. We will iron out the legalities so you can focus on your business.