No matter if you are a business, big or small, or a self-employed freelancer, Philippine laws require that for your company to operate, you need a registration certificate from the Bureau of Internal Revenue (BIR). This BIR Certificate of Registration (COR) is also referred to as BIR Form 2303 and is the document that proves you have been given the legal rights to operate your business in the Philippines.
The BIR Certificate of Registration is a required document for all licensed professionals who have been granted a license under the Philippine Regulatory Commission, non-licensed professionals like freelancers or individuals with alternative digital careers like social media influencers, partnerships, sole proprietorships, cooperatives, and corporations. Additionally, this certificate grants partnerships, corporations, and cooperatives a Tax Identification Number (TIN). This will also indicate the kind of taxes you will have to pay come financial year-end.
If you are starting small, you may not need to feel the urgent need to register your business, and understandably so, as it can be a time-consuming and costly process. However, legitimizing your business by registering it with the BIR will open more doors for you as a business owner or freelancer.
Benefits of Legitimizing Your Business with the BIR
You may be wondering why you should prioritize your business registration or Form 2303 even if you’re just a small startup or freelancer. Here are the advantages of doing the proper documentation:
- Helps your business gain credibility and opportunities
Let’s face it, clients, whether individuals or other partner companies, will gravitate towards legitimate merchants to ensure that their transactions are secure and that they get their money’s worth. Moreover, dealing with BIR registered businesses and freelancers means they can avail of official receipts, which is essential in the compilation of their own financial records, accounting, bookkeeping, and taxes. It is always important to remember that companies and freelancers who issue receipts get more opportunities and clients.
For example, some corporation prefer to work with small companies or freelancers with official receipts because they need those documents for their own records and tax filing. More importantly, financial institutions need to see your registration documents and other pertinent records to grant you a loan. Without these proper certificates, you will have a hard time expanding your operations.
- Build customer trust in you and your business
Credibility provided by legitimization of your business through registration will help build your customer’s trust in you. As businesses are required to display all their certifications, these will reassure your customers that you and your company perform to quality standards.
Moreover, the right documentation will make them feel more confident when it comes to making purchases or requesting services from you. Operations without these proper documents on display appear shady and not worthy of trust. The same goes for online sellers, which is why the BIR currently requires all ecommerce stores to register and the said move comes with government benefits.
- Provide you with a market advantage
Once your business is legitimized, more opportunities open up in terms of advertising. You will feel much more confident to market your goods and services if your company is granted legal rights to operate. You can then set up web campaigns, ad campaigns and participate in other forms of marketing that would require your business to first be a certified one, like television commercials, newspaper ads, and billboard ads.
Additionally, big-time clients, like those reaching out for you to be a supplier or partner merchant, will require you to submit a copy of your certificate of registration to confirm if you are a legit business.
- Accords peace of mind
There is nothing that tugs on one’s conscience more than doing something illegal. By registering your business or yourself as a freelancer, you can clear your conscience as you would be working in compliance with the law.
Moreover, having a legit business instead of operating under an informal economy will protect you from legal troubles later on. Companies that do not register themselves with the BIR do end up paying fines and penalties for non-compliance.
Seek Help with Registration
If you don’t know how to register your business or don’t have time to deal with the paperwork, you can seek professional help. You can call our team for business registration services apart from accounting, bookkeeping, auditing, tax compliance, and payroll services.
We can help you secure the right documents, prepare the correct forms, and facilitate the whole process so you can sit back and relax. Take advantage of our free 30-minute consultation so we can get things rolling.