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Author Topic: STARTING A BUSINESS - REGISTRATION Stage  (Read 3760 times)

rbminerva

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STARTING A BUSINESS - REGISTRATION Stage
« on: January 22, 2008, 11:03:01 am »
HI TO ALL!!

I need help. We just started a small business (Internet + Eatery all in one house)
Our next step now is filling the legal papers (Business permits, etc...)

Is there anyone here who can give me some insights
about Sole Proprietorship and Corporation..??

If I want to put up a Corporation... what are the advantages and disdvantages
over sole pro..??

I hope some experts here can provide me tips before I make my first step.....



Thanks in advance.

GerelRoa

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Re: STARTING A BUSINESS - REGISTRATION Stage
« Reply #1 on: January 22, 2008, 07:59:56 pm »
Hello,

First of all, you need to get a DTI permit (Single Propreitorship) or a SEC Registration (For Corporation and Partnership.  DTI should take you 1 to 2 days only while SEC Registration will usually take you up to a month.

Next, you need to apply for your LGU Permit (aka Mayor's Permit).  For most business owners I know, this is the part with the most headaches, but this is usually a necessary step to get BIR Registered.

Next, BIR registration at your local Revenue District Office (RDO) has to be done within 30 days of the issuance of the DTI permit or the SEC Registration.  This will typically take less than a week,three weeks at most.

BIR registration will allow you to have receipts printed and for your chosen business line, this is usually enough.

If you have never owned a business before, I suggest that you start with a Single Propreitor Business.  There are legal issues that are a bit more advanced for Corporations and Partnerships.

I hope this helps.

Cheers!

Gerel

Wongfe

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Re: STARTING A BUSINESS - REGISTRATION Stage
« Reply #2 on: January 23, 2008, 11:59:03 am »
Hi,
Is this applies also to food business or are there other requirements that you need to comply.
Thanks!

rbminerva

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Re: STARTING A BUSINESS - REGISTRATION Stage
« Reply #3 on: January 23, 2008, 04:11:35 pm »
Gerel,

Thanks.

Our first choice right now is getting a Corporation, since there are a few of us
doing this business.

Anyway do you have any idea about: Stock or Non-stock Corporation.
Any tips which of the two corp. class is better for our case?


Thanks again.

GerelRoa

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Re: STARTING A BUSINESS - REGISTRATION Stage
« Reply #4 on: January 26, 2008, 12:39:49 pm »
Hi,
Is this applies also to food business or are there other requirements that you need to comply.
Thanks!
Hello,

Please check this link: https://foodbytesinfoservices.com/index.php?option=com_content&task=view&id=15&Itemid=30

We did this last year, and we are still revising it to include new rulings, but this should serve as a good resource for food businesses.

Cheers!

Gerel

GerelRoa

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Re: STARTING A BUSINESS - REGISTRATION Stage
« Reply #5 on: January 26, 2008, 12:51:24 pm »
Gerel,

Thanks.

Our first choice right now is getting a Corporation, since there are a few of us
doing this business.

Anyway do you have any idea about: Stock or Non-stock Corporation.
Any tips which of the two corp. class is better for our case?


Thanks again.


Hello,

I'm no expert on this, but normally, my clients starting a food business will get a stock corporation, while my organizations uses a non-stock corporation.

In starting a corporation, I suggest that you also consult a lawyer and an accountant(if none in your group is one), since there are a lot of issues that has to be threshed out because of new issuances by both SEC and BIR in the control of corporations.  I think investing in COMPETENT advice now will save you a lot of money in the future.

Cheers!

Gerel

liquidglaze

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Re: STARTING A BUSINESS - REGISTRATION Stage
« Reply #6 on: January 30, 2008, 01:52:43 pm »
What requirements do I need to present in acquiring Mayor's Permit and BIR registration (aside from the DTI business name)?

GerelRoa

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Re: STARTING A BUSINESS - REGISTRATION Stage
« Reply #7 on: February 01, 2008, 10:08:04 am »
What requirements do I need to present in acquiring Mayor's Permit and BIR registration (aside from the DTI business name)?

Hello,

Thanks to the Local Government Code, the requirements will be very much dependent on the City or Municipal Hall.

As for BIR, the usual requirements are just the filled up forms, the payment, the DTI/SEC Registration and the Mayor's Permit.  There may be some additional documents needed depending on the type of business you are in.

Cheers!

Gerel

joji76

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Re: STARTING A BUSINESS - REGISTRATION Stage
« Reply #8 on: February 03, 2008, 08:15:28 am »
Sole Proprietorship vs Corporation

I think the essential distinction lies in the liability of the business owner. In case of sole proprietorship, business owner has unlimited liability-meaning, his creditor may go after the business owner's properties to satisfy the debt. While in corporations, as a rule, only the assets of the corporation may be held liable for corporate debts; the creditors cannot run after the stockholder's properties. This is the reason why for businesses with high risks, or those involving huge sums of money, a corporation is advisable. However, for those businesses with reasonable risks, a sole proprietorship should be enough.

In addition, a corporation has many reportorial/documentary requirements that has to be submitted to the SEC annually, e.g. General Information Sheet, Financial Statements. Also, the requirements for meetings of the stockholders or officers as provided in the By-Laws have to be complied with. On the other hand, a sole proprietorship has no such stringent reportorial/ documentary requirements.

Stock vs. Non-stock

In stock corporations, you distribute the earnings of the company to the stockholders through dividends. In non-stock corporations, you don't; the earnings of the company are plowed back to further the interests of the company--this is the reason why charitable institutions or foundations take this corporate form.

 

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