At first, I was hesitant to register my business. For me, registering my business is an additional cost. And I strongly believe that I can just get away with this easily.
But after researching and asking my entrepreneur friends. I registered my business as soon as possible so I can open myself to opportunities. This is after I validate my service offering.
So if you’re in the middle of whether you register your business or not, you should continue reading these Three (3) Reasons Why You Should Register Your Business.
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Protection
Registering your business is like registering a birth certificate for your baby. Like your baby, you give your business a name. This is a proof that you are the parent of your baby.
Soon, your baby will grow because of your love, time, and money you invest into it. During this stage, someone might get jealous and notice about the growth of your business.
It is inevitable that someone might copy or steal your business brand you spent years to promote. I’m sure that you will not like that. But all of these can be prevented if you registered your business first.
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Avoid Penalties
Theoretically, it is illegal to start a business in the Philippines without registering it first.
Municipal or City Hall and Bureau of Internal Revenue (BIR) can penalized you for not complying with the law. Penalties can range from P5,000 to P20,000.
Aside from the negative impact in your branding, there is a limitation in the way you promote your business because of the fear of getting caught by the local government unit (LGU) and the Bureau of Internal Revenue (BIR).
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Play with Big Leagues
I got this idea from my entrepreneur friend. It is time consuming to register your business in the Philippines. It also requires you high dose of patience. But if you want to play with big leagues, you need to invest in registering your business.
If you don’t register your business, you will have hard time of earning trust of corporations because you’re a “colorum”. Also, they will not prefer doing business with you because you can’t issue valid Official Receipt or Sales Invoice to them. This is important especially in a business to business transaction (B2B).
But if you register your business. Your clients or customers will trust you because you’re legit. And if your product or service is good enough, revenues will come to you.
Aside from the three (3) major benefits of registering your business. Having your business registered for more than a year is an advantage if you plan to:
- Transact with banks (e.g. Credit cards, checking account car loan, house loan, or capital for expansion)
- Join associations like Chamber of Commerce
- Apply for a Visa and go abroad.
If you can imagine yourself owning a business someday, you should check this article “What Form of Business Enterprise Should You Choose?.”
If you have questions regarding tax, accounting, and business registrations, you can contact us here.
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