Setting Up a Business in The Philippines: 3 Ways

First-time entrepreneurs have multiple ways to set up their businesses in the Philippines. This is becoming an accessible venture for many who want to make money.

Any business starts with limited resources or capital at first, but it becomes a lesson in management to reach a return on investment. It depends on the person on what business they have in mind.

Setting up a business will take time, and it will vary depending on how you set it up. Remember, every business should have permits and documentation ready for operation.

It is mandatory for any business to have proof to know that the local government recognizes the business. That being said, here are the ways you can set up shop!

3 Ways To Set Up A Business

All businesses of any size have specific requirements before they can operate. The business requirements Philippines in the city vary from the province, so it is important to research before you can send an application. Once you have the papers, you can set up the business without worry.

The three ways to set up a business include the following.

• Sole Proprietorship – This type of business is the most common way entrepreneurs set up their businesses. As the sole proprietor, you are responsible for anything you manage. However, it includes all losses the business will experience, making it riskier to bounce back. Furthermore, any small business follows this model due to its viability. 

• Partnership – A partnership is a collaboration between two or more parties. They can share resources and assets that grow in the business. The same applies to the liabilities and revenue the business shares at any time. Keep in mind that you should practice transparency with your partners so your business stays afloat.

• Corporation – A corporation is the approach most large companies follow as a single entity. It allows a group of individuals to operate and participate as shareholders to provide tax benefits. Since a corporation is bigger to set up than a sole proprietorship and partnership, more documentation is required for operation. These entities can be further organized into LLCs, incorporations, and non-profit organizations.

FAQs

What are the steps in setting up a business?

Every business starts with an idea and grows as time goes on. However, to ensure its success, you must nurture and take care of everything to bear fruit.

Consider these five steps in setting up your business.

1. Planning
2. Funding
3. Naming your business
4. Registration and Payment
5. Operations and Marketing

What documents should a business have?

The exact documents vary depending on how you want to set up your business. You should make your business official by registering first. Once you register your business, you can set up shop at a physical space or online, depending on the approach.

Here are some of the documents you may need:

• DTI Registration
• BIR clearance
• Barangay clearance
• SEC Articles of Incorporation
• Mayor’s Permit

Wrapping Up

Making a new business from scratch starts from an idea up to operations. You make an idea, name your business, and register the needed information. There are three ways you can set up, such as sole proprietorship, partnership, and corporation.

Depending on your resources, time, and money, you can do business with the right management. Ultimately, a successful business follows a clear purpose based on one’s idea.

Read more business articles from our guest authors at SugerMint.