Doing Business in the Philippines
To the point of view of consumers, this pandemic has decreased our mobility. A lot of establishments have been closed temporarily and permanently, thus resulting increase in online consumer activity. This was seen as an opportunity to establish online businesses since people became more active and dependent online. According to Arreola from PhilStar, here in the Philippines, Digital, 2020 April Statshot report by Hootsuite and We Are Social revealed that 64 percent of Filipino internet users are spending more time on social media, with 23 percent indicating an increased activity in their online shopping activity. Technology has already transformed online business transactions into an infinite marketplace where conducting business has become more convenient and efficient for both vendors and vendees. The COVID-19 pandemic has made this marketplace a more obvious necessity. But how many of these newly established businesses are actually registered?
“In the middle of difficulty, lies opportunity.”
When people hear the words "business registration," the impression is that it is only a burden for the starting entrepreneurs and a barrier to business. However, this article aims to change that impression because business registration actually carries more benefit than people think of. People should know that business registration is important primarily for regulatory purposes and not for tax purposes alone because registering your business does not automatically mean that you will be taxed as there are tax exemption policies in the tax code of the Philippines.
1. Ensure that there is no duplication of business names
When your business becomes part of the record of the government agencies, specifically of the Department of Trade and Industry (DTI), it ensures you that no other businesses can register the same name after you. It also makes you aware of an existing business that already has the name you're just planning to register. With that, you can immediately make changes as to avoid any confusion with both entities.
2. Helps build trust and confidence
If you're the customer, would you prefer to avail goods or services with a business that isn't registered yet than the registered ones? Of course you will prefer registered businesses, right? This is because those businesses who are registered means that they have good intentions toward their customers, which is to offer goods and services and earn money, and not anything else (like maybe scam people or something). This also increases customer assurance that the business you operate is well in fact, legitimate. So when your customers become aware that your business is legitimate, it makes them feel confident with the transactions they made with you, which can also possibly result to customer retention. More customers mean more profit.
3. Eligibility to avail and access government programs and incentives
Business registration gives entrepreneurs the opportunity for growth in terms of access to government programs and incentives. These governmental agencies like Department of Trade and Industry (DTI) and Securities and Exchange Commission (SEC) offer programs that will help the future and promising entrepreneurs like you to make the most out of your business ventures. So when your business is registered with your respective agencies, you automatically become eligible for these programs and incentives without any worries.
4. Customer Protection
A registered business is a well-regulated business. No matter how good your intentions are as an entrepreneur, customers would still prefer to know that they're protected by the law. You can never know when a conflict is going to rise, so it is better to be safe than sorry. Registering your business would mean that you are being properly regulated by respective government agencies.
5. Ease of bank transactions
When a business is registered, it becomes eligible to open a bank account for the company itself. This makes the transactions between your company and the customers, financial institutions, suppliers, etc; easier, safer, and reliable. These transactions include making and accepting payments using your company's own account. When you use your personal account for business transactions, confusion may arise as far as money is concerned.
Now that you know the benefits of a registered business in the Philippines, we hope this changes your impression that business registration is not just a burden to entrepreneurs. May this article enlighten entrepreneurs like you to thrive more in your business journey!
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