The importance of registering your business in government regulatory agencies
How to register a business in the Philippines and why do you need to register it with a government regulatory agency? A registered business gets a lot of benefits and advantages including access to loans, establishing a reputation with prospects, employee hiring, and supplier arrangements. How does this work?
- Getting loans – when you are planning to apply for a loan, some lenders will require you to present proof of business registration. Registered businesses get the highest chance of having an approved loan compared to those that are not.
- Establishing reputation with prospects – some customers are more attracted to businesses that have a registration seal. This often symbolizes legitimacy, and this assures customers that this business runs legally.
- Employee hiring – the advantage of a registered business in terms of employee hiring is that it gives them the freedom to hire full-time individuals.
- Supplier arrangements – when your business is registered, there are chances you will receive incentives including discounts from your suppliers which do not apply to those that are unregistered.
How to register your business /company with DTI and SEC
Before you register your business, it is important to determine what category your business falls under. Listed here are the steps to register a business. This will help you perform the process easier.
If your business falls under the sole proprietorship business category, registration is made at the Department of Trade and Industry. The government agency will require you to submit important details about your business including (1) an accomplished business name registration form, (2) a valid government-issued ID, and (3) a registration fee that depends on your territorial scope. For Partnerships and Corporations, a business that falls under this category needs to register with the Securities and Exchange Commission. Aside from (1) registering your company name, the agency will also ask you for other requirements including (2) company address, (3) corporation type, and (4) term of existence. After providing all the primary details mentioned, (5) the registration depends on the classification of your business whether it is foreign-owned, domestic non-stock corporation, and so forth.
Role of DTI and SEC to businesses
The Department of Trade and Industry and the Securities and Exchange Commission plays a vital role in every business operation. These two government agencies help businesses to have smoother transactions. The Department of Trade and Industry help business in terms of the promotion and development of small and medium enterprises through financing, marketing, and product development. The Securities and Exchange Commission is in charge of the supervision of the corporate sector which helps businesses to protect their investments and closely monitor the capital market.
If you are a business and you want to grow and be visible in your chosen niche, register at the Securities and Exchange Commission and/or the Department of Trade and Industry for a better and smooth business transaction. This will help you manage and run the business legally.