Ease of doing business in the Philippines according to World Bank is not an easy task. It is actually burdensome. As of 2016, Philippines is ranked #103rd over 189 economies in the world. Average procedure is 16 steps and takes about 29 days to complete.
Yes, your majesty. Not to mention delay factors like incomplete papers and queue. Our advise? Plan ahead. While unavoidable, these simple tips can actually save you a lot of time and expenses.
Tip #1: Use Online Registration when reserving your name
Ever experience an extremely long line of queue only to be rejected because your name is already taken? You have to fill-up another form again, think of at least three names then file again. Repeat the process until you get an approved name. Hooray! And it can take days just to register your business name. You can use DTI Online Business Name Reservation or SEC Online Business Reservation through this link:
- DTI (For Single Owner/Proprietor): http://www.bnrs.dti.gov.ph/web/guest/registration
- SEC (For Partnership/Corporation): http://www.sec.gov.ph/online-services/reserve-company-name/
Save a lot of time through this site. Once approved, just print the approved form and file it at the nearest DTI office from your place. Or SEC satellite office if you are filling for partnership or corporation.
Tip #2: Make sure you filled your forms correctly and completely
Fill up your forms. Leave no spaces blank. SEC is very strict with this one. And make sure your grammar is correct to the letter and to the dot. Believe us when we say this. They are grammatical hounds and can sniff errors and inconsistencies a mile away. These are some of reasons they return your paper based on our experience:
- INDL (abbreviation for industrial). They will never allow it if you place an apostrophe and it is in conflict with another business name.
- Special Characters. Some use special characters as a clever way to disguise name conflict. Program can’t detect it. But SEC checkers can.
- Name inconsistencies. Typographical errors happen. Take Edgardo and Eddgardo for example. In the Name of Incorporators, you filled Edgardo. But you unintentionally typed Eddgardo in the Secretary’s Certificate (Assuming that he’s the secretary of the Corporation and they are one and the same). They can spot this and they will return your form. Another mistake, another correction, another queue.
- And wait…. There’s more!
Tip #3: Plan ahead
As long as your documents are complete, filling is fast. Incomplete documents cost a lot. Not to mention cost of travel plus traffic that can add days of delay. You can look online for documentary requirements. Link above is for SEC and DTI only. Mayor’s permit and BIR permit has different requirements.
“Researching online is also an art.”
(Which is also why we always wear a labcoat and goggles. Get it?)
Tip #4: Hire a Bookkeeper
Entrepreneurs flourish on a DIY mentality: Do everything you can and don’t pay for anything new until you have absolutely have to. It’s especially difficult to justify hiring help like a bookkeeper.
But hiring professional bookkeepers not only minimize your job but also saves you on cost of delays. Good bookkeepers also provides valuable advises that is necessary for you business.