Handling a business requires a lot of effort. For it to be functional and smooth in terms of operations, marketing, finance, accounting and legal, it takes a lot in terms in building each department.
Registering your business means you are not just here for the short term. From the perspective of your customers, you are serious about offering your products and/or services. It's also a form of compliance that you need for you to be able to do business at ease within your respective local government regulators.
That is why in prior years, I've secured a business structure as sole proprietor and corporation in real estate brokerage and development.
How is it important? Here's a list of the benefits when you register for permits and licenses:
- It builds trust for your customers or suppliers: Having a registered business builds trust to your customers and suppliers. It implies that you are not just here for the short term, but that you are here to do serious business. Having a business permit is like having a badge to show your peers that you are trustworthy in doing business with.
- Leasing: When you are a landlord, be it residential or commercial, you have to secure your business permit because you are earning via rent or lease payment. It would be recorded as Rent Income. As mentioned, even if it's residential, the treatment of the landlord would be registered as Commercial Property Leasing in Registration and its treatment.
- Customers and/or suppliers requesting for original receipt: One of the pre-requisites in having registered your business at BIR is your business permit. This is for BIR to issue an original receipt for you to update and issue it to your customers when they request for it, and even when they don't—as having an official receipt is also an important component in a business.
- Tax Mapping or Evasion. Now, this is the most crucial part. Without having the right permits and licenses, you could be penalized by BIR with fees, shut down your business or worst, imprisonment. (See BIR website here for the penalties.)
- Less LGU problems and inspection. Like BIR's obligation to monitor if you are paying your dues or not, it is your local government's obligation to monitor your business whether you have the right papers or not. Non-compliance will lead to BPLO or Business Permit Licensing Office locking down your business and banning its operations.
- Borrowing money for expansion. As a registered business, you may use your permits and licenses to borrow money from other financial institutions like Esquire and First Circle. They accept non-collateral commercial loans unlike banks that requires you to produce a collateral.
And in whatever industry you may be—with different endeavors in your project, business and livelihood, it's still best to secure and comply to respective regulators so that you can do business with ease.
To explore business opportunities, link with me by clicking on the 'Connect' button on my profile.
Image source: Canva
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Carlos Payumo Garcia
I'm Carlos P. Garcia. A Landlord and Business Development and Leasing Administrator of a Mercantile Leasing (Private Market) Business.
I am offering stalls for lease to...