OAM 11_Q2_0903_PS_Requirements in Setting up a Business

Lesson 9.3 Requirements in Setting up a Business Organization and Management General Academic Strand | Accountancy, Business, and Management.

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[Audio] Do you see this document in the stores you've been to? Do you know its purpose? 3.

[Audio] Before starting your business operations, you need to request business licenses from different government institutions. 4.

[Audio] Therefore, if you are an aspiring entrepreneur, you must be aware of the different permits required in legalizing a business. 5 5.

[Audio] Learning Competency Identify the business legal forms and requirements (ABM_AOM11-IIj-41). 6.

[Audio] Learning Objectives Enumerate the steps in registering a business venture to different government agencies. Identify the different benefits of business registration. 7.

[Audio] Four Pics, One Word Let’s Connect 1. Analyze the pictures on the next slide. 2. Guess the word that fits with the theme of the four pictures presented. 8.

[Audio] Four Pics, One Word Let’s Connect 9. Let’s Connect Four Pics, One Word 9.

[Audio] 1. What is the first word that comes to Let’s Connect your mind when you see the pictures? 10.

[Audio] 2. What do you know about the Let’s pictures presented in the activity? Connect 11.

[Audio] 3. What do you think is the effect of Let’s these entities on our business Connect venture? 12.

[Audio] Essential Question Why is it important to register your business to different government agencies? 13.

[Audio] Business Registration Business registration is the process that makes a business venture legitimate and legal. It also serves as an agreement or assurance to the government that the business will uphold its promise to provide quality products and services to the community. 14.

[Audio] Importance of Business Registration It helps you avoid legal problems with the government. Business registration makes operations legal. Technically, one cannot sell products or transact with other businesses if not registered to the government. 15.

[Audio] Importance of Business Registration It builds reputation. Registration enhances the reputation of the business. It also builds trust among the different stakeholders, such as suppliers, customers, and employees. 16.

[Audio] Importance of Business Registration It allows you to market your brand and business everywhere fully. One of the purposes of business registration is to ensure that no other company or organization has the same business name as yours. 17.

[Audio] Importance of Business Registration It allows you to apply for loans and government assistance easily. Business registration gives credibility and trust and ensures confidence to the investors and creditors. 18.

[Audio] Importance of Business Registration It makes your business a separate entity. When your business, especially a corporation or limited partnership, is registered, your personal and business financial transactions will be treated as distinct. 19.

[Audio] Business Registration Process 1. Reserve and register your business name. The business name or trade name is the legal name by which people know your business. If you have registered your business name to the necessary government agencies, it will give you the legal and exclusive right to use it within its validity period. 20.

[Audio] Business Registration Process 1. Reserve and register your business name. Characteristics of a Business Name It must describe the nature of your business. It should consist of alphabets, symbols, and punctuation marks in English and Filipino. It should not be similar to any existing brand or business name. 21.

[Audio] Business Registration Process 1. Reserve and register your business name. Characteristics of a Business Name It should not be too generic. It should not be composed of abbreviations of any government agency or international organization. It will not be used for illegal and offensive business. It does not mislead or misrepresent the nature of the business. 22.

[Audio] Business Registration Process 1. Reserve and register your business name. If you are planning to register your sole proprietorship business, you have to go to the Department of Trade and Industry (D-T-I--). 23.

[Audio] Business Registration Process 1. Reserve and register your business name. Partnerships and corporations should register and reserve their business name with the Securities and Exchange Commission (S-E-C--). 24.

[Audio] Business Registration Process 2. Acquire barangay clearance. After obtaining your registration certificates from D-T-I or S-E-C--, you may now go to the barangay where your business establishment is located. 25.

[Audio] Business Registration Process 3. Request business permit from the Mayor’s office. Once you already have your barangay clearance, you may now go to the City or Municipal Mayor’s office of your respective local government unit where your business is located. 26.

[Audio] Business Registration Process 3. Register your business with the Bureau of Internal Revenue. After acquiring your business permit from the mayor’s office, you have to go to the Regional District Office (R-D-O--) of the Bureau of Internal Revenue (B-I-R--) where your business is located. 27.

[Audio] Business Registration Process 4. Register your business with the Bureau of Internal Revenue. B-I-R is primarily responsible for the supervision of tax compliance and collection of different taxes. You cannot operate your business without your specific tax identification number, which you can only get through registration. 28.

[Audio] Business Registration Process 4. Register your business with the Bureau of Internal Revenue. After submitting all requirements, you may now register your book of accounts and receipts/invoices. Then, claim your Certificate of Registration, Taxpayer Identification Number, and the “Ask for Receipt”. 29.

[Audio] Business Registration Process 5. Comply with other government agencies. Businesses established in the Philippines are required to register their business with certain government agencies as mandated by law. 30.

[Audio] Business Registration Process 5. Comply with other government agencies. The Social Security System (S-S-S--) is the government’s insurance program that provides death, maternity benefits, permanent disability, retirement benefits, sickness, and involuntary separation/unemployment benefits to its members. 31.

[Audio] Business Registration Process 5. Comply with other government agencies. The Home Development Fund Program (H-D-F-P-) is also known as the PAG-IBIG Fund. It is a national savings program mandated by the government to provide affordable home loans for Filipinos. 32.

[Audio] Business Registration Process 5. Comply with other government agencies. Philippine Health Insurance Corporation (PhilHealth) implements universal health coverage for the Filipino citizens. 33.

[Audio] Business Registration Process Secondary and Special Business Permits An entrepreneur should also remember that he or she may need to get a secondary permit or specific clearances depending on the industry he or she belongs to. For example, a travel agency will need to obtain authorization from the Department of Tourism, and a private school will need to acquire the Department of Education permit. 34.

[Audio] Check Your Progress What is the difference between registering a sole proprietorship to a partnership and a corporation? 35.

[Audio] True or False. Write true if the statement is correct. Otherwise, write false. Try This! 1. You should register your business before you operate or enter any business transactions. 36.

[Audio] True or False. Write true if the statement is correct. Otherwise, write false. Try This! 2. Secondary permits are as important as primary permits. 37.

[Audio] True or False. Write true if the statement is correct. Otherwise, write false. Try This! 3. You can operate legally even without business permits. 38.

[Audio] True or False. Write true if the statement is correct. Otherwise, write false. Try This! 4. It will be better if you only prepare one name before going to your D-T-I branch. 39.

[Audio] True or False. Write true if the statement is correct. Otherwise, write false. Try This! 5. PhilHealth gives the “ask for receipt” signs for business enterprises. 40.

[Audio] Business registration is the process that makes Wrap Up your business venture legitimate and legal to operate by complying with the different government regulations. 41.

[Audio] Wrap Up In addition to the Bureau of Internal Revenue, corporations secure permits from the Securities and Exchange Commission. The following are the benefits that a business can get from registering to the different government regulatory bodies: help avoid legal problems with the government build reputation allow you to market your brand and business everywhere fully allows you to apply for loans and government assistance easily makes your business a separate entity 42.

[Audio] Wrap Up Secondary permits or specific clearances may be required depending on the industry of entrepreneurs. 43.

[Audio] Challenge Yourself Why is there a need for the government to regulate business registration in the country? 44.

[Audio] Photo Credits Slide no. 24: The official new logo of the Philippine Department of Trade and Industry as per 2019 branding guidelines by the Department of Trade and Industry is licensed under C-C-0 1.0 by Wikimedia Commons. Slide no. 25: Seal of the Securities and Exchange Commission of the Philippines by the Securities and Exchange Commission of the Philippines is licensed under C-C-0 1.0 by Wikimedia Commons Slide no. 31: Seal of the Bureau of Internal Revenue (Philippines) by the Bureau of Internal Revenue (Philippines) is licensed under C-C-0 1.0 by Wikimedia Commons 45.

[Audio] Photo Credits Slide no. 32: Seal of the Social Security System (Philippines) by the Social Security System (Philippines) is licensed under C-C-0 1.0 by Wikimedia Commons Slide no. 33: Seal of the Home Development Mutual Fund by Home Development Mutual Fund is licensed under C-C-0 1.0 by Wikimedia Commons Slide no. 34: www.philhealth.gov.ph by Philippine Health Insurance Corporation is licensed under CC BY-SA 4.0 by Wikimedia Commons 46.

[Audio] Bibliography Crismundo, Kris. “DTI Registers over 75K Online Businesses.” Philippine News Agency. August 3, 2020. gov. eCompareMo. “How to Register a Business in the Philippines: A Guide to B-I-R--, D-T-I--, and S-E-C Application.” ECompareMo. June 16, 2020. ecomparemo pplication. Gitman, Lawrence, Carl McDaniel, Amit Shah, Monique Reece, Linda Koffel, Bethann Talsma, and James Hyatt. Introduction to Business. (Houston: OpenStax and Rice University, 2018). openstax. Globe myBusiness Academy. “2019 Comprehensive Guide to Registering Your M-S-M-E Business in the Philippines.” Globe MyBusiness Academy. August 23, 2019. mybusinessacademy. 47.