How to Set Up a Sole Proprietor Business in the Philippines (Part 2)

In the second part of our preview in setting up a sole proprietor business in the Philippines, let us continue to look into the processes involved together with some important notes and tips.

Make sure that before applying for these Certifications you already have at least two Valid ID’s. (e.g. Passport, SSS, PRC ID’s etc.). They are usually required when filling up the forms.

After applying for the BIR Certificate of Registration, you need to apply immediately from the BIR an Authority to Print some Official Receipts and Invoices to be used for your operations.

These Receipts and Invoices are valid only for use for a certain number of years and should the period lapse, a new set of Receipts and Invoices must be printed.

Below are the types of receipts that should be registered with the BIR before commencing operations:

Provisional Receipt when collection is only partial. Official Receipt must be issued after issuance of Provisional Receipt after final collection of a particular Invoice or Delivery Receipt.

Delivery Receipt for Retail

Sales Invoice for Retail

Service Invoice for Services

Official Receipt for Services

Official Receipt for Retail

Make sure that they get printed after a certain time prescribed by the BIR. You will get a penalty for not having them printed after the prescribed period.

Make sure that all the Certificate of Registration you acquired from the different Government Agencies are hanging on a wall in the place of Business and all your Book of Accounts (Journals and Ledgers) are available for inspection complete with records of transactions coming from the Invoices and Receipts. They will be inspected by the BIR when they make their surprise visit in your office.

5. SSS, Philhealth, and PAG-IBIG
If you have employees working for you, it is necessary that you register them with these Government Agencies. It’s mandatory to have them enrolled and the employer pay their employer contribution on a periodic basis. Employees as per DOLE (Department of Labor and Employment) are eligible to Benefits provided by these Agencies.

After registering with the enumerated Agencies, you must open a Bank Account with a bank that accepts payments for BIR, SSS, Philhealth, and PAG-IBIG. Most of these banks have options for Online Banking where you can automatically transfer payment to the account of these Agencies. For a complete list of these banks, you can check out the website of these Government Agencies. Once you select a bank, you can enroll with them so they can allow you to have Online Access for the money transfer.

Once you accomplish these you are all set for your Operations. You can have a Bookkeeper handle all the recording process so you can focus more on your business. You can follow us on Facebook should you want to outsource this process. We can also provide Computerized Accounting Services complete with POS and Taxation Tools.