Having your own small business offers a particular lifestyle advantage, such as being in charge of your time and the potential to earn more money compared to being employed. Setting up an online business has proven to be a great source of income, especially since online shopping activity has seen a significant rise over the past few years.
The pandemic has further driven the demand for online businesses to flourish since the lockdown, and prolonged quarantine in the country has forced a lot of things to go the digital route. Despite a high financial risk, having an online business is a great way to sustain a living for you and your family.
To ensure the success of your online business, you have to start it the right way. This means registering your business with the appropriate government agencies to make sure that you can operate your business legally in the country. In the new standard, business registration has also gone. If you’re starting a business in the Philippines, here are the new normal business registration tips from your local refrigerator provider in the Philippines, Condura.
Registering Your Online Business
Philippine law mandates registering your online business and paying tax dues. This means online sellers and everyone making money online, including social media influencers, are expected to abide by this mandate.
According to one of the Bureau of Internal Revenue’s updated 2020 memorandum, all persons doing business and earning income in any manner or for, especially those who are into digital transactions through the use of any electronic platforms and media other digital means, are required to register under the agency. An exemption to this is those selling products “intermittently or irregularly” and homemade items as a hobby.
So whether you own a physical store, a courier service, an online shop, or any other business, if you are getting a steady flow of income regardless of how small your business is, you must register it with Philippine authorities.
Do you need a business permit?
The short answer is yes. You might be tempted to ditch this process because of the burden of time, money, and effort; but registering your online business can help you grow your business.
Drive customer growth – A registered online business proves that your operations are legit, which means customers are more likely to buy from your online shop since you are a trusted seller. They can avoid bogus sellers and scammers if they buy from your online store.
Qualify for business loans – Banks require online business owners to present a certification from the Department of Trade and Industry, a BIR certificate of registration, and an income tax return as part of their assessment if they can loan you capital or your business. Loans can help online business owners cover some operational expenses for potential expansions or additional capital.
Get government assistance – Registered businesses are eligible for government assistance programs during a national crisis. Many small business owners were given cash aids during the onset of the pandemic.
Additionally, if you are mulling selling your items on e-commerce platforms like Lazada and Shopee for a broader reach and profile boost, it’s important to note that they require you to submit business registrations to the DTI and BIR.
Condura has been a long-time business partner of Filipinos. For over 30 years, Condura has been supporting every negosyo by providing durable and practical products that are made especially for every type of business. Condura was the first to provide its negosyo partners with a warranty that covers the use of its products for business purposes.
Online Business Registration in the New Normal
Online businesses in the Philippines have to register the business name with the DTI before registering with the BIR. You can register with the DTI online, and all applications under DTI should be filed through the Business Name Registration System (BNRS).
Here are the steps to register your business name online:
- Visit the BNSR site: bnrs.dti.gov.ph/registration
- Fill out the online registration form
- Pay the business name registration fee within 7 calendar days from the online application date. You can now pay the DTI registration fee online.
- Upon a successful transaction, you will receive the certificate of business name registration through email.
- Once payment is confirmed, click on “Register New Business” to complete the process.
Registration fees vary for territorial business scope. For barangays, you have to pay Php200, city/ municipality for Php500, regional for Php1,000 and national for Php2,000. Since government offices are now operating at a larger capacity due to eased quarantine measures, you can also opt to visit a DTI office or Negosyo Center to register your business.
For the BIR registration, you may do it at your revenue district office, or you can do it through the NewBizReg portal. Visit https://www.bir.gov.ph/newbizreg/ and follow the instructions to register your business.
The BIR requirements for online business registration in the Philippines include:
- Accomplished registration form (BIR Form No. 1901)
- Valid ID
- DTI Certificate of Registration
- Annual registration
- Documentary stamp tax
Online Business Tips
Venturing an online business can lead to endless possibilities, and Filipinos are known to be resilient and full of diskarte. Still, you have to strategize your business growth, and these negosyo tips can help you.
Plan ahead – Whether you have a small business in the Philippines or not, you have to plan the goals and growth for your business. Set target goals for what you want your business to achieve in a year, in three years, or five years. This will help you determine how you can bring in more capital for future use.
Track your expenses – This will help online business owners in the Philippines see what works and what doesn’t for the business. Tracking your expenses will give you an idea of what you need to change and improve. It will help you identify what product sells most and what doesn’t sell that much.
Use social media to create buzz – Utilizing social media to let people know about your products and services is one great way to market your business. Almost every consumer in your target market is on social media, so use the technology-savvy in you to promote your business via Facebook or Instagram. Have customers leave reviews and recommendations to optimize interest from potential new customers.
From registering your small business, expanding your venture to providing negosyo and hanapbuhay tips, Condura is the Ka-Negosyo partner there for you. Condura’s Negosyo Inverter Pro for 2-Door Refrigerator, Single Door Refrigerator, and No Frost Refrigerator which are perfect for your sari-sari store, convenience store, carinderia, or your online food business.
Condura provides better home solutions for the Filipino family toward a richer and more successful home life because Condura, a Filipino brand, knows the Filipinos’ unique needs well. Visit our Negosyo Tips and let Condura be part of your negosyo journey.