Business registration in the Philippines has not been the easiest among the ASEAN countries. In fact, this has been one of the disadvantages of doing business in the Philippines as business registrations usually take weeks, if not months to complete. In November of 2017 World Bank report on the best and worst countries for doing business, Philippines ranked 113th out of 190 countries in the world. Among Asian countries, the Philippines ranked 24th.
To address the said economic concern, The Ease of Doing Business Law was signed by President Rodrigo R. Duterte on May 28, 2018. This law requires government agencies to facilitate faster processing of registration and permits. The newly signed law will hopefully address the inefficiencies in the bureaucratic system, minimize the turnaround time, and simplify processes related to business applications.
The signed law is an opportunity for as it will encourage more entrepreneurs and investors to build businesses in the Philippines and increase client base. Easing the registration process and limiting the documents required will also encourage existing business owners to register their business.
Registering as a corporation has long been limited to groups or individuals or corporations. Hence, individuals starting their own business have no option but to register as a sole proprietor. This is what the new law aims to eliminate and give opportunity to business owners.
The concept of a corporation with a single stockholder was introduced through the Republic Act No. 11232, otherwise known as the Revised Corporation Code of the Philippines, which took effect on February 23, 2019. “The provision for a one-person corporation (OPC) should encourage the formation of more businesses in the country by making it easier for entrepreneurs to start a limited liability company,” SEC Chairperson Emilio B. Aquino said. “This is especially beneficial in an economy where micro, small and medium enterprises comprise more than 99 percent of business establishments and generate around 63 percent of jobs.”
OPC will enable and encourage individuals to register as a corporation. Even if there will be no change in other regulatory requirements, further guidance for OPC will be needed. With the increase in registration from Sole to Corporate registration, this will be an opportunity for new businesses to open.
-
BIR ISSUANCES DURING ECQ IN RELATION TO COVID-19 (March 17, 2020 to April 3, 2020)
We can all use a little help in this trying times, and your easy reference we have compiled here all the recent issuance of BIR related to COVID-19. BIR Issuance Date of Issuance Description RMC No. 36-2020 3-Apr-20 The BIR recently issued RMC No. 36-2020 to provide further clarification on the exemption from Documentary Stamp… Read more
-
Accounting and Business Treatment on PWD Privileges
We know what privileges are given to PWD (Persons with disabilities), such as discount and VAT exemption on their purchases. The question now is how will business treat such privileges in the books? This is what we will answer in this article. Who are qualified PWD? Contrary to popular belief, not all person who claims… Read more
-
PWD VAT Exemptions, and Discounts – RR 9-2019
BIR with the issuance of Revenue Regulation 9-2019 (RR 9-2019) amends sections of RR 05-2017 for the implementation of Act. No. 10754, entitled “An Act Expanding the Benefits and Privileges of Persons with Disability (PWD)”. RR 9-2019 further clarifies the discounts and exemptions by providing new paragraphs to categorize and list basic necessities and prime… Read more