The Legal Features of Sole Proprietorship, Partnership and Corporation
The Legal Features of Sole Proprietorship, Partnership and Corporation
Submitted by:
Darius Immanuel D. Guerrero
BAP 3A
February 28, 2012
Sole Proprietorship
A sole proprietorship is a business entity that is totally inseparable from its single owner. The law treats the business and the owner as the same. Because of this, all liabilities are taken for the owner. The owner does not pay income tax separately for the business, but reports the business income or losses on his/her individual income tax return. In order to start a sole proprietorship, one must be at least eighteen years old. To start with, the minimum requirements need to be fulfilled. The person must visit the DTI Business Registration System (BNRS) to register the name of the business. If unavailable, must call the number 751-3330 to contact DTI Direct. The transaction reference number acknowledgement email will be sent to the applicant. With all the supporting documents, one must proceed to the DTI office. The documents are plentiful. One must acquire a certificate of business name registration from the DTI. One must also have a certificate of registration from the local BIR Revenue District Office or RDO. A mayor’s permit from city hall and a barangay clearance from the local barangay hall is also needed. A SS number as an employer or as self-employed must be acquired from an SSS branch. A Philhealth is also needed. The other things needed are: original & photocopy of proof of citizenship (e.g. PRC ID, birth certificate, voters ID, passport); signed copy of undertaking from DTI BNRS; payment of P300 for application (+P15 for documentary stamps); 2 recent identical passport size picture (with signature of owner at the back). For franchise holders, a photocopy of franchise agreement, each page duly certified by the franchisor or franchisee and a photocopy of Business Name Certificate of franchisor is also needed. The DTI registration has to be renewed every year, with a
Submitted by:
Darius Immanuel D. Guerrero
BAP 3A
February 28, 2012
Sole Proprietorship
A sole proprietorship is a business entity that is totally inseparable from its single owner. The law treats the business and the owner as the same. Because of this, all liabilities are taken for the owner. The owner does not pay income tax separately for the business, but reports the business income or losses on his/her individual income tax return. In order to start a sole proprietorship, one must be at least eighteen years old. To start with, the minimum requirements need to be fulfilled. The person must visit the DTI Business Registration System (BNRS) to register the name of the business. If unavailable, must call the number 751-3330 to contact DTI Direct. The transaction reference number acknowledgement email will be sent to the applicant. With all the supporting documents, one must proceed to the DTI office. The documents are plentiful. One must acquire a certificate of business name registration from the DTI. One must also have a certificate of registration from the local BIR Revenue District Office or RDO. A mayor’s permit from city hall and a barangay clearance from the local barangay hall is also needed. A SS number as an employer or as self-employed must be acquired from an SSS branch. A Philhealth is also needed. The other things needed are: original & photocopy of proof of citizenship (e.g. PRC ID, birth certificate, voters ID, passport); signed copy of undertaking from DTI BNRS; payment of P300 for application (+P15 for documentary stamps); 2 recent identical passport size picture (with signature of owner at the back). For franchise holders, a photocopy of franchise agreement, each page duly certified by the franchisor or franchisee and a photocopy of Business Name Certificate of franchisor is also needed. The DTI registration has to be renewed every year, with a