How to register a sole proprietorship with the DTI
There are many types of business ownership. One of them is sole proprietorship, the kind of business registered as owned by one person.
The simplest type of business ownership, the sole proprietorship is an unincorporated entity or business. It is a popular type of business for individual self-employed people, consultants, and many businesses.
Benefits of sole proprietorship
This type of business is ideal for small business owners and entrepreneurs, mainly because it is easy to establish, the owner only pays personal income tax on profits and can be easily dismantled if the owner no longer wants to do business.
Although a number of businesses are actually owned by couples or families, many are registered as a sole proprietorship rather than a corporation.
The main advantages include:
- Minimum capital required
- Reduced costs of government registration fees, permits and licenses
- Minimum regulation and supervision
- Run your business on your own
- Earn profit for yourself
Disadvantages of the sole proprietorship
But the sole proprietorship also has its drawbacks:
- Suffer all the risks, responsibilities, losses are suffered by yourself
- Government agencies or creditors can go after your personal property
How to register a sole proprietorship with DTI
If you have decided that you are already going to start a business as a sole proprietorship, one of the first steps to take is to register with the DTI (Department of Trade and Industry).
Here are the steps to follow:
- Step 1. Find three possible names for your company.
- Step 2. Search the DTI website to see if there is an existing business with the same name as your intended names. Click here.
- Step 3. If the business name is available, complete the Business Name (BN) Request Form.
- Step 4. Go to the nearest DTI office and submit the completed form. Or you can do this step online.
- Step 5. Pay the corresponding fee and wait for the DTI registration certificate.