Everybody is starting a startup. Well, there is a good reason for that. Globally there is a boom in the small market enterprises and small businesses. But we won’t talk about that in this blog. Instead, we will talk about how to register your business with the Department of Trade and Industry.
But first, why are we discussing this when you are an artist and all you want to do is art? Uhm, if you want to make art for personal consumption you can go ahead and make art and ignore this bit of info. But if you are an artist with an entrepreneurial spirit, you have to follow the rules if you do not want a bump in the road when you transact with clients in the future.
Here’s a scenario. A big organization needs to commission an art piece and knowing mostly from what they heard online, that you take commissions, they hire you. Companies account for their spending down to the last cent. They will require you to be a legit business.
Registering your business name is only the first step. You have to get a receipt from the Bureau of Internal Revenues as well (and hope that the tax you pay goes to art projects by the government). We are not going to discuss that yet. Refer to this list if you want to know more about registration rules governing different kinds of businesses. We will discuss more of this on the coming blogs.
Let’s say you just want a business that you solely own. The law calls that sole proprietorship. It’s the way to go when you want to have a business and not get in a tangle of differences with your partners or incorporators.
Before you register your business, we guarantee that you will spend two weeks thinking about a good business name, and will not come up with one. Or maybe, you can do better than us.
If you look at the rules a “Business Name (BN) shall refer to ANY name that is different from THE TRUE NAME OF AN INDIVIDUAL WHICH IS USED OR SIGNED in connection with her/his business on any written or printed receipts, including receipts for business taxes, duties and fees and withdrawal or delivery receipts; any written or printed evidence of any agreement or business transaction; and any sign or billboard conspicuously exhibited in plain view in
or at the place of her/his business or elsewhere, announcing his /her business.”
See why the registration of your business name is important? If yes, you can go to the DTI regional or provincial office or the nearest Negosyo Center for a walk in application, abut you need to download the business name regaistration forms for you to print and accomplish them prior to your visit. DTI has also made it easier and allows you to apply online through the Business Name Registration System (BNRS). DTI will also require you to pay for the registration but you will get your permit immediately after.
Here are the rates for registration of business name depending on the scope of the business.
Barangay: Php 200.00
City/Municipality: Php 500.00
Regional: Php 1000.00
National: Php 2000.00
The reason why we are posting this is that we had a hard time knowing where to start with registering ScratchPaper as a creative studio. As artists, some of us are not a fan of rules.