Podcast
Questions and Answers
Which of the following is NOT a money-saving option for starting a business?
Which of the following is NOT a money-saving option for starting a business?
- Exploring subcontracting
- Hiring full-time employees (correct)
- Using your home as an office
- Purchasing used office equipment
What is a key consideration when choosing a business name, as discussed in the text?
What is a key consideration when choosing a business name, as discussed in the text?
- The name must accurately reflect the business's activities.
- The name should be easy to remember and evoke a positive impression.
- The name should be unique and not easily confused with competitors.
- All of the above. (correct)
Which organization is responsible for reserving corporate names in the Philippines?
Which organization is responsible for reserving corporate names in the Philippines?
- Philippine Chamber of Commerce and Industry (PCCI)
- Bureau of Internal Revenue (BIR)
- Department of Trade and Industry (DTI)
- Securities and Exchange Commission (SEC) (correct)
What challenges can arise during the name selection process for partnerships and corporations?
What challenges can arise during the name selection process for partnerships and corporations?
What is the time limit for filing registration papers after reserving a corporate name with the SEC?
What is the time limit for filing registration papers after reserving a corporate name with the SEC?
Which of the following is NOT a common source of capital for early-stage businesses, as mentioned in the text?
Which of the following is NOT a common source of capital for early-stage businesses, as mentioned in the text?
What is a characteristic of credit cooperatives as a source of capital?
What is a characteristic of credit cooperatives as a source of capital?
What is a potential downside of using money lenders as a source of capital?
What is a potential downside of using money lenders as a source of capital?
Which of the following is NOT a necessary step for legal business operation in the Philippines?
Which of the following is NOT a necessary step for legal business operation in the Philippines?
What is the main purpose of registering a business name with the Department of Trade and Industry?
What is the main purpose of registering a business name with the Department of Trade and Industry?
Which of the following is NOT required for partnerships or corporations in the Philippines?
Which of the following is NOT required for partnerships or corporations in the Philippines?
What is the primary purpose of obtaining a Sanitary permit from the local government?
What is the primary purpose of obtaining a Sanitary permit from the local government?
Why is it essential to register with the Bureau of Internal Revenue (BIR) for a Tax Identification Number (TIN)?
Why is it essential to register with the Bureau of Internal Revenue (BIR) for a Tax Identification Number (TIN)?
In addition to the BIR, which other government agency is required to be registered with for businesses in the Philippines?
In addition to the BIR, which other government agency is required to be registered with for businesses in the Philippines?
What is the significance of obtaining an environmental clearance certificate before business operation?
What is the significance of obtaining an environmental clearance certificate before business operation?
Why is it important to establish a proper business plan before starting a business?
Why is it important to establish a proper business plan before starting a business?
Flashcards
Business Plan
Business Plan
A document outlining business goals and strategies.
Registration of Business Name
Registration of Business Name
Officially filing the business name with authorities.
Articles of Incorporation
Articles of Incorporation
Document filed to establish a corporation legally.
Municipal Permits
Municipal Permits
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Bureau of Internal Revenue (BIR)
Bureau of Internal Revenue (BIR)
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Social Security System (SSS) Registration
Social Security System (SSS) Registration
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Environmental Clearance Certificates
Environmental Clearance Certificates
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Legal Compliance
Legal Compliance
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Business Name
Business Name
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Registration Process
Registration Process
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Reservation Period
Reservation Period
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Saving Options
Saving Options
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Using Home as Office
Using Home as Office
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External Sources of Capital
External Sources of Capital
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Credit Cooperatives
Credit Cooperatives
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Money Lenders
Money Lenders
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Study Notes
Starting a Business: Essential Steps
- Starting a business is challenging, requiring a detailed business plan. A well-structured plan achieves many objectives before the business even operates.
- Operationalizing a business involves complying with legal regulations. This is a crucial prerequisite for a legitimate business.
Business Registration
- Sole Proprietorship: Register business name with Department of Trade and Industry (DTI).
- Partnerships/Corporations: Register Articles of Incorporation and By-laws with the Securities and Exchange Commission (SEC).
- Local Permits: Apply for permits at specific local levels (e.g., village, barangay). Obtain permits from municipal/city governments (e.g., Mayor's permits, sanitary permits, building permits).
- Specific Agency Permits/Clearances: May be required from specific government agencies (e.g., environmental) before local permits can be obtained.
- Tax Registration: Register with Bureau of Internal Revenue (BIR) to obtain a tax identification number (TIN) and comply with tax laws.
- Receipt/Invoice Printing: After BIR permit is applied for, print receipts/invoices for your company.
- Government Agency Registrations: Register your business organization with Social Security System (SSS), Philippine Health Care Corporation, and Pag-IBIG Fund.
Choosing a Business Name
- A business name represents the business identity.
- Names may be acronyms.
- Registering a sole proprietorship's name involves verification with DTI or SEC.
- For partnerships/corporations, resolve name disagreements among investors.
- SEC name reservation has a 30-day registration window—if not registered, it can be taken by another party.
Saving Money During Startup
- Join a small business group at minimal capital requirements.
- Use home office space or shared office/shop spaces.
- Explore freelance work options (e.g., carpentry, electrical repairs, delivery).
- Buy used office equipment and machinery.
- Hire part-time specialists or skilled workers.
- Start with sales agents or representatives instead of salaried personnel.
- Explore subcontracting business models.
- Utilize family labor and resources.
Office Setup
- Early-stage business planning often centers around finding office space and necessary supplies.
- This may include setting up a workplace and amenities.
External Funding Sources
- Pawnshops: Quick cash can sometimes be available by pawning valuable items.
- Credit Cooperatives: Commonly found in rural areas and offer loans (often multiples of deposits).
- Money Lenders: Less formal, often high-interest loans with no collateral.
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Description
This quiz covers the essential steps for starting a business, including the importance of a detailed business plan and legal compliance. It highlights the registration process for different business structures and the necessary permits required at local and national levels.
