Whether you’re a freelancer or a business owner, obtaining a BIR registration certificate is a must for you.
Also known as BIR Form 2303 and Certificate of Registration (COR), this type of document gives you the legal rights to operate your business in the Philippines. It provides you with Tax Identification Number (TIN) and the authority to print and issue official receipts. It also states the types of taxes you will settle.
If you are Self-employed, Corporation, Partnership, Cooperatives, Associations or Government-owned and Controlled Corporation, then you have to secure a Certificate of Registration from the BIR.
Many business owners are hesitant to register their ventures because the process can be expensive and time-consuming. But having a legitimate business is beneficial to your company and its growth.
Helps build customer’s trust
Consumers tend to buy products from credible and trustworthy brands. And having a COR can help you gain your customer’s trust.
Say you’re running a coffee shop. When your business is registered, you are required to display the certificate and other forms in your establishment, such as the Mayor’s Permit, Sanitary Permit, Health Clearance, and Fire and Safety Inspection Certificate. These documents have the power to make your customers feel safe. They will be more confident to purchase your goods and recommend your establishment. This gives you the chance to attract more customers and gain more profit.
Gives you marketing advantage
When your business is legitimate, you’ll be more confident to market it, especially online. And in this digital age, being visible on the internet can give you a competitive advantage.
You can build your business website and set up marketing campaigns on different social media platforms without worrying about legal issues. This will boost your sales and give you the opportunity to recover the costs of your taxes.
Gives you a peace of mind
As an entrepreneur, there are several things in your mind. You think about your marketing strategy, your sales, and maintaining your business.
Securing a BIR registration certificate will give you one less thing to worry about. Remember, you can make your business invisible in the government’s records by not filing a Form 2303, but it doesn’t make you safe in the eyes of their inspectors.
Also, there are punishments for those who don’t register their businesses. When caught, you will have to pay a fine of P5,000 to P20,000 and serve 6 months to 2 years in prison.
Filing for a BIR Certificate of Registration can be time-consuming, but a business license is vital to your success. Besides, you have to know your obligations as an entrepreneur. Keep in mind that it’s wise to comply with the laws and regulations because it lets you focus on running and growing your business.
Need help with preparing and paying your taxes? Check out Taxumo’s website today and request a demo!