Just because you have the luxury of having your business in your home doesn’t mean you can treat your business like your home. It’s still, after all, a business. Learn the right way to set-up your own home-based business. [Read about Mama Lou's home-made cookies here]
STEP 1: Make it Official
Registering your home-based business gives you and your company credibility and shows your customers or clients that despite being home-based, you still mean serious
business. It’s easier that you think.
Action 1: The Department of Trade and Industry has made registering your business name easier with its Business Name Registration System (BNRS). Log on to www.bnrs.dti.gov.ph and check if the business name you have in mind is already taken. To save time, have at least three possible names for back up. [See five rules for a home-based business here]
Page 2: Permits
Action 2: Create an account by filling in your full name and e-mail address. The BNRS will send your password to your email, and using the password, log in to your free account.
Action 3: Once you’re logged in, go to the Online Services tab and click on the Request for a New Application. After reading and understanding the Terms and Conditions, click the button indicating your agreement to the terms, and proceed to filling up the online application form.
Action 4: Once complete, submit the online application form and to receive an e-mail notifying you of the approval of your application. If approved, you’ll receive a transaction Reference Number Acknowledgement Form (TRNAF), which you will need to print, sign, and later submit to the DTI Office together with the following: [Learn how to run your home-based business like a pro here]
• A printed copy of the e-mail notification from the DTI approving your Web application for a new business name;
• An original and photocopy of proof of citizenship (passport, voters ID, birth certificate);
• Two passport-size ID pictures; and
• A processing fee of P165.00, plus P15 for documentary stamps.
Action 5: The DTI will reserve your proposed business name for three days only. Within that time, you can visit the DTI Office to pay the processing fee and submit the required documents. Upon DTI’s notification, you can then go back to receive your business name document.
The steps above apply only if you are a single proprietorship. If you plan to register as a partnership or a corporation, you will need to go to the Securities and Exchange Commission (www.sec.gov.ph).
STEP 2: Get Permitted
Before you can operate, it’s also important to secure permits from your local government, which is the city where your home-office will be located.
Action 1: Obtain a barangay clearance. [See list of hot home-based business ideas here]
Where: Barangay Hall
What you need to bring: Registration certificate from the DTI or SEC
Fee: P1,500
Action 2: Obtain a mayor’s permit (also known as a business permit).
Where: Municipal or city hall in the place where you will set up your business
What you need to bring: Barangay clearance; Registration certificate from the DTI or SEC; Location sketch of your place of business; Community Tax Certificate
Action 3: Obtain a Taxpayer Identification Number (TIN).
Where: Bureau of Internal Revenue [Read more about other home-based entrepreneurs here]
What you need to bring: Accomplished BIR forms 1901 or 1903; Location sketch of your place of business; A copy of your mayor’s permit or municipal license; Registration certificate from the DTI or SEC
Fee: P500 plus 1 percent of subscribed capital for the documentary stamp
Page 3: Social Security
Action 4: Obtain special permits.
Depending on the nature of your home-based business, you may also need to obtain special permits. If your home-based business, for example, will be dealing with food, chemicals, of any health-related product or service, a permit from the Department of Health–Bureau of Food and Drugs would be needed. For a full list, visit the Philippine Business Registry website (www.business.gov.ph).
Step 3: Get Social Security for Your Workers
All businesses are required to register their employees for Social Security protection.
Where: Social Security System (www.sss.gov.ph) [Read about two successful furniture businesses that started at home here]
What you need to bring: Accomplished SSS Form R-1 for employer registration; Accomplished SSS Form R-1A, which lists the names of your employees; Articles of Partnership or Incorporation for partnerships or corporations
Step 4: Know The Numbers
The key to making a home-based business work is organization. This not only goes for the physical set-up of your office space, but even with you business’ finances. Having a good accounting system helps with not only gauging your profit, but also separating your personal and professional finances.
Tip 1: Your accounting system must give you control over transactions. In particular, the system must help you prevent unauthorized payments or theft from cash collections. [See four reminders to be an effective one-man company here]
Tip 2: Your accounting system must be compatible with your business operations and organizational structure. What’s the use of acquiring expensive accounting software when you can only use 20 percent of its functions?
Tip 3: You accounting system must be flexible enough to allow you to upgrade it without doing a complete overhaul. Your business may expand in a few years’ time with new products and services. Your current system should be able to adapt to possible changes in the business.
Tip 4: Always do a cost-benefit analysis when designing an accounting system. Do the benefits of buying an off-the-shelf computerized system outweigh the cost? Are you better off simplifying your accounting with a manual system rather than investing in software packages given your current business setup? Will an investment for accounting software pay for itself in the long run? [See five ways to survive the startup phase here}
Page 4: Time and marketing
Step 5: Keep Time
Despite being a home-based business, it’s important to keep regular office hours to create the atmosphere of professionalism and efficiency within the company. Make it immediately known to your customers and clients that you will only entertain them during that certain period.
Not only does this make your business seem professional, but it also prevents your work-life from interfering with your home-life, creating a boundary between the two. This way, instances like taking calls during weekends or meeting with clients during holidays can be avoided.
Step 6: Make Yourself Known
Aside from traditional forms of marketing such as leaflets, flyers, tarpaulins, and print ads, home-based businesses have found a new home in cyberspace. [See two startup principles for aspiring entrepreneurs here]
The Internet has proved to be the best, and not to mention cheapest, marketing tool. Its reach is global, and its cost is virtually free. Social networking sites like Facebook and Multiply have become a thriving marketing platform for start-up entrepreneurs. Or if you have the finances, you can purchase your own domain name, and hire a small Web development company to help create your own personal website.
Still, for many successful home-based businesses, experience has proven that the best marketing tool is word of mouth. And you can only ensure this if you treat your customers well and maintain a high standard for your product or service.
Useful Contact Information:
Social Security System
SSS Building East Avenue,
Diliman, Quezon City
(02) 920-6401; (02) 920-6446
www.sss.gov.ph
Department of Trade and Industry
385 Industry and Investments Bldg.,
Sen. Gil Puyat Ave., Makati City 1200
(02) 751-3330; (02) 751-5096
www.dti.gov.ph
DTI Business Name Registration System
www.bnrs.dti.gov.ph
Philippine Business Registry
(02) 729-8681
pbr-pmu@dti.gov.ph
www.business.gov.ph
Philippine Securities and Exchange Commission
SEC Building, EDSA, Greenhills,
Mandaluyong City, Metro Manila
(02) 584-0923; (02) 584-5293
www.sec.gov.ph
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