How BIR Form 2303 Can Help You Earn More and Avoid Legal Hiccups
Beyond capital, knowledge, and perseverance, setting up businesses requires recognition so aspiring entrepreneurs can build a network and grow their operations and profits in the long run.
This can be done by registering a business venture legally through submission of BIR Form 2303 or simply Certificate of Registration. The certificate legitimizes a business’ identity as it includes its registration name, registration date, official address, nature of business, and trade name, if any.
All those intending to do business is mandated to register with BIR regardless if they are a sole proprietorship, a partnership, or a corporation. Proper documentation is needed in all business types. With this in place, businesses can start their operations and make money.
Apart from getting recognized, having a legal registration of your business can go a long way.
Forming a Good Reputation
Customers are attracted to businesses with good reception from the public because it means that trust toward business is beginning to be established.
Legal registration is key to building customer trust. It shows that your business is not hiding anything malicious. It tells the public what kind of entrepreneur they are dealing with: one that adheres to legal processes and regulatory requirements.
In a way, this makes the customers at ease, even safe, whenever they’re transacting with such businesses. This can also mean good reviews and more recommendations, translating to more customers, better margins, and higher-income—which is the dream, anyway.
Growing Your Business
An entrepreneur puts up a business usually with a long-term outlook. It only makes sense because building a business from the ground up takes a lot of hard work and patience.
At some point, you might want to onboard more investors and source additional financing to grow your business. Entrepreneurs, once again, need to have a show of confidence.
Investors seeking to be part of your business will likely ask for the proof of your legal existence—BIR Form 2303—to make sure they’re dealing with a legitimate business. Without a Certificate of Registration, investors will be hesitant to forge a partnership with you and your business.
Say you want to build another branch for your coffee shop, or you need to acquire additional equipment for your booming business, an immediate source of money may be needed. Businesses will find it difficult to access more funding without proper registration. Remember that banks are requiring valid identification when granting short-term or long-term loans. You cannot even open a bank account without one.
Avoiding Legal Repercussions
This might be the most important thing you need to remember. After all, you will not be able to run a business smoothly with legal liabilities in the way.
Before turning their dreams into reality, entrepreneurs should secure a tax identification number (TIN) via registration; otherwise, they will not be allowed to do so at all. The nine-digit number allows BIR to identify and track the businesses for legal purposes.
Without a TIN, you are risking your business. If the BIR is made known of your unregistered business, you can be slapped with fines and penalties, among others. Your company can also be subject to tax audits to further review the extent of non-compliance.
Always remember that it is a general rule to register your business.
Register Now, Not later
You might find it tiresome to accomplish the registration, especially with the filing of documents needed.
Just remember that your dreams for your business will not come true if you skip this step. As they say, the first step may be the most challenging, even daunting, but it is also the start of a fruitful journey.
So, for the aspiring entrepreneurs, begin your journey by accomplishing BIR Form 2303 now, and not later.
We are the one-stop shop you need for your business. Reach out to 3E Accounting Philippines for that top-notch Philippine incorporation services. We also offer services in accounting, payroll, audit, and related advisory, accounting information systems design, management advisory, and taxation.
