Forms of Business Ownership and Registration
Forms of Business Ownership and Registration
Forms of Business Ownership and Registration
OWNERSHIP AND
REGISTRATION
INTRODUCTION
PUBLIC COMPANY
PRIVATE COMPANY
Business Owner Business Ownership
• A business is the legal proprietor of a business. • Business ownership refers to the control over an
enterprise, providing the power to dictate the operations and
• An individual or groups that owns the assets of a functions.
firm and profits from them
Businesses can be acquired in several ways:
Starting a new business
Franchising an existing business
Buying an existing business
Types of Business forms
In the United States there are three major types of business ownership.
Understand the steps in establishing business
Conduct a self-assessment
You need to plan, set goals, and above all, know yourself. What are your strengths? What
are your weaknesses? How will these affect day-to-day operations?
Pitch and get funding investors and loan providers need to know that you have a solid
understanding of the trajectory of your business. You need to prove that there is an
attainable and sustainable need for your solution, that you have a strong business strategy,
and that your business can be financially stable.
5. Make your business legal
- If at all possible, work with an attorney to iron out the details. This is not an area you
want to get wrong. You will also need to get the proper business licenses and permits.
Depending upon the business, there may be city, county, or state regulations as well.
- Business Name
- Business Permit
- BIR Permit
6. Fund your business
Depending on the size and goals of your venture, you may need to seek financing from an
investor or from a venture capital firm.
But, most small businesses begin with a loan, financing from credit cards, help from
friends and family.
7. Pick your business location
- Your business location will dictate the type of customer you attract, what types of
promotions you can run, and how long it will take you to grow. While a great location
won’t necessarily guarantee your success, a bad location can contribute to failure.
If you have your plan up to date, you can set up monthly review meetings to go over the
numbers, your strategy and develop forecasts for the next month, quarter, and year. This is
a simple way to keep track of performance and actively make decisions based on actual
results.
Differentiate the different forms of business ownership and their
advantages and disadvantages
Department of Trade and Industry (DTI) – This is the government agency where single
proprietorship enterprises register and secure its certificate of registration.
Securities and Exchange Commission (SEC) – This is the government agency
responsible for the registration and supervision of all corporations and partnerships
organized in the Philippines. Licensing of representative offices and branch offices is
likewise under this agency
Bureau of Internal Revenue (BIR) – This is the government agency mandated by the law
to assess and collect all national internal revenue taxes, fees, and all charges. All types of
business entities are required to be registered here.
Department of Labor and Employment (DOLE) – DOLE promotes gainful employment
opportunities, protects workers, and promotes their welfare, develop human resources, and
maintain industrial peace. DOLE likewise handles the issuance of Alien Employment Work
Permits (AEP).
Philippine Health Insurance Corporation (PhilHealth) – This is the government agency
which requires all employees to be registered. The National Health Insurance Program
under this aimed at providing health insurance coverage and ensure affordable health care
services for all the citizens of the Philippines.
Social Security System (SSS) – This is the government agency where employers and
employees are required to be registered. Funded through mandatory payroll contribution,
this is where citizens who are retired, currently unemployed or unemployable due to
disability are assisted.
Cooperative Development Authority (CDA) – This is the government agency which
accredits all types of cooperatives in the Philippines.
Home Development Mutual Fund (HDMF) – This is the government agency where
employees who are members of the Social Security System (SSS) are required to register.
Various Local Government Units – Where local government permits and licences
necessary for the operation of the business are secured.
Know the causes of business failures and its prevention
So how would a business owner know the various steps on how to avoid business failure?
Either by educating themselves on all of the necessary skills, simply hire experts in those
fields they are lacking skills in and/or outsource most of the work to seasoned
professionals.
2. Starting a business for the wrong reasons
If a business owner starts a company thinking it could be an avenue for easy money and
allow them to spend more time with their family, it’s safe to say that these considerations
are not the right reasons for starting a business.
The right reasons and motivations to get started on a business are being passionate
about the concept of your business, being unfazed by failure, getting along with all kinds
of people and thriving on independence.
3. Faulty business planning
Small businesses are known to fail simply because of their tendency to misfocus their
business plan, or not have a plan at all. Creating a business plan may seem like easy work,
but it must be able to cover all bases relevant to the business.
For businesses to thrive in the digital age, not having an online presence can be disastrous
—the business misses out on a huge potential market that could boost growth.
Creating and cultivating an online presence not only helps businesses connect with their
audiences, it also makes marketing and sales easier as it also boosts the authenticity of
the business.
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