Building a Business Empire with my Technological System

Chapter 54 Registering Business
Chapter 54 Registering Business

December 29th, 2023. Two days to go and it was a new year, and when the date struck 30 and 31, government offices would be closed due to holidays. Thus, Michael has to keep the pace. Now that he has filed a patent for his invention, it’s time for the second phase, which is registering his business with the Department of Trade and Industry. The office is located in Makati, a bustling business district known for its high-rise buildings and busy streets. Michael had done his research and knew exactly where he needed to go. Grabbing his documents, he hailed another Grab and set off early in the morning, hoping to avoid the rush hour traffic.

The streets of Makati were already bustling with activity as Michael arrived at the DTI office. He paid the taxi fare and exited the car, pausing to take in the sight of the DTI building. Unlike the modern, glass-paneled structures that dominated the business district skyline, the DTI office was more subdued in design. Its concrete façade, adorned with the Philippine flag, gave it a sense of formality and purpose.

At the reception, he was greeted by a friendly face. ”Good morning! How can I assist you today?” the receptionist asked.

”Good morning. I’m here to register my business,” Michael replied, presenting his documents and ID.

”Alright, you’ll need to fill out these forms,” the receptionist said, handing him a stack of paperwork. ”Once you’re done, take them to window 3 for processing.”

Michael found a spot in the waiting area and began filling out the forms. It was relatively straightforward, asking for details about his business, like the name, type, and scope of operation. He had settled on ’Reyes Renewable Energy Solutions’ as the name, reflecting both his identity and the mission of his venture.

After completing the paperwork, Michael joined the queue at window 3. The line was long. Despite him getting here early in the morning, there’s still a significant number of people ahead of him, each waiting their turn to talk to the DTI officer behind the counter. The air was filled with the murmur of voices and the occasional shuffle of feet as the queue inched forward. He noticed the diversity of applicants – some were like him, young entrepreneurs, while others were more seasoned businesspeople.

When it was finally his turn, Michael approached the counter and handed over his forms and ID to the officer, a middle-aged man with a no-nonsense look. The officer glanced through the paperwork efficiently.

”SolaraTech Innovations” he read aloud. ”Is this a sole proprietorship?”

Michael pondered for a moment. Since Michael has plans to have investors in his business, it might not remain a sole proprietorship. A sole proprietorship is a type of business entity that is owned and run by one individual and where there is no legal distinction between the owner and the business. The owner is entitled to all profits and is responsible for all the business’s debts, liabilities, and losses.

When investors come into play, it typically means that the business will have multiple owners and thus would likely need to be structured as a different type of entity to accommodate this, such as a partnership, a corporation, or a limited liability company (LLC). Each of these structures allows for multiple owners and has different implications for control, profit sharing, liability, and taxes.

”By-laws are the rules that govern the internal management of your corporation. You’ll need to draft them as well, but they don’t have to be filed with the Articles of Incorporation. You will, however, need to submit them within a month after receiving your certificate of incorporation from the SEC.”

”And the SEC registration?”

”The SEC registration is a separate but equally important step,” the DTI officer continued. ”After you’ve filed your Articles of Incorporation and they’ve been approved, you’ll need to register with the Securities and Exchange Commission. They handle the corporate aspect, making sure that your business is legally recognized as a corporation. You’ll be issued a certificate of incorporation, which is your corporate birth certificate, so to speak.”

”Alright,” Michael acknowledged, ”And what documents will I need for the SEC registration?”

”You’ll need your approved Articles of Incorporation, your by-laws, your company’s TIN number, and the proof of payment for the registration fee,” the officer listed. ”Also, prepare a cover letter stating your intention to register the corporation and any other documents the SEC might request based on your type of business.”

”Got it,” Michael said, his mind already planning the next steps. ”And is there anything else I should be aware of?”

”Just keep track of the deadlines, and make sure you comply with all the regulatory requirements. Also, after you’re registered, remember to keep up with your annual reports and financial statements,” the officer advised. ”Do you have any further questions?” ”Well, I do, since this is a complex and time-consuming process, is there a professional that offers services that you know, handle everything.”

”Yes, there are professionals known as corporate secretaries or incorporation services that can handle the entire registration process for you. They specialize in preparing and filing the necessary documents, ensuring compliance with all the legal requirements.”

”That sounds like it could save a lot of time and make sure everything’s done correctly,” Michael admitted. ”Could you recommend one?”

”That’s for you to figure it out as I don’t know anything,” the officer said.

”Ahh...okay, well thank you for being patient with me...sir Ernesto,” Michael said, remembering his name.

”No problem, now if there is nothing, you can step aside now.” Michael stepped aside, letting the one behind him come forward. ”Shit...I didn’t expect that registering your business would be this complicated.”