Setting Up a Small Business in Davao City Successfully with a CPA
As the third largest and most urbanized metro in the Philippines, Davao definitely is a promising setting for budding businessmen. It is highly noticeable that the city is emerging globally due to its recent infrastructural developments along with its slight societal change. With this, a large number of local entrepreneurs are encouraged to venture out and participate in improving their livelihood as well as the city’s economic status.
But keep in mind that doing business is never a one-man show. Behind the success of most local businesses are the knowledge and efforts of Certified Public Accountants (CPA) based in Davao. Several other factors follow through. It doesn’t necessarily mean that starting a small business frees you from the big obligations of government taxes and accounting. Whether you’re just setting off after the gun fire or already reaping the fruits of those long years of hard labor, poor accounting and bookkeeping performances can come back to bite you after the long haul. And while Davao CPAs are there to assist, you need to also arm yourself with necessary knowledge to prove that you are still the boss of your business.
Here’s a list of information you will gain after reading through.
- Reasons why you should invest in Davao City
- Steps for starting a small business in Davao City
- Why you need a CPA for your small business in Davao City
Why Invest in Davao City?
These are the four major reasons among many other reasons why investing in Davao City is a breeze:
- Accessibility – Davao is strategically located in Southeastern Philippines which offers convenient linkages via air, land, and water to major economic points within and outside the country.
- Mindanao’s Regional Center – The city is the center for education and financial institutions and serves as home to most government and private agencies, making it the de facto capital of the Mindanao Island.
- Ideal Weather – with just the right amount of the rain and shine seasons, businesses find it more convenient to invest in a city with lesser possibilities of being hit by a typhoon or other natural calamities that may delay, even stop (as a worst case scenario) their whole business processes.
Peaceful Environment and Friendly People – contrary to the common notion of Mindanao being a highly threatened area of vigilant and rebels, Davawenyos are living within a peaceful community thanks to its responsive government. Further, when doing a business, it’s best to do it with a mob of friendly co-workers/employees and customers.
17 Steps for Starting a Small Business in Davao City
Before working the papers and legally start up your business, there are several questions that you need to ask yourself when choosing the right small business where you are able to get the most profit without wearing yourself too much:
- How much will I be willing to spend as my start-up money?
- What are the things or activities that I’m most passionate about?
- What are the product/service trends in the market today?
- How much of the population will probably avail of my products/services?
- Are there people or entities willing to support this business endeavor (family friends, trust funds, etc.)?
After weighing and listing down all small business type possibilities (foodhouse, internet café, bookstore, crafts, etc.), it is best to get the opinions of other people, business-related or not, and not just your own in order to narrow down the ups and downs of each choice. If you have time, make an effort to do a survey of what people think about your business idea and they might just give you one brilliant idea that could skyrocket your business career in no time.
After finalizing the type of business you should engage with, it’s now time to take some legal actions. From Entrepreneur Philippines, here are the 17 steps for starting up a small business in Davao successfully, meaning, without the worries of being under the eagle-eye observation of the Bureau of Internal Revenue (BIR):
STEP 1: Verify and reserve your business name at the Securities and Exchange Commission (SEC).
STEP 2: Deposit paid-up capital in the authorized agent bank (AAB).
STEP 3: Notarize articles of incorporation and treasurer’s affidavit.
STEP 4: Register the company with the SEC. You can register online via SEC i-register but when paying, you need to be physically present.
STEP 5: Pay the annual community tax and obtain the community tax certificate (CTC).
STEP 6: Obtain barangay clearance.
STEP 7: Obtain print-out of the encoded business permit application form from the Business Bureau–Permits and License Division (BBPLD).
STEP 8: Notarize the encoded business permit application form at the City Legal Office.
STEP 9: Obtain the Temporary Authority to Operate (TAO) and Compliance Form from the BBPLD.
STEP 10: Buy special books of account from any bookstore.
STEP 11: Apply for Certificate of Registration (COR) and Taxpayer Identification Number (TIN) at the BIR.
STEP 12: Pay the registration fee and documentary stamp taxes (DST) at the AAB.
STEP 13: Obtain the authority to print receipts and invoices from the BIR.
STEP 14: Print receipts and invoices at the print shops.
STEP 15: Have books of accounts and Printer’s Certificate of Delivery (PCD) stamped by the BIR.
STEP 16: Register with the Social Security System (SSS).
STEP 17: Register with the Philippine Health Insurance Company (PhilHealth).
For specific requirements needed some of these steps, you may want to check out on BIR, SSS, SEC, and PhilHealth websites or offices.
Why You Need a CPA for Your Small Business in Davao City
Big or small, local businesses find their accounting responsibilities much lighter when they hire a competent and responsive Davao-based CPA. From licensing and tax planning services to financial analysis and audit support, hiring a CPA in Davao City for small business starters will secure the safety of your finances. Plus, they can even make such complicated list of steps stated above simpler and can even predict the future of your business.
They may charge higher than a regular accountant, but with your business in the skillful hands of a CPA, you surely get what you pay for.