Sole Proprietorship Business Registration – Philippines
A Sole Proprietorshop in the Philippines is also known as a “single proprietorship,”. A sole proprietorship is the most simple form of business and the easiest to register in the Philippines, through the Bureau of Trade Regulation and Consumer Protection (BTRCP) of the Department of Trade and Industry (DTI). It is owned by an individual who has full control or authority of its own and owns all the assets, as well as personally answers all liabilities or losses. The fact that it is run by the individual means that it is highly flexible in which the owner retains absolute control.
The downside of a Sole Proprietorship in the Philippines is that a sole proprietor has unlimited liability. Creditors may proceed not only against the assets and property of the business, but also after the personal properties of the owner. In other words, the law basically treats the business and the owner as one and the same. This uniform treatment also has important tax implications. Partnerships and corporations may lessen their tax liability through a number of business expenses and other tax avoidance methods. These tax deductions may not be applicable to a sole proprietorship. Also, the potential growth and reach of a sole proprietorship pale in comparison with that of a corporation.