Posted on June 28th, 2009
A business can be owned by a single person called single proprietorship. This type of business is registered to the Department of Trade and Industry (DTI) which will issue the certificate of registration (COR). On the other hand, if a business is own not only by a single person rather by two or more person, it is called partnership or a company. If the business is a partnership, the right agency to register your business is the Securities and Exchange Commission (SEC). Registered partnership will be issued the certification of registration by this agency.
Before applying for the COR, the partnership must ensure that the necessary requirements for the COR are prepared. The requirements needed for COR are:
â€¢ Name Verification Slip- this would verify the name of your partnership
â€¢ Articles of partnership- this is the agreement between the concerned parties who are establishing the business. Usually, the sharing of capital and profits as well as the losses are indicated in the articles of partnership.
â€¢ If the article of partnership does not include provisions on the changing of partnership name, an affidavit from a partner agreeing to change the name of partnership is needed.
The requirements above are the basic requirements necessary in acquiring COR. But additional requirements will be needed for some instances like if the partnership involves a foreigner as one of the partner. In these cases, the additional requirements are:
â€¢ If applicable, government agenciesâ€™ endorsement/clearance
â€¢ SEC Form No. F-105 necessary for partnership involving foreign partners
â€¢ Certification from bank stating the capital contributions of the partners
â€¢ Aside from SEC Form No. F-105, a proof of remittance is required if the foreign partner wants to register their investment with the Bangko Sentral ng Pilipinas (BSP).
The word â€œLimitedâ€ or â€œLtdâ€ must be added to the partnership name if it is a limited partnership. For limited partnership, its articles of partnership are not acknowledged before a notary public; rather it should only be under oath.