Business permits are one of the most important documents for any business. These papers signify a business’s compliance with local laws and regulations. Any business of any size should have these documents ready before operation. It holds the business accountable for any transactions or services they make. Therefore, a business cannot operate without a permit.
Fortunately, local governments try to bridge the gap between efficient and effective processing. If you run a business for the first time, you should follow the requirements. The processing time will vary, but it ensures your business is registered. Once you gain the permits, your business will operate within the boundaries of the law. Check out more of these advantages of processing your business permit here!
What Is A Business Permit/License
Before we go into why having a business licence or permit is important, we have to dive into what it is, to be exact. Basically, a business permit, or in other words, a business license, refers to the necessary permits issued by government agencies that allow a business to run within a particular authority. Furthermore, it is an additional requirement of a business to operate other than its registration – it also allows the business to run at the level of the state.
What dictates the licenses you need to get for your business are the kind of business activity you do and the location of your business and company.
There are also other elements that decide the type of license you need to get. Minor details might also include the sole owner or if the business owner is a corporation, and the number of employees. Government agencies have the power to shut down and fine a business operating without the necessary business permits and licenses; they may also hesitate in giving permits to owners who have been involved in any criminal case.
Entrepreneurs who have had skeevy brushes with the law can get robust legal representation from reliable criminal lawyers in town.
Why Do You Need a Business License?
Business permits and licenses keep companies accountable for their behavior and actions. Moreover, they regulate the health and safety of the public – in particular, those who obtain the services and products of the business.
Monitoring Finances For Taxes
When your business has a permit, you are responsible for the taxes you pay. All businesses pay taxes every year, depending on the tax season. In the Philippines, all business permit processing requires annual renewals every January. Taxes should also be paid during this time, but the lines may be too long. However, this is a mandatory requirement for all businesses. Businesses are responsible for paying their taxes since they have the permit to operate.
Recognition From The Local Government
Once you get the permit from the local government, your business is in their records. This means that your business can get government benefits or insurance in case of an unexpected event. Keep in mind that you may need to submit additional information to get these benefits.
The local government is strict regarding the permits they distribute. They will not entertain any questions if your business is not in their system. Therefore, you should follow their instructions. You can ask questions from government officials about the permits you are applying for.
Ensuring Public Safety and Compliance
Owning a business permit ensures that you meet the local government’s standards. Along with the permit, you are also entitled to additional papers such as fire safety, sanitary, and barangay clearance.
The more permits you own, the more your business becomes more legitimate. This makes the business trustworthy in the long run. Furthermore, you comply with the law about the permits you have.
Entitled For Operation
Business permits are the most important document to own for operation. Even if you own the secondary documents to run the business, your business still needs the permit. You might get penalized for running the business without one.
It is also important to renew your business permit every year. While it can last a long day at the government office, you have to ensure that you do it in compliance with the law. With your business in place, your business has the potential to greatly improve, help, and empower the town’s economy. It also gives you and your business more power and credibility.
Ergo, you need to put the good work with your business permit. It will ensure that your business will be able to legally operate and do the mission you set to do with your business.
Processing your business permit allows you to operate your business without any hassle. You follow the instructions as mandated by the local government and follow the rules and regulations. Sometimes, you might need secondary papers along with the permit.
Doing this complies with the law, and the local government can recognize your business. Ultimately, your business has to comply with the standards set by your government.
Angelo Castelda works as a contributor for a news magazine in Asia. He loves to learn and understand diverse cultures and aims to share through his writing his experiences around the world.