Starting a business is a rewarding, fulfilling and exciting journey yet can be daunting and challenging. But what matters most is you take the step necessary in order to make your business successful. I guarantee you that you are on the right path since you’re here for one reason: To know how to start your business and how to register your business in the Philippines. It can be time consuming to register your business and go back-and-forth to government offices, but you came to the right place. This article will help you guide to what requirements you need per government office to prepare and the step-by-step process of registering your business in the Philippines. But first, before going to DTI, let’s first discuss why business registration is important.
Why is it important to register your business in the Philippines
Getting your business registered to official government offices in the Philippines makes your business legit and credible. When your business is registered legally, your business becomes a credible entity. This provides trust and confidence and makes it easier to do business with customers, investors, and suppliers.
Another reason to register your business is due to government and tax compliance. Registering your business in the Philippines ensures that your business is fully compliant with government regulations and avoids legal penalties and fines. When your business is duly registered, it allows opportunities for your business to get loans, grants, and tax incentives that will help you grow your business.
Lastly, another important reason why you should register your business is to protect your brand. This allows you to take full ownership of your business name, brand, logos, which prevents you from trademark infringement and other forms of intellectual property theft.
Your Business’ Legal Structure
Before you go further to any government offices for your business registration, you should consider what type of business proprietorship would best fit your business.
- Sole proprietorship
A sole proprietorship business is owned and operated by one person with no legal distinction between the owner and business. Which means the owner is personally liable for all debts and obligations of the business.
- One-person Corporation
A one-person corporation is a type of business with only one shareholder who is also the sole director and officer of the corporation. The shareholder is not personally liable for the corporation’s debts and obligations.
- Domestic corporation
A domestic corporation is a business that is registered and operates within the same state or country where it was incorporated. The business is subjected to the laws and regulations of that state or country.
- Foreign Corporation
Opposite of domestic corporation, a foreign corporation is a business that is registered and operates in a state or country other than where it was incorporated. The business is subjected to the laws and regulations of both its home state/country and the state/country where it is doing business.
- Licensed Professional
A licensed professional person who holds a professional license to provide services in a specific field, such as medicine, law, accounting, or engineering.
- General Partnership
A general partnership business structure is where two or more individuals own and operate the business together, sharing profits and losses equally. Each partner is personally liable for the partnership’s debts and obligations.
- Freelancer
A freelancer is a self-employed individual who offers services to clients on a project or contract basis, rather than being an employee of a company.
Do you want to skip all the hassle of Business Registration in the Philippines?
If you’re too busy and you think going through all the steps of business registration is quite a hassle, then going for a business registration service can be the solution for you. Instead of going through all the stress of business registration, you can save time and energy when you get someone to do all of your business registration requirements, documents, and all the necessary steps for business registration in the Philippines. You can select from all types of business registration such as Sole Proprietorship, One-person Corporation, Domestic Corporation, Foreign Corporation, Licensed Professional, General Partnership or Freelancer business registration.
Requirements you need to prepare for Business Registration in the Philippines
Before going out to go to government offices to register your business, prepare these business registration requirements first. Here are some of the documents and requirements you need:
Barangay Business Clearance
- Two valid IDs (Postal ID, PWD ID, Driver’s License, Passport)
- Proof of Address: Contract of Lease (rented home address) or Certificate of Land Title (owned home address)
- Certificate of registration from DTI
Mayor’s Permit / Business Permit
- Two valid IDs
- Proof of Address. (if the home address is rented) or Certificate of Land Title (if owned)
- Certificate of registration from DTI
- Barangay Business Clearance
Bureau of Internal Revenue (BIR)
- DTI Certificate of Registration
- Barangay Business Clearance
- Mayor’s Permit
- Certificate of Lease (if the home address is rented) or Certificate of Land Title (if owned)
- Government-issued identification (Passport, Driver’s License, Birth Certificate, etc.
A Step by Step Guide to Business Registration in the Philippines
DTI Registration Steps
- Choose a business name
Your business name is your brand name. It’s up to you on how you would design your business name. It can be witty, it can be a single word, it can be a statement, it could be anything.
- Check your business name availability
As long as your chosen business name is not yet registered or owned by another business, then your next step is to register your business name under DTI. You can check and confirm the availability of your business name on DTI’s website.
- Register your business name under DTI
After checking your business name availability and it is available for you to use, you can proceed in filling up DTI’s online registration form through their Business Name Registration System (BNRS). You can access the online form here. After you’ve accomplished the registration form, you will given a reference number or code that you will use as transat
- Pay the registration fee
After you’ve accomplished the online registration form, go ahead and pay the necessary fees for your business name registration. You will have to pay the registration within 7 calendar days upon the completion of the online form. You can pay via GCash, PayMaya, or through debit/credit card.
Get a Barangay Business Clearance
Requirements you need for Barangay Business Clearance:
- Two valid IDs (Postal ID, PWD ID, Driver’s License, Passport)
- Proof of Address: Contract of Lease (rented home address) or Certificate of Land Title (owned home address)
- Certificate of registration from DTI
After you’ve compiled all the requirements and documents needed, go to the barangay where your business is located. For example, if your business is operating and located at Makati City, Poblacion, you will need to go to the Barangay hall of Poblacion, Makati.
Once arrived, fill up the application form and submit it together with the documents to claim your barangay business clearance which you will need later on.
Get a Mayor’s Permit / Business Permit
Requirements you need for a Mayor’s Permit / Business Permit
- Two valid IDs
- Proof of Address. Contract of Lease (if the home address is rented) or Certificate of Land Title (if owned)
- Certificate of registration from DTI
- Barangay Business Clearance
After you’ve compiled all the requirements and documents needed, go to the barangay where your business is located. For example, if your business is operating and located in Makati City you will have to go to the Municipal hall of Makati City.
Once arrived, fill up the application form, and submit together with the documents to claim your Mayor’s Permit / Business Permit which you will need later on.
Register your business with the Bureau of Internal Revenue (BIR)
- Requirements needed before you go to the Bureau of Internal Revenue (BIR)
- DTI Certificate of Registration
- Barangay Business Clearance
- Mayor’s Permit
- Certificate of Lease (if the home address is rented) or Certificate of Land Title (if owned)
- Government-issued identification (Passport, Driver’s License, Birth Certificate, etc.
- Fill up and submit 3 copies of BIR Form 1901. You can download the file here.
- Go to your respective RDO (where your business is located and has jurisdiction over the business) Check out the list of RDO Codes in the Philippines here.
- Pay the registration fee of ₱500 and ₱30 for Proof of Payment of Annual Registration Fee (ARF) You can pay the registration fee through accredited banks and you’ll be provided with a BIR payment form. After that, submit your BIR forms and a photocopy of your payments to your nearest RDO.
- Once you’ve accomplished the payment for the registration fee, you can claim your Certificate of Registration (COR). Not all but some RDO might require you to attend a seminar on filing taxes and compliance before you can claim your COR. Once you’ve claimed your COR, make sure that you’ll receive the “Ask for Receipt” sign which you’ll be needing to post up on the walls of your business establishment.
- After you get your Certificate of Registration, you have to purchase and register your book of accounts. A book of accounts is where you keep all of the original receipts and transactions of your business. You can purchase your book of accounts at any bookstore, stationary shops, or office supplies stores. You can register your book of accounts by filling up and submitting the BIR Form 1095 together with your book of accounts at the nearest RDO of your business.
There are three types of book of accounts you can get:
- Manual Books of Accounts (handwritten records of transactions)
- Journals
- Ledgers
- Column Ledger
- Loose-leaf Book of Accounts (printed records of transactions)
- Documents for Spreadsheets
- Documents for Microsoft Excel
- Etc.
- Computerized Books of Account: A program system for bookkeeping for businesses with complex operations.
- Acquire an Authority to Print (ATP). An ATP serves as an authority for your business to print receipts and invoices for your customers and clients. BIR requires businesses to have ATP receipts. In order to secure an Authority to Print (ATP) you would need to fill up and submit 3 copies of BIR Form 1906 together with a final & clear sample of principal and supplementary receipts/invoices and a copy of your COR at your business’ RDO. It would approximately take a week for you to get an ATP.
Now that you all have the steps in registering your business in the Philippines, it would be easier for you to collect all the required documents, know the places where to go and you can finally take the next step in opening your business in the Philippines. If you’re looking to put up your business online in the Philippines, a B2B eCommerce Marketplace platform in the Philippines, Shoppable Business can help you to take further steps for your business. Shoppable Business can provide you with the right tools in setting up your business online.
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