3-Point Guide on How to Register Your Business in the Philippines
While thinking about that business you want to put up, have you also wondered about the steps how to register your business in the Philippines? To register your business with pertinent Philippine government agencies is the same as taking the route to legitimizing your business existence. Business name registration grants you license to operate, which thereby in effect, gives your customers the trust and confidence in pursuing business transactions with you. Accomplishing your business registration puts you at far advantage versus "non-legal, fly-by-night" operators, who can easily scamper away with client's money and vanish simply because their existences aren't publicly registered.
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| Make business legit with proper business registration. Photo courtesy of PourquoiPas via Pixabay |
There lies three forms of business existence:
single proprietorship, partnership and corporation. Among them, single proprietorship is the simplest form and most
straight-forward to register, with the process starting off with the
Department of Trade & Industry (DTI). And indeed true to
the saying that big surprises come from small packages, most start-up
businesses in the Philippines begin as small and medium enterprises
(SMEs) before they flourish to become major business players.
According to Philstar.com business article, DTI data showed that SMEs comprised 99.6% of the total 820,255 registered businesses that operated in the country. More significantly however, Go Negosyo pointed out that 70% of SMEs in the Philippines are started by female entrepreneurs. This strongly indicates most women's unceasing desire to remain economically active from their homes despite responsibilities for child-rearing and household management. It also undeniably suggests women's significant contribution in nation-building despite functioning from the grassroots level. And so, our hats off definitely go to all Entrepinays out there!
And to other still aspiring Entrepinays, below is a simple 3-point guide to remember on how to register your future business. Additional requirements from other government agencies may follow depending on the nature of your business but once you hurdled through the major government offices below, accomplishing the rest will just come at a breeze!
According to Philstar.com business article, DTI data showed that SMEs comprised 99.6% of the total 820,255 registered businesses that operated in the country. More significantly however, Go Negosyo pointed out that 70% of SMEs in the Philippines are started by female entrepreneurs. This strongly indicates most women's unceasing desire to remain economically active from their homes despite responsibilities for child-rearing and household management. It also undeniably suggests women's significant contribution in nation-building despite functioning from the grassroots level. And so, our hats off definitely go to all Entrepinays out there!
And to other still aspiring Entrepinays, below is a simple 3-point guide to remember on how to register your future business. Additional requirements from other government agencies may follow depending on the nature of your business but once you hurdled through the major government offices below, accomplishing the rest will just come at a breeze!
1. Get Business Name at DTI.
Of course, everything starts first with a name. When thinking of a business name, you may want to have something short, unique, and related to your business' line of activity for easier customer recall. Remember to come up with at least 3 name options since you wouldn't want to be held up at DTI for hours thinking of name replacements in case there already exists something similar to your first choice.
Several DTI satellite offices now offer business name registration so this wouldn't be much of a hassle. The process is also quite simple as it just requires filling up the application form, lining up for name encoding, and finally, payment. You may check out DTI'S website for more updated guidelines on business name registration.
Of course, everything starts first with a name. When thinking of a business name, you may want to have something short, unique, and related to your business' line of activity for easier customer recall. Remember to come up with at least 3 name options since you wouldn't want to be held up at DTI for hours thinking of name replacements in case there already exists something similar to your first choice.
Several DTI satellite offices now offer business name registration so this wouldn't be much of a hassle. The process is also quite simple as it just requires filling up the application form, lining up for name encoding, and finally, payment. You may check out DTI'S website for more updated guidelines on business name registration.
2. Accomplish Mayor's Business Permit.
Once done with DTI business name registration, you now return to the place where you intend to operate your business for the Mayor's Permit. You may check out the Business Permits and Licensing Office at your local City Hall for the Application Form which also lists several requirements you need to first comply with such as the following:
- Homeowners' Village Permit
- Barangay Clearance
- Zoning Clearance
- Sanitary Permit
- Engineering Clearance
- Fire Permit
- Environmental Seminar
- Residence Certificate
3. Register Tax Identification Number (TIN) with Bureau of Internal Revenue (BIR) for Certificate of Registration.
When finished with Step 2, you're down to the last major requirement at the BIR prior to formal business operation. For SMEs, this step is also done at the local BIR Regional District Office (RDO) in the same municipality where you secured your Mayor's Permit. The entire procedure of securing the requirements listed below is quite lengthy similar to Step 2. But don't worry, you will be guided by the BIR staff in case you missed out on something.
- BIR Form
1901 or Application for Registration for Self Employed and Mixed Income
Individuals Estates/Trusts together with DTI Certificate of
Registered Business Name, Mayor's Business Permit, Marriage Certificate,
Birth Certificate of Dependents, etc. Other requirements that
may be asked of you depend on nature of business (i.e. with branch
offices, franchising, etc.).
- BIR Form
605 for Payment of Annual Registration Fee
- BIR
Form 1906 for Authority to Print Receipts
- BIR Form 1905 for Book of Accounts
- Attendance in Taxpayer's Seminar
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