Register Your Own Business Now!

     Have you been working as an employee almost half of your life? Or do you have all those great ideas for a business you've been dreaming of? Perhaps you've already saved up for your capital but don't know where to start? Well, here's a quick guide on how to start your own business here in the Philippines.

     After your days, weeks, months, or even years of brainstorming for your business, here comes the registration part. At first glance, the procedure might overwhelm you, but I swear it really isn't that complicated. Believe me, I've done it twice for my own businesses and I've guided other colleagues through it as well. Actually, the reason why I'm writing this is because I've promised a few friends that I'd send them the procedure and this seems the easiest way to do it. Who knows, I might help others who need this as well, right? Talk about hitting two birds with one stone.

     First, I'll give you an overview of what you'll need to secure your business registration, then we'll go through them in detail:

• Registered business name
• Barangay Business Clearance
• Business Permit from Mayor's Office
• Certificate of Registration from BIR

1. Business Name Registration

     Since the business name will represent your enterprise, it is important to give time to think about this one, perhaps something that would be unique enough to stand out but wouldn't be misleading in any way. Here are the things you'll be doing:

   A. For Sole Proprietorship

      Check online if the business name you wish to register is still available then proceed.
      Click here to check the DTI Business Name Registry

      Aa. Manual Application

        The following must be submitted to appropriate DTI field office:

       • Registration fee depending  on the scope of business

         (Barangay ₱200, City/Municipality ₱500, Regional ₱1000,

         or National ₱2000)

       • 2 copies of 2x2 recent pictures of owner

       • 3 alternative names aside from the preferred name

       • 3 pieces documentary stamps (costs ₱15 only)

       • Accomplished Application Form 16A

      ◘ After evaluation of the application form and documents,

         you would be advised accordingly regarding the issuance

         of your DTI Certificate of Registration

*Manual DTI registration might take a few hours depending

  on the capacity and work load of the DTI field office

*Online DTI registration just takes a few minutes depending

  on the speed of internet connection and status of your payment

*DTI registration would cost ₱215 to ₱2015 only
*The issued certificate would be valid for 5 years

      Ab. Online Application

        Click here to register your business name online

       • The application would automatically proceed if your preferred
          business name is still available.

       • Upon completely filling out the application form online,

          you may pay for it either via Globe Gcash or Bancnet

       • After payment, you shall receive an e-mail with a link

         containing your DTI Certificate of Registration

         where you can download and print it.

   B. For Partnership or Corporation
      For this one, I'll just give you the free downloadable and printable copy
      from the Securities and Exchange Commision, A Citizen's Manual
      for the Registration of Corporations and Partnerships
      Click here to download the file
     * Filing fee would be 1/5 of 1% of the authorized capital stock
     * You may check out the SEC i-Register for an easy, step-by-step
        procedure of accomplishing requirements from SEC from the
        convenience of your desktop/laptop.
        Click here to register via SEC i-Register
     ◘ Upon obtaining the required documents from SEC,
         you may proceed to DTI registration, which would be identical
         to the DTI registration of a Sole Proprietorship business
        * This would cost roughly ₱500 and would be valid for 5 years

2. Barangay Business Clearance

     Once you have your DTI Certificate of Registration, you shall now head to the Barangay Hall where your place of business is located. Aside from the DTI Certificate of Registration, you'll also need a Community Tax Certificate. Some Barangay Halls shall give this to you for a minimal fee ranging from ₱100 to ₱1500 depending on your location. Other Barangays run out of CTC, hence they would require you to obtain this from the City Hall. Once you've provided your DTI Certificate of Registration and Community Tax Certificate to the Barangay, they may now proceed on giving you the Barangay Business Clearance. Some Barangays would require an ocular inspection of the place of business but most often. they do not. This clearance is not given for free though. It would cost you ₱100 to ₱1500 as well, depending on the fee they designated.

3. Business Permit from Mayor's Office

     The Mayor's Permit would be the next thing to obtain on business registration process. Application would be filed at the One-Stop Shop of the City/Municipal hall where your place of business is located. Here, you'll need the following:

      • Duly accomplished application form for business permit

      • Contract of lease (if renting/leasing)

      • Tax Declaration (if you own the place)

      • Barangay Business Clearance

      • Community Tax Certificate

      • SEC / DTI Certificate of Registration

      • Other clearance required throughout registration

    The Business Permit and Licensing Office often recommend people to register their business during the first few months of a calendar year. It is during these months that you may process your Mayor's Permit quite easily since the One-Stop Shop is often fully equipped during this season, meaning all the other clearances would be provided to you in just one day. Other clearance required throughout registration includes, but are not limited to the following:

     ◘ Building Permit

     ◘ Electrical Inspection Certificate

     ◘ Fire Safety Inspection Certificate

     ◘ Sanitary Permit

     ◘ Locational Clearance among others...

     If you file your application during the mid-year or end months of the calendar year, you might need to go to each respective offices to obtain these papers. It is more tedious as compared to applying in the first few months of the year, where all offices have their own representative at the One-Stop Shop. Each paperwork would cost you a minimal fee depending on your location as well. The fee for issuance of Mayor's Permit would depend on your stated initial capital. After complying with all the requirements, your Mayor's Permit would be issued within 1 day to 1 week upon registration.

2. Certificate of Registration from BIR

     Here comes the last part. Head to the designated Revenue District Office as soon as possible. (Click here to check the RDO) If you have obtained your Mayor's Permit, you have one month to comply with the requirements from BIR. If you fail to register your business to them on time, you'll have to pay a late filing fee of ₱1000. Whether you have an existing Tax Identification Number (TIN) or not, you'll have to fill out specific BIR forms to complete your registration. Aside from your Application for Registration, you'll also need the following:

     • SEC / DTI Certificate of Registration

     • Mayor's Permit

     • Contract of Lease (if renting/leasing)

     • Tax Declaration (if you own the place)

     • BIR Form 0605 - Registration Fee (₱500)

     • BIR Form 2000 Documentary Stamp Tax (for Corporation)

     • Books of account (from office supply store, costs less than ₱300)

     You may also check the BIR website for TIN Application etc...

     Click here to head to the BIR website

     Upon complying with the requirements aforementioned, the RDO will issue your Certificate of Registration which shall be valid through the duration of your business. You will just have to pay the annual registration fee worth ₱500. This procedure takes only a few hours depending on the capacity to accommodate and work load at your respective RDO. Your books of account shall also be stamped to be considered registered. Never use unregistered books of accounts which may cause you to incur certain penalties from BIR. You shall also be issued an Authority to Print (ATP) receipts for your business. Some RDO are able to issue ATP within 3 days, but some could take up to 14 working days. Upon receiving your ATP, you shall then take this to a BIR Accredited Printer (Click here to check for BIR Accredited Printers in your area, Updated Feb.2017). You shall coordinate with them to have your receipts/invoices printed out. You may start business operations once your receipts have been delivered. Never operate your business without your receipts. Doing so would also cause you to incur penalties from BIR. Before operating your business, your RDO would also require you to attend BIR Tax Briefing. This is a small seminar-type meeting with a BIR officer that would explain everything you'll need to know in filling out your receipts, invoices, books of account, and schedule of tax filing. You shall attend the scheduled tax briefing together with other new business owners. You should take this opportunity to ask every question you have in mind regarding taxation.

     For now, I'll leave you with this information because these are the most essential part of business registration. Other additional information, tips, and more would be posted soon. Links of articles related to this topic shall be posted at the bottom of this post. You may check here regularly for updates or send us a message through our Facebook Page to get updates on what your need to know. You may also send us your requests for certain information, data, or whatever pops up into your mind. Have a great day! ♥