How to Register a Business in the Philippines — A Complete and Easy Business Registration Guide

A clear, confident path through DTI, SEC, LGU, and BIR — told like a real journey.

Starting a business in the Philippines always begins with the same feeling: excitement mixed with a little panic. You’ve got the idea. You’ve got the motivation. But then you hear words like DTI, SEC, Barangay Clearance, Mayor’s Permit, BIR, COR, and suddenly it feels like you’re climbing a mountain with paperwork in both hands.

This easy business registration guide changes that. Think of this as someone walking beside you — explaining why each step matters, what to expect, and how to avoid the common headaches that slow Filipino entrepreneurs down. By the end, you’ll understand exactly how to make your business official, compliant, and ready to grow.

Why an Easy Business Registration Guide Matters

When you first think about “registering a business,” it sounds like a formality. But in the Philippines, it’s actually the backbone of doing business legally:

• It protects your business name

• It gives you the right to operate in your city or municipality

• It allows you to issue official receipts (ORs)

• It opens the door to bank accounts, clients, and financing

• It keeps you safe from penalties and closure notices

The problem? Every new entrepreneur hits the same wall: different agencies, different requirements, different forms — and every office has its own process. Some allow online. Some don’t. Some RDOs accept GCash, others want you to pay at an AAB bank before 4 p.m. sharp.

This guide untangles all of it in a simple journey.

Step 1: Choosing Your Structure — Where Every Filipino Entrepreneur Starts

Before you can register anything, you need to know what kind of business you’re building.Not the idea — the legal structure.

Imagine standing at four different doors. Each one leads to a different type of business identity in the Philippines:

Door 1: Sole Proprietorship (DTI)

This is the “start lean and fast” door.

Most freelancers, online sellers, tutors, small shop owners, barbers, and home-based food businesses choose this. You register your business name with the Department of Trade and Industry (DTI), and that’s it — you and the business are legally one and the same.

Why people choose it: It’s fast, affordable, and simple.

Why some avoid it: You carry all the liabilities personally.

Door 2: Partnership (SEC)

Two or more people decide to build something together, and they want a formal structure.

Partnerships must register with the Securities and Exchange Commission (SEC), submit Articles of Partnership, and operate as one unit.

Why people choose it: Shared responsibilities, shared capital.

Why some avoid it: Shared liabilities.

Door 3: Corporation (SEC)

This is the heavyweight door.

A corporation is a separate legal person — it exists independently of its owners. In the Philippines, thanks to the Revised Corporation Code, you can even form a corporation with only two incorporators.

Why people choose it: Liability protection, credibility, access to bigger contracts, better structure for scaling.

Door 4: One Person Corporation (OPC)

The most misunderstood — and most exciting — door.

An OPC lets one person form a corporation without needing partners, while still enjoying limited liability.

Why people choose it: Perfect for solo professionals who want a corporate identity without needing partners.

Why it stands out: You get the prestige and protection of a corporation, without the complexity.

Business owner completing registration paperwork

Step 2: Registering Your Business Name — Claiming Your Identity

Once you choose your structure, you decide your business name. This is not just a label — it’s how customers will remember you.

For Sole Proprietors: DTI Business Name Registration

You head to DTI’s Business Name Registration System (BNRS).It’s online, it’s fast, and it gives your business identity for 5 years.

You choose your territorial scope:

• Barangay

• City

• Regional

• National

Once you pay and submit the details, you get your DTI certificate — your official identity as a sole proprietor.

For Corporations and Partnerships: SEC Registration

Here, you use SEC’s eSPARC system.

Instead of “business name,” you apply for a corporate name, draft your Articles of Incorporation or Partnership, and submit documents for approval. It’s more involved than DTI — but it gives you a stronger, more credible legal structure.

Step 3: The LGU Requirements — Barangay Clearance & Mayor’s Permit

This is the part many new entrepreneurs underestimate.

DTI or SEC gives your business a name.But the LGU gives you the right to operate in your location.

The journey looks like this:

1. Barangay Clearance

You visit the barangay where your business will operate.You bring your DTI or SEC certificates, IDs, proof of address, and fill out their form.

This clearance is your “go-signal” from the barangay.

2. Mayor’s Permit / Business Permit

This is done at the city or municipal hall.

Depending on your location and line of business, they may ask for:

• Barangay Clearance

• Lease contract or proof of occupancy

• Fire Safety Inspection

• Sanitary permit

• Occupancy permit

• Other industry-specific clearances

Once approved, the LGU issues:

• Your Mayor’s Permit

• Business plate

• Stickers (depending on city)

• Official fee receipt

Note: This is renewed every January.

Step 4: Registering with the BIR — The Heart of Compliance

If LGU lets you operate, BIR gives you the right to issue receipts and legally earn income.

This is the part where most Filipinos get confused — because requirements differ by:

• RDO

• Business type

• Whether you’re a sole prop or corporation

• Whether you’re VAT, non-VAT, or percentage tax

But here’s the universal truth: You are not legally allowed to operate, earn income, or charge clients until you complete BIR registration.

Your BIR journey includes:

1. TIN Registration (if you don’t have one)

Sole proprietor → BIR Form 1901Corporation/Partnership → Form 1903

2. Certificate of Registration (COR) — BIR Form 2303

This is the document every legitimate business must display.It lists the taxes you are required to file:

• Income tax

• Percentage tax or VAT

• Withholding taxes

• Registration fee

• Books of accounts

3. Register Books of Accounts

You choose one of the following:

• Manual

• Loose-leaf

• Computerized accounting system (subject to BIR approval)

4. Official Receipts / Sales Invoices

You either:

• Apply for an Authority to Print (ATP), or

• Use BIR-accredited system-generated receipts

Until you have ORs/SIs, you cannot charge clients legally.

Step 5: Operating with Compliance — The Part No One Warns You About

Once your business is fully registered, the work shifts into maintaining compliance.

Filipino entrepreneurs often get into trouble because they don’t know the rhythm of reporting:

Every Month or Quarter

• File percentage tax (2551Q) or VAT (2550M/Q)

• File withholding taxes (1601-EQ, 1601-FQ, etc.)

Every Year

• File income tax return (1701 for sole prop, 1702 for corps)

• Renew Mayor’s Permit in January

• Pay Annual BIR Registration Fee (0605)

• Submit financial statements

If you hire employees, you add SSS, PhilHealth, and Pag-IBIG reporting.

This is where most businesses fall behind — and where experts save you from penalties.

Step 6: Seeing the Bigger Picture — Registration as a Launchpad

By the time you finish DTI/SEC, LGU, and BIR, something changes:

You’re no longer “trying out a business.”You’re now a legitimate entrepreneur.

And that legitimacy unlocks:

• Bank loans

• Corporate clients

• Contracts with suppliers

• Ability to hire legally

• Investor confidence

• Government incentives for MSMEs

Compliance is not the enemy — it's the foundation that lets you grow without fear.

Consultant assisting with business registration paperwork

Your Partner in Making Registration Simple

Business owners constantly tell me the same thing: “I can run the business… I just don’t want the compliance headache.” That's where firms like BridgePoint Advisors come in. We simplify all of it — the registration, the permits, the BIR filings, the cleanup, the bookkeeping, the taxes — so you can focus on growth.

Starting a business should feel empowering, not overwhelming. With the right guidance and help, it truly is. If you’re ready to register your business the easy way — the Philippine way — you’re already halfway there.