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Legal Requirements for Starting a

Business in the Philippines

1. Sole proprietorship - register with the


Department of Trade (DTI)

2. Partnership -register with the Securities and


Exchange Commission (SEC)

3. Corporation - register with the SEC.


Where to Register a Sole Proprietor Business?
Here are the government agencies where you are required to register
your Sole Proprietor business.
1. Department of Trade and Industry
2. Local Government Units where your business is located:
o Barangay
o Mayor’s Office
3. Bureau of Internal Revenue
4. If you have employees, you need to register to the following:

o Social Security System


o Philippine Health Insurance Corporation
o Home Development Mutual Fund
1. Register a business name at Department of Trade and Industry
Come-up with three (3) business names such as
XYZ Trading
XYZ Retail and Trading
XYZ Trading Enterprises
Search in the DTI’s website if there’s an existing name similar to
yours
If your business name is available, fill-up Business Name (BN)
Application Form.
Submit your completed BN application form to DTI’s
offices/branch
Wait for your DTI Certificate of Registration
After acquiring a DTI Certificate of Registration, you may now
proceed and register to Local Government Units (LGU), such as
Barangay and Mayor’s Office:
2. Registration with Barangay
Go to the barangay where your business is located to
secure and fill-up application form
Submit your completed application form together with the
following:
o Certificate of Business Registration from DTI
o Two (2) valid IDs
o Proof of Address such as Contract of Lease (if rented)
or Certificate of Land Title (if owned)
Claim your Barangay Certificate of Business Registration
3. Register your business in the Mayor’s Office
Go to the municipal office where your business is
located to secure and fill-up application form
Submit your completed application form together
with the following:
Certificate of Business Registration from DTI
Barangay Clearance Certificate
Two (2) valid IDs
Proof of Address such as Contract of Lease (if
rented) or Certificate of Land Title (if owned)
Claim you Mayor’s Business Permit and Licenses
When you already got all the certificate and permits
from DTI and LGUs, you may now register to the
Bureau of Internal Revenue (BIR)
4. Register your business in the Bureau of Internal Revenue (BIR)
Go to the Regional District Office (RDO) where your business is
located
Fill-up the BIR Form 1901 – Application for Registration (for Sole
Proprietor)
Submit completed registration form together with the following:
 Certificate of Registration form DTI
 Barangay Clearance
 Mayor’s Business Permit
 Proof of Address such as Contract of Lease (if rented) or
Certificate of Land Title (if owned)
 Valid IDs, if applicable.
Pay the Registration Form (BIR Form 0605)
Register your book of accounts and receipts/invoices.
Claim your Certificate of Registration (BIR Form 2303)
Where to Register a Corporation?
Here are the government agencies where you are required to
register a Corporation in the Philippines:
1. Securities and Exchange Commission
2. Local Government Units where your business is located:
Barangay
Mayor’s Office
3. Bureau of Internal Revenue
4. If you have employees, you need to register to the following:
Social Security System
Philippine Health Insurance Corporation
Home Development Mutual Fund
1. Reserve and Register Your Business Name in Securities and Exchange Commission (SEC), as
follows:
 Check if your desired business name is available via SEC online website or at SEC
Office in Mandaluyong
 If available, register/reserve your business name via SEC online website or at SEC
Name Verification Unit – SEC Office in Mandaluyong
 Prepare, sign and notarize the following:
o Articles of Incorporation;
o By Laws
o Treasurer’s Affidavit; and
o Joint affidavit of two incorporators undertaking to change corporate name
immediately upon receipt of notice or directive from the Securities and Exchange
Commission that another corporation, partnership, or person has acquired a prior
right to the use of that name or that name has been declared misleading,
deceptive, confusingly similar to a registered name, or contrary to public morals,
good customs or public policy. (Not required if the Articles of Incorporation have a
provision on this commitment).
 Submit notarized documents to SEC Office in Mandaluyong City
 Claim your SEC Certificate of Registration
Processing Time: At least one (1) week upon submission of complete documents
2. Acquire Barangay Clearance
Once the corporation is registered with SEC the next step is to get a
barangay clearance in the barangay where your business is located.
Here are the basic steps
 Go to the barangay where your business is located to secure and
fill-up application form
 Submit your completed application form together with the
following:
o Certificate of Business Registration from SEC
o Two (2) valid IDs
o Proof of Address such as Contract of Lease (if rented) or
Certificate of Land Title (if owned)
Processing Time: 1 day upon submission of complete documents.
3. Acquire Business Permit from the Mayor’s Office
Once you have a Barangay Clearance Certificate, the next step is to
acquire a Business Permit in the municipality where your business is
located.
Here are the basic steps and requirements:
 Go to the municipal office where your business is located to secure and
fill-up application form
 Submit your completed application form together with the following:
o Certificate of Business Registration from SEC
o Barangay Clearance Certificate
o Two (2) valid IDs
o Proof of Address such as Contract of Lease (if rented) or Certificate of
Land Title (if owned)
Processing Time: At least one week upon submission of complete
documents. But It can take longer depending on the permit requirements
based on the industry.
3. Acquire Business Permit from the Mayor’s Office
Once you have a Barangay Clearance Certificate, the next step is to
acquire a Business Permit in the municipality where your business is
located.
Here are the basic steps and requirements:
 Go to the municipal office where your business is located to secure and
fill-up application form
 Submit your completed application form together with the following:
o Certificate of Business Registration from SEC
o Barangay Clearance Certificate
o Two (2) valid IDs
o Proof of Address such as Contract of Lease (if rented) or Certificate
of Land Title (if owned)
Processing Time: At least one week upon submission of complete
documents. But It can take longer depending on the permit requirements
based on the industry.
4. Register with the Bureau of Internal Revenue (BIR)
Once you have the Mayor’s Business Permit, you can now register with the BIR.

Here are the basic steps and requirements:


 Go to the Regional District Office (RDO) where your business is located
 Fill-up registration form as follows:
o BIR Form 1903 – Application for Registration (For Partnership/Corporation)
 Submit completed registration form together with the following:
o Certificate of Registration form SEC
o Barangay Clearance
o Business Permit From the Mayor’s Office
o Proof of Address such as Contract of Lease (if rented) or Certificate of Land
Title (if owned)
o Valid IDs, if applicable.
 Pay the Registration Form (BIR Form 0605) and Documentary Stamp Tax (BIR
Form 2000), if applicable.
 Register your book of accounts and receipts/invoices.
 Claim your Certificate of Registration (BIR Form 2303)

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