So, you’ve thought of an amazing idea for a business and you’re thinking of starting your own. Great! Welcome to the world of entrepreneurship. Perhaps it started out as a hobby or pastime that turned into something bigger, or there’s just a promising business opportunity to be seized. Whatever the case, you’re going to want to register your business to make sure you’re operating legally — clients and customers don’t want to be dealing with a shady company, after all.
Naturally, every business has certain requirements to be met. But for the first-time entrepreneur, knowing where to start can get overwhelming and confusing! Not to worry, as here’s a simple guide that will help you through registering your local business in the Philippines.
1. Register your business name
Before anything else, it’s important that you know what kind of company you are registering as. Do you own the business yourself, or do you have partners in this venture? For sole proprietorship, you are required to register your trade name with the Department of Trade and Industry (DTI).
For a more convenient process, you may now reserve your business name online. Simply log on DTI’s Enhanced Business Name Registration System, fill out the required information, and submit your application.
Meanwhile, partnerships (at least 2 persons) and corporations (at least 5 persons) are required to file their business name with the Securities and Exchange Commission (SEC). Like with the DTI, the SEC now has its own online registration system where you can reserve your business name online. Once done, head to the SEC office where you are required to present the Name Verification Slip, as well as the Articles of Partnership.
2. Register your business with the barangay
After securing your certificate of business registration from DTI or SEC, head to the barangay where your business is located to obtain an application form to formally register your business with the barangay. Fill out the application form and submit the furnished form together with the following requirements:
– Certificate of Business Registration (from DTI or SEC)
– Two (2) valid IDs
– Proof of address. This could be a Contract of Lease if you’re leasing out a property, or Certificate of Land Title, if you own the property where your business is located.
3. Secure a mayor’s permit
After registering your business with the barangay, it’s time to obtain a mayor’s permit. Securing that sought-after mayor’s permit takes more work and requires more documents, so it’s best to come in prepared. Register your business in the municipality or city where your business is located. Aside from your DTI or SEC registration papers (for SEC registration holders, you must bring your Articles of Incorporation as well), you are also required to submit various documents such as:
– Barangay clearance
– Community tax certificate
– Occupancy certificate
– Fire inspection certificate
– Building inspection certificate
– Electrical inspection certificate
– Sketch of business site
– Contract of Lease or Certificate of Land Title
– SSS registration for employers
4. Register your business in the Bureau of Internal Revenue (BIR)
Go to the Regional District Office (RDO) where your business is located, where you will be asked to fill out a BIR Form depending on the nature of your business (sole proprietorship, partnership, or corporation). Next, submit the completed registration form together with the following:
â–ª Certificate of Registration form DTI or SEC
â–ª Barangay Clearance
▪ Mayor’s Business Permit
â–ª Proof of Address such as Contract of Lease or Certificate of Land Title
â–ª Valid IDs
After paying for the registration form, you may now register your book of accounts and receipts, and claim your certificate of registration.
Aside from these essential steps, be mindful if your business requires registration with other agencies such as with the Department of Labor and Employment (DOLE), PhilHealth, Department of Environment and and Natural Resources (DENR) among others.
While registering your business may seem like a tedious and cumbersome task, it’s an important step for every entrepreneur and a fulfilling one, nonetheless, as you are now free to reap the fruits of your business fully. Best of luck!
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