Registering a home-based business

Example: a home bakeshop, from kitchen to legal

Example: you bake ensaymada and sell them online and to neighbours from your family's house in a subdivision in Imus, Cavite. The house belongs to your mother. Here is what that means for your paperwork, using the City of Imus checklist (July 2025) as the city example.

Imus requires proof of the applicant's right to use the location as business address for every new permit. Because you neither own nor rent the house, you need a notarized memorandum of agreement or the notarized written consent of the property owner. If your mother were only one of several owners on the title, the other owners would sign a notarized consent too. And because the house is inside a residential subdivision, Imus asks for a homeowners' association resolution.^[1]

Because you sell food, you also need a sanitary permit from the local health office and a health certificate for yourself and any helper. PD 856 covers any establishment where food is made or sold to the public, and a home kitchen that sells is one.^[6]

The registration steps do not change

Working from home does not skip any step. Register the business name with DTI, get a barangay business clearance from the barangay where the house is (the city cannot issue a permit without it), and get the mayor's permit. Register with BIR once you have your DTI certificate, without waiting for the mayor's permit: BIR's deadline is your first sale or 30 calendar days after the DTI certificate, whichever comes first. The full registration guide walks through each one.^[7,8,9]

Use the house address on every form, and keep it the same on DTI, the barangay clearance, the mayor's permit and BIR. Mismatched addresses are a common reason for being sent back.

BMBE: a benefit built for tiny businesses

RA 9178, the Barangay Micro Business Enterprises Act, covers businesses with total assets of not more than ₱3,000,000, not counting the land on which the office, plant and equipment sit. For most home businesses, the house lot does not count toward the limit.^[2]

A registered BMBE is exempt from income tax on income from its operations. It is also exempt from the Minimum Wage Law, though its employees keep their social security and healthcare benefits. The law also encourages, but does not require, cities to reduce or waive local taxes and fees for BMBEs.^[2]

One limit to know: the law's definition of service excludes services by government-licensed professionals in their profession. A licensed accountant doing bookkeeping from home, for example, would not qualify on that work.^[2]

How to register as a BMBE

RA 9178 as written puts BMBE registration with the city or municipal treasurer, which issues a Certificate of Authority. DTI now says it is the sole agency that issues BMBE Certificates of Authority, at Negosyo Centers, and it runs BMBE-ON, an online system for remote applications. Ask your Negosyo Center which route applies in your area.^[2,4,3]

DTI says registration and the Certificate of Authority are free of charge. The certificate is valid for two years from issuance and can be renewed. DTI lists the BMBE online application form and your Certificate of Business Name Registration among the requirements.^[3]

When you register with BIR, bring a photocopy of the BMBE Certificate of Authority. BIR lists it as a requirement for BMBE-registered entities.^[5]

Extra papers a home business may need

Questions people ask

Do I need a mayor's permit if I only sell from home?

Yes. DTI says businesses must secure a mayor's permit or municipal license from the city or municipality where they are located. Your house is your location.

Does BMBE mean I pay no tax at all?

No. RA 9178 exempts BMBEs from income tax on income from operations. It does not say you are exempt from other taxes, and cities are only encouraged to reduce local taxes and fees, not required.

How long is a BMBE certificate valid?

Two years from the date of issuance, renewable, according to DTI.

Can my HOA stop my home business?

Your HOA's rules are separate from city permits. In a city like Imus, which asks for an HOA resolution for businesses inside a subdivision, a refusal can block your permit, so talk to the HOA early.