How to register a business in the Philippines: the four steps and how they connect

Step 1: Register your business name (DTI or SEC)

A sole proprietor registers the business name online on DTI's BNRS. The fee depends on scope: ₱200 barangay, ₱500 city or municipality, ₱1,000 regional, ₱2,000 national, plus a ₱30 documentary stamp tax on every registration. The registration is valid for five years. Full steps: DTI business name registration.^[1]

A corporation, One Person Corporation or partnership skips DTI and registers with the SEC. For an OPC, the SEC filing fee is 1/5 of 1% of the authorized capital stock but not less than ₱2,000, plus a legal research fee and ₱100 per name reservation. See SEC registration.^[2]

Step 2: Get your barangay business clearance

No city or municipality may issue a business permit unless a clearance is first obtained from the barangay where the business is located. The barangay council sets a reasonable fee, and must act on your application within seven working days. Under RA 11032, these clearances are applied for and paid at the city or municipality, often at a barangay desk in the one-stop shop. Guide: barangay business clearance.^[3,4]

Step 3: Get your mayor's permit

You apply with one unified form at the city's Business One-Stop Shop. RA 11032 sets maximum processing times of 3 working days for simple and 7 for complex transactions, and makes business permits valid for one year. Fees are assessed by the city. The Fire Code says no business permit may be issued without a Fire Safety Inspection Certificate, which you can apply for on the same unified form. Guides: mayor's permit and the document checklist.^[4,5]

Example: a sari-sari store in Pasig. You register a city-scope name on BNRS for ₱530, file at your barangay, then submit the unified form at the city's one-stop shop. The barangay and city fees are whatever those offices assess.^[1]

Step 4: Register with BIR (alongside steps 2 and 3)

You do not have to wait for the mayor's permit. BIR removed the mayor's permit as one of the mandatory requirements for registering a new business. Its deadline also runs on its own clock: you register on or before the commencement of business, which BIR counts from your first sale or 30 calendar days after your DTI certificate or mayor's permit is issued, whichever comes first. Not registering in that time is a violation. Kung hihintayin mo pa ang city, baka late ka na sa BIR.^[14,15]

You register once, online through ORUS or at the RDO that covers your business address. Sole proprietors use BIR Form 1901; corporations and partnerships use Form 1903. The only fee is ₱30 in documentary stamp tax on your Certificate of Registration (Form 2303). You also arrange your invoices and books of accounts. Guide: BIR registration.^[6]

Example: DTI issues your certificate on 1 March and the city releases your mayor's permit on 15 April. The 30 days run from 1 March, so BIR is due by 31 March, or earlier if your first sale comes first.^[15]

After the core four: type permits and employer registration

The Code on Sanitation requires a sanitary permit for food establishments and a health certificate for every person employed in one. SSS, PhilHealth and Pag-IBIG each publish their employer rules: SSS coverage takes effect on the first day of operation, PhilHealth requires all private employers to register and report new hires within 30 days, and Pag-IBIG coverage is mandatory for employers of SSS-covered employees.^{[8,9,10,11,12]}

• Food businesses: sanitary permit for the place and a health certificate for every worker. See sanitary permit.
• Buildings and renovations: zoning or locational clearance, building permit and Certificate of Occupancy.
• SSS: employer coverage starts on your first day of operation; report each employee within 30 days of hiring. See SSS employer registration.
• PhilHealth: all private employers must register, and new hires are reported within 30 days. See PhilHealth employer registration.
• Pag-IBIG: mandatory for employers of employees covered by SSS. See Pag-IBIG employer registration.
• DOLE: establishment registration under Rule 1020. See DOLE registration.

The four core steps, what they cost and when they are due

Questions people ask

Do I need my mayor's permit before I register with BIR?

No. BIR removed the mayor's permit as one of the mandatory requirements for a new business. Register once you have your DTI certificate. BIR's deadline counts from your first sale or 30 calendar days after your DTI certificate or mayor's permit is issued, whichever comes first, so waiting for the city can make you late.

How much does it cost to register a small business?

The fixed national amounts are DTI's ₱200 to ₱2,000 plus ₱30, and BIR's ₱30 stamp tax. The barangay clearance and mayor's permit are set and assessed by your barangay and city, so the total depends on where you are.

Can I register my business fully online?

DTI's BNRS and BIR's ORUS are online. For the mayor's permit, JMC 2021-01 gave all LGUs until 17 June 2021 to set up an electronic one-stop shop, as reported by Manila Bulletin. Inspections still happen in person.

Do I renew everything every year?

No. BIR registration is done once. DTI lasts five years. The mayor's permit is valid for one year and is renewed, usually in January.

Do I need SSS, PhilHealth and Pag-IBIG if I have no employees?

Employer registration is for businesses with employees. If you work alone, you handle your own membership as a self-employed person instead. Register as an employer before your first hire starts.