STARTING A SOLE PROPRIETORSHIP BUSINESS IN THE PHILIPPINES

Time to Associated Costs

Department Procedure
complete (Estimated as of 2006)

Business Name
Registration Certificate from any DTI
Office or log on
to www.bnrs.dti.gov.ph.
Validity: 5 years Registration Fee
Requirements: Scope:
1. DTI National=P2000
 Accomplished Business 1-2 days
(Department of Regional=P1000
Name Registration Form
Trade Industry) City/Municipality=P500
[Single Proprietorship]
Barangay=P200*Total fees to include
 Tax Identification Number
Php 15 documentary stamp tax (DST)
(TIN)
 List of five business names
ranked according to
preference

2. Barangay Obtain Barangay clearance 2 days PHP 800

The fees vary depending on the local government unit

(city/municipality) issuing the mayor’s permit.

Estimates:
PHP 900, sanitary permit fee + 0.2% of capital for license fee
Obtain Mayor’s Permit to operate at 1-2 weeks
3. Mayor’s PHP 2000, permit fee for businesses engaged in retailPHP 2,500 garbage
the Licensing depending on
Office collection feePHP 360, occupational taxPHP 905, occupational police
Section of the City or Municipality city
clearance/ health clearance
PHP 1,500, plumbing inspection fee
PHP 850, electrical inspection fee
PHP 500 building permit fee
PHP 400 sign board permit fee)

PHP 500 (registration fee) + PHP 100 (certification fee) and PHP 15
A. Register TIN with the BIR 2 days
(documentary stamp tax, in loose form to be attached to Form 2303)

B. Obtain Certificate of Authority to

1 day No Charge
Print (ATP) Form

4. BIR C. Buy special books at any

1 day PHP130- PHP150 ( 4 pcs )
(Bureau of Bookstore OR BIR’s Office
Internal Revenue)
D. Print receipts and invoices at the
14 days PHP180/ Booklet
print shops accredited by the BIR

E. Have books of accounts and

Printer’s Certificate of Delivery of
1day No charge
Receipts and Invoices (PCD) stamped
by the BIR

5. SSS Register with the Social Security

(Social Security
1 week No charge
System (SSS)
System)

6. PHIC Register with the Philippines Health

(Philippine Health Insurance 1 day No charge
Insurance Company (Phil Health)
Corporation)
 Steps On How To Register A Sole Proprietor Business

1. Register your business name at the Department of Trade and Industry (DTI)
Make sure to search the DTI website to see if there are any businesses in existence that have
a name similar to yours. If the business name that you want is available, fill out a business
name application form, and submit it to DTI’s office. You must wait for your DTI certificate of
registration before you move onto the next step of opening your own sole proprietor business.

2. Register with Barangay

Once you have received your certificate of registration from the DTI, it’s time to go to the
Barangay where your business is located to fill out an application. In addition to your
application, you will need to submit your DTI Certificate of Business Registration, two valid
IDs, and a proof of residence. Wait and claim your Barangay Certificate of Business
Registration.

3. Register your sole proprietor business with the Mayor’s Office (LGU)
The next step, after receiving your Barangay certificate of business registration, is registering
your business at the municipal office in the city where your business is located. You will need
to fill out an application, as well as submit your Certificate of Business Registration from the
DTI, your Barangay Clearance Certificate, two valid forms of ID, and proof of residency.

4. Register with The Bureau of Internal Revenue (BIR)

After you receive your certificates and permits from DTI and LGU, it’s time to register your
sole proprietor business with the BIR. To do this, you will need to visit your regional district
office in the city where your business is located. You will be required to fill out a BIR form
1901, which is an application to register your sole proprietorship. In addition to your
completed BIR form 1901, you will need to submit your Certificate of Registration from DTI,
your Barangay Clearance Certificate, your Mayor’s Business Permit, proof of residency, and
valid ID. You will also have to pay for registration, (BIR Form 0605), and register your book of
accounts and provide any receipts or invoices you have for the business. After all of this has
been completed, you will be able to claim your certificate of registration, (BIR form 2303).

Make sure you have covered all additional clearances, permits, or licenses you need to obtain
before opening your business to the public. There are certain categories of business that
require additional documentation. After you have completed the four steps listed above, you
can focus on a strategy to succeed in your new business venture.