Sole Proprietorship

A sole proprietorship or “single proprietorship” is an unincorporated business enterprise

that is owned by one person who has direct control of all its assets, has authority over the
business and is legally accountable for all the debts, loans and losses of a business. A sole
proprietor must use and apply for a business trade name with the DTI-National Capital Region
(NCR). In the provinces, application may be filed with the DTI regional/provincial offices.

Pith Point Management Consulting will assist you in obtaining all the necessary documents
needed to apply for a Philippines sole proprietorship business registration and acquire all the
necessary business permits.

Business registration requirements:

 Two (2) copies of duly accomplished DTI application form signed by the owner.
Note that only the owner is authorized to sign the application form.
 Presentation of original copy of one photo-bearing national issued Identification
Document (ID) with signature.
 Payment of registration fee plus documentary stamp tax.
 Minimum capitalization requirement with a local bank
 Authority to verify Bank Accounts/Bank Certificate of Deposit
 Tax Identification Number (TIN). Indicate TIN duly issued by BIR to you as individual
taxpayer.
 Clearance from other involved agencies
 Obtained business permit and mayor’s license from the city of operations

Foreign applicants shall be required to present the original and a clear certified copy of
the Certificate of Authority to engage in business in the Philippines per Republic Act No.
7042 as amended (Foreign Investment Act), Republic Act No 8762 (Retail Trade
Liberalization Law) or other similar laws, if applicable. ( Department Administrative
Order 2010-08 Section 6)

Partnership
A partnership is a specific kind of legal relationship formed by the agreement between two or
more individuals to carry on a business as co-owners. A partnership is a business with multiple owners,
each of whom has invested in the business and have unlimited liability for the debts and obligation of
the partnership, or a limited partnership, where one or more of the partners have unlimited liability and
some partners have liability only up to the amount of their capital contributions. A partnership with
more than three thousand pesos (P3,000.00) capital must register with Securities and Exchange
Commission (SEC).

Business registration requirements:

 Registration with DTI or SEC (depending on partnership’s capital)
 Submission of duly notarized Articles of Partnership
 Submission of SEC form F-105 (for partnerships with foreign members)
 Procurement of licenses and clearances from necessary government offices
 Registration with BIR
 Registration with government offices (if employing individuals)
 Acquisition of business permit and mayor’s license

Forming a company is a long process. To be able to register your business and to make the
process faster contact Pith Point Management Consulting for legal assistance.