How To Register A Sole Proprietor Business in The Philippines?
How To Register A Sole Proprietor Business in The Philippines?
How To Register A Sole Proprietor Business in The Philippines?
the Philippines?
Completing a BIR form is a daunting task that is why we built a software to automate this and weve been
using it since 2012. You can also use this tool for your taxes to save time and so you can focus on more
important things.Check it out
You may have a great business idea that you want to implement as soon as possible yet you don’t
have any idea how to start and register a business. This article aims to give you some pointers on
how to register and start a Sole Proprietor business.
It also includes self-employed or freelancers and practicing professionals with PRC license such
as doctors, lawyers, engineers, lawyers, architects, real estate brokers, accountants, etc.
If you’re a self-employed, freelancer or professional who do not intend to use a “Trade Name”,
you may skip this part.
After acquiring a DTI Certificate of Registration (COR), you may now proceed and register with
Bureau of Internal Revenue (BIR)
However, just a quick note for those who have existing Tax Identification Number (TIN), before
proceeding with the steps mentioned below, you must first submit update and/or transfer of
records to your current BIR Regional District Office (RDO) prior to submission of new business
application.
For first time applicants, meaning without existing TIN, you may proceed with the steps in
registering a business in BIR as follows:
Fill-up the BIR Form 1901 – Application for Registration (for Sole Proprietor)
Prepare the list of requirements as follows:
o Valid Government ID with Name/Address/Birthdate or PRC ID (if professional)
o Filled-up and paid BIR Form 0605 – Annual Registration Fee of P500.00
o Prepare the sample format of the receipts and/or invoices you will use for sales
o Prepare the books of accounts, such as journals and ledgers, you will use for record-
keeping
o DTI Certificate of Registration, if you will use a “Trade Name”
Once you have completed all the requirement, submit to the Regional District Office (RDO)
where your business is located
Register your book of accounts and receipts/invoices
Claim your BIR Form 2303 – Certificate of Registration (COR)
However, if you are a freelancer, self-employed or practicing professional, you may skip this
part.
1. Go to the barangay where your business is located to secure and fill-up application form
2. Submit your completed application form together with the following:
o Certificate of Business Registration from DTI
o Two (2) valid government IDs
o Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if
owned)
3. Pay the Barangay Clearance Fee
4. Claim your Barangay Certificate of Business Registration
Here are the steps in registering with the Mayor’s or Municipal’s Office
1.
1. Go to the municipal office where your business is located to secure and fill-up application
form
2. Submit your completed application form together with the following:
After completing all the steps above, you can now focus in operating and growing your business.
Good luck.
Note: This article has been originally written in 2013 and updated 20 July 2021.
If you don’t have time to process, MPM offers business registration services with 30-days free trial
Cloud-Based DIY Accounting System. Contact us here: Text/Call: 09176243720 or Email:
sales@mpm.ph
Completing a BIR form is a daunting task that is why we built a software to automate this and weve been
using it since 2012. You can also use this tool for your taxes to save time and so you can focus on more
important things.Check it out
Related Posts
How to Register a Corporation in the Philippines?
Taxes Applicable to Sole-Proprietors, Freelancers, Self-Employed and Professionals
How to Register in SSS?
Who are Required to Register in SSS?
How to Compute for Senior Citizen Discount in the Philippines?
Value Added Tax (VAT) in the Philippines - An Introduction
Note: The content of this article may become outdated because of changes in the rules and
regulations over time. It does not substitute the need for inquiring professional advice.
1. del says
November 29, 2013 at 16:11
I’m planning to register my business under my name just to secure an ATP(Authority to
Print) for BIR receipts purposes. My delima is, my business is a sole proprietorship
consultancy. Meaning I don’t have people under me, or an office but only myself and my
knowledge for the services to be offered. What should be the best step to take. Is it to go
directly to DTI or directly to the BIR to acquire the ATP. Thank you very much.
guiller says
December 27, 2014 at 11:59
Pde ko bang isama ang isang foreigner sa single/sole prop? o ako lang
talga as may trade name as Guillermo C. Albutra? o possible po ba na
gamitin lang ang name ko ng boss kung foreigner, cya po kasi ang may
capital eh…ang nature po ng business namin is .. door to door shipment,
cargoes from china,,. deliver to diff customers to domestics areas as long
as metro manila.. anu po ba ang gagamitin kong name ng business ko as
door to door shipment?? my name o company name?…magkanu po ba
ang capital? magkanu babayaran sa dti pag paparehistro?? Maraming2x
slamat po at God bless….-GCAlbutra. pls reply to my email add
above..Thanks po !
o Litz says
April 1, 2015 at 15:37
Online businesses should register like a regular business. I just finished
registering my online business. I don’t have an online shop or own website but I
post my ads on http://www.mybenta.com. I went through the same registration
process for sole proprietorship.If you are registering as a corporation, you should
go to Securities and Exchange Commission (SEC)
There are 3 offices to go to: DTI, City Hall/Municipal Hall, and BIR.
2. To become legit, you have to secure a mayor’s permit to operate (You may also
want to check if your local government would require you to secure a provincial
permit). Get a checklist from the Mayor’s office on the required documents. They
might require you to submit a baranggay clearance and community tax
certificate/cedula.
3. You will go to BIR to get a TIN. Or if you already have one, update or request
for transfer of location. You will also ask for authority to print receipts and
invoices from BIR. Production of receipts can only be done by BIR-accredited
printing press.BIR penalizes failure to secure or issue receipts on before
commencement of business. Before printing the receipts, you will have to attend a
BIR seminar.
It’s always best to visit or call those offices first and request for a checklist or ask
about their step-by-step process to avoid inconvenience.
Thank you
8. Cha says
February 4, 2014 at 11:22
I am just starting out as an interior designer. I’d like to establish my professional practice
(with official receipts & all) but I’m confused with what the requirements really are.
Same as del, I don’t have people under me nor an office. Is the procedure above what’s
applicable to me? Thanks much.
Mariel
thanks
Please advice if you can assist with the company setup for NON STOCK for 100%
Foreign Owenership.do we require 2 person to be onboard or sole proprietor is
acceptable.Option 2 is with DTI for SOLE propritor.
What will the chargers be for SEC company formation and Annual Accounting Services
and Submittion of Accounts to Goverment offfice
Thank You
Thank you.
I have to put up an MLM Business. the products is digital like ebooks and other digital
services. all transactions must be purely online. I am planning to register a proprietorship
business for it, but i don’t want to have an office inasmuch as i do not have employees or
it is not practical as of this time to have an office since, i can do this business at home.
Just wanna ask what if the headquarters of the business is located in the U.S. but then we
have office here in the Philippines. So how is the taxation? Is there any tax that the
company needs to pay to the BIR?
Thank you!
Thanks 🙂
56. J says
May 3, 2015 at 12:39
Hi I would like to ask the possible way to get business registered. Pano po kung normally
i coconsign yun paintings for business sa galleries or hanap lang po ng co to showcase
yun designs and do workshops in the future. Require pa po ba ng office yun? And
magkano po ba tax for that kind of business. Pls reply on my email address.
I’m an Industrial Design graduating student next year by march, and planning to build my
own business selling custom-made paracord products in the near future at Lynville
Subdivision, Alaminos, Laguna.
whom sould I ask for the RDO location in Laguna (sorry I can’t find it on google map)
and registration fee for BIR form 0605?
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