How to register thy business in the Philippines

How to start and register your business in the Philippines? You maybe landed on this page in search for the answer of that question. Having a business that earns substantial profit is a dream for everyone. On the other hand, having a legitimate business that shares income with the government is a noble one. There are four common forms of business in the Philippines. They are sole proprietorship, partnership, corporation and cooperative. Each form of ownership may have a different process of registration. The following are the government agencies that you must deal with to legitimize your ideal business.

Department of Trade and Industry (DTI)

A sole proprietorship must register its business name with this agency. Corporations and partnership shall also register their trade names with DTI to protect their business names from being used by other individuals and companies.

Today’s registration process with DTI can already be done through the Internet. To begin with, you can go to their Business Name Registration System (BNRS) by visiting this URL, https://www.bnrs.dti.gov.ph/web/guest/home (take note that you should be at least 18 years of age to qualify).

To enjoy their online services like application of new business names, renewing expiring certificates and online payment of fees, you must register first and get your username and password to log in. You can also check if a name is still available by searching it in their database of registered names. You can also go directly to their regional office where you’re business is located if you prefer to register personally.

Security and Exchange Commission (SEC)

Corporations and partnerships must secure a certificate of registration from SEC. The commission has the jurisdiction and supervision over all corporations, partnerships or association who are grantees of primary franchises and or a license or permit by the Government. We will specifically discuss how to register a corporation and partnership with the SEC in our next articles.

Local Barangay Office

As required by the Local Government Code, all businesses must obtain a Barangay Clearance from the local Barangay Office where their businesses are located. A clearance assures that your business is a community friendly establishment and conforms to the standards of the Barangay. Fee in securing a clearance is minimal but may vary depending on the size of your business or the district where the Barangay is located.

Mayor’s Office

Your business must also secure a Mayor’s Business Permit from the Municipality / City Mayor’s Office. The permit affirms that your business is in compliance to the municipality / City’s ordinances and standards such as sanitary, fire and safety and other clearances. Fees for new applications may depend on their initial capital while fees for renewals depend on the applicant’s prior year gross revenues / sales.

Bureau of Internal Revenue (BIR)

You must secure a BIR Certificate of Registration. This is to get an authorization to print official receipts, register books of accounts, obtain a separate Tax Identification Number (for partnerships and corporations), et cetera. BIR registration amounts 500 pesos per year. The BIR certificate of registration shows your trade name, Tax Identification Number (TIN), line of business, and taxability (annual registration  fee, annual and quarterly income tax, withholding taxes, monthly and quarterly Value Added Tax or monthly Percentage Tax, etc.,). The BIR basically requires DTI certificate (for sole proprietorship), SEC registration and Articles of Incorporation / Partnership (for Corporation and partnerships), and Mayor’s Business Permit.

Social Security System (SSS)

Business owners and employers should register their businesses and employees with the SSS. An employer who does not report temporary or provisional employees is violating the Social Security (SS) Law. Registering employees ensures that, as an employer, you are lawfully remitting your employer’s contribution to the agency for the benefits of your employees. SS benefits include disability pension, retirement, funeral benefit, sickness allowance, loans and other benefits.

Philippine Health Insurance Corporation

As required by the new National Health Insurance Act (RA 7875 / RA 9241), all employers are required to register their employees with PhilHealth and remit to the agency their share of contribution. Aside from being mandatory, this is also to ensure that employees are adequately covered by health insurance that will aid them in hospitalization costs and other health care needs.

Home Development Mutual Fund (Pag-IBIG Fund)

By virtue of RA 7742, SSS members earning at least 4,000 Philippine Pesos a month must be registered with HDMF (the agency that administers the Pag-Ibig Fund). Like SSS and PhilHealth, employers must also remit their employers’ share of contribution for employees to the agency. HDMF works towards providing Fund members with adequate housing through an effective saving scheme.

Other Government Agencies

Aside from the major registrations and licenses that a business must obtain, you may also be specially required to register your business and or get a license with the following agencies.

1. Cooperative Development Authority (CDA) – for cooperatives

2. Bangko Sentral ng Pilipinas (BSP) – for banks, pawnshops and money changers

3. Philippine Coconut Authority (PCA) – for businesses related in grain-rice farming and trading

4. Fiber Industry Development Authorit (FIDA) – for business related in fiber producing products.

5. Bureau of Fisheries and Aquatic Resources (BFAR) – for business related in fishing and aquatics products

6. Bureau of Animal Industry (BAI)  – for business related to animals

7. Bureau of Plant Industry (BPI) – for business related to plants and vegetable crops

8. Forest Management Bureau (FMB) – for business related in lumber, logs, and other wood product.

9. National Tobacco Administration (NTA) – for business related to tobacco products

10. Bureau of Food and Drugs (BFAD) – for business related in the manufacturing, trading, repacking, importing, exporting, distributing of any products  related to food and drugs

11. Insurance Commission (IC) – for insurance and other IC regulated entities

12. Intellectual Patent Office (IPO) – for registering your trademarks, logos, slogans, processes and secret formulas

13. Commission on Higher Education (CHED) and Department of Education (DepEd) – for entities involved in providing education

14. Technical Education and Skills Development Authority (TESDA) – for institutions involve in technical education and skills development

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2. The Philippines BIR mission, vision, principle and values
3. How to buy and register a domain name?
4. How to compute Percentage Tax in the Philippines
5. How to Compute Annual Income Tax for Self-employed Taxpayers in the Philippines