How to register a business in the Philippines

The complete 2026 process for sole proprietors, freelancers and small business owners, from your DTI business name to your BIR Certificate of Registration, with the fees and documents for each step.

By Borderless PinoyUpdated 14 October 202611 min read

Quick answer

For a sole proprietorship, the usual order is:

Register your business name with DTI online through BNRS (₱230 to ₱2,030).^[1]
Get a barangay business clearance where your business is located.
Apply for a mayor's permit (business permit) at your city or municipal hall.
Register with the BIR using Form 1901 to get your Certificate of Registration (Form 2303), then register your books and set up invoices.^[2]

A one-person corporation or a corporation registers with the SEC in step 1 instead of DTI, then files BIR Form 1903.

Clients or buyers overseas? Many Filipino freelancers and online sellers in that position register a company abroad online instead. See how the two routes compare before you start.

Plan on about ₱2,500 to ₱6,000 for a small home-based business in the first year, depending on your city. The process can take one to two weeks when every office moves quickly, while the World Bank's B-READY survey found that registering a domestic firm took 75 days on average nationwide.^[3]

Clients or buyers overseas? Read the free Chapter 0 of the Borderless Pinoy course to check whether registering a company abroad fits your business.

Get free Chapter 0

Before you start: register here or abroad?

The steps below are the right path if most of your customers are in the Philippines. If your clients pay you from overseas, or you sell to buyers in other countries, it's worth comparing the local route with a company registered abroad first. Here is how they differ for a one-person business.

	Registered in the Philippines	Company registered abroad
Where you apply	DTI or SEC and the BIR online, plus in-person visits to your barangay and city hall	Fully online through a licensed provider, using your passport and proof of address
How long it takes	About 1 to 2 weeks for a home-based sole proprietorship. The national average for a domestic firm was 75 days.^[3]	Registration itself can take as little as an hour once your documents are checked
Yearly renewals	Barangay clearance and mayor's permit every January, plus quarterly and yearly BIR returns	One yearly package from your provider that covers the filings, address and required local officer
Your liability	A sole proprietor is personally liable. An OPC or corporation is a separate entity.	The company is a separate legal entity from you
Getting paid by overseas clients	Local banks, e-wallets and PayPal. Stripe doesn't accept businesses registered in the Philippines.^[4]	Business accounts that hold many currencies, and gateways such as Stripe, Airwallex and Shopify Payments
Cost	About ₱2,500 to ₱6,000 in the first year for a sole proprietorship. An OPC or corporation set up through a provider costs ₱150,000 to ₱200,000, then ₱66,000 to ₱180,000 a year for a corporate secretary and address.^[5]^[6]	About ₱150,000 a year all-in in the setups the Borderless Pinoy course compares, including accounting and audit where required^[7]

A sole proprietorship here is the cheapest way to start. Once you need limited liability, a corporate structure or global payment platforms, a company abroad costs about the same as doing it properly in the Philippines and involves far fewer offices. Either way, as a Philippine resident you still have obligations here, so plan your setup with a CPA.

Not sure which fits you? The free Chapter 0 of the Borderless Pinoy course walks you through the questions, including when staying registered in the Philippines is the better call.

First, choose your business structure

Your structure decides which agency you start with. Most freelancers and first-time sellers begin as sole proprietors because it is the cheapest and simplest to set up.

Structure	Who it suits	Register with	BIR form
Sole proprietorship	One owner who is personally liable for the business. Common for freelancers, home-based sellers and small shops.	DTI (business name)	1901
One Person Corporation (OPC)	One owner who wants the business to be a separate legal entity, with limited liability.	SEC	1903
Corporation	Two or more owners (up to 15 incorporators), or a business planning to raise capital.	SEC	1903
Partnership	Two or more partners sharing profits under a partnership agreement.	SEC	1903

Freelancing under your own name? You don't need a DTI business name if you invoice clients as yourself. You can register directly with the BIR as a self-employed individual or professional. You need DTI only when you trade under a business name.

Step 1: Register your business name with DTI

Sole proprietors register their business name with the Department of Trade and Industry through the Business Name Registration System (BNRS) at bnrs.dti.gov.ph.^[1] Everything happens online, and you can download the certificate once payment clears.

Search your nameCheck that the name you want is available on BNRS. Prepare one or two alternatives.
Create an account and fill in the applicationEnter your details, business address and the territorial scope you need.
Pay within 7 daysPay online. Unpaid applications are cancelled after 7 calendar days.
Download your certificateKeep the certificate and your reference number. You will show it at the barangay, the city hall and the BIR.

Territorial scope	Registration fee	With ₱30 documentary stamp tax
Barangay	₱200	₱230
City or municipality	₱500	₱530
Regional	₱1,000	₱1,030
National	₱2,000	₱2,030

A DTI business name is valid for five years. You can renew it up to 180 days before it expires. Most small businesses choose city or municipality scope. Pick national scope only if you need to protect the name across the whole country.

If you are forming an OPC or corporation: register with the SEC instead

Corporations, one person corporations and partnerships register with the Securities and Exchange Commission through eSPARC, its online registration system.^[8] You will need an eSECURE account to sign documents digitally, then you reserve a company name, fill in the online Articles of Incorporation, upload your supporting documents and pay the filing fees. An OPC also needs a nominee and an alternate nominee who agree in writing to take over if the sole owner can no longer run the company. After the SEC issues your Certificate of Incorporation, continue with steps 2 to 4 below and file BIR Form 1903 in step 4.

Step 2: Get a barangay business clearance

Go to the barangay hall where your business is located, even if that is your home. Most barangays still process this in person.

Bring: your DTI or SEC certificate, a valid ID, and proof of address such as a lease contract, a land title or tax declaration, or written consent from the owner if you use a family member's home.
Fee: usually ₱200 to ₱500, set by each barangay.
Processing: often the same day.

Step 3: Apply for a mayor's permit (business permit)

The mayor's permit is issued by the Business Permits and Licensing Office (BPLO) of your city or municipality. Many LGUs run a Business One-Stop Shop,^[9] and some accept online applications through their own portals or the national eBOSS system.

Bring: the BPLO application form, DTI or SEC certificate, barangay clearance, proof of address, and a valid ID. Depending on your business, the LGU may also ask for a fire safety inspection, a sanitary permit, an occupancy permit or a zoning clearance.
Fee: assessed from your declared capital or projected gross sales and your type of business. A small home-based business commonly pays around ₱500 to ₱3,000 in the first year.
Processing: one day to about two weeks, depending on the LGU.

Renew every January. Under the Local Government Code, business permits are renewed within the first 20 days of January. Late renewal can add a surcharge of up to 25% plus interest on the unpaid fees.^[10] See the 2027 renewal guide.

Some home-based freelancers are told by their LGU that they don't need a mayor's permit. Rules differ by city, so ask your BPLO directly and keep a note of who told you.

Step 4: Register with the BIR

Every business, freelancer and professional earning income in the Philippines must register with the Bureau of Internal Revenue before starting business. Sole proprietors and freelancers file BIR Form 1901. Corporations, OPCs and partnerships file Form 1903.

Find your Revenue District Office (RDO)Your RDO is the one covering your business address, or your home address if you work from home.
Submit Form 1901 or 1903Apply through the BIR's Online Registration and Update System (ORUS) at orus.bir.gov.ph, or at your RDO. Attach your ID, your DTI or SEC certificate, and proof of address. Some RDOs also ask for your mayor's permit or proof that you applied for one.
Pay the ₱30 documentary stamp taxThis is the only fee for registering. The old ₱500 annual registration fee was removed by the Ease of Paying Taxes Act (RA 11976) starting 22 January 2024.^[11]
Get your Certificate of Registration (Form 2303)It lists your tax types and filing deadlines. Display it at your place of business.
Register your books of accounts and set up invoicesRegister your books through ORUS or your RDO, apply for an Authority to Print (Form 1906), and have invoices printed by a BIR-accredited printer. Since 2024, the invoice is the main receipt for both goods and services.^[12]

For the full list of documents, how the 8% income tax option works, and your filing calendar, read the BIR registration guide.

Step 5: Register as an employer if you hire

If you hire staff, register your business as an employer with SSS, PhilHealth and Pag-IBIG and start remitting contributions for your employees. You'll also need to register to withhold tax on their salaries with the BIR. If you work alone, you can keep paying your own contributions as a self-employed member.

How much it costs to register a small business

These are typical first-year figures for a home-based sole proprietorship. LGU fees vary the most, so treat them as a range to plan around and confirm the actual amounts with each office.

Item	Typical cost	How often
DTI business name (city scope, with DST)	₱530	Every 5 years
Barangay business clearance	₱200 to ₱500	Yearly
Mayor's permit	₱500 to ₱3,000+	Yearly, by 20 January
BIR registration (documentary stamp tax)	₱30	Once
Books of accounts	₱200 to ₱600	When you start or fill them
Printed invoice booklets	₱800 to ₱1,500	When you run out
Estimated total, first year	₱2,500 to ₱6,000

Hiring a bookkeeper or an accountant for your monthly and quarterly filings is a separate ongoing cost.

How long it takes

DTI registration takes minutes online. Barangay clearance is often same-day. The mayor's permit and BIR registration take the longest, from a day to a few weeks depending on your LGU and RDO. A home-based sole proprietorship with complete documents can finish in one to two weeks.

Larger businesses and slower LGUs take much longer. The World Bank's B-READY survey found that registering a domestic firm in the Philippines took 75 days on average, counting delays and differences between cities.^[3]

What you need to do every year

January: renew your barangay clearance and mayor's permit within the first 20 days.
Every quarter and every year: file your BIR returns on time, even in months with no income. See the BIR filing calendar.
Always: issue an invoice for every sale and keep your books updated.
Every five years: renew your DTI business name.
When something changes: update the BIR with Form 1905 if you move, change your business details or close the business.

Common mistakes to avoid

Registering with the BIR and then forgetting to file. Missed returns pile up penalties even when you earned nothing that quarter.
Choosing the wrong RDO. Your RDO follows your business or home address. If you moved, transfer your registration with Form 1905 before you register a business.
Paying fixers. DTI, the SEC and the BIR all accept applications online or at their own offices. Pay only through official channels and keep every official receipt.
Missing the 8% election. If you want the 8% income tax option, you must choose it on Form 1901 at registration or on your first quarterly return of the year.

Why many freelancers with overseas clients register abroad

If you've read this far, you've seen how many offices a small business here deals with every year. Filipino freelancers and online sellers whose clients or buyers are overseas often choose a company registered abroad instead, set up online and run from the Philippines. These are the reasons that come up most:

Payment platforms your clients already use. Stripe, for example, doesn't onboard businesses registered in the Philippines,^[4] while a company abroad can usually apply for it alongside Airwallex, Wise and Shopify Payments.
Fewer offices. Your provider files the yearly returns and keeps your registered address and required local officer, so there's no January queue at city hall.
A separate legal entity from day one. Your personal assets are kept apart from the business, which a sole proprietorship here doesn't do.
Easier for overseas clients to work with. Many foreign companies prefer to contract and pay another company, in their currency, with a proper invoice.

It suits some people and not others. The yearly provider and filing costs are real, and a company abroad doesn't remove your obligations here as a Philippine resident, so plan your situation with a CPA. The free Chapter 0 of the course helps you check whether it fits you before you spend anything.

Frequently asked questions

How do I register a small business in the Philippines?

For a sole proprietorship, register your business name with DTI online, get a barangay business clearance, apply for a mayor's permit at your city or municipal hall, then register with the BIR using Form 1901. Corporations and one person corporations register with the SEC first and file BIR Form 1903.

How much does it cost to register a business in the Philippines?

A small home-based sole proprietorship typically spends about ₱2,500 to ₱6,000 in the first year. That covers the DTI business name (₱530 at city scope), barangay clearance, mayor's permit, the ₱30 BIR documentary stamp tax, books of accounts and printed invoices. Mayor's permit fees vary the most between cities.

Can I register my business online?

Partly. DTI business names (BNRS), SEC registration (eSPARC) and BIR registration (ORUS) can all be started online. Barangay clearance and many mayor's permits still need an in-person visit, though some LGUs accept online applications.

Do freelancers need a DTI permit?

Only if you use a business name. A freelancer who invoices clients under their own name can register directly with the BIR as a self-employed individual or professional using Form 1901.

Do I need a mayor's permit for a home-based or online business?

Usually yes if you operate a business from a fixed address, including your home. Some LGUs don't require one for home-based freelancers. Ask your city or municipal BPLO, since the rule differs by LGU.

Is the ₱500 BIR annual registration fee still required?

No. The Ease of Paying Taxes Act (RA 11976) removed the ₱500 annual registration fee starting 22 January 2024. New registrants pay only the ₱30 documentary stamp tax on the Certificate of Registration.

How long does business registration take in the Philippines?

A home-based sole proprietorship with complete documents can finish in one to two weeks. Across the country, the World Bank's B-READY survey found that registering a domestic firm took 75 days on average.

Can a Filipino register a business abroad instead?

Yes. No Philippine law stops a Filipino from owning a company registered in another country, and in several countries the whole process runs online through a licensed provider. As a Philippine resident you still have obligations here, so plan your setup with a CPA. The free Chapter 0 of the Borderless Pinoy course helps you check whether it fits your business.

Can I use Stripe with a business registered in the Philippines?

Not directly. Stripe doesn't list the Philippines among the countries where businesses can open an account. Filipinos who need Stripe usually use a company registered in a supported country.

What is the difference between DTI and SEC registration?

DTI registers business names for sole proprietorships. The business and the owner are legally the same person. The SEC registers corporations, one person corporations and partnerships, which are separate legal entities from their owners.

Do your clients or buyers live overseas?

See the exact setup the course teaches to register a company abroad online and run it from the Philippines. The course is ₱699, and that price is separate from what the company itself costs to set up and keep.

Read free Chapter 0 See what the course covers

Sources

This guide is general information about registering a business in the Philippines, not legal or tax advice. Fees and requirements change and differ between LGUs and RDOs. Sources checked 14 October 2026.