How to Register A Sole Proprietorship Business in the Philippines

Starting a Business? Here's Your 2025 No-BS Registration Guide

This is for small business owners, freelancers, solo entrepreneurs, and side hustlers who want to make their business legal in the Philippines.

✅ Step 1: Register Your Business Name (DTI)

🔗 https://bnrs.dti.gov.ph/

  • Check name availability

  • Register your business name

  • Pay online (₱200–₱2,000 depending on scope)

  • Download your DTI Certificate

📌 Note: Your business name is your legal identity. Your brand name (on social media or packaging) can be different.

✅ Step 2: Apply for a BMBE Certificate (Barangay Micro Business Enterprise)

If you're already at DTI, you can apply for BMBE at the same office.

🔗 Apply online here

BMBE Benefits:

  • Income tax exemption on income from operations

  • Exemption from minimum wage law (if you hire people)

  • Priority in government training and financial assistance

Basic Requirements:

  • DTI Certificate

  • Mayor’s Permit or any proof of business operation

  • Filled-out BMBE Form (available online or at DTI)

📌 Reminder: After getting your BMBE Certificate, bring a copy to BIR so they can tag your exemption status.

✅ Step 3: Secure a Mayor’s Permit (aka Business Permit)

Head to your City or Municipal Hall.

Ask for the latest checklist from the Business Permit and Licensing Office. Usually includes:

  • DTI Certificate

  • Valid ID

  • Barangay Clearance

  • Lease contract or proof of address

  • Location sketch

  • Sanitary Permit (if applicable)

  • Fire Safety Inspection

  • Cedula (Community Tax Certificate)

📝 Fees vary by city. Renew every January.

✅ Step 4: Register with the BIR (Bureau of Internal Revenue)

🔗 https://www.bir.gov.ph/

Visit your RDO (Revenue District Office) based on your business address.

Bring:

  • DTI Certificate

  • Mayor’s Permit (or proof of business)

  • BMBE Certificate (if available)

  • Valid ID(s)

  • BIR Form 1901 (you can fill this at the RDO)

  • Books of Accounts (can be columnar notebooks or printed ledgers)

What You’ll Get:

  • Certificate of Registration (COR)

  • Authority to Print receipts or BIR-printed receipts

❌ Do you still pay ₱500 for BIR registration?

Nope — not anymore for most small businesses.

Under Revenue Memorandum Circular 7-2019, the ₱500 Annual Registration Fee is no longer required if you:

  • Are under the 8% income tax rate, OR

  • Are a registered BMBE

👉 Most sole proprietors and micro businesses fall under this.

⚠️ If You're Selling on Shopee, Lazada, TikTok Shop, Shopify, etc...

You’ll need to submit a Sworn Declaration of Gross Remittances to BIR.

📌 Even if you earn less than ₱500,000, this declaration is mandatory for sellers on e-commerce platforms.

We created a free editable copy for you:

👉 Open and copy this template

Once notarized, submit it to your RDO.

✅ Summary: Why Go Legit?

Being registered helps you:

  • Issue official receipts

  • Avoid penalties and random inspections

  • Join bazaars, trade fairs, and apply as a supplier

  • Sell on large online platforms

  • Apply for loans, grants, and government programs

  • Gain trust from customers and clients

💡 Final Tips:

  • Scan and save all your documents in Google Drive or Dropbox

  • Start with DTI. Everything else follows.

  • If unsure, go to your LGU or BIR and ask questions. Don’t rely on rumors.

Got questions or need templates?
📩 Message me at @SociallyKonnected

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