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Sole Proprietorship

The document outlines the requirements for registering a business in the Philippines, including DTI and BIR registration for both Filipino and non-Filipino nationals. It details additional requirements for local government units, mayor's permits, and other necessary licenses such as PhilHealth and PAG-IBIG. The document also provides information on processing fees and timelines for various registrations and permits.
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0% found this document useful (0 votes)
27 views8 pages

Sole Proprietorship

The document outlines the requirements for registering a business in the Philippines, including DTI and BIR registration for both Filipino and non-Filipino nationals. It details additional requirements for local government units, mayor's permits, and other necessary licenses such as PhilHealth and PAG-IBIG. The document also provides information on processing fees and timelines for various registrations and permits.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Requirements for Registering:

DTI Registration:
For Filipino National
- At least 18 years of age for Filipino national

For Non-Filipino National


- At least 18 years of age (where the laws of the home country of the
authorized applicant provide for the legal age or contract age lower than
18 years, said person must submit proof thereof)
- Certified copy of the Alicent Certificate of Registration from the Bureau of
Immigration
- Certificate of Registration for Sole Proprietorship/Certificate of Authority to
engage in business in the Philippines issued by the concerned DTI Office

Additional Requirements
- Authorization letter from the owner
- Valid ID of the Authorized representative

BIR Registration:
Self-Employed Individuals – Sole Proprietorship and/or Professional/s not regulated by
the Professional Regulation Commission
- photocopy of any government-issued ID that shows the name, address,
and birthdate of the applicant. In cases where the ID has no address, any
proof of residence or business address is needed
- In cases wherein it would constitute a practice of a profession that is
regulated by the PRC, photocopies of a valid PRC ID and a government
ID are needed

BIR Printed Invoices, which is available in the RDO

Additional documents if applicable:


- Special Power of Attorney if transacting through a representative
- Government-issued ID of the applicant and representative, both of which
containing one specimen signature
- DTI Certificate
- Work Visa (9g) for foreign nationals
- Service Contract, showing the amount of income payment, for Job Order,
or Service Contract Agreement with NGAs, LGUs, GOCCs, GFIs
- Franchise Documents for Common Carrier
- Certificate of Authority, if Barangay Micro Business Enterprises registered
entity
- Proof of Registration/Permit to Operate BOI/BOI-ARMM, PEZA, BCDA,
TIEZA/TEZA, SBMA, etc.
LGU Requirements:
Varies among different local government units, the general requirements are as follows:

- Application Form
- Picture of the establishment
- Barangay Clearance
- DTI Certificate
- If the place is not owned or being leased, a lease contract or an affidavit of
consent is needed. If the place is owned, a tax declaration is required
- Locational Clearance (‘Zoning clearance’)
- Fire Safety Inspection Certificate (some LGUs provide this certificate after the
registration itself)
- Authorization letter or Special Power of Attorney if transacting through a
Representative

Always, always have three copies of any given document if possible (one to pass, one control
copy and one personal copy), or a scanned copy at the ready to send.
——————————————————————————————————————

Business Name & Registration

Costs vary from:


- Barangay (₱200),
- City/Municipality (₱500),
- Regional (₱1,000), and
- National (₱2,000),

Typically done within the hour, unless name is not available or there is a backlog of
applications. Can be registered online or on-site at GoNegosyo.

Barangay Clearance

Fees for business vary in cost per barangay, it is generally ₱20 minimal to ₱200, and are
released within 1-3 days.

- Valid ID & Proof of Residency


- Cedula
- Fill out their application form
- Passport size photo
Mayor’s Permit

₱1,000 processing fee, processed and released within three to four business days.

Requirements:
- Application Form
- Certificate of Registration from DTI
- Barangay Clearance
- Community Tax Certificate / Cedula (Within an hour, ₱18)
- Contract of Lease or a Transfer Certificate of Title
- Sketch/Picture of business location (3)
- Public Liability Insurance Restaurants, Cinemas and Malls
- Locational/Zoning Clearance
- Certificate of Occupancy
- Building Permit & Electrical Inspection Certificate
- Sanitary Permit
- Fire Safety Inspection Permit

BIR Registration

Register through either the NewBizReg Portal (Processed manually within 3 working
days with an email sent to you acknowledging the receipt of your documents, and payment
through gcash or through card is accepted) or in person at the nearest BIR Revenue District
Office to you.
BIR Registration fees: ₱500 for initial issuance and ₱30 for the Documentary Stamp Tax
(DST)

- BIR Registration Form 1901 for Sole Proprietorship


- A valid government-issued ID, such as a driver's license, passport, etc.
- DTI Certificate of Registration
- BIR Printed Receipts/Invoices, or a final and clear sample of your own receipts
from a BIR-accredited printer

Other requirements if applicable:


- DTI Certificate
- Work Visa for Foreign Nationals
- Memorandum of Agreement for Joint Ventures
- Certificate of Authority if you are registered as a Barangay Micro Business
Enterprise
- Proof of Registration or Permit to Operate from the Board of Investment,
Philippine Export Zone Authority, Bases Conversion Development Authority, or
Subic Bay Metropolitan Authority
- If transacting through a Representative: Special Power of Attorney (SPA), and
any government-issued ID of the authorized representative
- Certificate of Authority, if Barangay Micro Business Enterprises (BMBE)
registered entity
- Proof of registration/permit to Operate BOI/BOI-ARMM, PEZA,
BCDA/TIEZA/TEZA, SMBA, etc

Tidbit:
As of 2020, the BIR no longer requires a business permit/mayor's permit to register for a
new business.
Business taxpayers are no longer required to pay the annual BIR registration fee
of ₱500.00 beginning January 2024.

Social Security System

No registration fee as a self-employed or sole proprietor, only monthly contributions


based on their incomes (self-employed). Processing is streamlined with the Real Time
Processing of Contribution (RTPC), generally taking a day or two after you file for an SSS and
PRN online.

- Register online: Visit the SSS website or mobile app and register for an SSS
number.
- Complete the RS-1 form: Download and fill out the SSS Form RS-1 (Self-
Employed Data Record).
- Submit required documents face to face: Provide a copy of your birth certificate,
passport, or other valid IDs.
- Generate a PRN: Once registered, you'll need to generate a Payment Reference
Number (PRN) online to pay your monthly contributions.
- Pay contributions: SSS contributions are based on your income and can be paid
online or through authorized payment centers.

You can file today and go at your leisure tomorrow or next week to file your online registration in
person to finalize it.

PhilHealth

No processing fee is incurred, and it typically processes within 3-5 working days for
electronically submitted forms the complete requirements:

- DTI Registration
- Employer Data Record (ER1) Form in duplicate
- PhilHealth Membership Registration Form (PMRF)
for each employee in duplicate)

However, the release of the PhilHealth ID (or Member Data Record) may vary, potentially being
same-day or requiring a follow-up visit.

After processing, the employer will be issued the following:

- PhilHealth Employer Number (PEN) and the Certificate of Registration


- PhilHealth Identification Number (PIN) and Member Data Record (MDR) of
registered employees
- Employers (except for household employers) are required to display the
Certificate of Registration in a conspicuous area of their offices.

PAG-IBIG

No registration fees, processes at 1-2 weeks

- Duly accomplished Employer’s Data Form (EDF)


- Duly accomplished Specimen Signature Form
- SSS certification (if already SSS registered)
- Business permit or Mayor’s permit
- For Sole Proprietorship: a DTI Certificate of Registration

——————————————————————————————————————

Other business License for operations

Zoning and Locational Clearance


Is the business permitted to operate / be here? generally takes somewhere
between a few days to a few weeks

Zoning — depends on building cost and type,


- Notarized letter of request: Addressed to the Zoning Administrator.
- Certified true copy of Title: (Transfer Certificate of Title).
- Tax Declaration and Tax Clearance Certificate
- Lot Plan with Vicinity Map
- Barangay Clearance
Locational — Fees for Locational Clearance are typically included within the
overall Business Permit application fees, although separate fees may apply in some
cases.
May require similar documents as Zoning Clearance, but specifically
focuses on ensuring the business location and planned operations align with the Zoning
Ordinance and Local Building Code

Fire Safety Inspection Certificate (FSIC)

Typically processes one to three days if there are no violations found, but could
take as long as a week for larger buildings.
Fees and processing times also vary from LGU to LGU

Sanitary Permit to Operate

Business Tax Assessment and Official Receipt (BIR Authority to Print Receipts
and Invoices/ATP), (BIR Notice to Issue Receipts and Invoices/NIRI)

ATP: ~1-3 weeks, ₱15 certification fee, ₱15 documentary stamp, ₱500 annual
regular fee, and ₱1,500 - 4,000 for printing per set (booklets, ORs..)
- BIR Form 1906, photocopy of COR (Form 2303)
- Proof of ₱500 annual registration fee (Form 0605)
- Printer’s accreditation certificate (if manual)
- Inventory of unused booklets (for renewals)
- Valid ID of the applicant

NIRI: Immediate processing at RDO, ₱1,000 penalty for mising or late


- Form S1905 to update email + return old notice
- valid ID
- secretary’s certificate if done through a representative

DOLE Certificate of Registration

Processing time walk-in: same day or up to three working days, online: 1-2
working days, may vary per region. no fees aside from the documentary stamp for
optional reprints or certified copies

- DOLE-BWC Form 1020 – 2 or 3 copies, signed wet or digital.


- Proof of business registration – DTI/SEC and Mayor’s Permit (some
offices may waive these).
- Valid government-issued ID of the applicant.
- Occasionally required: Workplace layout plan (scale 1:100).

Insurance Policy

Specific Industry Permits — Some industries, like those handling hazardous


materials or engaging in certain regulated activities, may require additional permits from
relevant government agencies.

——————————————————————————————————————

Sources aside from Google:


In.Corp: How to Register a Sole Proprietorship in the Philippines
https://philippines.incorp.asia/guides/how-to-register-a-sole-proprietorship-in-the-
philippines/

Philippine Business Registration: Mayor’s Permit (Business Permit) Registration in the


Philippines for New Businesses
https://philippinesbusinessregistration.com/company-registration/requirements/mayors-
permit-registration/

First Circle: BIR Registration: An Online and In-Person Guide to New Business
Registration with BIR
https://www.firstcircle.ph/blog/bir-registration-process

PhilHealth: Employer Registration


https://www.philhealth.gov.ph/partners/employers/registration.php

PAG-IBIG: Home Development Mutual Fund (HDMF) Registration for Enterprises in the
Philippines
https://kittelsoncarpo.com/business-registration/government-agencies/hdmf/

CBOS Business Solutions Inc: How To Register A Business With PhilHealth And Pag-
IBIG
https://cbos.com.ph/how-to-register-a-business-with-philhealth-and-pag-ibig/

Filepino: Business Licenses and Permits in the Philippines: A Checklist for Your
Company Registration and Compliance
https://www.filepino.com/business-licenses-permits-philippines/

Filepino: Fire Safety Inspection Certificate (FSIC) Application and Renewal Processes,
Requirements, Fees, and More
https://www.filepino.com/fire-safety-inspection-certificate-fsic-philippines/
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