How to Register a Business in the Philippines

You are planning to put up your own business, and you think that it is a very tedious process. It is, if you do not know how to go about it and where to start. The beauty of owning a business is to have something that you own and profit from. It is true that it requires a lot of hard work, but hard work pays off especially if you do it right.

In starting your own business, there are a number of government agencies that you need to go through to process the registration. It really depends on what type of business you are venturing into. What we have here are basic steps on how to register your business:

1. Department of Trade and Industry (DTI)
   It is essential to register a sole proprietor business with the DTI. This will ensure that you have an exclusive right to the use of your chosen business name. The DTI ensures that there would be no duplication of business names. It also protects the rights of business owners from individuals and/or groups from using their business name for any legal or illegal means. Fee is dependent on the kind of trade you are engaged in, company structure, among others. (more info)
   
   
2. Securities and Exchange Commission (SEC)
   You need to register and get an SEC Certificate if your business falls in the category of Corporation or Partnership. You will need this certificate for registering your business name with the DTI. Fee is dependent on several factors and the SEC website has a calculator to help you estimate this.
   
   
3. Local Barangay Office
   All local businesses are required to register and secure a Barangay Clearance from their Local Barangay Office (as per the Local Government Code). This is very easy. Just proceed to the Barangay Office which has jurisdiction over the vicinity in which you are opening your business. Fees are very minimal. It is normally below Php 500.00. However, those based in high-end business districts may charge a bit higher.
   
   
4. Local Municipality Office
   You will also need to register and secure a Mayor's/Business Permit form the Local Municipality Office. This permit states that you are in compliance with the standards of Municipality, such as Sanitary, Fire and Safety, and etc. Fees are dependent on the type of business that you will venture into.
   
   
5. Bureau of Internal Revenue (BIR)
   It is imperative that you secure a BIR Certificate of Registration. You will need this to get authorization to print receipts, to register your employees to effect withholding of taxes from their compensation, among others. Annual registration fee is Php 500.00 (plus Php 15.00 Certification Fee and Php 15.00 Documentary Stamp Tax).
   
   
6. Social Security System (SSS), Philippine Health Insurance Corporation (Philhealth), and Pag-Ibig Fund.
   You have to get your employees registered to these government agencies. This will ensure that they get the full benefits that these agencies provide. It is also mandatory that the employers register their employees to these agencies and give their share of the contributions.
• SSS – disability pension, retirement, funeral benefit, sickness allowance, maternity and paternity leave and loans;
• Philhealth – subsidized services in in-patient and out-patient;
• Pag-Ibig – provident funds, short-term and housing loan.
  
  
7. Other government agencies
   Depending on the type of your business, you may be required to register your business with other government agencies as well. These agencies can also help further your knowledge on the business that you wish to venture to, that is related to their mandated functions. Some of these government agencies are the:
   
   
• Philippine Coconut Authority – if your business is related in coconuts and its by-products.
• National Food Authority – if your business is related in grain-rice farming.
• Fiber Industry Development Authority – if your business is related in fiber producing products such as abaca, silk, maguey, piña, coir, salago, and buri.
• Bureau of Fisheries and Aquatic Resources – if your business is related in fishing activities and aquatic products.
• Bureau of Animal Industry – if your business is related to animals and any animal by-products.
• Bureau of Plant Industry – if your business is related to vegetables crop products.
• Forest Management Bureau – if your business is related in dealership of lumber, logs, poles, and piles or any other wood products.
• National Tobacco Administration – if your business is related to tobacco products.
• Bureau of Food and Drugs – if your business is related in the manufacturing, trading, repacking, packing, importing, exporting, distributing of any products related to food and drugs.
• Bureau of Product Standards – products included in the mandatory list for product reliability and safety certification (pdf file) should be tested first with this agency.
• Intellectual Property Philippines – a government agency where firms, businesses or individuals files their trademarks and patents.