How to Register a Business in the Philippines: A Complete Step-by-Step Guide

TL;DR (Summary Box)

Starting a business in the Philippines involves registering with DTI (sole proprietorship) or SEC (corporations/partnerships), then completing BIR and local permits. For foreign investors, additional steps like securing BOI or PEZA registration and appointing a resident agent may apply. This guide simplifies each stage — and if you’d rather skip the paperwork, Loft offers end-to-end registration and compliance support.

Why Business Registration Matters (Especially for Foreign Investors)

If you’re setting up shop in the Philippines, you might wonder: “Where do I even start?”

Navigating through DTI, SEC, BIR, and local permits can seem daunting — especially for foreign founders new to Philippine business regulations.

Proper registration not only legitimizes your business but also helps you:

• Open corporate bank accounts

• Issue official receipts

• Apply for tax incentives

• Protect your business name and structure

This guide covers everything — from choosing your business structure to staying compliant year-round.

Step 1: Choose the Right Business Structure

Your first decision is choosing how your business will legally operate. Here are the main types of business registration in the Philippines:

1. Sole Proprietorship

• Owned and operated by one person

• Simple, quick, and inexpensive to register

• Register with: Department of Trade and Industry (DTI)

• Ideal for: freelancers, small business owners, and consultants

2. Partnership

• Owned by two or more individuals or entities

• Requires a Partnership Agreement

• Register with: Securities and Exchange Commission (SEC)

• Ideal for: law firms, consultancies, or joint ventures

3. Corporation

• Separate legal entity owned by shareholders

• Offers limited liability and credibility with clients and investors

• Register with: SEC

• Ideal for: startups, SMEs, and foreign investors

4. One Person Corporation (OPC)

• A simplified version of a corporation with a single owner

• Offers limited liability protection

• Register with: SEC

• Ideal for: solo founders wanting corporate status

Step 2: Check Business Name Availability

Before registration, ensure your chosen business name is available.

• DTI: Check via BNRS Portal.

• SEC: Verify through the SEC CRS.

Pro tip: Use a name that’s unique, easy to spell, and reflects your brand identity. Avoid overly generic or common names.

Step 3: Register with the Appropriate Government Agency

This is where you get your official registration certificate.

For foreign investors:

• Secure approval under the Foreign Investments Act (FIA).

• Register with BOI or PEZA for incentives if applicable.

• Appoint a resident agent or local representative.

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

Every business in the Philippines must register with the BIR to obtain:

• Tax Identification Number (TIN)

• Authority to Print Receipts and Invoices

• Books of Accounts Registration

Steps:

1. Fill out BIR Form 1901 (DTI) or 1903 (SEC).

2. Pay the ₱500 Annual Registration Fee.

3. Register your accounting books.

4. Apply to print official receipts/invoices.

This ensures your business can legally issue receipts and pay taxes.

Step 5: Secure Local Government Permits

Once registered, you’ll need to obtain local permits from your business location.

Common requirements include:

• Barangay Clearance

• Mayor’s/Business Permit

• Occupancy Permit (if renting space)

• Fire Safety Certificate

Each LGU has its own process, but typically, you’ll submit your SEC/DTI, BIR, and lease documents.

Step 6: Register with Other Mandatory Agencies

To hire employees or provide social benefits, register with:

• SSS – Social security contributions

• PhilHealth – Health insurance

• Pag-IBIG Fund – Housing and savings fund

• DOLE – For businesses with 5+ employees

If your company is export-oriented or located in an economic zone, also register with PEZA or BOI for incentives.

Step 7: Open a Corporate Bank Account

A business bank account is crucial for managing finances transparently.

You’ll need:

• DTI/SEC registration

• BIR certificate

• Mayor’s permit

• IDs of authorized signatories

Pro tip: Choose a bank that offers online business banking and foreign currency accounts if you’re an international founder.

Step 8: Maintain Compliance Year-Round

Staying compliant means avoiding fines or suspension. Common renewals include:

• Annual BIR registration fee (₱500)

• SEC Annual Report / General Information Sheet (GIS)

• Mayor’s Permit renewal (every January)

• DTI name renewal (every 5 years)

Keep track of deadlines — or consider outsourcing compliance to experts for peace of mind.

Common Challenges for Foreign Investors

Foreign entrepreneurs face unique hurdles when registering a business in the Philippines:

• Navigating multiple government agencies

• Limited ownership in certain sectors (per the Foreign Investment Negative List)

• Slow document processing and in-person requirements

💡 Pro Tip:

Work with a local business registration partner like Loft to handle your SEC, BIR, and permit applications. Loft’s team provides expert assistance for foreign business setups, ensuring your company is fully registered and compliant — without the stress.

📦 Branded Callout Box

Start Your Philippine Business the Smart Way
Loft provides end-to-end HR, business registration, and compliance coverage for both local and foreign businesses.

Our professional and friendly team helps you navigate every step — from securing your SEC or DTI registration to maintaining full-year compliance.

👉 Talk to Loft today to simplify your setup and focus on growth, not paperwork.

FAQs About Business Registration in the Philippines

1. What are the main types of business registration in the Philippines?

DTI for sole proprietorships; SEC for corporations, partnerships, and OPCs.

2. How do I choose the right type of business registration?

If you’re a solo operator, go with DTI. If you plan to scale or need investors, choose SEC registration.

3. What is the difference between SEC and DTI registration?

DTI = individual ownership.
SEC = entities with multiple owners or shareholders.

4. What is a One Person Corporation (OPC)?

A single-owner corporation that offers limited liability protection.

5. How long does it take to register a business in the Philippines?

Around 2–4 weeks, depending on agency processing time.

6. What documents are required?

Valid IDs, business name certificate, proof of address, and articles of incorporation (if applicable).

7. Can a foreigner register a business in the Philippines?

Yes, but ownership restrictions apply based on the industry. Registration under BOI or PEZA can provide incentives.

8. Which structure is best for small businesses?

A sole proprietorship or OPC is best for flexibility and simplicity.

9. What is the cost of registering a business in the Philippines?

Expect to spend ₱5,000–₱15,000, depending on your structure and local permit fees.

10. Do I need to register with both the SEC and the DTI?

No. Only one — DTI for individuals, SEC for corporations or partnerships.

Final Thoughts

Starting a business in the Philippines may seem complicated, but once you know the steps, it’s straightforward.

Whether you’re a local founder or foreign investor, choosing the right structure and staying compliant is key to long-term success.

If you’d rather skip the red tape, Loft’s end-to-end HR and compliance coverage can take care of it all — from registration to renewals — so you can focus on building your business.

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