How to Register a Business in the Philippines: 2025 Guide
The Bureau of Internal Revenue has mandated that all individuals who is earning from a business or profession should already register their businesses with the BIR. So if you are thinking of registering your business in the Philippines this 2025, read on. Whether you’re launching a freelance career, an online store, or a physical business, registering your business properly with the government is a must.
In this updated guide, we’ll walk you through how to register a business in the Philippines — from choosing the right structure to completing your BIR registration. Let’s get started!
Why Register Your Business?
Before diving into the steps, let’s talk about why business registration is important:
✅ It makes your business legal and compliant with Philippine laws
✅ You can issue official Invoices (used to be called official receipts or ORs)
✅ It builds credibility with clients, banks, and suppliers
✅ It allows you to access business loans, grants, and even government programs
✅ You can avoid heavy penalties for operating a business illegally
If you plan to earn income regularly, you’re required by law to register — whether you’re an individual freelancer, a sole proprietor, a partnership, or a corporation.
Step 1: Choose Your Business Structure
When learning how to register a business in the Philippines, the first decision is:
What business type are you registering?
| Business Type | Ideal for | Registered with |
|---|---|---|
| Freelancer / Professional | Individuals offering services (writers, consultants, etc.) | BIR only |
| Sole Proprietorship | Single-owner businesses | DTI + LGU + BIR |
| Partnership | Two or more owners sharing profits | SEC + LGU + BIR |
| Corporation | Separate legal entity with shareholders | SEC + LGU + BIR |
Step 2: Secure Your Business Name
If you’re a freelancer using your own name (e.g., “Juan Dela Cruz, Consultant”), you can skip this.
If you’re using a business name, you must register it:
- Sole Proprietor: Apply for a DTI Business Name Certificate at BNRS Portal (online) or at a DTI branch
- Partnership or Corporation: Reserve your business name with the SEC through their CRS Portal
Pro Tip: Choose a business name that’s easy to remember, relevant to your services, and available across platforms (like Facebook Pages or websites). Although, the DTI and SEC have rules on how to choose a business name so have at least ten choices.
Step 3: Register with the Barangay and City Hall (LGU)
Once you have your DTI or SEC registration:
- Barangay Clearance
➔ Go to the Barangay Hall where your business is located.
➔ Submit your business papers, ID, lease contract or proof of address.
➔ Pay the clearance fee (varies, usually ₱300–₱500). - Mayor’s Permit / Business Permit
➔ Apply at your city’s Business Permits and Licensing Office (BPLO).
➔ Submit your DTI/SEC Certificate, Barangay Clearance, lease or ownership documents, and other requirements.
➔ Fees depend on your business type and size.
Tip: Some cities now allow online business permit applications! Check if your LGU offers this service.
Step 4: Register with the Bureau of Internal Revenue (BIR)
Next is to register with the BIR. All of these types of business structures need to register with the Bureau of Internal Revenue.
- Freelancers/Sole Proprietors: Submit BIR Form 1901
- Partnerships/Corporations: Submit BIR Form 1903
At the end of the process, you’ll need to check if you have these on hand:
✅ Certificate of Registration (COR) (Form 2303)
✅ Stamped Books of Accounts
✅ Authority to Print (ATP) for printing out official invoices
✅ 10 booklets of official BIR invoices
👉 Full guide here: How to Get Your COR from BIR (Updated 2025)
Step 5: (Optional) Register with SSS, PhilHealth, and Pag-IBIG
- If you are hiring employees, you must register your business with these agencies.
- Even as a self-employed individual, it’s smart to voluntarily register to continue contributing to your future benefits!
Business Registration Costs in the Philippines (2025 Estimate)
| Item | Estimated Cost |
|---|---|
| DTI Business Name | ₱230–₱530 |
| Barangay Clearance | ₱300–₱500 |
| Mayor’s Permit | ₱2,000–₱5,000 (depending on LGU) |
| BIR Registration Fee | ₱500 |
| Documentary Stamp Tax | ₱30 |
| Printing of Official Invoices | ₱2,500–₱5,000 |
| Books of Accounts | ₱200–₱500 |
Tip: Some expenses like business permits are renewed annually.
FAQs on How to Register a Business in the Philippines
1. Can I register my business online?
Yes! You can register your business name online via DTI BNRS. Some LGUs and BIR branches now also accept partial online applications. BIR also accepts online applications via ORUS.
2. How long does it take to register a business?
If documents are complete, you can finish in 1 to 2 weeks (DTI, Barangay, City Hall, BIR combined). Online steps help speed it up.
3. Do freelancers need a Mayor’s Permit?
Generally, no — freelancers without physical offices can skip Mayor’s Permits. They usually get though a Barangay Permit and an OTR or Occupational Tax Receipt from the Barangay / LGU and then register with the BIR.
Final Thoughts
Knowing how to register a business in the Philippines properly will give you peace of mind and open more opportunities for growth.
Need help registering your business, go to: https://marketplace.taxumo.com/
Need help in using Taxumo for filing taxes? Start here.
Register smart, comply early — and build your dream business this 2025!