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The Advantages of Being a Sole Proprietor in the Philippines

In this inaugural episode of Tax Tips Tuesdays Episode 1, husband & wife/co-founders of, Ej and Ginger Arboleda talk about the advantages of being a sole proprietor in the Philippines — in terms of business structure as well as taxes.

When do we need to register as a Sole Proprietor in the Philippines?

Once you have a brick and mortar store, an ecommerce site, good and stocks that you maintain, etc., you will need to register as a sole proprietorship in the Philippines.

How do I register a Sole Proprietorship Business?

It’s easy to set up a Sole Proprietorship in the Philippines (at least as compared to a Corporation or a Partnership). To set up a Sole Proprietoship in the Philippines, it requires going to 3 government agencies: DTI, LGU or Municipal Hall and Baranggay and the Revenue District Office of BIR in the city of your business address. Note that you are not COMPLETELY REGISTERED as a Sole Proprietorship if you do not have documents from these three departments.

If you are from Metro Manila, we here at Taxumo, can help you register as a Sole Proprietor. All you need to do is go to the link below and collate all the documents indicated in STEP 1.

If you have any questions about registering a Sole Proprietorship, feel free to message us using the chat button in this site.

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11 thoughts on “The Advantages of Being a Sole Proprietor in the Philippines”

  1. Hi I’m still employed and would like to start a business. Can I register as a sole proprietor para ofis pa din ung magasikaso ng tax ko as an employee?

    Thank you.

    1. Hi I am a sole proprietor. I have independent contractors foreigners living abroad and the Philippines and Filipinos living in Philippines. How is the taxation? Am I required to pay for their taxes and how will I declare it?

  2. Hi, I am currently employed and want to run an online selling business. I already have clearance from our HR since it is not related to our company’s business. My questions are:
    Since I need BIR Permit as a requirement and to pay my obligations,
    – Am I legally allowed to apply for a BIR Permit while employed?
    – How do I file my Sole Proprietary Business in BIR? I do have applied for a DTI Permit btw.
    – How will my tax be calculated and how much will I be paying for my business?
    – What would be the recommended way to do this, without breaking any laws?
    – Will my employer see my submitted revenue for my business?

    Please make a detailed post about it because I am sure that so many full time employee like me who has cmare honest that wants to do this… The Right Way!

  3. Hi, I want to know if what are the employer’s responsibilities regarding the legal benefits of their employees? if retail business and non vat registered? Thankyou!

  4. In relation to the article, I need taxumo to file me a sole p. but I only have a residential address.
    Our service is website development sk we do not really need an office.

    How do we do this

  5. Hi, I’m employed as an accountant of a Sole proprietor which was registered as BMBE and therefore, income tax exempt. I’m not familiar as how taxation plays in a sole prop. Hope you can help me by answering.
    1. How do BIR tax Owner’s Withdrawal (withdrawing funds or income) from the Sole Proprietorship? Would the funds withdrawn by the Owner be taxed as his personal income? Since the TIN of the Owner and business is the same, I’m confused if they’ll be one or as separate entities.
    2. Income from sale of stocks should be declared as income on the part of the Owner or of the Sole Proprietorship?

    Would greatly appreciate your help.

  6. 1. Can you help set up a company such as B MB E?

    2. We have an existing Sole proprietor business, renting out office spaces. We have a lot of random expenses. What is the best way to minimize taxes?

    1. Maria Millicent Dela Cruz

      Hello Avery,

      Yes, we have CPA partners who can assist you with the application for BMBE. Kindly fill up this form so can refer you to one of our partner accountants 🙂

      For your 2nd question, it would be best if you can do a consultation with one of our CPA partners so they can guide you on how you can minimize your taxes. You may book a session here:

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