How to Register a Sole Proprietor Business in the Philippines?

You may have a great business idea that you want to implement as soon as possible yet you don’t have any idea how to start and register a business. This article aims to give you some pointers on how to register and start a Sole Proprietor business.

What is a Sole Proprietor?

Sole Proprietor is a type of business that is owned and managed by a single individual.

Benefits of a Sole Proprietor Business

  • Easier to set up and register
  • Requires minimal amount of capital
  • Lower cost in registering for government permits and licenses
  • Minimal regulations and monitoring requirements
  • You can register and run your business on your own
  • You can enjoy the profits on your own

Disadvantages of a Sole Proprietor Business

  • Risk and liability is shouldered by the owner (you) alone
  • The loss is solely suffered by the owner (you)
  • You manage and operate the business on your own which sometimes leads to exhaustion
  • Shareholders, such as creditors or government agencies, can run after your own personal assets since the business is you.

Where to Register a Sole Proprietor Business?

Here are the government agencies where you are required to register your Sole Proprietor business.

  1. Department of Trade and Industry
  2. Local Government Units where your business is located:
    • Barangay
    • Mayor’s Office
  3. Bureau of Internal Revenue
  4. If you have employees, you need to register to the following:

Basic Requirements and Procedure in Registering a Sole Proprietor Business

In this part of the article, we will guide you on how to register your business in many different government agencies.

1. Register a business name at Department of Trade and Industry

  1. Come-up with three (3) business names such as
    1. XYZ Trading
    2. XYZ Retail and Trading
    3. XYZ Trading Enterprises
  2. Search in the DTI’s website if there’s an existing name similar to yours
  3. If your business name is available, fill-up Business Name (BN) Application Form.
  4. Submit your completed BN application form to DTI’s offices/branch
  5. Wait for your DTI Certificate of Registration

After acquiring a DTI Certificate of Registration, you may now proceed and register to Local Government Units (LGU), such as Barangay and Mayor’s Office:

2. Registration with Barangay

  1. Go to the barangay where your business is located to secure and fill-up application form
  2. Submit your completed application form together with the following:
    • Certificate of Business Registration from DTI
    • Two (2) valid IDs
    • Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if owned)
  3. Claim your Barangay Certificate of Business Registration

3. Register your business in the Mayor’s Office

    1. Go to the municipal office where your business is located to secure and fill-up application form
    2. Submit your completed application form together with the following:
      • Certificate of Business Registration from DTI
      • Barangay Clearance Certificate
      • Two (2) valid IDs
      • Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if owned)
    3. Claim you Mayor’s Business Permit and Licenses

When you already got all the certificate and permits from DTI and LGUs, you may now register to the Bureau of Internal Revenue (BIR)

4. Register your business in the Bureau of Internal Revenue (BIR)

    1. Go to the Regional District Office (RDO) where your business is located
    2. Fill-up the BIR Form 1901 – Application for Registration (for Sole Proprietor)
    3. Submit completed registration form together with the following:
      • Certificate of Registration form DTI
      • Barangay Clearance
      • Mayor’s Business Permit
      • Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if owned)
      • Valid IDs, if applicable.
    4. Pay the Registration Form (BIR Form 0605)
    5. Register your book of accounts and receipts/invoices.
    6. Claim your Certificate of Registration (BIR Form 2303)

After completing all the steps above, you can now focus in operating and growing your business. If you are having a problem or too busy to do it, you can also outsource it to us at a very affordable price. Please see our business registration service.

Good luck.

PS

You can make us an extension of your office by letting us do the accounting, payroll, tax and business registration so you can focus in growing your business. You may use this form to request for our proposal.

If you chose to do it yourself, you may attend our scheduled workshops to learn and execute faster.

Disclaimer: The content of this article may become outdated because of changes in the rules and regulations over time. It does not substitute the need for inquiring professional advice.

Comments

  1. I’m planning to register my business under my name just to secure an ATP(Authority to Print) for BIR receipts purposes. My delima is, my business is a sole proprietorship consultancy. Meaning I don’t have people under me, or an office but only myself and my knowledge for the services to be offered. What should be the best step to take. Is it to go directly to DTI or directly to the BIR to acquire the ATP. Thank you very much.

    • If you have a trade name, go to DTI. If you have PRC ID, you can register directly to BIR.

      • Pde ko bang isama ang isang foreigner sa single/sole prop? o ako lang talga as may trade name as Guillermo C. Albutra? o possible po ba na gamitin lang ang name ko ng boss kung foreigner, cya po kasi ang may capital eh…ang nature po ng business namin is .. door to door shipment, cargoes from china,,. deliver to diff customers to domestics areas as long as metro manila.. anu po ba ang gagamitin kong name ng business ko as door to door shipment?? my name o company name?…magkanu po ba ang capital? magkanu babayaran sa dti pag paparehistro?? Maraming2x slamat po at God bless….-GCAlbutra. pls reply to my email add above..Thanks po !

  2. Francia W. Tracena says:

    thanks for the info. God bless

  3. john kirby says:

    hi i just want to ask how much will be the cost of registering a business if i process it and if you process it. let me know. i want to start a small business in apartmentt renting, poultry and hog raising

  4. Mozi Villar says:

    Greetings ma’am Yanuaria,

    I’m an Industrial Design graduating student next year by march, and planning to build my own business selling custom-made paracord products in the near future at Lynville Subdivision, Alaminos, Laguna.
    whom sould I ask for the RDO location in Laguna (sorry I can’t find it on google map) and registration fee for BIR form 0605?

  5. Hi,

    i would like to register a business. The business is in Information Technology field, we outsource software development services to foreign clients.. it is very small now, as I am starting up.. my question is how should I handle the bir receipts,etc.. should I consider hiring an accountant?? thanks!