Steps in Applying for a Sole Proprietorship in the Philippines

Steps in Applying for a Sole Proprietorship in the Philippines

A sole proprietorship is the simplest business structure in the Philippines. In this type of business, the owner is the only investor and manager. They have full control over the profits and assets of the company, and also have sole responsibility for its debts and obligations.
While it also has its disadvantages, a sole proprietorship offers plenty of benefits, especially to small businesses with limited capital. One of these benefits is the ease at which you can acquire a business registration.
Here’s a step by step guide on how to register a sole proprietorship in the Philippines.

  1. Register your business name with the Department of Trade and Industry (DTI)
    • Come up with a name for your business then check on the DTI website if this is available
    • If the name is available, fill out the Business Name Registration Form (BNRF) on the website, then download and print a hardcopy
    • Submit the completed form to the DTI branch where you’re setting up the business, along with your TIN and five other potential business names, ranked according to your preference
    • Pay the registration fees
    • After submission of the form and payment of fees, wait one to two days for the Certificate of Registration

  3. Register the business with the barangay where your business is located and secure a Barangay Certificate of Business Registrate
    • Get a registration application form at the barangay office
    • Complete the form and submit it to the barangay office, along with the following documents:
      • DTI Certificate of Registration
      • Two valid IDs
      • Proof of Address for the business, which could be a Contract of Lease or a Certificate of Land Title
    • Pay the registration fee
    • Wait around two days to claim the certificate

  5. Register the business with the mayor’s office and obtain a Mayor’s Permit
    • Get and accomplish a registration application form at the municipal office
    • Submit the completed application form together with the following:
      • DTI Certificate of Registration
      • Barangay Certificate
      • Two valid IDs
      • Proof of address
    • Pay the necessary fees, which may include the following:
      • Plumbing inspection fee
      • Electrical inspection fee
      • Building permit fee
      • Sign board permit fee
      • Sanitary permit fee
      • Retail permit fee
      • Garbage collection fee
      • Occupational tax
      • Occupational police/health clearance fee
    • Wait around one to two weeks to receive the permit

  7. Register the business with the Bureau of Internal Revenue and obtain a Certificate of Registration
    • Obtain the following BIR forms online or at the BIR Regional District Office (RDO) of your business’s location:
      • BIR Form 1901 Application for Registration for Sole Proprietorship
      • BIR Form 0605 (Payment form)
      • BIR Form 2000 Documentary Stamp Tax on Lease
    • Complete and submit the forms at the RDO for assessment, along with the following:
      • DTI Certificate of Registration
      • Barangay Certificate
      • Mayor’s Permit
      • Two valid IDs
      • Proof of address
    • After your registration is assessed, pay the assessed fees at a bank accredited by the RDO. Submit the accomplished BIR Forms 0605 and 2000 to the bank.
    • After the payment is made, go back to the RDO and submit the payment forms, proofs of payment, and the other documents mentioned above. Make sure your documents are complete or the BIR may not process your application.
    • You will be given a claim stub that states when you can claim your BIR Certificate of Registration (COR), usually after three to five days.
    • Upon claiming your COR, you will also be given an “Ask for Receipt” notice that is recommended to be prominently displayed in your business premises

  9. Register your book of accounts with the BIR
    • You will need the following books, which you can buy at any bookstore:
      • Journal
      • Ledger
      • Cash receipt book
      • Cash disbursement book
    • Download BIR Form 1905 and BIR Form 0605 from the BIR website or get them from the RDO
    • Accomplish the forms and bring them to the RDO registration section along with your books for stamping

  11. Apply for an Authority to Print (ATP) Receipts and Invoices with the BIR
    • Get a list of BIR accredited printing presses in your district
    • Accomplish BIR Form 1906, which you can get online or at the BIR RDO
    • Submit the form to the RDO along with your BIR Certificate of Registration and BIR Form 0605 (payment form)
    • Have your receipts printed and wait around 7 to 14 days for their completion

Alternatively, you can bring the BIR Form 1906 and your COR to an accredited printing press, and they can obtain the ATP for you.
Once all these processes are completed, you’re all set to do business.
If you need more information and assistance, contact our team today.