Registering a Small Business You Own Alone (Sole Proprietorship)

Step 1: Register Your Business Name With the DTI

If you will use a name other than your own full name (for example, "Aling Nena's Bakery"), register it with the Department of Trade and Industry (DTI) through the Business Name Registration System (BNRS) at bnrs.dti.gov.ph.

• Any Filipino 18 or older can register.
• Choose a territorial scope (how wide an area the name is protected in). The DTI's fees are ₱200 (barangay), ₱500 (city or municipality), ₱1,000 (regional) or ₱2,000 (national), each plus ₱30 documentary stamp tax.
• The registration is valid for five years. You can renew up to 180 days before it expires, and within 90 days after it expires; later renewals carry a 50% extra charge (surcharge).

The DTI certificate only registers the name. It is not a permit to operate. A representative can file for you with an Authorization Letter and a valid ID.

Government fees can change. Always check the current amount with the office before you pay. Last checked October 8, 2026.

Step 2: Barangay Clearance

Get a Barangay Business Clearance from the barangay where the business is located. The barangay sets its own fee. Bring your DTI certificate, a valid ID, and proof of your right to use the place (a Lease Contract, or the title or Tax Declaration if you own it). See Barangay Certificates.

If you rent the space, see our Contract of Lease template.

Step 3: Mayor's Permit (Business Permit)

Apply at the Business Permits and Licensing Office (BPLO) of your city or municipality. Many local governments (LGUs) have a Business One-Stop Shop or an online system. Expect to hand in:

• the Unified Business Permit Application Form;
• your DTI certificate and Barangay Clearance;
• proof of the right to use the place (lease or title);
• for food businesses and some others, a Sanitary Permit and Health Certificates for workers; and
• clearances such as the Fire Safety Inspection Certificate and Zoning or Locational Clearance, which the LGU often processes in the same visit.

You pay local business taxes and fees set by the LGU's local tax law (revenue code). The Mayor's Permit is renewed every January. The Ease of Doing Business Act (Republic Act No. 11032, or RA 11032) sets time limits for government offices to act on complete applications.

Step 4: Register With the BIR

Register with the Bureau of Internal Revenue (BIR) at the Revenue District Office (RDO) that covers your business address, or through the BIR's online registration system. Self-employed individuals use BIR Form 1901.

• You receive a Certificate of Registration (BIR Form 2303) showing your tax types. Display it in your place of business.
• Register your books of accounts (the record books of your sales and expenses: manual, loose-leaf or computerized).
• Get permission to print (authority to print), or register your system, for invoices. Under the Ease of Paying Taxes Act (RA 11976, effective 22 January 2024), you must issue an invoice for sales of ₱500 or more, and the ₱500 annual registration fee was removed.
• Ask the RDO about your options: the 8% income tax on gross sales for qualified self-employed individuals, or the graduated rates (higher rates for higher income); and percentage tax or VAT depending on your sales.

File and pay your returns on time even when you have no sales. Under RA 11976 you can file and pay at any authorized bank, RDO or authorized tax software provider.

Government fees can change. Always check the current amount with the office before you pay. Last checked October 8, 2026.

Step 5: If You Hire Workers

As an employer, register with and pay contributions to:

• SSS (Social Security System), as an employer, and report each employee;
• PhilHealth; and
• Pag-IBIG Fund.

You withhold the employee's share from their pay, add the employer's share, and pay them every month. Pay at least the minimum wage set by your region's wage board, and keep payroll records. For employee papers, see our Certificate of Employment template.

Barangay Micro Business Enterprise (BMBE)

A very small business may register as a BMBE under Republic Act No. 9178 if its total assets, not counting land, are within the limit the law sets. A registered BMBE is exempt from income tax on income from its operations and may get help with credit and training. Ask the DTI Negosyo Center or your city or municipal treasurer's office.