Quick answer

Most businesses in the Philippines must complete three separate layers before operating:

Register the owner or legal entity with the DTI, SEC, or CDA.
Register with the BIR for the correct taxes, books of accounts, and invoices.
Obtain a business or mayor’s permit from every city or municipality where the business operates, together with applicable barangay, zoning, occupancy, fire-safety, sanitary, and industry-specific clearances.

These requirements apply to ordinary physical stores and generally also to home-based and online businesses. A DTI, SEC, or CDA certificate alone is not permission to begin selling. Additional licenses may be required depending on the product, service, premises, ownership, and number of employees.

Because local requirements and fees are set partly by ordinance, obtain the official checklist from the city or municipal Business One-Stop Shop before signing a long lease, renovating, buying equipment, or accepting customers.

Start with the correct business structure

Your structure determines who registers the business, who owns its assets, and who may be personally responsible for its debts.

Structure	Registration authority	Important effect
Sole proprietorship	DTI, if a business name other than the owner’s true name is used	The owner and business are not separate legal persons. The owner is generally personally liable for business obligations.
Partnership	SEC	Rights and liabilities depend on the partnership agreement and whether the partnership is general, limited, or professional.
Corporation	SEC	The corporation normally has a legal personality separate from its stockholders, subject to capitalization, governance, and special-law requirements.
One Person Corporation	SEC	Permits one qualifying stockholder but requires corporate records, officers or designated roles, and continuing SEC compliance.
Cooperative	CDA	Must satisfy the Cooperative Code, membership, capitalization, governance, and CDA requirements.
Foreign corporation	SEC license to do business	Foreign-equity restrictions, minimum capitalization rules, resident-agent requirements, and sector laws may apply.

Ordinary stock corporations are not subject to a general minimum capital stock requirement under the Revised Corporation Code, but special laws may impose minimum capital or nationality requirements. A foreign investor should check the activity against the current Thirteenth Regular Foreign Investment Negative List before choosing owners, percentages, nominees, or corporate documents.

Do not use a Filipino “nominee” merely to make a restricted business appear Filipino-owned. Ownership and control arrangements must reflect the real investment and comply with nationality and anti-dummy laws.

Step 1: Register the business name or legal entity

Sole proprietorship: DTI

A business name is a name other than the proprietor’s true name that is used in connection with the business. Registration is available through the official DTI Business Name Registration System.

The current registration fees depend on territorial scope:

Barangay: ₱200
City or municipality: ₱500
Regional: ₱1,000
National: ₱2,000
Documentary stamp tax: ₱30

DTI business-name registration is generally valid for five years. Territorial scope concerns registration and use of the name; it does not eliminate the need for permits in every locality where the business operates.

A DTI certificate:

does not create a corporation or separate legal personality;
does not prove ownership of a trademark;
does not authorize a regulated activity; and
is not a mayor’s permit or BIR registration.

Check both business-name and trademark risks before investing heavily in signage, packaging, websites, or franchise materials.

Corporations and partnerships: SEC

Domestic corporations, One Person Corporations, non-stock corporations, partnerships, and qualifying foreign corporations use the SEC’s eSPARC registration system. Eligible domestic stock corporations may use OneSEC/ZERO processing; other applications undergo regular processing or special review.

Common information and documents include:

proposed entity name;
primary and secondary purposes;
principal-office address;
incorporator, partner, director, trustee, officer, and beneficial-owner information;
articles of incorporation or partnership;
bylaws when required;
capital structure and subscription details;
proof of authority for representatives;
endorsements from another regulator when the activity is specially regulated; and
authenticated foreign documents when applicable.

SEC fees vary according to the entity, capital, transaction, and legal requirements. Rely on the assessment generated by the SEC system rather than an unofficial fee estimate.

After SEC registration, corporate obligations continue. These may include the General Information Sheet, annual financial statements, beneficial-ownership disclosures, maintenance of corporate records, and reports specific to the entity. Filing dates and required forms should be checked against the SEC’s current annual issuances.

Cooperatives: CDA

A cooperative registers with the Cooperative Development Authority under the Philippine Cooperative Code. Registration generally involves a pre-registration seminar, articles of cooperation and bylaws, an economic survey, capitalization and membership records, officers’ documents, and other requirements for the proposed cooperative type.

Applications and related processes are handled through the CDA’s registration services and E-CoopRIS procedures. Registration alone does not automatically establish entitlement to every tax exemption; separate BIR requirements may apply.

Step 2: Register with the BIR

Every person subject to internal-revenue tax must register the business with the BIR. This includes sole proprietors, professionals, corporations, partnerships, cooperatives, branches, physical sellers, and online sellers.

Under BIR Revenue Memorandum Circular No. 91-2024, commencement of business is determined by the earliest of:

the first sales transaction; or
the lapse of 30 calendar days from issuance of the relevant mayor’s permit, professional or occupational tax receipt, DTI business-name certificate, or SEC certificate.

The safest course is to complete BIR registration before the first sale and well within that 30-day period.

Forms and filing channels

The principal registration forms are generally:

BIR Form 1901 for self-employed individuals, including sole proprietors and professionals; and
BIR Form 1903 for corporations, partnerships, cooperatives, associations, and other non-individual taxpayers.

Depending on the transaction and system availability, registration may be filed through:

the Revenue District Office with jurisdiction;
the BIR NewBizReg portal;
the Taxpayer Registration-Related Application portal;
the Online Registration and Update System;
the Philippine Business Hub; or
an integrated SEC-to-PBH process for eligible companies.

Use only one TIN. A sole proprietor who already has a TIN must update and register the business under that TIN rather than obtain another one.

What must be completed

BIR registration ordinarily includes:

registration of the legal and trade or store names;
registration of the head office and each branch or facility;
issuance of the Certificate of Registration, commonly BIR Form 2303;
registration of the applicable tax types;
authority to print and use registered invoices, or another BIR-authorized invoicing system; and
registration of books of accounts.

The ₱500 annual BIR registration fee was abolished effective January 22, 2024 under the Ease of Paying Taxes reforms. An older Certificate of Registration does not need replacement merely because it still displays that tax type.

Books of accounts

New registrants may use manual, loose-leaf, or computerized books. Under RMC No. 65-2025, registration of books is not necessarily required on the same day as business registration, but proper records must be available when business begins.

For new registrants using manual books, the registration deadline is generally before the initial quarterly income-tax return or annual income-tax return is due, whichever comes first. Loose-leaf books require a Permit to Use, while computerized books or accounting systems require the applicable BIR acknowledgment or authority before use.

Invoices and display requirements

A non-VAT taxpayer must generally issue a registered invoice for a transaction of ₱500 or more, whenever the buyer requests one regardless of amount, and for qualifying aggregated below-threshold sales at day’s end. A VAT-registered taxpayer must issue an invoice regardless of amount. The statutory threshold is subject to periodic CPI adjustment, so check current BIR issuances.

Mandatory VAT registration generally applies when gross annual sales exceed the current ₱3 million threshold, subject to statutory adjustments, exempt-transaction rules, and voluntary-registration options.

A physical establishment must display its BIR Certificate of Registration conspicuously. An online seller must post the electronic certificate or permitted QR-code proof on the relevant website, seller profile, or platform page. Store names used on websites, social-media accounts, and marketplaces should be declared to the BIR.

Carrying on business without BIR registration can result in administrative consequences and, upon conviction under the current Tax Code, a fine of ₱5,000 to ₱20,000 and imprisonment of six months to two years. Higher penalties apply to specified unregistered excise-tax activities under Republic Act No. 12214.

Step 3: Obtain the local business permit

A city or municipality may regulate businesses operating within its jurisdiction under the Local Government Code. Apply through the local Business One-Stop Shop or electronic BOSS for the exact address where the activity will occur.

Common requirements include:

unified business-permit application;
DTI, SEC, or CDA certificate;
BIR registration details when required at that stage;
government-issued identification and authority of the representative;
proof of ownership, lease, or other right to use the premises;
zoning or locational clearance;
building and occupancy documents appropriate to the actual use;
barangay clearance;
fire-safety compliance;
sanitary permit and health certificates for covered establishments;
environmental, engineering, signage, market, or occupational clearances where applicable; and
payment of local business taxes and regulatory fees.

This is not a universal documentary checklist. The valid list is the one published in the LGU’s current Citizen’s Charter or permit portal. An LGU should not demand unpublished requirements that are absent from its official checklist without a legal basis.

Barangay clearance

A barangay clearance remains part of local business permitting. Under the Ease of Doing Business Act, applications, issuance, and collection for business-related barangay clearances should be integrated at the city or municipal level. Follow the LGU’s official BOSS workflow instead of paying an unauthorized intermediary.

Fire Safety Inspection Certificate

The general rule under the Fire Code is that a business or permit to operate cannot be issued without the required Fire Safety Inspection Certificate.

A limited exception under Republic Act No. 11589 covers professionals, freelancers, self-employed persons, individual contractors, and One Person Corporations engaged in service activities who register their residence as the principal place of business. The exception is fact-specific; it should not be assumed for manufacturing, storage, customer-facing operations, hazardous activities, or premises outside the statutory conditions.

Renewal and local-tax deadlines

Business permits are normally renewed annually, but the permit-renewal date is controlled by the applicable local ordinance and LGU notice.

As a general rule, the Local Government Code requires local taxes, fees, and charges to be paid within the first 20 days of January or of each subsequent quarter, as applicable. A sanggunian may grant a lawful extension for a justifiable reason. Confirm the actual renewal and payment schedule with the LGU because local rules, extensions, and online procedures differ.

Check zoning before committing to a location

A valid SEC or DTI address does not guarantee that the premises may legally be used for the intended activity.

Before signing a non-cancellable lease or beginning renovations, confirm:

that the zoning classification permits the activity;
that the building has an occupancy status suitable for the proposed use;
whether the condominium, subdivision, landlord, or homeowners’ association permits commercial activity;
whether cooking, manufacturing, customer visits, deliveries, signage, storage, or employee attendance changes the permitted use;
whether renovations require building, electrical, mechanical, sanitary, or fire-safety approval; and
whether the lease authorizes permit applications and inspections.

Use the same complete address—including unit, floor, building, barangay, city, and postal details—across the lease, DTI or SEC records, BIR registration, invoices, and permit applications. Address inconsistencies are a frequent source of rejection and later compliance problems.

Additional licenses depend on the activity

A mayor’s permit does not replace a national regulator’s license. Determine the regulatory classification before purchasing inventory or advertising.

Examples include:

Food, drugs, cosmetics, medical devices, and other health products: FDA licenses and product authorizations where applicable.
Restaurants, bakeries, salons, spas, water-refilling stations, and similar establishments: local sanitary permits and employee health certificates; FDA requirements may also apply depending on manufacturing, processing, packaging, or distribution.
Construction: PCAB contractor licensing and project permits, where applicable.
Transportation: LTFRB, LTO, MARINA, CAAP, or other transport authority approvals depending on the operation.
Schools and training providers: DepEd, CHED, TESDA, or another competent regulator.
Lending, financing, securities, insurance, and payment services: SEC, BSP, Insurance Commission, or other financial-regulatory authority.
Recruitment and employment agencies: Department of Migrant Workers or DOLE authorization, depending on the service.
Tourism enterprises: Department of Tourism accreditation when mandatory for the enterprise category.
Manufacturing, emissions, wastewater, hazardous substances, mining, forestry, or protected resources: DENR or Environmental Management Bureau permits and environmental approvals.
Agricultural inputs, livestock, plants, fisheries, meat, and pesticides: the relevant Department of Agriculture bureau or attached agency.
Telecommunications, broadcasting, radio equipment, and covered online services: NTC registration, permits, or type approval.
Liquor, tobacco, fuel, sweetened beverages, minerals, automobiles, and other excisable products: BIR excise registration and permits in addition to ordinary business registration.

The description written in the DTI, SEC, BIR, and local applications should accurately cover the real activity. An overly narrow description may leave part of the operation unlicensed; an inaccurate broad description may trigger requirements for activities the business does not actually conduct.

Online and home-based businesses

Selling through a marketplace, social-media page, messaging app, or personal website does not by itself remove registration duties. Online merchants remain subject to business registration, tax, invoicing, consumer-protection, and applicable local-permit rules.

For an online or home-based operation:

declare every online store name to the BIR;
display the BIR electronic Certificate of Registration or allowed QR code;
issue registered invoices;
disclose accurate seller, price, product, delivery, return, and complaint information as required by the Internet Transactions Act;
check residential zoning, lease, condominium, and subdivision restrictions;
determine whether inventory storage, employees, cooking, manufacturing, or customer visits change the premises’ classification; and
secure product-specific approvals before listing regulated goods.

DTI currently describes application for the E-Commerce Philippine Trustmark as voluntary. It does not replace DTI or SEC registration, BIR registration, local permits, or product licenses.

Employer registrations and labor compliance

Once a business hires employees, even if there is only one, separate employer obligations arise.

SSS

An employer must register and secure an employer number. SSS coverage generally begins on the employer’s first day of operation and the employee’s first day of employment. Employees must be reported for coverage within 30 days of hiring. See the official SSS employer guidance.

PhilHealth

Register the employer, obtain a PhilHealth Employer Number, and report newly hired employees within 30 calendar days from assumption of work. The employer certificate must generally be displayed in a conspicuous place. See PhilHealth employer registration.

Pag-IBIG Fund

Coverage is mandatory for employees covered by SSS or GSIS and their employers under the Home Development Mutual Fund Law. Register the employer and employees and remit the required contributions.

DOLE and occupational safety

Employers must register the establishment under Rule 1020 of the Occupational Safety and Health Standards. Registration is available through the DOLE Online Compliance Portal. Employers must also comply with wage, payroll, leave, workplace-policy, recordkeeping, and occupational-safety requirements appropriate to their size and risk classification.

Calling a worker an “independent contractor” does not control if the facts show an employer-employee relationship.

Barangay Micro Business Enterprise registration

A qualifying microenterprise may separately apply for a Barangay Micro Business Enterprise Certificate of Authority through a DTI Negosyo Center.

The principal eligibility threshold is total assets of not more than ₱3 million, excluding the land on which the office, plant, and equipment are situated. Licensed professional services rendered in connection with a government-regulated profession are excluded. Other disqualifications and affiliation rules may apply.

BMBE registration can provide statutory incentives, but it does not replace:

DTI, SEC, or CDA registration;
BIR registration;
local business permits;
employer social-benefit obligations; or
sector-specific licenses.

The certificate is generally valid for two years and renewable if eligibility continues. Approval of BMBE status should be obtained and presented to the BIR before claiming an income-tax exemption. See the BMBE Act and the Negosyo Center Act.

A practical registration sequence

Define the actual activity. List every product, service, sales channel, storage site, vehicle, and regulated process.
Check nationality and sector restrictions. Do this before accepting foreign investment or drafting ownership documents.
Pre-clear the location. Verify zoning, occupancy, lease authority, and fire or sanitary feasibility.
Choose the legal structure. Consider liability, governance, investors, succession, taxes, and continuing compliance.
Register with DTI, SEC, or CDA.
Register promptly with the BIR. Obtain the COR, correct tax types, books, and invoicing authority before selling.
Apply through the local BOSS. Complete barangay, zoning, occupancy, fire, sanitary, and local-tax requirements.
Obtain industry licenses. Do not advertise or sell regulated products prematurely.
Register as an employer before or immediately upon hiring.
Calendar renewals and reports. Include the LGU permit, DTI renewal, SEC or CDA reports, BIR returns, industry licenses, and employer remittances.

Eligible companies may use the Philippine Business Hub to complete integrated steps, but verify the status of every resulting registration. A single portal submission does not necessarily mean that every agency has approved the application.

Evidence to preserve

Keep organized electronic and physical copies of:

submitted applications and all attachments;
DTI, SEC, or CDA certificates and governing documents;
BIR COR, registration confirmations, books-of-account QR stamps, invoicing authority, and sample invoices;
mayor’s permit, official assessment, official receipts, barangay clearance, zoning approval, occupancy documents, and FSIC;
sanitary, environmental, product, professional, and sector licenses;
title, lease, landlord consent, and premises plans;
inspection reports, notices, corrective-action proof, and photographs;
authority documents for every representative;
payroll, time, employment, contribution, and remittance records;
portal reference numbers, confirmation emails, and payment records; and
screenshots showing a government portal error or outage.

Never surrender an original certificate to an unofficial fixer. Verify payment instructions and demand an official receipt or system-generated acknowledgment.

Common mistakes

Treating a DTI or SEC certificate as authority to operate.
Making the first sale before BIR registration and invoicing are ready.
Obtaining a second TIN for a sole proprietorship.
Using receipts or invoices that are not registered or permitted under current BIR rules.
Registering only the head office while leaving branches, warehouses, kiosks, or facilities undeclared.
Using different names, addresses, or business descriptions across agencies.
Leasing residential premises without checking zoning and occupancy restrictions.
Assuming an online or home business is automatically exempt.
Ignoring foreign-equity and minimum-capital rules for regulated activities.
Claiming BMBE or tax-exempt status without the required certificate and BIR recognition.
Hiring workers without SSS, PhilHealth, Pag-IBIG, DOLE, payroll, and OSH compliance.
Paying a fixer instead of using the agency’s official portal, BOSS, or published payment channel.
Missing local renewal dates or continuing to use an expired sector license.

When professional help is urgent

Consult a Philippine lawyer, CPA, or the responsible regulator promptly if:

the business has already begun operating without BIR or local registration;
a closure order, tax notice, Letter of Authority, subpoena, or inspection finding has been received;
taxes or employee contributions were withheld but not remitted;
foreign nationals own, fund, manage, or control any part of the business;
nominee ownership or an undocumented investor is involved;
the premises lacks an occupancy permit or has a serious zoning or fire-safety problem;
the business handles food, medicines, financial services, recruitment, transport, construction, hazardous materials, or another regulated activity;
ownership, address, capital, or business activity differs from the filed documents;
several branches, franchises, warehouses, or online store names are involved; or
the business is being sold, converted, transferred, inherited, or closed.

Stopping new sales while correcting a serious licensing issue may prevent additional violations, but closure, tax, employment, and contractual consequences should be evaluated from the actual documents.

Frequently asked questions

Can I operate as soon as DTI approves my business name?

No. DTI registration protects and records the business name for a sole proprietorship. You still need BIR registration, the applicable local business permit, and any industry license.

Does an SEC certificate authorize a corporation to begin selling?

Not by itself. The corporation exists after SEC registration, but operating lawfully normally requires BIR registration, local permits, and activity-specific approvals.

Does every business need a mayor’s permit?

The general rule is yes for a business operating within a city or municipality. Particular professions, activities, premises, and statutory exemptions may be treated differently. Confirm the position in writing with the relevant LGU rather than relying on a verbal assurance.

Do freelancers need to register?

A person regularly earning from self-employment or professional practice generally must register with the BIR. Licensed professionals may also need a professional tax receipt and professional-regulatory compliance. Local permit treatment depends on the activity and LGU rules; the limited home-based service exemption from an FSIC does not automatically exempt the person from every other requirement.

Is a home-based online seller exempt?

Not automatically. The seller generally remains subject to BIR, online-commerce, and applicable local rules. The premises and activity determine zoning, occupancy, fire, sanitary, and homeowners’ or condominium restrictions.

Is one business permit valid throughout the Philippines?

No. Local permits are tied to the locality and premises. A branch, kiosk, warehouse, factory, or office in another city or municipality may need its own registrations and clearances.

Is the ₱500 BIR annual registration fee still payable?

No. Collection ceased effective January 22, 2024. This does not remove the obligation to register, file returns, keep books, issue invoices, or pay applicable taxes.

How long should registration take?

There is no reliable single timetable. Processing depends on the entity, LGU, location, inspections, regulated activity, and completeness of the submission. Under the Ease of Doing Business Act, the standard maximum processing periods are generally three working days for simple transactions, seven for complex transactions, and 20 for highly technical transactions, subject to the law’s conditions and agency classification.

What if an office asks for an unpublished requirement?

Request the current Citizen’s Charter provision, checklist, ordinance, or written legal basis. Keep the name of the office, date, application reference, and written communications. Unresolved delay or unauthorized requirements may be raised through the agency’s complaints process or the Anti-Red Tape Authority.

Official references

This article provides general Philippine legal information, not legal or tax advice for a particular business. Requirements can change and conclusions may depend on the actual ownership, documents, activity, premises, employees, and local ordinance. Official sources and procedures were checked as of July 23, 2026.