Registering a small business in the Philippines is now significantly streamlined due to the Ease of Doing Business Act (Republic Act No. 11032, as amended) and the full implementation of online registration systems by the DTI, SEC, and BIR. As of 2025, most small businesses can be fully registered in as fast as 1–3 days if all documents are complete and registration is done online, with the remaining local permits obtainable within the same week.

This guide covers everything a Filipino citizen or 100% Filipino-owned small enterprise needs to know, including sole proprietorships, partnerships, one-person corporations (OPC), and regular domestic corporations. Foreign-owned businesses have additional requirements under the Foreign Investments Act and are beyond the typical “small business” scope.

1. Choose Your Business Structure

The structure determines where you register first and your personal liability, taxation, and compliance burden.

Structure	Minimum Capital	Personal Liability	Best For	Primary Registration Body
Sole Proprietorship	None	Unlimited	Freelancers, sari-sari stores, small online sellers	DTI
Partnership	None	Unlimited (general)	2+ persons sharing profits	DTI (if general) or SEC (if limited)
One Person Corporation (OPC)	None	Limited	Solo entrepreneurs who want corporate protection	SEC
Domestic Stock Corporation	None (since 2019 Revised Corporation Code)	Limited	Businesses planning to scale or raise capital	SEC
Cooperative	Varies	Limited	Community-based enterprises	CDA

For most small businesses in 2025, the choices are:

Sole Proprietorship → fastest, cheapest, but owner is personally liable.
OPC → slightly more expensive but protects personal assets; now the preferred choice for serious solo entrepreneurs.

2. Reserve and Register Your Business Name

For Sole Proprietorship and Partnerships

Use the DTI Business Name Registration System (BNRS) at bnrs.dti.gov.ph

Steps (fully online as of 2025):

Create/log in to account (use GCash, Maya, or email verification).
Search desired name for availability (territorial, municipal, city, regional, or national scope).
Choose scope: National is recommended even for small businesses (₱500 fee difference is negligible).
Pay online (₱200–₱500 depending on scope + ₱30 convenience fee).
Certificate is issued instantly or within minutes.

Validity: 5 years, renewable 6 months before expiry.

For Corporations and OPCs

Use SEC Company Registration System (eSPARC) at esparc.sec.gov.ph

The name reservation is part of the incorporation process (see Section 4).

3. Secure Barangay Clearance

Go to the barangay hall where the business is located (physical office or home address for online businesses).

Requirements:

Accomplished barangay business application form
DTI Certificate (for sole prop) or SEC Certificate (for corp/OPC)
Contract of lease or proof of ownership (if rented/owned) or affidavit of consent if using residence
Valid ID
2×2 picture (some barangays)

Fee: ₱300–₱1,500 depending on capital declared and barangay.

Processing: Same day or next day.

Note: Many barangays now accept online applications via their own portals or Quezon City’s BPLS system if in QC.

4. Obtain Mayor’s Business Permit / Municipal License

Apply at the Business Permits and Licensing Office (BPLO) of the city or municipality where the business is located.

Most LGUs now use fully online or unified Business One-Stop Shop (BOSS) systems (e.g., Quezon City, Makati, Manila, Davao, Cebu).

Requirements (standard nationwide):

Accomplished unified application form
DTI Certificate or SEC Certificate + Articles of Incorporation/Partnership
Barangay Business Clearance
Lease contract or proof of ownership / affidavit of consent for home-based
Locational/Zoning Clearance (sometimes issued by BPLO)
Fire Safety Inspection Certificate (from Bureau of Fire Protection)
Sanitary Permit (from City Health Office) – for food-related businesses
Community Tax Certificate (Cedula)
Proof of BIR registration (if already obtained – some LGUs allow simultaneous processing)

Fees: Based on declared gross sales/capital (typically 0.3%–0.7% of capital + other regulatory fees). A sari-sari store with ₱100,000 capital usually pays ₱2,000–₱5,000 total.

Processing time: 1–3 days in most progressive LGUs (2025 standard under EODB law).

5. Register with the Bureau of Internal Revenue (BIR)

Use BIR Online Registration and Update System (ORUS) at orus.bir.gov.ph

Steps (fully online for new businesses since 2023):

Create account using registered email/mobile.
Fill up BIR Form 1901 (sole prop) or 1903 (corporation).
Upload DTI/SEC certificate, Mayor’s Permit, barangay clearance.
Choose tax type: 8% flat (most popular for small businesses with gross sales ≤ ₱3M) or graduated 1%–35%.
Register books of accounts (can be loose-leaf or computerized).
Pay Documentary Stamp Tax (₱30 for sole prop, ₱2,020 for corporations/OPC).
Pay registration fee ₱500 (one-time).
Receive Certificate of Registration (COR) Form 2303, Authority to Print (ATP) receipts, and registered books electronically within 1–3 days.

Important 2025 notes:

If gross sales/receipts will not exceed ₱3 million annually, elect 8% income tax in lieu of percentage and income tax (very advantageous).
VAT registration is mandatory only if sales exceed ₱3 million (optional below).

6. Register with Social Agencies (if you have employees or are self-employed)

SSS

Online via My.SSS portal or Employer (R-1) and Employee (R-1A) forms
Required even for self-employed/owners earning salary

PhilHealth

Online via e-Registration or PMRF form
Mandatory for all businesses

Pag-IBIG

Online via Virtual Pag-IBIG or employer forms
Mandatory contribution starts at ₱100/month each for employer and employee

All three can now be processed simultaneously through the LGU’s BOSS in many cities.

7. Special Permits and Licenses (Industry-Specific)

Business Type	Additional Permit Required	Issuing Agency
Food, restaurant, carinderia	FDA License or Certificate of Product Registration (for packaged food)	FDA
Drugstore	FDA LTO + Pharmacist presence	FDA
School/tutorial center	DepEd Permit or TESDA registration	DepEd/TESDA
Lending/investment company	SEC Registration as Financing/Lending Company	SEC
Recruitment agency	POEA/DOLE License	DOLE
Transport/delivery (Grab, Lalamove type)	LTFRB Franchise	LTFRB
Construction supplies/hardware	DTI Product Standards compliance (for steel, cement)	BPS/DTI

8. Optional but Highly Recommended: Register as Micro, Small, or Medium Enterprise (MSME)

Benefits:

Priority in government procurement
Access to loans (SB Corp, LandBank, etc.)
Training programs
7-year income tax holiday under Barangay Micro Business Enterprise (BMBE) if assets ≤ ₱3 million (RA 9178 as amended)

For BMBE (tax exemption): Apply at the city/municipality Treasurer’s Office after Mayor’s Permit. Requirements: Assets not exceeding ₱3 million, submit affidavit and financial statement. Certificate issued within 15 days → exempt from income tax on revenue from registered activity.

Summary of Costs (2025 Typical Ranges for Small Sole Proprietorship with ₱500,000 capital, Metro Manila)

Item	Approximate Cost
DTI Business Name (National)	₱530
Barangay Clearance	₱500–₱1,000
Mayor’s Permit + Fire + Sanitary	₱3,000–₱8,000
BIR Registration Fee + DST	₱530 (sole prop)
Books of Accounts (printing)	₱1,000–₱2,000
SSS/PhilHealth/Pag-IBIG initial	₱1,500–₱3,000 (if with 1 employee)
Total first-year cost	₱8,000–₱18,000

Corporations/OPCs add SEC registration fee of ₱2,020–₱10,000+ depending on capital.

Final Checklist Before Opening

□ DTI or SEC Certificate
□ Barangay Clearance
□ Mayor’s Business Permit
□ BIR Certificate of Registration (2303)
□ Authority to Print Receipts/Invoices
□ Registered Books of Accounts
□ SSS/PhilHealth/Pag-IBIG employer numbers (if applicable)
□ Industry-specific licenses (if applicable)
□ MSME/BMBE Certificate (optional but recommended)

Once all these are secured, you are legally allowed to operate anywhere in the Philippines. Annual renewal of Mayor’s Permit and payment of local business tax is due every January 20 (or quarterly for larger businesses).

Congratulations — your small business is now fully registered and compliant under Philippine law.