Business Registration in the Philippines

First steps for small business owners deciding between DTI and SEC registration, then barangay, mayor's permit, and BIR requirements.

Last reviewed: July 2, 2026General process information

DTI or SEC?

A sole proprietorship typically registers a business name with DTI. Partnerships and corporations generally register with SEC. Your structure affects taxes, liability, paperwork, and compliance.

Common registration sequence

  1. Choose business structure and business name.
  2. Register business name or entity with DTI or SEC.
  3. Get barangay clearance for the business location.
  4. Apply for mayor's permit or business permit with the city or municipality.
  5. Register with BIR and secure official receipts or invoices as required.
  6. Check SSS, PhilHealth, Pag-IBIG, and DOLE obligations if hiring employees.

Documents to prepare

Local rules vary. LGU requirements differ by city, municipality, location, and business activity.

Costs and fee notes

DTI Business Name registration fees are generally tiered by the territorial scope you register for — barangay-level is the cheapest, followed by city/municipal, regional, and national scope — plus a small documentary stamp tax on top. Registration is typically valid for five years before renewal. BIR registration historically required an annual ₱500 registration fee, but the Ease of Paying Taxes Act (Republic Act No. 11976, 2024) removed this annual registration fee — confirm current BIR requirements when you register, since implementing rules and forms are periodically updated. Fee amounts change, so check the DTI and BIR sites for current figures before budgeting.

If your business is very small, ask about registering as a Barangay Micro Business Enterprise (BMBE) under Republic Act No. 9178. Qualifying enterprises (generally those with total assets, excluding land, not exceeding ₱3 million) can get income tax exemption on income from the business and other incentives — registration is typically done through your city or municipal office.

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