How to Register Your Business in 5 Easy Steps
I know you’re excited to open your business and be your own boss that you’ve long been dreaming, but one thing you have to go through before you can start your venture is the process of business registration. Business registration is a critical requirement for every business. It can be a tedious and time-consuming procedure, that’s why we’re here to discuss the steps to make it a walk in the park for you.
- Know your category first.
Business registration in the Philippines has 3 categories: Individual, Sole Proprietor, and Corporation. Each category has its corresponding requirements and government agencies. Therefore, knowing your category first saves a lot of time and effort. If you are still confused on which category you are in, check the information below:
Individual/Self-Employed (offers their expertise, talents or skills) – Licensed Professionals (i.e., Doctor, Accountant), Freelancers, and Consultants.
Sole Proprietor (selling goods or services) – Any straightforward and simple operations that have one owner ONLY.
Corporation/Partnership – Two or more owners and want to secure long-term investments.
- Obtain a Certificate of Registration for your Business Name
After you’ve finalized your category, you have to register your business name. These are the corresponding government agencies according to category:
In addition to the above mentioned categories, there are other businesses that need special permits and certification. For instance, if you are to open a Pawnshop and/or Money Changer, you need to obtain registration certificate from the Central Bank of the Philippines. See table below:
|Nature of Business||Permit / License|
|Bank, Pawnshops, Money Changers, Financial Cooperatives||Bangko Sentral ng Pilipinas (BSP)|
|Trading, repacking, importing & exporting, food and drugs distribution||Bureau of Food and Drugs (BFAD)|
|Animal-related business, like Zoo||Bureau of Animals Industry (BAI)|
|Fish and aquatic businesses||Bureau of Fisheries and Aquatic Resources (BFAR)|
|Education-related entities such as Schools, Daycare, and alike||Commission on Higher Education (CHED)Department of Education (DepEd)|
|Products which undergo Quality Control, sampling, tasting, exporting, and alike||DTI- Bureau of Product Standards|
|Fiber-producing products||Fiber Industry Authority or FIDA|
|Logs, Lumber, woods||Forest Management Bureau|
|Exporting garments and textiles||Garments and Textile Industry Development Office (GTIDO)|
|Insurance-related businesses||Insurance Commission (IC)|
|For registering trademarks, Logos, patented formulas||Intellectual Patent Office|
|Flour, corn, and rice dealers||National Food Authority|
- Secure a Barangay Clearance
Whether your business is situated at the business district or just a small area within your city, you MUST secure a Barangay Clearance. It is essential to abide by your city’s ordinance to prevent long-term issues.
- Set a date to visit your City Hall
Once the steps 1-3 are done, local government office will release your business permit. It is vital to set a date when to visit your City Hall, this way, you can personally ask the authorities for further information should you need future assistance.
Note: Make sure you already have your DTI registration certificate and Barangay clearance in hand before heading to City Hall.
- Lastly, secure a Tax identification Number
The last thing you want to incur is tax evasion. I am sure that you don’t like to go down that road. Business owners must submit a tax statement at the end of each financial year; thus, it is crucial to have your TIN ready.
Just follow these 5 easy steps and the whole business registration process wouldn’t be a menace at all! Good luck on your venture!
About the Author
Danella Yaptinchay is the Managing Director of Full Suite, a services company providing backend support to small businesses. She is a co-founder of Co.lab, a coworking space, and of the media company, Homegrown. In constant pursuit of balance and self-development, she tries to apply the practices of yoga to her daily life.