We have made a simple yet, comprehensive step-by-step business registration guide to jumpstart your business to help you skip the long lines and hassle-filled transactions in the Philippines.
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- Kinds of Business Registration Plans You Can Choose from
- Sole Proprietorship/Self-Employed Professional
- One-Person Corporation
- Domestic Incorporation
- Foreign Corporation
- Freelancer
- Licensed Professional
- Sole Proprietorship
- General Partnership
- Takeaway
Kinds Of Business Registration Plans You Can Choose from
- One-Person Corporation
- Domestic Incorporation
- Foreign Corporation
- Freelancer
- Licensed Professional
- Sole Proprietorship
- General Partnership
Sole Proprietorship/ Self-Employed Professional
→ What is a business type? In layman’s terms, a business type is the structure of a business. The four types of businesses include sole proprietorship, partnership, corporation, and Limited Liability Company (LLC). Each type of business is unique and has special considerations when it comes to legal and tax implementation.
If you’ve just started a business under the category of Sole Proprietorship, and you’re planning to legitimize your business, follow the steps below to have your business registration accomplished in the easiest way possible.
You may accomplish your business registration online or in person at the nearest DTI branch in your area of residence or business location.
STEP 1
Visit the online business registration portal and understand the terms and conditions for registering your new business. Click on agree once you have read and understood the Terms and Conditions.
STEP 2
Fill out the Information sheet assigned for the owner of the business (this would be you if you are registering for your own business). Once accomplished, click on “Next” to proceed to the next step.
STEP 3
Fill out the fields which apply to your Business Name and Scope.
- Select the location scope where your business will be (Street, City, Barangay, Region, Zip Code).
- Enter your selected business name in the assigned field.
- In the field where you are asked to provide a description of your business name, type the keywords that describe your business (be reminded that The Descriptor is designed to describe your business under the basis of Philippine Standard Industrial Classification).
- In the bottom field of the form, a proposed business name will be projected, click on “Check Name Availability,” and if the name you desire your business to be is available, the system will present a “PASSED” indication. Otherwise, you would have to generate another business name for the reason that your chosen name is already an existing business.
STEP 4
Receive your assigned reference number (screenshot or capture with another device). Your reference number must be duly taken note of as this will be used in all your succeeding transactions with your DTI business registration.
STEP 5
As you click on “Continue,” fill out the required information, such as:
- Business Address
- Personal Information
- Residence Address
- And other succeeding details
STEP 6
Congratulations! You’ve made it halfway through! In this step, carefully review the information you provided and include your working contact information. Once reviewed, click on “Confirm.”
STEP 7
Read and understand the conformity undertaking and click on “Proceed.” After this step, you may now download your filled-out application.
STEP 8
You’re almost done! Once everything is confirmed, accomplish the payment through the provided channels of the payment transaction. The DTI system accepts payment methods made through GCash, Link.Biz, Landbank, Paymaya, Credit, and Debit cards.
- Make sure to pay the business registration fee within seven (7) calendar days from the date of your application. If unable to do so, your application number and transaction will be considered void.
- When the payment has been made successfully, the Business Name Registration Certificate will be sent to the email address you provided.
STEP 9
When you’ve confirmed your payment, click on “Register New Business.”
CONGRATULATIONS! Your business name is registered!
To download your certificate online, follow these 3 easy steps:
1. Visit the tab which says “Transaction Inquiry” which is presented under “Business Name Services” of the DTI Website. Read and Understand the Terms and Conditions, and click on “I Agree.”
2. Type in your given reference number in the provided space, once you do so, you will receive an email with a code to verify your registration.
3. Input the code to access the Transaction Summary where you will find the downloadable certificate of your Business Name Registration.
One-Person Corporation
→ A One-Person Corporation or “OPC” is a business structure that consists of one stockholder. The abbreviation “OPC” is required to be indicated in the company’s name, similar to using “Inc.” for companies that are incorporated, or “LLC” for Limited Liability Companies.
A person who is of natural nationality can create a corporation under the category of OPC. The corporation will be subject to statutory restrictions and constitutional requirements in areas of investment and business legitimization.
While a Sole Proprietorship business registers with the Department of Trade and Industry, a One-Person Corporation on the other hand must register with the Securities and Exchange Commission, and accomplish the requirements below.
- A yearly audited financial statement, which must be filed to the Securities and Exchange Commission (SEC) within 120 days from the date of which its fiscal year has ended.
- A report consisting of the comments by the President about the adverse remarks created by the auditor on the submitted financial statements.
- A disclosure statement of self-dealing and other connected party transactions is entered between the One-Person Corporation, and the sole stockholder, with supporting documents requested by the Securities and Exchange Commission
One of the perks of registering as a One-Person Corporation is the need for no minimum capital stock unless you are specified to do so. This process is extended to foreigners hoping to create a business under the One-Person Corporation in the Philippines.
In addition, a business that is a One-Person Corporation is not required to pay up a percentage of any capital stock once the incorporation has been made, again unless specified by law.
One of the responsibilities of an OPC is to appoint staff members for their administration.
- A corporate secretary, which must be appointed within 15 days from the day when incorporation has been made.
- The corporate secretary is not allowed to be the single stockholder
- The corporate secretary must be a Filipino citizen
- A treasurer must also be appointed within 15 calendar days from the day when incorporation was held.
- The treasurer is required to be residing in the Philippines.
- The treasurer may be the single stockholder if a file of surety bond has been submitted and confirmed with the Securities and Exchange Commission.
- A nominee and an alternate nominee who will manage the operation in the event of the stockholder’s expiry or incapacitation.
To register your One-Person Corporation, you need to prepare the following documents.
1. Article of incorporation, that includes:
- Name and personal identification details of the single stockholder
- Purpose of business
- Term of existence
- Office Address
- Name of Nominee and Alternate Nominee
- An authorized capital
- Include other necessary information, any document that is needed to support your business incorporation and registration
2. Written consent from the Nominee and Alternate Nominee
3. Other applicable documents, which may be:
- Passport number or Tax Identification Number of the Foreign Director (in the case that owner is not a local Filipino citizen) or Tax Identification Number of Filipino Director
- Foreign Investment Act Application Form, a document that is used by persons who are not of natural origin
- Authority to Act on Behalf of the Estate or Trusts, a document that is used by trusts and estates who form incorporation under the One-Person Corporation
- An affidavit of Undertaking to Change Company Name
5 Steps to Register your One-Person Registration
- Register your proposed company name to the Securities and Exchange Commission.
- Submit the necessary documents applicable to your business to the Securities and Exchange Commission for evaluation.
- Pay the corresponding filing fees.
- Submit signed and notarized physical copies of your documents with proof of filing payment.
- If your selected company name is available, and you have successfully read and understood the terms and conditions of the Securities and Exchange Commission, claim your Certificate of Registration from the Securities and Exchange Commission
NOTE: If your selected company name is unavailable, or rejected, you may submit a Letter of Appeal to the Securities and Exchange Commission.
Domestic Incorporation
→ A Domestic Incorporation is a business structure that is composed of natural Filipino citizens of legal age, with at least one (1) capital of share stock in the corporation, while the remaining majority of the corporation are Philippine residents. In a Domestic Incorporation, it is required to satisfy the requirements of statutory laws, which require at least five (5) and no more than fifteen (15) incorporating individuals.
To register for a Domestic Corporation, you must follow the steps below.
- Registration of proposed company names to be submitted to the Securities and Exchange Commission.
- Submit the supporting documents that are required by the Securities and Exchange Commission.
- Article of Incorporation
- Article of Bylaws
- Bank Certificate of Paid-up Capital
- Data Sheet Registration
- Endorsement
- Clearances from other Government Agencies (if required by the Securities and Exchange Commission)
- Certified registration of Stock and Transfer Books
- A registration certificate from the Bureau of Internal Revenue for corporate taxing
- A document of procurement for the business’ permits and licenses from the city or municipality where the business is located or set to be located.
- A document of procurement for secondary licenses if the business will engage in large industry sectors (finance, pharmaceuticals, motor vehicles, etc.)
- Registration with related government agencies:
- Social Security System
- Pag-Ibig
- Bureau of Internal Revenue
- PhilHealth
- NBI
Types of Domestic Corporations
- Domestic Corporation of 0.01% up to 40% Foreign Equity
- Domestic Corporation of 0% Foreign Equity, which means this is 100% Filipino-owned
- Foreign-Owned Domestic Corporation of 40.01% up to 100% Foreign Equity
Foreign Corporation
Are you a foreign business-minded person looking to register your Foreign Corporation in the Philippines? Look no further, because we have the steps that will guide you through your business registration journey.
→ A Foreign Corporation is another type of business structure that has been incorporated in a different country, outside of the Philippines. This type of business operates locally but has been established outside the Philippines.
Foreign Corporations are required to obtain the following documents.
- License for Ideal Legal Entity
- Capital Requirements for Licensing
- Bylaws and Drafting of Articles for Incorporation
- Reservation and registration of company name
- Account for Treasurer in trust
- Local Bank account
- Tax Identification Number
- Business Permit
Foreign corporations who wish to establish their business in the Philippines are required to accomplish the License to Do Business from the Securities and Exchange Commission before beginning operation in their local office and branches.
Freelancer
→ Are you somebody who works as a performance-based, per-job, per-task independent professional? This is often called Freelancing. Being a freelancer means you engage in labor work independently, and earn your profit through short-term contracts. Your occupation as a self-employed, independent contractor, allows you to have different and multiple clients for varying fields of industry.
Perhaps you’re wondering, why would you need to register your freelance business in the Philippines. To answer this question, here are a few points we’d like to cover to enlighten you.
- Credibility – You are immediately legit! When you register your freelance business, you can proudly showcase your expertise to your clients and future clients. You would have hold of a document called a Certificate of Registration, otherwise known as the form 2303 from the Bureau of Internal Revenue.
- Receipts – You can issue receipts that will serve as your business’ transparency and accountability. You can use these receipts as records for filing too.
- Tax Records – It may not sound appealing, but it sure is one of the best ways to keep track of your earnings and financial records.
To register your freelance business in the Philippines, you must accomplish the list of documents required below.
- Tax Identification Number – You can get your Tax Identification Number from the Bureau of Internal Revenue. You may head down to the website of the Bureau of Internal Revenue to have an online registration accomplished.
- Revenue District Office – Since you are a freelancer you’d have to be certain that your Tax Identification Number is updated in your RDO. Your RDO is the term that describes where your business is located.
- Books of Account – Have your books of account prepared and organized for filing.
- Birth Certificate – Have a copy of your birth certificate that is certified by the Philippine Statistics Authority. Have multiple copies for your records and submission to the designated government offices.
- Any valid Government-issued ID that indicates your name, residential address, and date of birth.
- Occupational Tax Receipt (OTR) – You may obtain this document from the city hall where your registered residence is located.
- Barangay Certificate – This document certifies that you are working as a freelance professional who is not working under any government agency or company.
- BIR Forms that apply to the nature of your freelance work. You may review the specific documents on the website of the Bureau of Internal Revenue.
- Proof of the nature of your freelance work – This may be in the form of a portfolio, website, or project contract.
Licensed Professional
→ Unlike the other mentioned business structures, a Licensed Professional in business terms means that an individual is authorized to perform a skilled activity based on approved qualifications. An example of a Licensed Professional is a Psychometrician. A Psychometrician is a person who has passed a board examination and has earned a license to practice. When a Psychometrician wants to open a clinic to practice the profession, he/she must secure a legitimized registration to continue.
Luckily, Weremote offers a Business Registration service for Licensed Professionals. Among others, the registration of a Licensed Professional business would give you the leeway to perform more effectively because your clients or patients can trust your credibility.
Being a Licensed Professional could branch from anything, be it a Psychometrician or a Teacher. Say you want to start your tutorial school, you can have your Business Registration easily accomplished at cost-saving routes. Don’t miss the opportunity, and register your Licensed Professional Business now!
Sole Proprietorship
→ Sole Proprietorship is another business structure that is characterized by having one individual who has full control over the business. In a Sole Proprietorship company, the individual owns all assets and profits of the business.
While the startup scene in the Philippines is booming, business structures such as a Sole Proprietorship, experience the flexibility and advantages of business individuality.
Some of the advantages a Sole Proprietorship business would enjoy include:
- Complete control over business operations, authority, and profits
- Government Regulation
- Easy decision making
- Direct line of communication between the company and its clients
- Less form in the formation of entities or departments
- Minimal reporting to higher authorities
- High confidentiality of business information
- Tax Advantages
General Partnership
→ A General Partnership is another form of business partnership that is constructed by two or more individuals who agree on a share for assets, profits, legal liabilities, and the business’ financial involvement. A General Partnership is one of the most common partnerships in the Philippines, it is a partnership that forms countless business firms as it shares assets and liabilities among two or more individuals.
The benefits of a General Partnership include:
- A collaborative effort in operations and management
- Sharing of gains and losses
- When there are two or more partners in a company, the company is likely to have the high capital amount
- Business establishment cost is relatively low
To register your General Partnership business, follow the steps we listed for you.
- Register your Business name with the Securities and Exchange Commission, to establish your business name and industry.
- Obtain a Barangay Clearance from your local area of residence, or the area where your business is located, to ensure that your business can operate in the area your business will be located.
- Register your business with the Social Security System, to ensure that you can lawfully hire and provide remittance to your employees’ governmental benefits.
- Obtain a permit from the Mayor’s office, to operate your business.
- Register your business with the Bureau of Internal Revenue to keep track of your taxes.
The basic requirements of registering a business under the General Partnership structure include:
- Name Verification Form
- Articles of Partnership
- Affidavit of Joint of two partners (not a required document if the information is already stated in the Articles of Partnership)
- Bank Deposit Certificate
- Name of Partnership
- Office Address
- Contact Numbers and Contact details of the partnership members
- Tax Identification Number of partnership members
- Capital contribution of partners
- A document that presents the purpose for the partnership
The list can go on depending on the industry of your business, you would also need to acquire health and sanitation permits that may be required for your business to operate. It could take a long time for your business to begin and papers can pile up continuously, which is why we offer a foolproof solution for your business.
Takeaway
Nobody wants long lines, costly fees, missed deadlines, and opportunities. But any business should start on the right foot, and having it registered is the first you need to take and should not be taken for granted. Second, of course, is to settle your business in a location that suits your needs and your budget. That’s where Weremote comes in.
Weremote offers co-working environments, lounges, and professional spaces that are customized to individual needs, whether you’re a freelancer, a startup, or a corporate team so you can focus on what matters more–growing your business.
Weremote stands as a community where professionals and businesses thrive, offering a dynamic environment for growth. As the coworking brand of Wrkspace Office Management and Solutions Inc., Weremote continues to foster professional development and build vibrant communities. Weremote is a portfolio company of AHG Lab, the largest independent venture builder in the Philippines.
