Business startup includes the process of
registration with the right government agencies
and authorities. This is an important step that
must not be missed by any business, whether it
is a small, medium or large enterprise. This is
also the process that will make your company
legitimate and duly registered. You can either
register your business as a single proprietorship,
partnership or corporation. Furthermore,
special type of organization can also be
registered as an association or a cooperative.
The following are guidelines to help you register
your business or organization in the Philippines.
Registering your business name (DTI)
The first step in registering your business is to
register your business name. Your trade name is
a vital part of your brand. That is why it is very
important that you must duly register that
name with the proper authorities to protect it
and claim the legal rights to use and operate
your business under that name.
The Department of Trade and Industry (DTI) is
the Philippine government agency that governs
the registration of business names in the
Philippines. If youre business is in the form of
single proprietorship, a DTI registered business
name is one of the important requirement to be
able to register your business with the Mayors
Office and Bureau of Internal Revenue (BIR).
For corporations and partnership form of
businesses, their Securities and Exchange
Commission (SEC) registration is already
sufficient for their trade name. However, many
incorporators and partners are still registering
their trade name with the DTI to ensure that
their names will not be used by others.
You can register your business name online by
going to the DTIs Business Name Registration
System (BNRS) website (take note that you
should be at least 18 years of age to qualify).
To use and avail of their online services, such as
application of new business names, renewing
expiring certificates and online payment of fees,
you must register first in their website for an
account. There, you can also check the
availability of your desire name by searching it
in their database of registered names.
Alternatively, you can also go directly to their
regional office where your business is located if
you prefer to register offline.
Securities and Exchange Commission (SEC)
If youre registering a corporation or a
partnership, you must register your business
with the Securities and Exchange Commission
(SEC). The SEC is the government agency that is
responsible for securities laws and regulating
the securities industry in the Philippines. The
commission has the jurisdiction and supervision
over all corporations, partnerships or
association who are grantees of primary
franchises and or a license or permit by the
Government.
A corporation or partnership must secure a
certificate of registration with the SEC in order
to have the license to operate a business. That
certificate is also required by the Bureau of
Internal Revenue and Mayors office to get
registration and license from them.
Local Barangay Office
As required by the Local Government Code, all
businesses must obtain a Barangay Clearance
from the local Barangay Office where their
businesses are located. A clearance assures that
your business is a community friendly
establishment and conforms to the standards of
the Barangay. Fee in securing a clearance is
minimal but may vary depending on the size of
your business or the district where the
Barangay is located.
Social Security System (SSS)
Companies hire employees to run their
business. Employers should also register their
businesses and employees with the SSS. An
employer who does not report employees,
temporary or provisional employees is violating
the Social Security (SS) Law. Registering
employees ensures that, as an employer, you
are lawfully remitting your employers
contribution to the agency for the benefits of
your employees. SS benefits include disability
pension, retirement, funeral benefit, sickness
allowance, loans and other benefits.
Philippine Health Insurance Corporation
(Philhealth)
As required by the new National Health
Insurance Act (RA 7875 / RA 9241), all
employers are required to register their
employees with PhilHealth and remit to the
agency their share of contribution. Aside from
being mandatory, this is also to ensure that
employees are adequately covered by health
insurance that will aid them in hospitalization
costs and other health care needs.
Home Development Mutual Fund (Pag-IBIG
Fund)
By virtue of RA 7742, SSS members earning at
least 4,000 Philippine Pesos a month must be
registered with HDMF (the agency that
administers the Pag-Ibig Fund). Like SSS and
PhilHealth, employers must also register their
business and remit their employers share of
contribution for employees to the agency.
HDMF works towards providing Fund members
with adequate housing through an effective
saving scheme.
Mayors Office
After securing a DTI certificate of registration
for your trade name (single proprietorship), SEC
certificate of registration (corporations and
partnerships), Barangay clearance, and
registration with SSS, Philhealth and HDMF,
your next step is to register and obtain a permit
with the Municipality or City Mayors Office.
The permit affirms that your business is in
compliance to the municipality or Citys
ordinances and standards such as sanitary, fire
and safety and other clearances. Fees for new
applications may depend on their initial capital
while fees for renewals depend on the
applicants prior year gross revenues or sales.
Bureau of Internal Revenue (BIR)
When youre done with the Mayors permit,
you can now register your business with the
Bureau of Internal Revenue to secure a BIR
Certificate of Registration. Mayors Permit or
application for Mayors Permit is to be
submitted prior to the issuance of the BIR
Certificate of Registration. Registering with the
BIR will give you an authorization to print
official receipts, register books of accounts and
obtain a separate Tax Identification Number
(for partnerships and corporations). BIR
registration fee is 500 pesos annually. The BIR
certificate of registration shows your trade
name, Tax Identification Number (TIN), line of
business, and taxes that you must file or remit
to the BIR (e.g., annual registration fee, annual
and quarterly income tax, withholding taxes,
monthly and quarterly Value Added Tax or
monthly Percentage Tax, etc.,).
Other Government Agencies
Other types of businesses may also be required
by the government to secure special or
secondary licenses to operate. The following
agencies require special or secondary licenses
for special types of business and companies.
1. Cooperative Development Authority (CDA)
for cooperatives
2. Bangko Sentral ng Pilipinas (BSP) for banks,
pawnshops and money changers
3. Philippine Coconut Authority (PCA) for
businesses related in grain-rice farming and
trading
4. Fiber Industry Development Authorit (FIDA)
for business related in fiber producing products.
5. Bureau of Fisheries and Aquatic Resources
(BFAR) for business related in fishing and
aquatics products
6. Bureau of Animal Industry (BAI) for
business related to animals
7. Bureau of Plant Industry (BPI) for business
related to plants and vegetable crops
8. Forest Management Bureau (FMB) for
business related in lumber, logs, and other
wood product.
9. National Tobacco Administration (NTA) for
business related to tobacco products
10. Insurance Commission (IC) for insurance
and other IC regulated entities
11. Bureau of Food and Drugs (BFAD) for
business related in the manufacturing, trading,
repacking, importing, exporting, distributing of
any products related to food and drugs
12. Intellectual Patent Office (IPO) for
registering your trademarks, logos, slogans,
processes and secret formulas
13. Commission on Higher Education (CHED)
and Department of Education (DepEd) for
entities involved in providing education
14. Technical Education and Skills Development
Authority (TESDA) for institutions involve in
technical education and skills development
15. Department of Labor and Employment
(DOLE) Business establishments with five or
more employees are encouraged to register
with the DOLE for the purpose of monitoring
the firms compliance with labor regulations.
Registration is required for firms with 50 or
more workers.