Permitly Guide: How to Register a Business (Freelancers and Professionals) in the Philippines (2025 Edition)

joctechnical
Sep 23, 2025
2 min read

Congratulations on taking a leap and starting your own venture! It’s a very exciting time. Now, we all know that the first step in starting a business is to register. While all the steps seem both tedious and daunting, we are here to help and guide you on this journey. Here is your ultimate guide on registering as a FREELANCER or a LICENSED PROFESSIONAL in the Philippines.

Step 1: Register with BIR as a self-employed taxpayer (Freelancer or Licensed Professional)

Your first step in business registration is with the Bureau of Internal Revenue (BIR). Whether you’re a freelancer, consultant, or professional (doctor, lawyer, CPA, architect, etc.), you’ll need to file BIR Form 1901 (Application for Registration for Self-Employed/Professionals).

- Start with your local/ chosen RDO or online via BIR ORUS

- Documents Required:

BIR Form 1901
Government-issued ID
Proof of address (e.g., lease, title, or barangay certificate)
DTI certificate (if using a business name)

- What You’ll Receive:

TIN (if not yet issued)
BIR Certificate of Registration (Form 2303)

Important: You must also pay the Annual Registration Fee (ARF) of ₱500 every January through BIR eBIRForms/eFPS or at an authorized bank.

Permitly Tip: if you prefer to use a business name rather than your own name, you’ll need to register with DTI (Department of Trade and Industry) first.

Step 2: Pick your tax set-up

- You have two options depending on your expected annual income:

Non-VAT: percentage tax (3%) or 8% flat tax option if eligible. The 8% option replaces percentage tax and personal exemptions and is available for individuals with an income not exceeding ₱3M.
VAT: Required if your gross annual income exceeds P3M

Step 3: Register your books of accounts

- Choose if you’d register Manual, Loose-Leaf, or Computerized books. If doing this via ORUS, it will generate the QR Code/Stamps for you.

Step 4: Fix your invoices

- On ORUS or with your chosen RDO, submit BIR Form 1906 (Authority to Print Invoices)

- Once completed, have a BIR-accredited printer print your Invoices and Delivery Receipts (if needed).

- NOTE: Invoices are the primary receipts for goods and services. Before 2024, Official Receipts were used. Now, they are just supplementary documentation

- For Licensed Professionals (Doctors, Lawyers, CPAs, etc.), LGUs may require a Professional Tax Receipt (PTR) from the City Treasurer (Local Government Code Sec. 139). This is renewed annually and fees vary per city or municipality.

Step 5: SSS, PhilHealth, and Pag-IBIG

- If you are not going to hire employees yet, you can keep your existing SSS, PhilHealth, and Pag-IBIG memberships or apply for one if you don’t have any yet

- If you plan on hiring employees, you’ll need to register as an employer with these agencies and remit the necessary contributions.

Have further questions or concerns? Here at Permitly, we offer free 15-minute consultations! Feel free to schedule one with us here.