Your Ultimate Guide to Registering as a Freelancer or Licensed Professional in the Philippines

Congratulations on taking the leap and starting your own venture! It’s a very exciting time. While the first steps in starting a business might seem daunting, we’re here to make it simple. This is your ultimate guide to registering as a FREELANCER or LICENSED PROFESSIONAL in the Philippines.

Step 1: Register with the BIR as a Self-Employed Taxpayer

Whether you’re a freelancer, consultant, or professional (doctor, lawyer, CPA, architect, etc.), your first step is registering with the Bureau of Internal Revenue (BIR).

Form to File

• BIR Form 1901 – Application for Registration of Self-Employed/Professionals

  
  

Where to File

• Online via BIR ORUS (Online Registration & Update System)

• Or at your local Revenue District Office (RDO)

  
  

Documents Required

• BIR Form 1901

• Government-issued ID

• Proof of address (lease, title, or barangay certificate)

• DTI certificate (if using a business name)

  
  

What You’ll Receive

• Tax Identification Number (TIN) if you don’t already have one

• BIR Certificate of Registration (COR, Form 2303)

  
  

Important Note

The ₱500 annual registration fee has been abolished as of 2025. You’ll only pay a ₱30 documentary stamp tax upon initial registration.

Permitly Tip

If you want a business name instead of using your personal name, register with DTI first. The registration is valid for 5 years.

Step 2: Pick Your Tax Set-Up

Depending on your expected annual income, you can choose:

Non-VAT Taxpayer Options

• 8% flat income tax: replaces the 3% percentage tax and graduated personal income tax. Available for individuals with gross annual income ≤ ₱3M.

• 3% percentage tax: still an option if you don’t qualify for the 8% flat tax.

  
  

VAT Registration

• Required if your gross annual income exceeds ₱3M.

  
  

Note

Once you opt for the 8% tax for a year, it is irrevocable for that taxable year.

Step 3: Register Your Books of Accounts

You’ll need to keep official records of your business transactions. Choose from:

• Manual books

• Loose-leaf books

• Computerized books

  
  

Tip

If using ORUS, it can generate the QR Codes/Stamps for computerized books.

Step 4: Authority to Print Invoices

Invoices are now the primary proof of transactions for goods and services.

Steps to Follow

• Submit BIR Form 1906 (Authority to Print Invoices) via ORUS or at your RDO.

• Have your invoices printed by a BIR-accredited printer.

  
  

Important Note for Professionals

Some LGUs may require a Professional Tax Receipt (PTR) from the City Treasurer, renewed annually. Fees vary per city or municipality.

Important Update

Official Receipts are now supplementary documentation. Invoices are what the BIR recognizes as primary.

Step 5: SSS, PhilHealth, and Pag-IBIG

Even if you don’t plan to hire employees yet, you need to stay compliant with social contributions:

• SSS – register as self-employed and remit monthly contributions online or at the branch.

• PhilHealth – register as a Self-Earning Individual (SEI) and choose your contribution bracket.

• Pag-IBIG – register as voluntary/self-employed; contributions are adjustable.

  
  

Additional Considerations for Freelancers and Professionals

Understanding Your Rights and Responsibilities

As a freelancer or licensed professional, it’s crucial to understand your rights and responsibilities. This knowledge will help you navigate the complexities of your new venture. Familiarize yourself with the laws and regulations that govern your profession. This will ensure that you remain compliant and avoid any legal issues down the road.

Building Your Client Base

Networking is key to building a successful freelance career. Attend industry events, join online forums, and connect with potential clients on social media. Building relationships with other professionals can lead to referrals and new opportunities.

Marketing Your Services

In today’s digital age, having an online presence is essential. Create a professional website showcasing your skills and services. Utilize social media platforms to reach a wider audience. Consider content marketing strategies, such as blogging or creating videos, to establish yourself as an expert in your field.

Managing Your Finances

Proper financial management is vital for freelancers and professionals. Keep track of your income and expenses. Consider using accounting software to simplify this process. Set aside money for taxes and other obligations to avoid surprises at the end of the year.

Continuing Education and Professional Development

Stay updated with the latest trends and developments in your field. Attend workshops, webinars, and conferences to enhance your skills. Continuous learning will not only improve your services but also increase your marketability.

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