Permitly Guide: How to Register a Business (Freelancers and Professionals) in the Philippines (2026 Edition)

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: 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.

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

• Have your invoices printed by a BIR-accredited printer

• 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.

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