Permitly Guide: How to Register a Business (Sole Proprietor) in the Philippines (2025 Edition)

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 SOLE PROPRIETOR in the Philippines.

Step 1: Register Your Business Name with DTI

As a sole proprietor, you will first need to register your business name with the Department of Trade and Industry (DTI).

Where to apply:

• Online via the DTI Business Name Registration System (BNRS)

• Or in person at the nearest DTI office

Documents required:

• Accomplished DTI application form

• Valid government-issued ID

What you’ll receive:

• DTI Certificate of Business Name Registration (valid for 5 years)

Permitly tip: Your business name must be unique and not too generic. DTI may reject names that are too common.

Step 2: Register with the BIR as a Sole Proprietor

After securing your DTI certificate, you must register with the Bureau of Internal Revenue (BIR).

Forms & documents needed:

• BIR Form 1901 (Application for Registration for Self-Employed and Mixed Income Individuals)

• Valid government-issued ID

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

• DTI Certificate of Business Name

What you’ll receive:

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

• BIR Certificate of Registration (COR, Form 2303)

• Notice to Issue Receipts/Invoices

Step 3: Register Your Books of Accounts

Every sole proprietor is required to maintain books of accounts. Choose if you’d register Manual, Loose-Leaf, or Computerized books. If you do this via ORUS, it will generate the QR Code/Stamps for you.

Step 4: Apply for Authority to Print Invoices

File BIR Form 1906 (Authority to Print) through ORUS or your RDO. Once approved, have your receipts/invoices printed by a BIR-accredited printer.

Important update:

• Starting 2024, invoices are now the official primary receipts for both goods and services.

• Official Receipts (O.R.s) are only supplementary.

  
  

Step 5: Register with Your Local Government Unit (LGU)

Sole proprietors must secure permits from the City or Municipality where the business will operate.

Requirements:

• Barangay Clearance (apply at your barangay hall)

• Mayor’s/Business Permit (apply at the City or Municipal Hall)

• DTI Certificate

• BIR COR

• Lease contract or land title (if applicable)

• Sanitary, Fire, and other compliance permits (depending on LGU)

Why this matters: You cannot legally operate without a Mayor’s Permit. Fees vary per city or municipality.

Step 6: Register with SSS, PhilHealth, and Pag-IBIG

• If you’re not hiring employees yet, maintain your membership as an individual contributor.

• If you plan to hire employees, you must register as an employer with SSS, PhilHealth, and Pag-IBIG, and remit mandatory contributions.