Permitly Guide: How to Register as a Sole Proprietor in the Philippines (2026 Edition)

Congratulations on taking the leap and starting your own business! Starting a business is an exciting journey, and the first step is registering your business properly. While the process might seem daunting, this guide will walk you through everything you need to know to register as a sole proprietor in the Philippines in 2026.

Step 1: Register Your Business Name with DTI

The first step is to register your business name with the Department of Trade and Industry (DTI).

Where to Apply:

• Online: DTI Business Name Registration System (BNRS)

• In-person: Visit the nearest DTI office

Requirements:

• Accomplished DTI application form

• Valid government-issued ID

What You’ll Receive:

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

Tip: Your business name must be unique. DTI may reject names that are too generic or similar to existing businesses.

Step 2: Register with the BIR as a Sole Proprietor

After obtaining your DTI certificate, register your business with the Bureau of Internal Revenue (BIR).

Forms & Documents Needed:

• BIR Form 1901 (Application for Registration for Self-Employed or 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

Important Updates for 2026:

• Registration can be done online via ORUS or in person at your Revenue District Office (RDO).

• Invoices are now the primary document for transactions, with Official Receipts being supplementary.

Step 3: Register Your Books of Accounts

Every sole proprietor must maintain books of accounts. You can choose from:

• Manual

• Loose-leaf

• Computerized

Tip: If you register via ORUS, it can generate QR codes and stamps for your receipts automatically.

Step 4: Apply for Authority to Print Invoices

You need to file BIR Form 1906 (Authority to Print) for your receipts and invoices.

Process:

1. Submit Form 1906 via ORUS or your RDO.

2. Once approved, have your receipts or invoices printed by a BIR-accredited printer.

Reminder: Starting 2024, invoices are now the primary document for goods and services transactions.

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

Sole proprietors must secure local permits to legally operate.

Requirements:

• Barangay Clearance (from your barangay hall)

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

• DTI Certificate

• BIR COR

• Lease contract or land title (if applicable)

• Sanitary, Fire, and other compliance permits (varies by LGU)

Note: You cannot legally operate without a Mayor’s Permit. Fees vary depending on your city or municipality and must be renewed annually.

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

Even if you don’t have employees yet, you should maintain membership as an individual contributor.

If you plan to hire employees:

• Register as an employer with SSS, PhilHealth, and Pag-IBIG.

• Remit mandatory contributions for employees.

Extra Tips for Sole Proprietors in 2026

• Tax Options: Sole proprietors with annual gross sales of ₱3 million or less may opt for Non-VAT registration and choose the 8% flat tax regime. VAT registration is mandatory only if gross sales exceed ₱3 million.

• Deadlines: Register with BIR within 30 days after starting business operations or DTI registration to avoid penalties.

• Digital Convenience: Many BIR processes, including books registration and invoices, are available online via ORUS.

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