How to Register Your Small Business in the Philippines: A Step-by-Step Guide

Posted on April 4, 2025

Starting a small business in the Philippines is an exciting venture that requires careful planning and adherence to legal requirements. Proper registration not only legitimizes your business but also provides access to various government support and financing opportunities. This comprehensive guide will walk you through the step-by-step process of registering your small business in the Philippines, ensuring compliance with all necessary regulations.​

1. Determine Your Business Structure

Before initiating the registration process, it’s crucial to decide on the legal structure of your business, as this will dictate the specific registration requirements:​

  • Sole Proprietorship: Owned and operated by a single individual.​KMC TEAMS+2TXM Landing Page+2Reddit+2
  • Partnership: Owned by two or more individuals who share profits and liabilities.​GoDaddy
  • Corporation: A separate legal entity owned by shareholders.​

For this guide, we’ll focus on registering a Sole Proprietorship, the most common structure for small businesses in the Philippines.​

2. Register Your Business Name with the Department of Trade and Industry (DTI)

Registering your business name provides it with legal recognition and ensures that no other entity can use the same name within your specified scope.​FilePino+1BNRS+1

a. Choose a Unique Business Name

Select a business name that reflects your brand and complies with DTI’s naming guidelines. The name should consist of a dominant portion (unique identifier) and a descriptor (nature of the business). For example, “Luna’s Café” where “Luna’s” is the dominant portion and “Café” is the descriptor. Ensure the name is not:​FilePino

b. Verify Business Name Availability

Use the DTI’s Business Name Registration System (BNRS) to check if your chosen name is available:​Best Web Hosting in Philippines+2FilePino+2Best Web Hosting in Philippines+2

  1. Visit the BNRS Portal.​BNRS+1FilePino+1
  2. Navigate to the “New Registration” section.​FilePino
  3. Enter your proposed business name to verify its availability.​

c. Complete the Online Registration

Once you’ve confirmed the availability of your business name:​

  1. Fill out the online registration form with your personal and business details.​InCorp Philippines+2Reddit+2BNRS+2
  2. Choose the territorial scope of your business:​Note: The territorial scope determines where your business name is protected and where you can legally operate under that name.​BNRS+6FilePino+6Best Web Hosting in Philippines+6
  3. Pay the registration fee through available payment channels such as GCash, PayMaya, LandBank, or credit/debit cards.​FilePino

d. Obtain Your Certificate

After payment, you’ll receive the Certificate of Business Name Registration via email. Print and display this certificate at your business premises.​FilePino+2Best Web Hosting in Philippines+2Best Web Hosting in Philippines+2FilePino

3. Secure Barangay Clearance

Barangay Clearance is a prerequisite for obtaining a Mayor’s Permit and signifies that your business complies with local community regulations.​GoDaddy+2Best Web Hosting in Philippines+2Best Web Hosting in Philippines+2

a. Prepare the Required Documents

b. Submit Documents to the Barangay Hall

Visit the Barangay Hall where your business is located and submit the required documents.​

c. Pay the Clearance Fee

Fees vary by location but typically range from ₱200 to ₱500.​

d. Obtain Barangay Clearance

After processing, you’ll receive your Barangay Clearance, which is valid for one year.​

4. Obtain a Mayor’s Permit from the Local Government Unit (LGU)

The Mayor’s Permit, also known as a Business Permit, authorizes you to operate within a specific city or municipality.​FilePino+6Best Web Hosting in Philippines+6Best Web Hosting in Philippines+6

a. Prepare the Required Documents

  • DTI Certificate of Business Name Registration
  • Barangay Clearance
  • Lease Contract or Land Title
  • Sketch of Business Location: A simple map indicating your business location.​Best Web Hosting in Philippines+3GoDaddy+3InCorp Philippines+3
  • Occupancy Permit: If applicable, especially for new constructions.​
  • Sanitary Permit: Ensures compliance with health and sanitation standards.​
  • Fire Safety Inspection Certificate: Proof that your business complies with fire safety regulations.​

b. Submit Documents to the Business Permits and Licensing Office (BPLO)

Visit the BPLO of your city or municipality and submit the required documents.​

c. Pay the Necessary Fees

Fees depend on the nature and size of your business but generally include:​GoDaddy

  • Mayor’s Permit Fee
  • Business Plate Fee
  • Zoning Fee
  • Sanitary Inspection Fee
  • Fire Inspection Fee

Fees can range from ₱5,000 to ₱10,000 or more, depending on the LGU.​

d. Obtain the Mayor’s Permit

After processing and approval, you’ll receive your Mayor’s Permit, which must be renewed annually.​Best Web Hosting in Philippines+2FilePino+2Best Web Hosting in Philippines+2

5. Register with the Bureau of Internal Revenue (BIR)

Registering with the BIR allows

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