13 Steps to Register Your Business in the Philippines

The Philippines is a growing economy in Asia. This jurisdiction belongs to the top ten global copper, chromite, and gold producers. Due to its reputation as one of the top business-friendly destinations, it has attracted global investors. So, do you wish to start a company in this location? Here are 13 easy steps to help you register your business in the Philippines.

Select an Apt Industry 

Look out for industries that you want to serve and are profitable in the status quo. You can study research papers and go through several legitimate websites to simplify your decision-making. If your research is not your best suit, hire a consultant to search the best industries in the Philippines. 

Hire a Business Consultant

If you want to go ahead with the Philippines business registration, it would be best to hire a consultant. A consultant like Business Setup Worldwide is well-versed in the ins and outs of this market. We can help you through every step of your company registration in the Philippines.

Select the Business Structure

Discuss with your expert consultant and select your business’s structure in the Philippines. This selection is dependent on your initial capital and the total number of shareholders.

Choose a Trade Name

Your business name is its face. You must select the name carefully. However, before you finalize a name, here are a few things you should be aware of:

• The name should not be the same as that of an existing business.
• The name should not be banned by the court
• It should hurt an individual’s morals or a group’s culture
• It should not be misleading

The next step is to apply to the right government authority to register your company’s name. Your company type decides which body you should approach for registration. Here is a brief list for your reference:

• Sole Proprietorship- The Department of Trade and Industry (DTI)
• Corporation/ Partnership- Securities and Exchange Commission
• Cooperative- Cooperative Development Authority

Businesses registering a trade name may also explore trademarks in the Philippines for brand protection.

Document Submission

Your advisor will help you prepare the necessary documents required to register your business in the Philippines. Here is a list of documents you are required to submit to the relevant authority:

Sole Proprietorship:

• A copy of government-issued ID
• A duplicate proposed business name registration form
• Payment of registration fees fixed on territorial based on the documentary stamp tax
• Complete the employee data form
• Copy of municipality permission letter
• Community tax certificate
• Location and Barangay clearance
• Fire safety and electrical inspection certificate
• Occupancy certificate and building permit
• Contract of the lease, if any

For Corporate Registration:

• Duly filled application form
• Verification slip form
• Article and Memorandum of Association
• Notarized bank certificate
• Treasurer’s affidavit
• Written undertaking to change the name of the corporation by trustee or director
• Clearance certificate from other government agencies
• Foreign investment application form (for foreign corporation subsidiaries)
• List of members and contributed amount certified by the secretary
• Registration fee
• The complete employee data form
• Copy of municipality permission letter
• Community tax certificate
• Location and Barangay clearance
• Fire safety and electrical inspection
• Occupancy certificate and building permit
• Contract of the lease, if any

Obtain the Respective License

Submit your documents with the relevant authorities to get the necessary approvals.

Pay the Minimum Deposit

To complete your Philippines business registration process, you must deposit a minimum capital in a corporate bank account. It is important to note that the fee requirement might differ from bank to bank.

Obtain the Tax Identification Number (TIN)

Once your business is registered, you must apply for a Tax Identification Number (TIN). Here is a list of documents you need to submit for the same:

• Company name verification slip
• Notarized articles of association and by-laws
• Notarized treasure’s affidavit
• Statement of assets and liabilities
• Registration data sheet with particulars on directors, officers, stockholders and so forth
• Notarized written undertaking to comply with SEC reporting requirements
• Notarized assignment to change the corporate name

The Securities and Exchange Commission issues the TIN, and it might take up to 2 working days to issue it. 

Here are some more details on the Tax Services in the Philippines that you should know about.

Register With BIR

Once you acquire your TIN, you must register your company with the Bureau of Internal Revenue (BIR) district office. This registration is done to calculate taxes applicable to you, pay an annual registration fee, and acquire and stamp sales invoices, receipts, and books of accounts.

Get a Barangay Clearance

Furthermore, it would be better for your business if you register it with the Barangay Clearance. This registration is completed in the location of your company’s establishment.

Here’s a complete set of documents required to register for a Barangay Clearance:

• Application form
• SEC Certificate of Incorporation
• Approved Articles of Association
• Lease Contract
• Business Plan

Register With Social Security System (SSS)

You must get your company’s employees registered with the Philippines Social Security System (SSS). Here is a list of documents you need to submit for the SSS:

• Employer registration form (Form R-1)
• Employment report (Form R-1A)
• List of Employees, Specifying their birth dates, position, monthly salary and date of employment
• Articles of incorporation, by-laws and SEC registration

Obtain Other Clearances

Here is a list of other necessary clearances you need to obtain for your company:

• Department of Labour and Employment (DOLE)- For occupational safety and Health
• PhilHealth – For availing Medicare benefits
• PAG-IBIG fund- Mandatory for employees covered by the Social Security System (SSS)
• Department of Environment and Natural Resources (DENR)- For availing an Environmental Compliance Certificate

Read More: A Guide to Setting up a One-Person Company in the Philippines

This is how you set up your business in the Philippines. Moreover, it is also advisable to check out the things to consider after the company setup in the Philippines. If you are planning to open a company in the Philippines, you should join us at Business Setup Worldwide. Since our inception, we have been helping entrepreneurial minds to take the relevant steps and set up their business globally.

From registering your business to opening your branch office in the Philippines or even a corporate bank account, our experts can guide you in every step. Contact us now to know more.