Starting a Sole Proprietorship Business in the Philippines

Starting a Sole Proprietorship Business in the Philippines

Starting a Business – Registration of a Single Proprietorship

Department Procedure Time to
Associated Costs
(Estimated as of 2006)
1. DTI (Department of
Trade Industry)
Business Name Registration Certificate from any DTI Office or log on to
Validity: 5 years

  • Accomplished Business Name Registration Form [Single Proprietorship]
  • Tax Identification Number (TIN)
  • List of five business names ranked according to preference
1-2 days Registration fee:     Scope:
  Barangay=P200*Total fees to include Php 15 documentary stamp tax (DST)
2. Barangay Obtain Barangay clearance 2 days PHP 800
3. Mayor’s Office Obtain Mayor’s Permit to operate at the Licensing
Section of the City or Municipality
1-2 weeks depending on city The fees vary depending on the local government unit (city/municipality) issuing the mayor’s permit.


PHP 900, sanitary permit fee + 0.2% of capital for license fee
PHP 2000, permit fee for businesses engaged in retailPHP 2,500 garbage collection feePHP 360, occupational taxPHP 905, occupational police clearance/ health clearance

PHP 1,500, plumbing inspection fee

PHP 850, electrical inspection fee

PHP 500 building permit fee

PHP 400 sign board permit fee)

4. BIR (Bureau of Internal Revenue) A. Register TIN with the BIR 2 days PHP 500 (registration fee) + PHP 100 (certification fee) and PHP 15 (documentary stamp tax, in loose form to be attached to Form 2303)
B. Obtain Certificate of Authority to Print (ATP) Form 1 day No Charge
C. Buy special books at  Any Bookstore OR BIR’s Office 1 day PHP130- PHP150 ( 4 pcs )
D. Print receipts and invoices at the print shops accredited by the BIR 14 days PHP180/ Booklet
E. Have books of accounts and Printer’s Certificate of Delivery of Receipts and Invoices (PCD) stamped by the BIR 1day No charge
5. SSS (Social Security System) Register with the Social Security System (SSS) 1 week No charge
6. PHIC (Philippine Health
Insurance Corporation)
Register with the Philippines Health Insurance
Company (Phil Health)
1 day No charge


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