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Permitly Guide: How to Register a Business (Freelancers and Professionals) inthe Philippines (2026 Edition)


Congratulations on taking the leap and starting your own venture! It’s a very exciting time. While the first steps in starting a business might seem daunting, we’re here to make it simple. This is your ultimate guide to registering as a FREELANCER or LICENSED PROFESSIONAL in the Philippines.

 

Step 1: Register with the BIR as a Self-Employed Taxpayer

Whether you’re a freelancer, consultant, or professional (doctor, lawyer, CPA, architect, etc.), your first step is registering with the Bureau of Internal Revenue (BIR).

  • Form to file: BIR Form 1901 – Application for Registration of Self-Employed/Professionals
  • Where to file:
    • Online via BIR ORUS (Online Registration & Update System)
    • Or at your local Revenue District Office (RDO)

Documents Required:

  • BIR Form 1901
  • Government-issued ID
  • Proof of address (lease, title, or barangay certificate)
  • DTI certificate (if using a business name)

What You’ll Receive:

  • Tax Identification Number (TIN) if you don’t already have one
  • BIR Certificate of Registration (COR, Form 2303)

Important: The ₱500 annual registration fee has been abolished as of 2025. You’ll only pay a ₱30 documentary stamp tax upon initial registration.

Permitly Tip: If you want a business name instead of using your personal name, register with DTI first. The registration is valid for 5 years.

 

Step 2: Pick Your Tax Set-Up

Depending on your expected annual income, you can choose:

  • Non-VAT Taxpayer Options:
    • 8% flat income tax: replaces the 3% percentage tax and graduated personal income tax. Available for individuals with gross annual income ≤ ₱3M.
    • 3% percentage tax: still an option if you don’t qualify for the 8% flat tax.
  • VAT Registration:
    • Required if your gross annual income exceeds ₱3M.

Note: Once you opt for the 8% tax for a year, it is irrevocable for that taxable year.

 

Step 3: Register Your Books of Accounts

You’ll need to keep official records of your business transactions. Choose from:

  • Manual books
  • Loose-leaf books
  • Computerized books

Tip: If using ORUS, it can generate the QR Codes/Stamps for computerized books.

 

Step 4: Authority to Print Invoices

Invoices are now the primary proof of transactions for goods and services.

  • Submit BIR Form 1906 (Authority to Print Invoices) via ORUS or at your RDO
  • Have your invoices printed by a BIR-accredited printer
  • Note for Professionals: Some LGUs may require a Professional Tax Receipt (PTR) from the City Treasurer, renewed annually. Fees vary per city or municipality.

Important Update: Official Receipts are now supplementary documentation. Invoices are what the BIR recognizes as primary.

 

Step 5: SSS, PhilHealth, and Pag-IBIG

Even if you don’t plan to hire employees yet, you need to stay compliant with social contributions:

  • SSS – register as self-employed and remit monthly contributions online or at the branch.
  • PhilHealth – register as a Self-Earning Individual (SEI) and choose your contribution bracket.
  • Pag-IBIG – register as voluntary/self-employed; contributions are adjustable.

 

Permitly is an in-house brand of CJ Management Group Inc. that also manages MyOffice Philippines. It specializes in end-to-end corporate registration. From SEC filing to BIR and LGU compliance, our team ensures your corporation is set up smoothly. Book a free 15-minute consultation with us today and start building your business the right way!