Based on the Philippine Statistics Authority (PSA) report, the Philippine economy grew by 5.4% in the first quarter of 2025 compared to the same period last year. This growth means that the country produced more goods and services than it did in early 2024, proving that the country is a growing economy. The main contributors to this growth were wholesale and retail trade. 

The majority of the entrepreneurs see this growth as an opportunity to establish a business in the Philippines. According to the Department of Trade and Industry (DTI), there are over 957,620 commercial companies in operation. This shows that the country is considered as an ideal destination for establishing a business and taking advantage of the growing markets and competent workforce. 

Registering a business in the Philippines may be challenging especially as there are a lot of documentary requirements to be submitted and regulations to be followed. In this comprehensive guide, you’ll learn about the business registration process, requirements, and costs with the Philippine governments. 

Business Registration Process in the Philippines

Here’s a step-by-step guide of the business registration process:

STEP 1: Register with SEC, DTI or CDA

To initiate the process, register your business with the Securities and Exchange Commission (SEC) for partnerships and corporations; Department of Trade and Industry (DTI) for sole proprietorship; and Cooperative Development Authority (CDA) for cooperatives. 

STEP 2: Get a Barangay Clearance and Mayor’s Permit

Visit the Barangay Hall or Office of the Barangay Captain of the Barangay with jurisdiction on your business address. Submit the required documents and pay the necessary fees to secure a Barangay Business Clearance.

Once you have secured the clearance, you may now process your LGU Business Permit or Mayor’s Permit with the Business Permits and Licensing Office (BPLO) or Business One-Stop Shop (BOSS) at your city or municipality.

STEP 3: Register with BIR

Even though your Mayor’s Permit is still in process, you can register your business with the Bureau of Internal Revenue (BIR) for the issuance of a Taxpayer Identification Number (TIN), BIR Certificate of Registration (COR), and other documents for tax compliance purposes. 

STEP 4: Employer Registrations

If you are planning to hire employees, it is recommended that you also start to process your employer registrations with the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and Home Development Mutual Fund (Pag-Ibig Fund).

STEP 5: Open a Corporate Bank Account

After securing all the business documents, you can finally open a corporate bank account registered with your company name. It is crucial that you consider the availability of banking facilities, including payroll, tax filing, and remittance of statutory contributions. 

Business Registration Requirements in the Philippines

There are a set of requirements for each government agency. Note that these requirements may vary due to updates in rules and regulations. 

SEC Registration Requirements

You may register your business with the Securities and Exchange Commission (SEC) through the SEC Electronic Simplified Processing of Application for Registration of Company (eSPARC). The online application system requires the following:

  • Proposed Business Name 

  • Applicant or Authorized Representative’s Details

  • Company Type and Industry 

  • Description of the Business

  • Office Address

  • Corporate Term

  • Incorporator’s Details

  • Capitalization

  • Corporate Officers

  • Date of Annual General Meeting

  • Fiscal Year

  • Name Appeal, if the proposed business name is rejected or unavailable

  • Additional requirements, if applicable 

Business Permit Requirements

The requirements for business permits may vary across Local Government Units (LGUs). In this regard, you must coordinate with your city or municipal Business Permits and Licensing Office (BPLO). However, the documentary requirements usually include:

  • BPLO Application Form

  • Application Form for Other Clearances and Permits

  • Lease Contract or other equivalent documents

  • Certificate of Occupancy 

  • SEC Certificate of Incorporation

  • Locational Map via Google Maps

  • Pictures of Office Location

  • Corporate Logo

  • List of Employees, if applicable

  • Employee’s Medical Certificate, depending on the LGU

  • Other Certificates and Affidavits, depending on the LGU

  • Board Resolution and Secretary’s Certificate, if processed by an authorized representative 

BIR Registration Requirements 

The following documents must be submitted when applying for a business registration with the Bureau of Internal Revenue (BIR):

  • Application for Registration or BIR Form 1903

  • Application for Authority to Print Official Receipts and Invoices or BIR Form 1906

  • Application for Registration Information Update or BIR Form 1905

  • Photocopy of SEC Certificate of Incorporation, for domestic corporations

  • Photocopy of SEC Certificate of Recording, for partnerships

  • Photocopy of License to Do Business in the Philippines, for foreign corporations

  • Articles of Incorporation

  • Notarized Lease Contract or other equivalent documents

  • BIR Printed Receipts and Invoices or final and clear sample of principal receipts and invoices

  • Books of Accounts

  • Franchise Documents, for common carriers

  • Memorandum of Agreement, for joint ventures

  • Franchise Agreement, if applicable

  • Certificate of Authority, for Barangay Micro Business Enterprises (BMBE) registered entity

  • Proof of Registration or Permit to Operate with BOI, BOI-ARMM, SBMA, BCDA, PEZA, etc., if applicable

  • Board Resolutions and Secretary’s Certificates, if processed by an authorized representative

SSS Employer Registration Requirements

Below are the documents required when processing an employer registration with the Social Security System (SSS):

  • Employer Registration Form or SSS Form R-1

  • Employment Report or SSS Form R-1A

  • Specimen Signature Card or SSS Form L-501

  • SSS Web Registration for Employer Form

  • List of Employees and their Details

  • Business Registration Documents

  • Authorization Letter, if processed by an authorized representative

PhilHealth Employer Registration Requirements

The following documents must be submitted when processing an employer registration with the Philippine Health Insurance Corporation (PhilHealth):

  • PhilHealth Employer Data Record or ER1

  • PhilHealth Report on Employee-Members or ER2

  • PhilHealth Online Access Form 001 or POAF 001

  • PhilHealth Employer’s Engagement Representative (PEER) Information Sheet

  • List of Employees and their Details

  • Business Registration Documents 

  • Authorization Letter, if processed by an authorized representative

Pag-IBIG Fund Employer Registration Requirements

Below are the requirements when processing an employer registration with the Pag-IBIG Fund:

  • Employer’s Data Form (EDF)

  • Specimen Signature Form 

  • eSRS Employer Enrollment Form 

  • Employer’s Virtual Pag-IBIG Enrollment Form 

  • Duly Received/Stamped SSS Form R-1A

  • Business Registration Documents

  • Authorization Letter, if processed by an authorized representative

Corporate Bank Account Opening Requirements

Each banks have different requirements, but it usually includes the following documents:

  • Customer Information Form 

  • Account Details Form 

  • Online Banking Form 

  • System Administrator Designation Form

  • Signature Cards

  • Corporate Secretary Certificate

  • SEC Certificate of Incorporation

  • Company Bylaws

  • General Information Sheet (GIS)

  • Photocopies of valid IDs of signatories

It is advisable to check the official websites of the government agencies to be informed about the latest requirements as it may change from time to time. 

Business Registration Costs in the Philippines

Here are the sample breakdown of business registration fees on each government agencies:

SEC Registration Fees

Type of Fees

Cost

SEC Registration (⅕ of 1% of the authorized capital)

PHP 2,000

Stock and Transfer Book (STB) Registration

PHP 150

Company Bylaws

PHP 1,000

Name Verification and Reservation

PHP 100

Documentary Stamp Tax (DST)

PHP 30

Legal Research

PHP 30

                                                                                                                                 TOTAL AMOUNT: PHP 3,310

Business Permit Fees

Type of Fees

Cost

Mayor’s Permit, Business Tax, and other local fees 

PHP 2,500

Community Tax (Cedula)

PHP 500

Zoning Fee

PHP 100

Barangay Clearance

PHP 1,000

Business Plate

PHP 500

Comprehensive Liability Insurance

PHP 1,570

                                                                                                                        TOTAL AMOUNT: PHP 6,170

BIR Registration Fees

Type of Fees

Cost

Annual Registration 

PHP 500

BIR Certification

PHP 115

DST on Shares 

PHP 5,000

DST on Lease

PHP 960

Books of Accounts

PHP 300

Official Receipts and Invoices 

PHP 5,000

                                                                                                                          TOTAL AMOUNT: PHP 11, 875

Other Expenses

Type of Fees

Cost

Notary, Transportation, Printing, etc.

PHP 20,000

Stock and Transfer Book (STB)

PHP 470

Dry Seal

PHP 2,500

Frames for Certificates and Permits

PHP 500

Initial Deposit for Corporate Bank Account

PHP 50,000

                                                                                                                         TOTAL AMOUNT: PHP 73, 470

Note that these fees may vary depending on your location, availability of own resources, and preferred bank. This is only an estimate to help you prepare your budget.