If You Want To Register a Business Under Sole Proprietorship, Read This First!

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Start your business on the right foot!

Entrepreneurs can easily register their business for sole proprietorship. And it’s necessary if you want your business to get off the ground. It starts with registering at the Department of Trade and Industry (DTI). Once you know the DTI registration requirements for sole proprietorship, you’re on your way to financial freedom!

dti registration requirements for sole proprietorship

Source: Unsplash

DTI registration requirements for sole proprietorship

dti registration requirements for sole proprietorship

Source: Department of Trade and Industry Philippines

To register the business name, you’ll need the following documents:

  • A valid government registered ID (SSS ID, GSIS, PRC License, Driver’s license PRC License)
  • Duly completed application form
  • The corresponding Registration fee
    • Barangay: Php200
    • City/municipality: Php500
    • Regional: Php1,000
    • National: Php2,000
  • Documentary Stamp Tax of P15 per application
  • Your Business Name (complying with DTI guidelines) with Dominant Name, Infix and Business Descriptor 
    • Dominant name, e.g. Jose
    • Infix describes the specialised line of business, e.g Phone
    • Business Descriptor defines the nature of the business, e.g. Repair Shop

The registration fee dictates the areas where your business name will be exclusive. So if you want to stick to your barangay, pay only Php200. Otherwise, you can protect your business name across the country by paying Php2,000.

Currently, the DTI website is under maintenance, so applying online isn’t possible. Head to the nearest DTI office or Negosyo Centre to hand in the forms.

They will issue you with a DTI Certificate of Registration if you’re successful.

After that, this is all for the DTI registration requirements for sole proprietorship!

We’ll discuss the permits and certificates you’ll need assuming you registered for national exclusivity.

Following the registration, you’ll need to go to the barangay your business is located.

 

Barangay registration

Bring the following documents with you:

  • Duly completed application form
  • DTI Certificate of Registration
  • Two valid government-issued IDs
  • Proof of address, like the Contract of Lease (if you are renting) or Contract of Land Title (if land is owned)

You’ll be issued with a Barangay Certificate of Business Registration.

Next stop, the Mayor’s office!

 

Mayor’s Permit registration requirements

dti registration requirements for sole proprietorship

Source: Flickr

Head to the municipal office where your business is located and bring the following documents:

  • Duly completed Mayor’s Permit application form
  • DTI Certificate of Registration
  • Barangay Certificate of Business Registration
  • Proof of address, like the Contract of Lease (if you are renting) or Contract of Land Title (if land is owned)
  • Two valid government-issued IDs

After this, you’ll be issued with the Mayor’s Business Permit and Licenses. Last, but not least, is a visit to the Bureau of Internal Revenue (BIR).

 

Registering with the BIR

dti registration requirements for sole proprietorship

Source: Bureau of Internal Revenue Philippines

The BIR will furnish your business with its own tax indication number (TIN), along with the authority to print receipts, invoices, and other financial documents.

Make your way to the nearest Regional Distrcit Office (RDO) where your business is situated and bring the following:

  • A duly-completed BIR Form 1901
  • The Mayor’s Business Permit and Licenses
  • DTI Certificate of Registration
  • Barangay Certificate of Business Registration
  • Proof of address, like the Contract of Lease (if you are renting) or Contract of Land Title (if land is owned)
  • Two valid government-issued IDs
  • Pay and submit a duly-completed BIR Form 0605
  • Register your book of accounts

You’ll be issued with the BIR Form 2303, the BIR Certificate of Registration.

Now that you know the DTI registration requirements for sole proprietorship and other certificates necessary, you can start your own business up!

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Written by

Vinnie Wong