Business Registration of a Sole Proprietor in the Philippines

Sole Proprietorship is a type of enterprise that is owned and managed by one person. This is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.

The government agencies that are required to register the business are:

1. Department of Trade and Industry
2. Local Government Units (Barangay, Mayor’s Office)
3. Bureau of Internal Revenue
4. If the business will hire an employee, it is needed to register the Social Security System, Philippine Health Insurance Corporation, Home Development Mutual Fund

The basic requirements and procedures in registering a Sole Proprietor business in Local Government Units are:

Barangay:

1. Go to the barangay where the business is located to fill-up application form
2. Submit the completed application form together with the following:

• Certificate of Business Registration from DTI
• Two (2) valid IDs
• Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if owned)

3. Claim the Barangay Certificate of Business Registration

Mayor’s Office:

1. Go to the municipal office where the business is located to fill-up application form
2. Submit the completed application form together with the following:

• Certificate of Business Registration from DTI
• Barangay Clearance Certificate
• Two (2) valid IDs
• Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if owned)

3. Claim the Mayor’s Business Permit and Licenses

The basic requirements and procedures in registering a Sole Proprietor business in Bureau of Internal Revenue are:

1. Go to the Regional District Office (RDO) where the business is located
2. Fill-up the BIR Form 1901 – Application for Registration (for Sole Proprietor)
3. Submit completed registration form together with the following:

• Certificate of Registration from DTI
• Barangay Clearance
• Mayor’s Business Permit
• Proof of Address such as Contract of Lease (if rented) and Certificate of Land Title (if owned)
• Valid IDs, if applicable

4. Pay the Registration Form (BIR Form 0605)
5. Register the book of accounts and receipts/invoices
6. Claim the Certificate of Registration (BIR Form 2303)

To register your business in SSS, Philhealth and Pag-ibig, do as follows:

SSS

The owner should complete and submit SSS Form R-1 (Employer SSS Registration Form) and R-1A (SSS Employment Report) The SSS Form R1A should be submitted in the SSS office where the company is registered, or it can also do online using their online portal for employers.

Philhealth

Employers may register through the Philippine Business Registry (PBR). Once registered in this system, they will no longer be required to submit documents. However, if the employer fails to register through the PBR, the following shall be submitted: DTI Registration.

To register their employees, submit the following to any Philhealth office:

• Employer Data Record (ER1) Form
• Philhealth Membership Registration Form (PMRF)s

After processing, the employer will be issued the following:

• PhilHealth Employer Number (PEN) and the Certificate of Registration
• PhilHealth Identification Number (PIN) and Member Data Record (MDR) of registered employees

Pag-ibig

The owner must present proof of ownerships depending on the type of business such as DTI Certificate of Registration and Business Permit/Mayor’s Permit. Employer’s Data Form (HQP-PFF-002), Specimen Signature Form (HQP-PFF-003), Valid ID and SSS Certification.

 

Reference: https://www.entrepreneur.com/encyclopedia/sole-proprietorship