Advantages:

- easy to set up

- you have full control and you can run your company as you please

Disadvantages:

- unlimited liability of the owner

- if you owe money, the creditors can go after your personal properties as well

1. LOCATION 

Find a business location / office / address. You have the option to rent or purchase a property for business use.

2. BUSINESS NAME

Register a business name at Department of Trade and Industries online at https://bnrs.dti.gov.ph/ and pay the necessary fees via GCash, PayMaya, LinkBizPortal, DTI Teller or Credit/Debit Card. 

Fee for a business with national scope is P2,000 plus P30 documentary stamp. Download the Certificate of Business Registration. Downloadable BNR Form No. 01-2018 is available at https://bnrs.dti.gov.ph/pdf/download/application_form.pdf. (Act No. 3883, BN Law).

3. BARANGAY CLEARANCE 

Go to the Local Business unit where the business headquarters is located. Head to the Barangay Hall with the requirements provided below to get the Barangay Certificate of Business Registration / Barangay Clearance. Estimated processing time is 1 day.

4. MAYOR’S PERMIT AND OTHER LICENSES 

Head to the Mayor’s Office with the necessary documents or regulatory requirements to obtain the Mayor’s Business Permit and Licenses. Pay taxes and fees due and comply with the regulatory requirements. After payment of fees, wait for the inspection of the Joint Inspection Team. Estimated processing time is 1 week upon submission requirements, but as the permits vary per industry, it might take longer.

You will then receive the following documents: 

- CTC of Business and Sole Proprietor

- Sanitary Permit

- Fire Safety Inspection Certificate 

- Occupational Permit

- CCENRO Certificate

- Joint Inspection Report

5. BIR 

Head to the Bureau of Internal Revenue - Regional District Office (RDO) where the business is located and bring the requirements provided below:

Pay the registration fee (BIR Form 0605). Then claim the Certificate of Registration (BIR Form 2303) and “Ask for Receipt” sign.

Purchase and register the book of accounts and receipts/invoices. They can choose from manual, loose-leaf (includes MS Excel), or computerized (system/application).

Complete and submit BIR Form 1905 along with the books of account at the RDO where the sole proprietorship / corporation is registered.

Secure an Authority to Print. All persons who are engaged in business shall secure from the BIR an Authority to Print receipts or sales or commercial invoice before a printer can print the same. 

Accomplish and submit 3 copies of BIR Form 1906 at the RDO, together with a sample of principal or supplementary invoices and a copy of the COR. It would usually take a week before the ATP is available. Upon acquiring your ATP, submit it to an accredited BIR printer. One can check BIR accredited printers on their website, provided under the Reference section. The release of official invoices usually takes up to 2 weeks. The Application for Authority to Print Receipts and Invoices is needed on or before the commencement of business.

6. SSS, PhilHealth 

Head to SSS and Philhealth if you are hiring employees.

1. Department of Trade and Industry 

For business name registration

2. Barangay Hall 

Where your headquarters is located

3. Mayor of Cebu City

Section 5 of the Revised Omnibus Tax Ordinance of the City of Cebu: “Any person desiring to engage in any business, trade, occupation or calling shall first submit an application on a form prescribed for the purpose, to the City Mayor, for the corresponding permit. …the business permit is to ensure the payment of the taxes and related fees to the city, as well as to regulate business activities for security, sanitary, safety and propriety purposes.”

4. Bureau of Internal Revenue

For taxation purposes. A necessary step before commencement of business.

5. Social Security System

6. Philippine Health Insurance Corporation

1. Department of Trade and Industry: to be issued a Certificate of Business Registration, you need the

•Business address

•Details of sole proprietor

2. Barangay Hall: for your Barangay Certificate of Business Registration / Barangay Clearance

•Certificate of Business Registration from DTI

•Business Registration Form

•Two (2) valid government-issued IDs

•Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if owned)

•Barangay Clearance Fee

3. Mayor's Office: Mayor’s Business Permit and Licenses

•Certificate of Business Registration from DTI

•Application Form

•Barangay Certificate of Business Registration / Barangay Clearance with Official Receipt

•Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if owned) or Certificate of Property Holdings, if Lessor

•Pay the taxes and fees due

•Other Requirements as may be required by the Joint Inspection Team and/or Verifier depending on the nature of the business.

4. Bureau of Internal Revenue: to be issued a Certificate of Registration (BIR Form 2303) and Books of Receipts

•Fill-up the BIR Form 1901: Application for Registration (for Sole Proprietor)

•Certificate of Registration form DTI

•Barangay Certificate of Business Registration / Barangay Clearance 

•Mayor’s Business Permit and Licenses

•Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if owned)

•Barangay Certificate of Business Registration / Barangay Clearance 

•Registration Form (BIR Form 0605) payment

•Registration of your book of accounts and receipts/invoices. 

5. Social Security System and Philippine Health Insurance Corporation

•Employee’s details