Before you launch a funnel or a website, many Filipino coaches, freelancers, OFWs and side-hustlers ask the same thing: “Do I need to register my business?” Usually the answer is yes, once you start selling. This guide explains the common steps in plain words.
Important: this is general information, not legal or tax advice. Fees, forms and rules change, and they can differ by city. Confirm each step with the government office or an accountant before you pay or file.
Why register at all?
- You can accept payments and issue invoices properly
- Banks, payment platforms and clients take you more seriously
- You protect your business name
- You avoid problems with the BIR later
The usual steps for a sole proprietorship
Most small online businesses start as a sole proprietorship, owned by one person. Here is the usual order.
1. Register your business name with DTI
The Department of Trade and Industry registers business names for sole proprietors. You can do it online through its business name registration system.
- Search that your name is available first.
- You choose a territorial scope: barangay, city, regional or national. Higher scopes cost more. Scope decides where you may open offices under the name.
- The certificate is valid for several years, and you must renew it before it expires.
A DTI business name is not the same as a trademark. If you want to protect a brand name or logo, you apply separately with the Intellectual Property Office of the Philippines.
2. Get a barangay clearance
Go to your barangay hall. Bring a valid ID, your DTI certificate and proof of address. Tell them it is a home-based or online business.
3. Get a Mayor’s permit
This is also called a business permit. You apply with your city or municipality’s business permits office. Ask which requirements apply to a home-based, online-only business, and what the fees are. Permits usually renew every year.
4. Register with the BIR
The Bureau of Internal Revenue registers you as a taxpayer. You go to the Revenue District Office that covers your address.
- You will usually need a TIN, which is your tax number.
- You receive a Certificate of Registration.
- You learn which invoices you must issue and which books to keep.
5. Choose how you will be taxed
Many self-employed people with yearly sales under 3 million pesos choose between two options:
- An 8% flat rate on income above a threshold, instead of the usual income tax and percentage tax. It is simple, and often suits people with low costs.
- Graduated rates on income after expenses, plus percentage tax. It can suit businesses with high expenses.
You usually pick when you register or in your first quarterly return, and you cannot change mid-year. This is a good question for an accountant, who can compare both options on your numbers.
6. File your returns on time
You file income tax returns every quarter and once a year. Put the dates in your calendar and keep every invoice and receipt.
7. Register for SSS, PhilHealth and Pag-IBIG
As a self-employed person, you pay your own contributions. They protect you and your family and help with loans.
Getting paid by foreign clients
Many Filipino freelancers and agencies serve clients abroad. A few habits make life easier:
- Open a separate business bank account, so personal and business money do not mix.
- Choose how you will be paid: bank transfer, or a service such as Wise, PayPal or Payoneer. Compare the fees and exchange rates.
- Issue invoices and keep proof of every payment received.
- US clients and platforms may ask for a W-8BEN form, so they do not withhold US tax. It is free to complete.
- Ask your accountant about how VAT applies to services for clients abroad.
Don’t forget the data
If your website collects names, emails or phone numbers, the Data Privacy Act applies. At a minimum:
- Publish a privacy policy that says what you collect and why
- Collect only what you need, and keep it safe
- Know who in your business is responsible for privacy
- Delete a person’s data when they ask
A simple order to follow
- Choose and check your business name
- Register with DTI
- Get your barangay clearance and Mayor’s permit
- Register with the BIR and choose your tax option
- Open a business bank account
- Register with SSS, PhilHealth and Pag-IBIG
- Set up your invoices and a way to track income and expenses
What to do next
Once the paperwork is moving, you can build the part customers see. We help coaches, freelancers and small businesses launch funnels and websites from Cebu, and we publish our prices on the services page. If you are starting out, our Launch package begins at $750. Book a free launch call to talk through what you need.