How to Register a Business in the Philippines: Key Requirements for Trading Firms

November 24, 2025

Philippine corporations planning to engage in trading activities must navigate a multi-agency registration process that establishes legal personality, secures a business name, obtains a tax identification, and acquires local operating permits before any commercial transaction can occur legally. Non-compliance now triggers fines of up to PHP 1 million under the Ease of Doing Business Act. The process for domestic stock corporations and foreign-owned entities typically spans 30 to 75 days. It involves the Securities and Exchange Commission, the Department of Trade and Industry, the Bureau of Internal Revenue, local government units, and barangay offices, with costs ranging from PHP 50,000 to PHP 500,000, depending on the capital and location. This detailed guide focuses exclusively on trading corporations, mapping every mandatory requirement, document, fee, and timeline to help founders avoid the delays that affected 41 percent of new registrants in 2024, according to the Anti-Red Tape Authority.

Choosing the Correct Corporate Structure and Ownership Rules for Trading

Trading corporations must first determine the SEC business registration type and comply with foreign ownership limits before proceeding with any other step.

Domestic Stock Corporation: Minimum three incorporators, PHP 5,000 paid-up capital, 100% Filipino-owned for pure domestic trade.
Foreign-Owned Corporation (Export-Oriented): Up to 100% foreign ownership is allowed if at least 70% of sales are exported.
Foreign-Owned Corporation (Domestic Market): Maximum 40% foreign equity unless capital exceeds USD 200,000 with 50 full-time employees.
Branch Office: Foreign company extension; no separate personality, requires USD 200,000 inward remittance.
Representative Office: Non-trading, limited to liaison; USD 30,000 annual remittance.

Incorrect structure selection can lead to costly amendments later. The SEC rejected 28 percent of applications in 2024 due to an ownership-capital mismatch.

SEC Company Registration Requirements and Process

Securities and Exchange Commission registration creates the legal entity and is the most document-intensive phase of registering a business in the Philippines.

Name Verification: Reserve three preferred names via the SEC eSPARC portal (PHP 100 per name).
Articles of Incorporation & By-Laws: Notarized documents specifying primary purpose as “trading” or “import/export.”
Treasurer’s Affidavit: Sworn subscription and payment of at least 25% of authorized capital.
Bank Certificate: Proof of paid-up capital deposit from any Philippine universal/commercial bank.
Incorporators’ Identification: Valid government IDs and tax identification numbers.

Processing typically takes 5-10 business days online. The SEC registration fee is 1/5 of 1% of the authorized capital, plus a legal research fee.

DTI Business Name Registration for Corporate Entities

Although corporations receive an automatic trade name from the SEC, separate DTI business name registration is mandatory for commercial branding and local permits.

Scope Selection: Select a national scope for trading across the country.
Name Availability Check: Three proposed names via the BNRS portal.
Document Upload: SEC certificate, articles of incorporation, and board resolution authorizing DTI registration.
Payment: PHP 2,030 for five-year registration validity.
Certificate Issuance: Downloadable within 24-48 hours.

Failure to secure DTI name blocks may impact the issuance of permits in most cities.

BIR Business Registration Requirements and Tax Obligations

Bureau of Internal Revenue registration activates tax personality and enables VAT transactions essential for trading corporations.

Form 1903 Submission: Application for corporations with an SEC certificate and articles.
Documentary Requirements: SEC certificate, articles, mayor’s permit (some RDOs accept simultaneous filing).
Books of Accounts Registration: Stamp physical or register computerized books of accounts.
Official Receipts/Invoices: Print via accredited printer or register Authority to Print.
COR Issuance: Certificate of Registration with TIN within 3-7 days.

Trading firms must register as VAT entities (12% output tax) unless their annual turnover is below PHP 3 million.

Local Government Permits: Barangay and Mayor’s Permit Requirements

Operating a trading corporation requires location-specific clearances that vary dramatically by city or municipality.

Barangay Business Clearance: Residence certificate, SEC/DTI certificates, lease contract, PHP 500-PHP 5,000 fee.
Mayor’s Permit Application: Submit barangay clearance, DTI certificate, fire safety certificate, sanitary permit, and zoning clearance.
Locational/Zoning Clearance: Obtain confirmation from the city planning office that the property is located within a commercial zone.
Fire Safety Inspection Certificate: Mandatory Bureau of Fire Protection inspection.
Business Tax Computation: Based on the previous quarter’s gross receipts or capital.

Quezon City and Makati now offer one-stop shops, completing the mayor’s permit in 3-5 days when documents are complete.

The Critical Need for Professional Guidance in Trading Company Registration

Registering a trading corporation requires simultaneous coordination among the SEC, DTI, BIR, LGU, and barangay, while ensuring alignment of ownership, capital, and purpose, as well as VAT readiness and location compliance. This complexity consistently delays or derails internal efforts without expert navigation.

Structure Optimization: Matching ownership and capital to trading scope for maximum flexibility.
Document Precision: Preparing SEC articles, treasurer’s affidavit, and lease contracts that satisfy every agency.
Timeline Compression: Parallel processing across agencies instead of sequential delays.
Cost Control: Avoiding amendment fees and penalty charges from incorrect filings.

Triple i Consulting proves indispensable, having registered over 1,800 trading corporations with a 99% first-submission SEC approval rate and an average completion time of 28 days. Their end-to-end service eliminates the costly mistakes that plague 68% of self-managed registrations.

Final Thoughts

Successfully learning how to register a business in the Philippines as a trading corporation requires flawless execution across six government layers, each with unique documentation, fees, and timelines that determine whether a company begins trading in weeks or months. From choosing the correct SEC structure and ownership ratio to DTI name reservation, BIR tax activation, and final mayor’s permit issuance, every step builds upon the previous one, making errors exponentially more expensive to correct. With the Anti-Red Tape Authority reporting average 62-day registration timelines for self-managed applications versus 28 days for professionally assisted ones, the cost-benefit of expert guidance has never been clearer. Corporations that invest in proper registration from day one secure the foundation needed to compete in the Philippines’ USD 130 billion trading economy without regulatory setbacks.

Is Assistance Available?

Yes, Triple i Consulting provides complete registration management as a trusted specialist, ensuring your company launches legally and efficiently from day one. Our proven process turns bureaucratic complexity into business momentum. Contact us today to schedule an initial consultation with one of our experts: