How to Register and Start a Restaurant in the Philippines

May 5, 2025

Opening a restaurant in the Philippines combines culinary creativity with entrepreneurship. Before serving your first dish, you’ll need to navigate the legal steps to register your business.

This guide outlines the process and legal requirements to start your business. Let’s ensure you meet national and local regulations so you can focus on running your brand new restaurant.

Step 1: Choose Your Business Structure

Your first decision is selecting the appropriate business structure for your restaurant. In the Philippines, options include:

Sole Proprietorship: Ideal for small-scale restaurants owned by one individual. It’s simple to set up, but it offers no separation between personal and business liabilities.

Partnership: Suitable if you’re starting the restaurant with one or more partners. A partnership agreement is recommended to outline roles and responsibilities.
Corporation: Best for larger operations or if you plan to seek investors. Corporations are more complex to establish but provide liability protection.

For most small to medium-sized restaurants, a sole proprietorship or partnership is sufficient. Our guide mainly focuses on these two business structures.

If you opt for a corporation, you’ll need at least five incorporators to register with the Securities and Exchange Commission (SEC). Registering a corporation is a long process (can take 1-2 months) requiring more documents and often needs professional assistance. We have a guide to help you understand how to register a corporation here.

Step 2: Register a Business Name for Your Restaurant

Choose a memorable name that reflects your restaurant’s brand and cuisine. Avoid names that are too similar to existing businesses to avoid legal issues. This usually takes 4-7 days depending on the queues.

Then register your restaurant’s business name via:

For Sole Proprietorships: Register with the Department of Trade and Industry (DTI). Visit the DTI’s Business Name Registration System online here or go to a DTI office.

The registration fee ranges from PHP 200 to PHP 2,000, depending on the scope (barangay, city, or national).

For Partnerships or Corporations: Register with the Securities and Exchange Commission (SEC). Use the SEC’s online portal (eSPARC) here to verify and reserve your business name.

The reservation fee is around PHP 100, and the name reservation is valid for 30 days.

Step 3: Secure a Barangay Clearance

Next, obtain a Barangay Business Clearance from the barangay hall where your restaurant will operate. This clearance confirms that your business complies with local community regulations. Requirements typically include:

A completed application form (available in the barangay office)
Proof of business address (e.g., lease contract or property title)
DTI or SEC registration certificate
The fee varies by barangay but is usually minimal, ranging from PHP 300 to PHP 1,000.

The processing time is usually 2-3 days plus a visit to their office. This clearance is a prerequisite for the next steps.

Step 4: Apply for a Business Permit

The Business Permit (also called Mayor’s Permit) is issued by the local government unit (LGU) of the city or municipality where your restaurant is located. This permit allows you to legally operate within the LGU’s jurisdiction. To apply, visit the Business Permit and Licensing Office (BPLO) with the following requirements:

Barangay Business Clearance
DTI or SEC registration certificate
Lease contract or proof of property ownership
Community Tax Certificate (Cedula)
Fire Safety Inspection Certificate (from the Bureau of Fire Protection)
Other requirements specific to your LGU, such as a zoning clearance

Your restaurant’s location is crucial. The LGU will evaluate its suitability, ensuring proper zoning, ventilation, and compliance with safety and operational standards.

Failure to comply means you will not receive a permit.

The processing time is usually 1-2 weeks but may take longer depending on their investigation of your requirements. We recommend professional assistance to ensure a seamless application.

The cost of the Business Permit depends on your restaurant’s size, location, and projected revenue, typically ranging from PHP 5,000 to PHP 20,000 annually. Remember this permit requires renewal every year.

Step 5: Register with the Bureau of Internal Revenue (BIR)

To comply with tax regulations, register your restaurant with the Bureau of Internal Revenue (BIR). This step involves obtaining a Taxpayer Identification Number (TIN) and registering your books of accounts.

Visit the Revenue District Office (RDO) covering your restaurant’s location and submit:

DTI or SEC registration certificate
Business Permit (same as Mayor’s Permit)
Lease contract
Valid government-issued ID
BIR Form 1901 (for sole proprietorships) or BIR Form 1903 (for partnerships/corporations)

You’ll also need to choose a tax regime: Simplified Bookkeeping (for small businesses with gross sales below PHP 3 million annually) or Regular Bookkeeping.

Processing time can take 5-7 days to complete. The BIR will issue a Certificate of Registration (COR), which must be displayed in your restaurant. Registration fees are around PHP 500, plus additional costs for official receipts and books of accounts.

Step 6: Obtain a Sanitary Permit

Since restaurants handle food, a Sanitary Permit from the local health department is mandatory. This ensures your establishment meets health and safety standards. Requirements include:

Health certificates for all food-handling staff (obtained from the city health office)
Results of water potability tests
Pest control and sanitation plans (provided by licensed pest control companies and health officers respectively)
Business Permit (same as Mayor’s Permit)

The local health office will inspect your restaurant’s premises before issuing the permit. Fees typically range from PHP 300 to PHP 1,000, and getting the permit can take 5-7 days. The permit must be renewed annually.

You can find a complete guide here.

Step 7: Secure Additional Permits and Licenses

Depending on your restaurant’s operations, you may need additional permits:

Environmental Compliance Certificate (ECC): Required if your restaurant’s operations significantly impact the environment (e.g., large-scale waste generation). Apply through the Department of Environment and Natural Resources (DENR).
Liquor License: If you plan to serve alcoholic beverages, obtain a liquor license from the LGU.
Signage Permit: For outdoor signage, secure a permit from the LGU’s engineering or zoning office.
Music License: If you play copyrighted music, secure a license from the Filipino Society of Composers, Authors, and Publishers (FILSCAP).

Each document can take 1-2 weeks to obtain, assuming the applications are filed properly. The total processing time depends on which permits and licenses your business needs.

Step 8: Register with Social Security and Labor Agencies

If you have employees, register with the following agencies to comply with labor laws:

Social Security System (SSS): For employee social security benefits. Submit an Employer Registration Form (R-1) and a Specimen Signature Card (R-1A). This may take 1-2 weeks to process.
Philippine Health Insurance Corporation (PhilHealth): For health insurance contributions. Submit an Employer Data Record (ER1) form. Processing time is usually 2-4 days.
Home Development Mutual Fund (Pag-IBIG): For housing loan contributions. Complete the Employer’s Data Form (EDF). Processing time is usually 2-4 days.
Ensure all employees are registered with these agencies, and remit monthly contributions to avoid penalties.

Step 9: Comply with Food Safety Regulations

To maintain food safety, ensure your restaurant complies with the Food Safety Act of 2013. Train your staff in food safety practices, such as proper food handling and storage. The Food and Drug Administration (FDA) may inspect your restaurant to verify compliance.

Additionally, secure an FDA License to Operate (LTO) if you plan to manufacture or distribute packaged food products. This can take 1-2 months to complete. You can find a complete guide here.

Step 10: Keep Records and Renew Permits

Once your restaurant is operational, maintain accurate financial and operational records for tax and compliance purposes.

Renew all permits annually, including the Mayor’s Permit, Sanitary Permit, and BIR registration. Stay updated on changes in local and national regulations to avoid fines or closure.

Renewal time depends on the type of permit but often takes 1-2 weeks.

Final Thoughts

While business registration may seem complex, it’s a necessary step for any restaurant aiming to thrive in the Philippines.

From selecting a business structure to securing permits and complying with labor regulations, registering a restaurant involves several important stages. Although it can feel overwhelming, careful planning and organization can make the process much more manageable. Start early, gather all required documents, and don’t hesitate to consult a legal professional for guidance.

First Time Registering a Restaurant? Here’s Where to Find Help.

Registering a business in the Philippines can be a complex and challenging process. With numerous permits and licenses required by the government, it’s easy to miss a document or forget to renew it. Unfortunately, this can lead to costly fines or even force your restaurant to shut down.

That’s where Triple i Consulting comes in. Our team of experienced lawyers and accountants provides comprehensive support for your restaurant registration, so you don’t have to stress over the paperwork. Our expertise and network enable us to streamline your registration process, ensuring it’s completed swiftly and correctly.

We’ll handle the permits and renewals so you can focus on what matters most—running your restaurant and achieving financial success.