The Philippines, with its pristine beaches, rich culture, and English-speaking natives is a hotspot for tourism. Starting a travel agency, resort, or a hotel can be a rewarding venture if you know just the right place to set up.
However, proper business registration is essential to operate legally, partner with key industry players (like booking companies), and build trust with customers. We’ll guide you step-by-step to register a tourism business in the Philippines, ensuring compliance with local regulations.
What is a Tourism Business?
If your business falls into one of these categories, it is considered a tourism enterprise and should follow our guide below.
- Primary Tourism Enterprises: These are businesses directly engaged in tourism activities, such as accommodations (hotels, resorts), travel and tour agencies, tour operators, and tourism-specific transport services. Registration and accreditation with the Department of Tourism (DOT) can be mandatory to operate legally and ensure compliance with quality and safety standards.
- Secondary Tourism Enterprises: These support tourism indirectly, such as restaurants, souvenir shops, or retail. Accreditation is voluntary but recommended for credibility and promotional benefits.
Step 1: Choose Your Business Structure
Your first decision is selecting a business structure. Your choice affects your taxes, liabilities, and registration requirements.
- Sole Proprietorship: Best for small, single-owner businesses like freelance tour guides or small homestays. It’s easy to set up, but it doesn’t separate personal and business liabilities.
- Partnership: Ideal for businesses with multiple owners. Remember to make a partnership agreement to define roles, profit-sharing, and responsibilities.
- Corporation: Suitable for larger ventures, such as resorts or agencies seeking investors. This structure offers liability protection but involves more paperwork.
This guide covers sole proprietorships and partnerships. Registering a corporation is more complex and typically requires professional assistance from a business registration service.
Step 2: Register Your Business Name
Pick a unique business name for your tourism enterprise and make it official. You can register the name via:
- Sole Proprietorship: Go to the Department of Trade and Industry (DTI) website here or to their office. Check if your name’s unique, then register it.
- Partnership: Register with the Securities and Exchange Commission (SEC) online via their eSPARC portal here.
Choose a name that reflects your tourism brand and complies with guidelines (e.g., no offensive or misleading terms). This process usually takes 4-7 days depending on the queues.
Step 3: Secure a Barangay Clearance
Next, obtain a Barangay Clearance from the barangay hall where your business is located. This certifies that your business complies with local community regulations.
- Your DTI or SEC certificate
- Proof of address (like a lease contract)
- A filled-out application form
The processing time is usually 2-3 days plus a visit to their office. Make sure to get the clearance because it’s needed for the next step.
Step 4: Obtain a Mayor’s Permit
The Mayor’s Permit (or Business Permit) is issued by the local government unit (LGU) or Business Permit and Licensing Office (BPLO) of the city or municipality where your business operates.
Here are the business permit requirements:
- Barangay Clearance
- DTI/SEC certificate
- Lease Contract, and
- Sanitary permit (for hotels, restaurants, resorts, etc.)
- Fire Safety Inspection Certificate (for hotels, restaurants, resorts, etc.)
- DOT Registration (Can sometimes be mandatory to receive a mayor’s permit, such as in the case of Boracay under Memorandum Circular No. 2018-03)
- Your Community Tax Certificate (Cedula)
- Pay fees, which vary based on business size and location
Requirements may differ slightly depending on your LGU.
Businesses like hotels, restaurants, and resorts face stricter requirements. Carefully select your location and ensure it complies with all building regulations. The local government unit (LGU) will assess your establishment’s suitability, checking for proper zoning, adequate ventilation, and adherence to safety and operational standards. Non-compliance will result in permit denial.
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.
Step 5: Register with the BIR
All businesses must register with the Bureau of Internal Revenue (BIR) to obtain a Taxpayer Identification Number (TIN) and comply with tax obligations. Visit the Revenue District Office (RDO) of your business location and submit the following:
- DTI or SEC certificate
- Business Permit (also called Mayor’s Permit)
- Lease contract
- A valid ID
Fill out BIR Form 1901 (sole proprietorship) or 1903 (partnership).
Choose Simplified Bookkeeping if you expect your sales are under PHP 3 million a year—it’s easier! If your sales are higher, you’ll need to pick Regular Bookkeeping which might require professional assistance when you begin operating.
After around 5-7 days, you’ll get a Taxpayer Identification Number (TIN) and a Certificate of Registration to display.
Step 6: Secure a DOT Accreditation
The Department of Tourism (DOT) offers voluntary accreditation for tourism businesses. It can be mandatory for some businesses to operate in certain locations such as Boracay. This will depend on your LGU (they may not give you a mayor’s permit if you don’t have DOT accreditation).
Even if it is voluntary, we highly recommend getting accreditation. It signals quality to tourists, gives access to DOT promotional programs, and boosts the overall visibility of your business.
Here are the requirements for DOT Accreditation.
- Contact the DOT regional office or visit their website for requirements.
- Submit documents like your Mayor’s Permit, SEC/DTI registration, and proof of compliance with safety and environmental standards.
- Pay accreditation fees
- Undergo an inspection to ensure compliance with DOT standards.
The process typically takes 2-6 weeks, with larger and more complex businesses being on the higher end of that range.
Accreditation is renewable annually. Learn more about DOT accreditation on their official website here.
Step 7: Register with Other Agencies
Depending on your business type, additional registrations may be required:
- Social Security System (SSS), PhilHealth, and Pag-IBIG: Mandatory for businesses with employees to provide social benefits.
- Department of Environment and Natural Resources (DENR): Required for eco-tourism businesses to secure an Environmental Compliance Certificate (ECC).
- Food and Drug Administration (FDA): Regulates the sale of packaged food, skincare products, and pharmaceuticals to ensure safety and compliance.
The process to secure each license can take a few days to several weeks depending on the agency and the length of the inspection.
Additional requirements depend on the nature of your business. Consult with a business registration company to ensure compliance.
Final Thoughts
Registering a tourism business in the Philippines requires navigating multiple agencies, but with careful planning, the process is achievable. From choosing a business structure to obtaining permits, ensuring regulatory compliance, and securing DOT accreditation, you’ll be ready to welcome tourists soon. For a fast and accurate registration process, we strongly recommend consulting a professional business registration service.
First Time Registering a Business? 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 operations to shut down.
That’s where Triple i Consulting comes in. Our team of experienced lawyers and accountants provides comprehensive support for your business 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 business and achieving financial success.
Contact us today to schedule an initial consultation with one of our experts:
- Fill out the form below
- Call us at: +63 (02) 8540-9623
- Send an email to: info@tripleiconsulting.com
