The Philippines’ real estate market is thriving, making it an exciting time to start a real estate firm. Cities like Metro Manila, Cebu, and Davao are seeing a boom in property development and sales, contributing significantly to the economy. Launching a real estate firm offers great potential, but it requires careful planning and compliance with strict legal requirements.
We’ll show you how to legally register your real estate firm in the Philippines and provide some helpful compliance advice.
What is a Real Estate Firm?
A real estate firm is a business entity engaged in activities such as buying, selling, leasing, or managing real property, including land, residential homes, commercial buildings, or condominiums. In the Philippines, these firms often serve as intermediaries connecting property buyers with sellers, manage rental properties, or develop real estate projects like subdivisions or commercial complexes.
Real estate firms are regulated by agencies such as the Department of Trade and Industry (DTI) and the Securities and Exchange Commission (SEC). Compliance ensures legitimacy and builds trust with clients.
Step 1: Choose Your Business Structure
Choose from the options available in the Philippines below. The structure you choose will affect your business’s registration process, taxes, and compliance responsibilities.
- Sole Proprietorship: For solo entrepreneurs, this structure is simple to set up but exposes personal assets to business liabilities.
- Partnership: Involves two or more individuals sharing ownership, responsibilities, and profits. A partnership agreement is essential to clarify roles and avoid disputes.
- Corporation: A separate legal entity offering limited liability protection, making it suitable for larger firms with multiple stakeholders.
Our guide focuses on sole proprietorships and partnerships. Since registering a corporation is more complex, consulting a professional business registration service is recommended.
Step 2: Register Your Business Name
Pick a unique business name for your real estate enterprise. 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. Pay a fee (usually based on the size of your capital).
- Partnership: Register with the Securities and Exchange Commission (SEC) online via their eSPARC portal here.
This process usually takes 4-7 days depending on the queues.
Step 3: Obtain a Barangay Clearance
Next, secure a Barangay Clearance from the barangay hall where your business is located. This document confirms that your business complies with local community regulations. Remember to bring:
- Your DTI or SEC certificate
- Proof of address (like a lease contract)
- A filled-out application form
- Pay a fee (varies by barangay)
Processing typically takes 2–3 days. Be sure to obtain the clearance, as it’s required for the next step.
Step 4: Apply for a Mayor’s Permit
To operate your real estate firm legally, apply for a mayor’s permit (also called a business permit) at your Local Government Unit (LGU) or Business Permits and Licensing Office (BPLO).
The requirements may vary slightly based on the LGU or BPLO. Here are the typical business permit requirements:
- DTI or SEC registration
- Barangay Clearance
- Lease contract or proof of property ownership of your office address.
- Community Tax Certificate (Cedula), obtainable from the barangay or municipal hall
- Additional permits (e.g., Sanitary Permit or Fire Safety Inspection Certificate) for commercial office spaces
- Fees: Varies by location
Having a mayor’s permit ensures compliance and signals credibility to clients and developers.
Step 5: Register with the Bureau of Internal Revenue (BIR)
To ensure tax compliance for your real estate firm, register with the Bureau of Internal Revenue (BIR) at the Revenue District Office (RDO) in your area. Submit the following:
- DTI or SEC certificate
- Business Permit (also called Mayor’s Permit)
- Lease contract
- A valid ID
- Pay a small fee, plus costs for receipts and books.
Complete BIR Form 1901 for sole proprietorships or Form 1903 for partnerships.
If you expect annual sales below PHP 3 million, register for simplified bookkeeping to make filing your taxes easier. For higher sales, you’ll need to choose Regular Bookkeeping, which may require professional help once your business is up and running.
After about 5–7 days, you’ll receive your Tax Identification Number (TIN) and Certificate of Registration, which must be displayed at your place of business.
Step 6: Secure Licenses for Operating Real Estate Businesses
Real estate firms in the Philippines must comply with industry-specific regulations to operate legally and maintain credibility. The following are the two main permits you’ll need:
- PRC License (For Real Estate Broker/Salesperson):
- Required for: Businesses involved in buying, selling, leasing, or negotiating real estate transactions for clients (e.g., real estate brokerage firms, property agencies). However, this license does not let you sell properties part of a development project (see DHSUD License to Sell below).
- Republic Act No. 9646 mandates that brokers must be licensed for all real estate transactions.
- DHSUD License to Sell (For Firms Selling Developed Properties to Buyers)
- Required for: Businesses developing or selling subdivision lots, condominium units, or similar projects (e.g., real estate developers, project marketing firms).
- Presidential Decree No. 957 requires developers selling their projects to have this license to protect buyers.
Brokerage firms may need only PRC licenses unless they are selling developed projects (subdivisions, condominium units, etc.). Developers need both if they broker and sell their own projects.
Secure Additional Licenses and Permits
Other permits may be necessary for operating your business. These include:
-
- Signage Permit:
- Needed for outdoor business signage.
- Obtain from the LGU’s engineering or zoning office.
- DOLE Registration:
- Mandatory for firms with employees to comply with labor laws.
- Register with the Department of Labor and Employment (DOLE) and enroll your employee in the required government agencies (SSS, PhilHealth, Pag-IBIG Fund)
- Signage Permit:
Each permit takes 1–2 weeks, though it may be delayed if filed incorrectly. Consult a business registration service to ensure compliance.
Various Permits for Developing Land/Construction
Real estate firms involved in land development and construction must secure various permits, including a Real Estate Developer’s License, Building Permits, Development Permits, and other regulatory documents.
The process is lengthy and complex, so we strongly recommend consulting a legal professional, especially for large-scale projects.
Final Thoughts
Registering a real estate firm in the Philippines involves navigating multiple government agencies. As a highly regulated industry, especially for land development and construction, strict compliance is vital to avoid costly penalties. For a swift and accurate registration process, we strongly recommend consulting with 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
