How to Register a Sole Proprietorship in the Philippines

Advantages of a Sole Proprietorship in the Philippines

• A sole proprietor can enjoy complete control of the company
• Only a minimum amount of capital is required
• Management is easier without scheduling meetings with the board of directors for agreement on specific issues compared to all other business entities.
• Fewer requirements from government agencies compared to all other business entities
• The income taxes paid is based on the profits earned by the business, depending on the type of business
• The sole proprietor obtains all the profits and assets of the company

Disadvantages of a Sole Proprietorship in the Philippines

• It’s hard to distinguish personal income from the business as the sole proprietor becomes liable for the company’s income tax
• The sole proprietor has unlimited personal liability for the company’s debts, liabilities, and losses
• The sole proprietor cannot boost the capital through selling business interests; however, they may boost capital via business loans from banks
• Lawsuits filed against the company can affect both the business and the sole proprietor’s assets, and if the sole proprietor loses, he might pay for the damages with his own money.
• Personal lawsuits filed against the owner can harm the finance of the business.

Requirements for starting a Sole Proprietorship in the Philippines:

• Valid government-issued IDs (Driver’s License, GSIS, SSS, PRC License)
• Tax Identification Number registration from the BIR
• Minimum capital requirement deposited in a local bank
• Business Permit and Mayor’s License from the municipal office
• Clearance from government agencies, in some cases, but not all

Procedure:

1. Secure your business name from the Department of Trade and Industry (DTI)
2. Complete forms and submit them for assessment
3. Provide proof of payment of the minimum capital from the local bank
4. Pay required dues
5. Get registration from the Department of Trade and Industry’s (DTI) records department.
6. Obtain a barangay clearance from the local barangay
7. Secure a business permit and Mayor’s Permit from the city hall where the sole proprietor will operate.
8. Complete registration with BIR, Pag-ibig, Philhealth, and SSS.

Can I get help in starting my Sole Proprietorship business in the Philippines?

Yes, you may get help in starting your sole proprietorship business journey. Triple I Consulting is well-equipped to help. As the first ISO 9001:2008 company in the Philippines to offer business registration services to its clients, Triple i Consulting is armed with a team of Philippine business strategy experts who provide professional help for locals and foreign nationals looking to register or start their sole proprietorship in the country.

Triple i Consulting provides more than the following services:

• Registration of sole proprietorship with DTI
• Acquiring local government permits and business registration
• Offering HR consultancy and assistance in creating worker contracts
• Recruitment & Executive Search Services
• Finding commercial office space
• Yearly compliance
• Accounting and bookkeeping services
• Outsourced Payroll Services

Find out more by contacting us here, filling out the form below, calling us at +63 (02) 8540-9623, or emailing us at info@tripleiconsulting.com to book an initial consultation with one of our business registration experts.

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