How Do I Register an Online Business in the Philippines?
Running an online business in the Philippines has never been more popular—or more accessible. From reselling on Shopee to launching a Facebook store or managing your own website, the digital marketplace is booming. But with this rise comes one critical question: how do I register an online business in the Philippines?
This blog walks you through everything you need to know about online business registration in the Philippines in a clear, step-by-step way.
TL;DR (Too Long; Didn’t Read)
Yes, registering your online business in the Philippines is required by law. Whether you’re selling through Facebook, Lazada, Shopee, or your own e-commerce site, registration with the DTI (for sole proprietors) or the SEC (for partnerships/corporations) is a must. After that, you also need to register with the BIR and your local government unit (LGU). This process legitimizes your business, protects your brand, and ensures you’re tax compliant.
Why Registering Your Online Business Matters
Registering isn’t just a formality. It provides several key benefits:
- Legitimacy: Gain customer trust and work with reputable partners.
- Protection: Secure your business name and protect your brand.
- Access: Apply for loans, payment gateways, and business bank accounts.
- Compliance: Avoid penalties and tax issues with BIR and LGUs.
Whether you’re a freelancer, dropshipper, or own a full-blown e-commerce site, business registration for online sellers is non-negotiable.
Step-by-Step: How to Register an Online Business in the Philippines
Here’s a simplified breakdown of the process of registering a small online business in the Philippines:
Step 1: Decide on a Business Structure
Choose between:
- Sole Proprietorship – easiest to register; go through the DTI
- Partnership/Corporation – register through the SEC
Most freelancers and online sellers go with sole proprietorship for simplicity.
Step 2: Register Your Business Name
If you choose Sole Proprietorship:
- Go to bnrs.dti.gov.ph for online registration
- Prepare at least 3 name options
- Pay the registration fee (PHP 200-2,000, depending on scope)
- Receive your DTI Certificate within 1-2 days
If you choose Corporation/Partnership:
- Visit the SEC Company Registration System
- Reserve a company name and complete your registration online
Step 3: Secure Barangay Clearance
Visit the barangay office where your business will be based (can be your home address if applicable):
- Bring your DTI/SEC certificate
- Submit valid ID and proof of address (e.g., utility bill or lease)
- Pay applicable fees
Step 4: Get Your Mayor’s Permit
Go to your local city or municipal hall:
- Bring your Barangay Clearance
- Submit a lease contract or proof of home business
- Submit Community Tax Certificate (CEDULA)
- Pay local business tax and fees
Step 5: Register with the BIR
This step is crucial for tax compliance.
- Visit the nearest BIR Revenue District Office (RDO)
- Submit the following:
- DTI/SEC Certificate
- Barangay Clearance
- Mayor’s Permit (if available)
- Valid ID and TIN (or apply for one)
- Fill out Form 1901 (sole proprietors) or 1903 (corporations)
- Pay annual registration fee (PHP 500)
- Attend the taxpayer’s briefing
- Get your COR (Certificate of Registration) and official receipts
How to Register a Lazada or Shopee Business in the Philippines
Even if you’re selling on a third-party platform like Shopee or Lazada, you’re still required to register:
- Use your DTI-registered business name when setting up seller accounts
- BIR registration is mandatory, as both platforms issue income statements
- You may need to submit your Mayor’s Permit and COR to access more seller features
Online Business Registration Services (Optional Help)
If the process seems overwhelming, you can hire an online business registration service Philippines providers offer. These services handle:
- Name registration
- Barangay and Mayor’s permits
- BIR filing and follow-ups
They charge a service fee, but save you time and reduce errors.
What Taxes Do Online Sellers Need to Pay?
Once registered, you need to file taxes regularly:
- Percentage tax or VAT (depending on your annual income)
- Income tax (quarterly and annual)
- Annual registration fee
- Withholding tax (if you hire freelancers or employees)
Make sure to issue official receipts and keep books of accounts.
Final Thoughts
Online selling in the Philippines is a promising way to build a business, but doing it legally is key to long-term success. By completing your online business registration Philippines, you unlock new opportunities while staying on the right side of the law.
Whether you’re setting up a Facebook store, managing a Shopee storefront, or launching your own site, taking the time to register is a smart, future-proof move.
Need help with registration? Fill out the form below and let us handle the paperwork while you focus on growing your online business.
FAQs
Do I need to register my online business in the Philippines?
Yes. The law requires all businesses, including online ones, to register with the DTI or SEC, BIR, and LGU.
Can I run an online business without registration?
Technically, no. Doing so may lead to penalties from the BIR or the local government.
What permits do I need for online selling in the Philippines?
You need:
- DTI or SEC registration
- Barangay Clearance
- Mayor’s Permit
- BIR Certificate of Registration
How to get a business permit for an online shop?
After securing DTI or SEC registration, go to your barangay and city hall to apply for a business permit. Bring proof of address, valid ID, and pay applicable fees.