How to Register an Online Business in the Philippines

In the Philippines, a digital wave is transforming how entrepreneurs connect with a global audience. In 2022, the Department of Trade and Industry (DTI) estimated that a total of 2 million entities were selling online in 2022.

This number proves to show the gaining power of eCommerce in the Philippines, projected to expand from USD 13.63 billion in 2023 to USD 25.99 billion by 2028 (around PHP 760 million to PHP 1.4 trillion), representing a Compound Annual Growth Rate (CAGR) of 13.78% over the forecast period from 2023 to 2028.

Whether you're an aspiring food business entrepreneur or a budding retail marketer, knowing how to register an online business in the Philippines is essential. Discover the steps on how you can achieve the legal and financial advantages of a business registration.

Preparing for Your Online Business Registration

An online business registration requires careful preparation to ensure a smooth and efficient process. This section guides you through the essential steps and considerations for a successful online business registration.

1. Choose a Business Name (BN) 

Your BN is more than just a label; it's how customers remember you. A compelling name provides a mental image of your business, helps foster trust, and sets the tone for customer interaction. Ensure that it mirrors your business, balances simplicity and creativity, and is easy to spell and say.

2. Determine the business structure

• Sole Proprietorship - A single individual owns and manages the business with complete control and responsibility.
• Partnership - Made up of two or more individuals who share profits, responsibilities, and potential liabilities.
• Corporation - This is a legal entity separate from its owners that offers liability protection and the ability to sell shares.
• One-Person Corporation (OPC) - A single stockholder entity combining the benefits of a corporation with the simplicity of a sole proprietorship.

Other factors to consider include:

• Funding - How will you fund your business?
• Control - Who’s responsible for your business?
• Taxes - Different structures have varying tax implications.

How to Register an Online Business in the Philippines

Establishing your online presence in the Philippines is an exciting endeavor filled with opportunities. This section will guide you through the essential steps on how to register online business in BIR and DTI, ensuring a solid foundation for your eCommerce venture.

DTI Online Business Name Registration

Below is a concise guide outlining the significant steps on how to register your online business in DTI.

1. Check your name eligibility

• Go to the Business Name Registration Services (BNRS) website and click on "New Registration."
• Confirm agreement to "Terms and Conditions."

2. Fill out the owner’s information form

• Complete the form and confirm details in the pop-up, then click “Proceed.”

• Note: Non-Philippine nationals require additional documents submitted at any DTI Office.

3. Fill out the business scope and name details

• Select the territorial scope, then enter the dominant name of your business. Make sure to provide descriptor keywords.
• Check the availability of the name (Figure A), confirm, and click "Proceed."
• A reference code will be assigned (Figure B).

4. Complete the remaining sections

• Fill out details for business address, personal information, residential address, and other details, then verify the accuracy of the provided data and confirm.
• Click “Proceed.”

5. Payment

• Choose a payment method (DTI Teller, GCash, PayMaya, Landbank Link.Biz, Credit/Debit Card) and pay the registration fee within seven (7) days.
• The Certificate of Business Name Registration will be sent to your email.

6. Finalize your registration

• Confirm payment and click “Register New Business.”
• Congratulations! You’ve successfully registered your BN.

7. Download your certificate online

• Go to Transaction Inquiry in the Business Name Services section and click “I Agree.”
• You’ll receive a verification code via email. Use the code to access and download the Transaction Summary from “Downloadable Contents.”

For walk-in/over-the-counter applicants

• Go to any DTI office or Negosyo Center and submit all the requirements for a DTI permit.

• Make sure to have backup names.
• Pay the registration fee.
• After approval, DTI will issue a Certificate of Business Name Registration to you.

BIR Online Business Registration

After obtaining a DTI certification, proceed to register your online business either at the local Revenue District Office (RDO) or conveniently through the NewBizReg portal. Here’s how to register your business in BIR online.

BIR Online Application

1. Go to https://orus.bir.gov.ph/home.
2. Gather the required documents and scan them into a PDF file (not exceeding 4MB). You’ll find the list of requirements in the registration form (BIR Form No. 1901).
3. Answer the tax-type questionnaire, downloadable from the portal, to determine your tax liabilities.
4. Pay the ₱530 registration fee and documentary stamp tax through any BIR ePayment channel.
5. Email the completed documents to the corresponding RDO.
6. You’ll receive an email acknowledgement receipt of your application.
7. The concerned RDO will manually process your application within three (3) working days.
8. You will receive an email specifying your schedule for Certificate of Registration pick up, along with additional instructions if applicable.

For walk-in/over-the-counter applicants

1.  Go to the RDO, which has jurisdiction over your place of residence.
2. Fill out two (2) copies of the registration form (BIR Form No. 1901). Under “Taxpayer Type,” choose the item that applies to you:
3. Present your requirements to the BIR officer, then proceed to the “New Business Registrant Counter” to pay for the registration fee and documentary stamp tax.
4. Secure BIR-printed receipts (BPR) / BIR-printed invoices (BPI) or the Authority to Print (ATP).
5. After securing your receipts, you’ll receive the following documents from the BIR:
   

Permits and Licenses for Online Business Registration in the Philippines

Regulatory compliance is essential in establishing an online business in the Philippines. This section delves into the necessary permits and licenses required to ensure legal compliance and smooth operations for your online venture.

1. Barangay business clearance

This clearance signifies that the business owner obtained the necessary approval from their local community and has complied with all local rules and regulations.

2. Mayor's permit (Municipal/City business permit)

A Mayor’s Permit or Business Permit from the Local Government Unit (LGU) legalizes your business within a locality. You may find the list of requirements you need here.

3. Bureau of Internal Revenue (BIR) registration

BIR registration authorizes official receipt printing, formalizes the Tax Identification Number (TIN), and registers mandatory books of accounts detailing essential tax obligations. 

Both local and foreign entrepreneurs establishing businesses in the Philippines must register with government agencies.

Launch Your Online Business with Confidence

As the digital landscape reshapes the entrepreneurial sphere in the Philippines, the surge of online businesses highlights the growing influence of eCommerce in the country, underscoring the importance of understanding the process of registering an online business in the Philippines.

While the business registration process may come with its challenges, your eCommerce platform can be a breeze to set up - with RUSH's eStore.

With user-friendly features and a robust support system, RUSH ensures that your online store is not only efficiently set up but also seamlessly managed, from Discovery, Decision, and Delivery. This will empower you to focus on growth and innovation within the dynamic eCommerce landscape, revolutionize your customer experience, expand your reach, and scale your business effortlessly. Book a demo with RUSH today and explore the different eCommerce (or Loyalty) solutions for your startup.