Sole proprietorship (DTI business name)Philippines
What it takes to form, own and run a sole trader in Philippines, and how its profit is taxed. Each figure links to the page it was read from.
This company type
At a glance
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Any Filipino who is at least 18 years of age can register a business name.
The registry’s and the law’s own pages do not mention it.
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Registration fees will be based on your chosen territorial scope: Barangay - PhP 200 City/Municipality - PhP 500 Regional - PhP 1,000 National - PhP 2,000
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Eight percent (8%) tax on gross sales or receipts and other non-operating income
Form it
Who registers it
- Registry
- Formed without visiting
- Not stated
The registry’s and the law’s own pages do not mention it.
- Formed online
- Yes
What it takes to form
- A notary
- Not required
- A resident director
- Does not apply
- Paying up the capital
- Not in our records
Own it
Who may own and run it
- Directors
- Does not apply
- Shareholders
- Does not apply
- Members
- At least 1 · at most 1 · one person may form it alone
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Any Filipino who is at least 18 years of age can register a business name.
- A local company secretary
- Does not apply
- A local registered agent
- Not required
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An authorized representative can also submit the BN application requirements as long as he/she also provides a valid ID and an authorization letter signed by the business owner.
Each year, at the registry
Not in our records Annual registry fee, Accounts on the public record, Audit for a small company, Audit: none of these is in our records for the Sole proprietorship (DTI business name).
Important dates
When each obligation falls due, as the authority states it.
- Register with the Bureau of Internal Revenue
- 30 days after incorporation
With Bureau of Internal Revenue (Revenue District Office)
BIR Citizen's Charter (2025 edition): a self-employed individual registers on or before commencement of business (first sale) or within 30 calendar days of the Mayor's Permit or the DTI Certificate of Business Name Registration.
What is public
Not in our records What the register shows the public is not in our records for the Sole proprietorship (DTI business name).
Tax
Tax on profit
How this company type is taxed, which can differ from its place’s headline rate.
Through owners
Taxed in the owner's hands: graduated rates, or 8% on gross sales/receipts above PHP 250,000 where gross sales do not exceed PHP 3,000,000 (BIR RMO 23-2018).
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Eight percent (8%) tax on gross sales or receipts and other non-operating income
- CFC rules in Philippines
- Not in our records
Close it
Closing it
The other end, which most guides leave out.
- Route
- Cancellation of the business name registration; ownership of a registration cannot be transferred.
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Transfer of ownership is not allowed. You must cancel your old BN registration then apply for a new one under the new ownership.
- Statutory fee
- Not in our records
Every business in Philippines
VAT
- Standard rate
- Not in our recordsThe tax authority’s pages have not been read for Philippines.
Payment and banking services
1 service names Philippines on its own list: Airwallex. Each provider, and what a listing means.
Reference
Its name and code
- Kind
- Sole traderDerived our grouping, the same words in every country
- Name in law
- Sole proprietorship (DTI business name)
- Identifier
- PH-SOLE-PROPRIETORSHIPA form ISO 20275 does not list.