Full Guide to DTI and BIR Registration for Freelancers, SMEs and Start-up Business Owners in the Philippines

This guide is for individuals who earn from their own work or business: freelancers, licensed professionals, online sellers, content creators and first-time founders running a sole proprietorship. It explains which registrations you actually need, in what order, and what each one costs as of October 2026.

You'll get a "which path applies to you" table, a timeline, the full document checklist from the Bureau of Internal Revenue (BIR) and the Department of Trade and Industry (DTI), the step-by-step procedure in the BIR's Online Registration and Update System (ORUS), and a plain explanation of the tax-rate choice you make at registration.

If you plan to form a corporation or a one person corporation instead, your path runs through the Securities and Exchange Commission (SEC). Read our business registration guide for that route.

Key takeaways

• You need DTI registration only if you use a business name. The DTI requires registration when you do business under a name other than your true name. A freelancer billing under their own name registers with the BIR only.
• DTI business name fees depend on territorial scope: ₱200 (barangay), ₱500 (city or municipality), ₱1,000 (regional) or ₱2,000 (national), plus ₱30 documentary stamp tax (DST). The certificate is valid for five years.
• BIR registration costs ₱30 in DST for the Certificate of Registration (Form 2303). The ₱500 annual registration fee no longer applies under the Ease of Paying Taxes (EOPT) Act, per Revenue Regulations (RR) No. 11-2024.
• Register with the BIR on or before you start business, which the BIR counts from your first sale or 30 days after your DTI certificate or local permit is issued, whichever comes first.
• If your annual gross sales stay at or below ₱3 million and you're not VAT-registered, you can choose the 8% income tax on gross sales above ₱250,000 instead of graduated rates plus 3% percentage tax. Above ₱3 million, VAT registration becomes mandatory.
• After registration you file quarterly and annual returns even in months with no income: 1701Q (May 15, August 15, November 15), 1701 or 1701A (April 15), and 2551Q (25 days after each quarter) if you're on graduated rates.
• Micro taxpayers (gross sales under ₱3 million) are exempt from the December 31, 2026 e-invoicing mandate under RMC No. 98-2026, but still must issue registered invoices for sales of ₱500 or more.

Overview

For an individual, registration involves up to three government layers. The DTI protects your business name. The BIR gives you a Taxpayer Identification Number (TIN), registers your tax types and authorizes your invoices and books. Your city or municipality (the local government unit, or LGU) issues the barangay clearance and the mayor's or business permit if you operate from a place of business.

Which path applies to you

One person keeps one TIN for life. If you already have a TIN from employment, you update your registration in ORUS instead of applying for a new one.

Timeline

Here's a realistic timeline for two common cases. The freelancer path is mostly online. The sole proprietor path adds the DTI and LGU steps, which can run partly in parallel.

The timeline assumes complete documents and a responsive RDO. LGU processing varies by city. The Ease of Doing Business Act (RA 11032) caps government processing at 3 working days for simple transactions and 7 working days for complex ones, counted from receipt of a complete application.

Requirements

DTI business name (only if you use a trade name)

• [ ] Filipino citizen at least 18 years old, or a foreign national authorized to do business in the Philippines
• [ ] Valid government-issued ID
• [ ] Authorization letter signed by the owner, if a representative files for you
• [ ] Your chosen territorial scope: barangay, city or municipality, regional or national
• [ ] Your dominant name plus a descriptor based on the Philippine Standard Industrial Classification (for example "Northpoint" + "Design Services")
• [ ] Online payment (GCash, Maya, card, Landbank Link.Biz) within seven calendar days of applying, or the application is treated as abandoned

BIR registration (Form 1901, self-employed and sole proprietors)

The BIR's checklist of documentary requirements, revised in July 2025 under RMC No. 74-2025, lists these for self-employed individuals, including freelancers, online sellers, vloggers and other content creators:

• [ ] BIR Form 1901 (two originals if filing manually; completed online in ORUS)
• [ ] Any government-issued ID showing your name, address and birthdate, such as the PhilID, passport or driver's license; if it has no address, a separate proof of residence or business address in your name
• [ ] For online applications, a selfie of you holding the ID
• [ ] For PRC-regulated professionals: a valid PRC ID plus a government ID or proof of address
• [ ] Either a purchase of BIR Printed Invoices (BPI) at the New Business Registrant Counter, or one clear final sample of your own invoice to be printed by an accredited printer
• [ ] ₱30 loose DST for the Certificate of Registration (proof of online payment, if paid online)

Additional documents, only if they apply to you:

• [ ] DTI certificate, if you use a business name
• [ ] Special power of attorney and IDs of you and your representative, if someone files for you
• [ ] Work visa (9g) for foreign nationals
• [ ] Service contract showing the payment amount, for job-order or contract-of-service workers in government agencies
• [ ] Barangay Micro Business Enterprise (BMBE) certificate of authority, if registered as a BMBE
• [ ] Proof of registration with BOI, PEZA or another investment promotion agency, if applicable

The July 2025 checklist does not list a mayor's permit or a lease contract as general requirements for self-employed registrants. You may still need them for your LGU, and your RDO may ask for proof of business address.

Books of accounts

• [ ] Manual books: a new set of permanently bound books, registered in ORUS, which generates a QR stamp you paste on the first page
• [ ] Loose-leaf books: a Permit to Use first, then bound books and a sworn statement at year end
• [ ] Computerized books: an Acknowledgement Certificate or Permit to Use for your system first

LGU permits (if you have a place of business)

• [ ] Unified business permit application form of your city or municipality
• [ ] Barangay business clearance
• [ ] DTI certificate (if using a business name)
• [ ] Proof of business address: lease contract, title or owner's consent for home-based setups
• [ ] Community tax certificate (cedula), commonly required
• [ ] Occupancy and fire safety requirements, depending on the premises and LGU

Requirements and fees differ per LGU. Quezon City, for example, requires all prospective business owners establishing an enterprise in the city to apply for a new business permit and runs applications through its online e-services portal.

Step-by-step procedure

Step 1: Decide whether you need a business name

If you'll bill clients and issue invoices under your own name ("Maria L. Santos"), skip the DTI. If you want a trade name on your invoices, signage, social media shop or bank account, register it first. The BIR's Form 2303 and your invoices will then show that name.

Step 2: Register your business name with the DTI

• Where: bnrs.dti.gov.ph, under New Registration
• What to do: Accept the terms, enter owner details, choose a territorial scope, enter your dominant name and descriptor, and check availability. Save the reference code. Complete your addresses, review and accept the undertaking, then pay.
• What you get: An official receipt and the Certificate of Business Name Registration, sent by email after payment is confirmed
• Processing time: Usually same day once paid; you have seven calendar days to pay before the application lapses
• Validity: Five years. You can renew up to 180 days before expiry, within 90 days after, or in a further 90-day grace period with a 50% surcharge.

Pick the narrowest scope that covers where you'll actually trade. A barangay-scope name protects the name only in that barangay. Online businesses selling nationwide often choose national scope.

Step 3: Secure barangay clearance and your mayor's permit (if applicable)

If you'll operate from a shop, office, stall or a home address your LGU treats as a place of business, apply at your barangay hall, then at the city or municipal Business Permits and Licensing Office (BPLO). Many Metro Manila LGUs accept online applications. The permit is renewed every January.

Licensed professionals pay an annual professional tax to the LGU, which the Local Government Code caps at ₱300. Freelancers who are not PRC-regulated should ask their BPLO whether a home-based permit is required, because practice varies.

Step 4: Register with the BIR through ORUS

• Where: orus.bir.gov.ph (or manually at the RDO with jurisdiction over your residence or place of business)
• Form: BIR Form 1901, Application for Registration for self-employed individuals, mixed-income earners and single proprietors
• What to do: Create an ORUS account, choose the self-employed registration, enter your details and business activity, select your tax types and income tax option, and upload your ID and selfie. Pay the ₱30 DST online.
• What you get: A TIN (if you don't have one) and an electronic Certificate of Registration, BIR Form 2303, which you can generate and print once the DST is paid
• Deadline: On or before commencement of business, under Section 236 of the Tax Code as amended by the EOPT Act. RMC No. 91-2024 treats business as commenced on your first sale or 30 days after your LGU permit or DTI certificate is issued, whichever comes first.
• Processing time: Usually a few working days, depending on the RDO (estimate)

Your Form 2303 lists your registered tax types, such as income tax and percentage tax, and the returns you must file. Check it carefully. A tax type on your COR means a return is due every period, even if you earned nothing.

Registering with the BIR is not optional just because your clients are abroad or pay through an app. Resident citizens are taxed on income from all sources, and e-marketplaces must require your Form 2303 as part of seller accreditation under RR No. 16-2023.

Step 5: Choose your income tax option

You choose this when you register on Form 1901, and you confirm it on your first quarterly return of the year. The election is irrevocable for that taxable year.

For most freelancers with low expenses, the 8% option is simpler and often cheaper: one tax, no percentage tax return. If your business has large costs, such as inventory, staff or rent, graduated rates with itemized deductions may produce a lower tax. Run the numbers both ways before you choose. Our VAT vs. non-VAT guide explains when VAT registration makes sense.

Step 6: Register your books of accounts

Register books in ORUS. The system generates a QR stamp to paste on the first page of manual books. RMC No. 65-2025 confirms new registrants may choose manual, loose-leaf or computerized books. Loose-leaf and computerized books need a Permit to Use or Acknowledgement Certificate, which can only be issued after you have a TIN.

For a new business, register manual books before the earlier of your first quarterly or annual income tax return deadline. Most small sole proprietors use a columnar journal and ledger. Our bookkeeping basics guide covers how to keep them.

Step 7: Get registered invoices

Since April 27, 2024, the invoice is the primary evidence of a sale of goods or services under RR No. 7-2024. Official receipts are no longer the primary document. Under the EOPT Act, you must issue a registered invoice for every sale of ₱500 or more, issue one when the buyer asks regardless of amount, and issue a single end-of-day invoice for smaller sales that total ₱500 or more. VAT-registered sellers issue invoices for every sale.

You have two options at registration:

• BIR Printed Invoices (BPI): bought at the New Business Registrant Counter, for use in your first year or until used up
• Authority to Print (ATP): you submit a final sample of your own invoice and have an accredited printer produce it

If you sell online with gross sales of ₱3 million or more, or use a computerized accounting system or invoicing software, check whether the December 31, 2026 e-invoicing deadline covers you. Micro taxpayers are exempt under RMC No. 98-2026. See our e-invoicing deadline guide and our explainer on invoices replacing official receipts.

Step 8: Display your registration

Post your Form 2303 in a visible spot at your place of business. Under RR No. 7-2024 and RMC No. 91-2024, online sellers post the electronic COR or the ORUS-generated QR code on their website or shop page. Freelancers without a fixed place of business keep the COR available for inspection.

Older guides mention the "Ask for Receipt" Notice. The BIR replaced it with the Notice to Issue Receipt/Invoice (NIRI) under RMO No. 43-2022, issued by the RDO to new registrants and displayed where customers can see it. Ask your RDO whether one is issued with your registration.

Estimated costs and budget

All amounts are as of October 2026. Government fees come from the DTI and BIR sources cited. LGU and printing amounts are estimates that vary by city, capital and supplier.

Budget to prepare. Government fees for a freelancer are small: ₱30 for the BIR, plus ₱230 to ₱2,030 if you register a business name. The bigger costs are optional or situational. Notarization of a special power of attorney typically runs a few hundred pesos. A lease deposit for a shop can be two to three months' rent. Professional fees for a bookkeeper or accountant to register you and file monthly and quarterly returns vary by scope. A sole proprietorship has no minimum capital, but set aside working capital and at least one quarter of expected taxes.

What you file after registration

Once your COR is issued, the clock starts. These are the returns most freelancers and small sole proprietors file. Your Form 2303 is the final word on what applies to you.

Under the EOPT Act, micro taxpayers are not required to withhold expanded withholding taxes under Section 57(B) of the Tax Code. They also get reduced penalties: a 10% surcharge instead of 25%, and half the usual interest. For filing mechanics, see our guide to filing your ITR with eBIRForms.

Stopping work is not the same as closing your BIR registration. Until you file Form 1905 to cancel, returns stay due every quarter, and late filings add penalties.

Online sellers and digital creators

Online sellers, vloggers, streamers and other content creators register on the same Form 1901 as other self-employed individuals. A few extra rules apply:

• Register before your first sale on a platform. RR No. 16-2023 requires all online sellers to register on or before commencing business in an e-marketplace, and platforms must collect your Form 2303 as part of seller accreditation.
• Expect 1% withholding on half of your remittances. E-marketplace operators and digital financial services providers withhold 1% on one-half of gross remittances to you. This does not apply if your remittances for the past year, or cumulative remittances this year, have not exceeded ₱500,000.
• Credit what was withheld. The amount withheld is a creditable tax. Collect the certificates from your platform and deduct them from your income tax due.
• Use your registered name. Payment accounts must be under your BIR-registered trade name.
• Post your proof of registration on your shop page or website.

Common mistakes to avoid

• Registering with the DTI and assuming you're done. A DTI certificate only protects your name. It doesn't register you for tax.
• Applying for a second TIN when you already have one from employment.
• Leaving the 8% box unchecked and missing the election on the first quarterly return, which locks you into graduated rates for the year.
• Skipping "no income" returns. Every tax type on your COR needs a return, even if it's zero.
• Issuing acknowledgment receipts or Word or Excel invoices in place of registered invoices.
• Forgetting the business permit renewal every January and the DTI renewal every five years.

Frequently asked questions

Do freelancers need DTI registration in the Philippines?

Not if you work under your own name. The DTI requires business name registration only when you do business under a name other than your true name. You still must register with the BIR as a self-employed individual or professional using Form 1901.

How much does BIR registration cost for a freelancer in 2026?

The only BIR charge is ₱30 in documentary stamp tax for your Certificate of Registration. The ₱500 annual registration fee was removed under the EOPT Act. Budget separately for books of accounts and invoices, which are typically a few hundred to a few thousand pesos.

Can I register with the BIR online?

Yes. Create an account at orus.bir.gov.ph, complete Form 1901, upload your ID and a selfie holding it, and pay the ₱30 DST online. You can then generate and print your electronic Form 2303 and register your books in the same system.

Should I choose the 8% income tax rate or graduated rates?

The 8% option suits most freelancers whose gross sales stay at or below ₱3 million and who have low expenses, because it replaces both graduated income tax and the 3% percentage tax. If your expenses are high, graduated rates with itemized deductions may cost less. Compare both before your first quarterly return, since the choice can't be changed for the year.

What happens if my income goes above ₱3 million?

You lose the 8% option for that year and move to graduated rates. You must also register for VAT if your gross sales in the past 12 months exceeded ₱3 million, or you reasonably expect them to in the next 12 months. Talk to your accountant before you cross the line so your invoices and pricing are ready.

Do I need a mayor's permit if I work from home?

It depends on your LGU. Many cities require a business permit for any business operating within their jurisdiction, including home-based ones, while professionals typically pay professional tax instead. The BIR's July 2025 checklist does not list a mayor's permit as a general requirement for self-employed registration, so you can usually register with the BIR first.

Do I need e-invoicing as a freelancer?

Probably not yet. RMC No. 98-2026 requires covered taxpayers to issue e-invoices by December 31, 2026, but exempts micro taxpayers, those with gross sales under ₱3 million. You still need BIR-registered printed or system-generated invoices.

Which RDO should I register with?

Register with the RDO that covers your residence, or your place of business if you have one. ORUS assigns this based on the address you enter. If you move, update your registration with Form 1905 instead of registering again.

How Upcloud can help

We handle DTI, BIR and LGU registrations end to end for freelancers, sole proprietors and growing businesses, including ORUS setup, books registration and invoice authority. After registration, we can file your quarterly and annual returns and keep your books current. See our business processing and tax compliance services, or contact us to talk through your setup.

References

1. Department of Trade and Industry. Business Name Registration System: Frequently Asked Questions. Accessed October 2026. https://bnrs.dti.gov.ph/faq
2. Department of Trade and Industry. BNRS Registration Guide. Accessed October 2026. https://bnrs.dti.gov.ph/resources/registration-guide
3. Bureau of Internal Revenue. Revenue Memorandum Circular No. 74-2025: Updated Checklist of Documentary Requirements for BIR Registration-Related Frontline Services. July 2025. https://bir-cdn.bir.gov.ph/BIR/pdf/RMC%20No.%2074-2025.pdf
4. Bureau of Internal Revenue (annex reproduced by KPMG Philippines). Checklist of Documentary Requirements, Revised July 2025: Application for Registration, Self-Employed Individuals (CDR F1101) and Books of Accounts (CDR F1105B). 2025. https://assets.kpmg.com/content/dam/kpmgsites/ph/pdf/InTAX/2025/Annex-CDR-2025c.pdf
5. Bureau of Internal Revenue. Revenue Regulations No. 7-2024: Registration Procedures and Invoicing Requirements under the EOPT Act. April 11, 2024. https://bir-cdn.bir.gov.ph/BIR/pdf/RR%207-2024.pdf
6. Bureau of Internal Revenue. Revenue Regulations No. 11-2024: Amending the Transitory Provisions of RR No. 7-2024. June 13, 2024. https://bir-cdn.bir.gov.ph/BIR/pdf/RR%2011-2024.pdf
7. Bureau of Internal Revenue. Revenue Regulations No. 8-2024: Classification of Taxpayers under the EOPT Act. April 11, 2024. https://bir-cdn.bir.gov.ph/BIR/pdf/RR%208-2024.pdf
8. Bureau of Internal Revenue. Revenue Regulations No. 16-2023: Withholding Tax on Remittances of E-Marketplace Operators and Digital Financial Services Providers. December 21, 2023. https://bir-cdn.bir.gov.ph/BIR/pdf/RR%2016-2023.pdf
9. Bureau of Internal Revenue. Revenue Memorandum Circular No. 98-2026: Policies on the Issuance of Electronic Invoices. September 22, 2026. https://bir-cdn.bir.gov.ph/BIR/pdf/RMC%20No.%2098-2026%20redacted.pdf
10. Bureau of Internal Revenue. Revenue Memorandum Circular No. 91-2024: Clarification on Registration Procedures under RR No. 7-2024. August 14, 2024. https://bir-cdn.bir.gov.ph/BIR/pdf/RMC%20No.%2091-2024.pdf
11. Bureau of Internal Revenue. Online Registration and Update System (ORUS). Accessed October 2026. https://orus.bir.gov.ph/
12. Congress of the Philippines. Republic Act No. 11976 (Ease of Paying Taxes Act). January 5, 2024. https://lawphil.net/statutes/repacts/ra2024/ra_11976_2024.html
13. Congress of the Philippines. Republic Act No. 10963 (TRAIN Law), amending Sections 24, 74, 109 and 236 of the Tax Code. December 19, 2017. https://lawphil.net/statutes/repacts/ra2017/ra_10963_2017.html
14. Congress of the Philippines. Republic Act No. 7160 (Local Government Code), Sections 139 and 157. 1991. https://lawphil.net/statutes/repacts/ra1991/ra_7160_1991.html
15. Congress of the Philippines. Republic Act No. 11032 (Ease of Doing Business and Efficient Government Service Delivery Act). May 28, 2018. https://lawphil.net/statutes/repacts/ra2018/ra_11032_2018.html
16. Quezon City Government. New Business Permit. Accessed October 2026. https://quezoncity.gov.ph/business-permit/
17. Grant Thornton Philippines. Clarifications on the Registration Procedures under EOPT Act (RMC No. 91-2024). September 2024. https://www.grantthornton.com.ph/insights/articles-and-updates1/tax-notes/clarifications-on-the-registration-procedures-under-eopt-act/
18. Grant Thornton Philippines. BIR Clarifies Bookkeeping Options for New Business Registrants (RMC No. 65-2025). July 2025. https://www.grantthornton.com.ph/insights/articles-and-updates1/tax-notes/bir-clarifies-bookkeeping-options-for-new-business-registrants/
19. Grant Thornton Philippines. New Annual Income Tax Return for Individuals Availing OSD and 8% Income Tax Rate (BIR Form 1701A). 2019. https://www.grantthornton.com.ph/alerts-and-publications/technical-alerts/tax-alert/2019/new-annual-income-tax-return-for-individuals-availing-osd-and-8-income-tax-rate/
20. Grant Thornton Philippines. BIR Extends the Deadline for the Replacement of the Ask for Receipt Notice with the Notice to Issue Receipts/Invoice. 2023. https://www.grantthornton.com.ph/insights/articles-and-updates1/tax-notes/bir-extends-the-deadline-for-the-replacement-of-the-ask-for-receipt-notice-with-the-notice-to-issue-receipts-invoice/