How to Register a Real Estate Business in the Philippines

The real estate industry in the Philippines is booming, offering lucrative opportunities for individuals and businesses. If you’re planning to start a real estate business, proper registration is essential to operate legally and gain the trust of clients and partners. This guide will walk you through the process of registering your real estate business in the Philippines.

Step 1: Decide on Your Business Structure

Choose the legal structure that fits your business goals:

• Sole Proprietorship: Owned and managed by one person.
• Partnership: Shared ownership between two or more individuals.
• Corporation: A separate legal entity owned by shareholders.

The structure you select will determine the requirements and where you will register your business.

Step 2: Register Your Business Name

For Sole Proprietorship

• Agency: Department of Trade and Industry (DTI)
• Steps:
  1. Visit the DTI Business Name Registration System.
  2. Check the availability of your desired business name.
  3. Complete the application form and pay the registration fee.
  4. Receive your Certificate of Business Name Registration.

For Partnerships and Corporations

• Agency: Securities and Exchange Commission (SEC)
• Steps:
  1. Use the SEC Online Registration System.
  2. Reserve your business name.
  3. Submit Articles of Partnership/Incorporation and other required documents.
  4. Pay the registration fee and obtain your Certificate of Registration.

Step 3: Obtain a Real Estate Broker or Developer License

Real estate businesses require special licenses to operate legally in the Philippines.

For Brokers:

• Obtain a Real Estate Broker License from the Professional Regulation Commission (PRC).
• Requirements include:
  • A degree in Real Estate Management or equivalent.
  • Passing the Real Estate Broker Licensure Exam.

For Developers:

• Secure a License to Sell and Certificate of Registration from the Housing and Land Use Regulatory Board (HLURB) (now the Department of Human Settlements and Urban Development, DHSUD).
• Requirements include:
  • Development permits.
  • Master deed and project plan approvals.
  • Proof of financial capacity.

Step 4: Register with the Bureau of Internal Revenue (BIR)

All businesses must register with the BIR to obtain a Taxpayer Identification Number (TIN) and secure a Certificate of Registration (COR).

Steps:

1. Fill out the appropriate BIR registration form:
   • BIR Form 1901 for sole proprietorships.
   • BIR Form 1903 for partnerships and corporations.
2. Submit the form and required documents to the Revenue District Office (RDO) where your business is located.
3. Pay the annual registration fee (P500).
4. Register official receipts and invoices.
5. Secure a Books of Accounts for recording transactions.

Step 5: Obtain Local Permits and Clearances

Barangay Clearance

• Secure this clearance from the barangay where your business is located.

Mayor’s Permit

• Apply at your city or municipal hall.
• Requirements typically include:
  • DTI or SEC registration certificate.
  • Barangay clearance.
  • Lease contract or proof of property ownership.
  • Zoning clearance and fire safety inspection certificate.

Step 6: Comply with Social Security, PhilHealth, and Pag-IBIG Requirements

If you plan to hire employees for your real estate business, register your business as an employer with the following agencies:

• Social Security System (SSS)
• PhilHealth
• Pag-IBIG Fund

This ensures compliance with labor laws and proper remittance of mandatory contributions.

Step 7: Comply with Industry-Specific Regulations

The real estate sector has unique compliance requirements:

• Anti-Money Laundering Act (AMLA) Compliance:
  Register with the Anti-Money Laundering Council (AMLC) if your real estate business involves transactions exceeding the threshold amounts.

• Data Privacy Compliance:
  Implement data protection policies and register with the National Privacy Commission (NPC) if your business handles sensitive customer information.

Step 8: Open a Business Bank Account

Separate your personal and business finances by opening a corporate bank account. Most banks will require your business registration documents, TIN, and valid identification.

Why Register Your Real Estate Business?

1. Legal Compliance: Avoid penalties for operating an unregistered business.
2. Credibility: Build trust with clients, partners, and investors.
3. Access to Financing: Avail of loans and other financial assistance.
4. Opportunities: Participate in government projects and bids.

Final Thoughts

Registering your real estate business in the Philippines may involve several steps, but each one is vital to ensuring your operations are legal and sustainable. With proper registration, you’ll gain access to growth opportunities and establish credibility in this competitive industry.

If you need assistance, consult a legal professional or a business consultant to guide you through the registration process. A well-registered business is the cornerstone of a successful real estate venture.