Setting up a consulting firm or professional services business in the Philippines requires compliance with various legal, tax, and regulatory requirements. Whether offering management, legal, financial, IT, or engineering consultancy, registration ensures that the business operates legally and qualifies for tax benefits and government incentives. This guide outlines the step-by-step process to register a consulting firm in the Philippines.
Step 1: Determine Your Business Structure
Before registering, decide on the most suitable business structure:
Sole Proprietorship – Owned by a single individual, registered with the Department of Trade and Industry (DTI).
Partnership – Formed by two or more individuals, registered with the Securities and Exchange Commission (SEC).
Corporation – A legal entity separate from its owners, requiring SEC registration. A One-Person Corporation (OPC) is an option for single proprietors who want limited liability.
For licensed professionals (e.g., accountants, engineers, doctors, and lawyers), a Professional Partnership or Professional Corporation may be required.
Step 2: Register the Business Name
For Sole Proprietorships: Register the business name with the DTI Business Name Registration System (BNRS).
For Partnerships and Corporations: Secure SEC Name Reservation and register through the SEC Electronic Simplified Processing of Application for Registration of Company (eSPARC).
Ensure the business name complies with naming regulations and does not conflict with existing registrations.
Step 3: Register with the Bureau of Internal Revenue (BIR)
To operate legally and issue official receipts, the business must:
Secure a Taxpayer Identification Number (TIN).
File BIR Form 1901 (for Sole Proprietors) or BIR Form 1903 (for Corporations and Partnerships).
Register Books of Accounts and have official receipts and invoices printed.
Pay the Annual Registration Fee (BIR Form 0605) and comply with monthly/quarterly tax filings.
Step 4: Obtain Local Business Permits
Secure Barangay Clearance from the barangay where the business is located.
Apply for a Mayor’s/Business Permit from the Local Government Unit (LGU).
Some consulting firms may need additional zoning, fire safety, or environmental permits, depending on office location.
Step 5: Register with Social Security and Employee Welfare Agencies
If hiring employees, register with:
Social Security System (SSS)
PhilHealth
Pag-IBIG Fund
These registrations ensure compliance with labor laws and allow employees to receive government-mandated benefits.
Step 6: Secure Additional Licenses and Accreditation (If Required)
For Professional Services (e.g., CPA, legal, engineering): Register with the respective Professional Regulatory Board (PRC or Supreme Court for Lawyers).
For Financial or Investment Consultancy: Secure accreditation with the Bangko Sentral ng Pilipinas (BSP) or Securities and Exchange Commission (SEC).
For IT and Digital Consulting: No special license is required, but compliance with Data Privacy Laws (NPC Registration) may be necessary.
Step 7: Open a Business Bank Account
Most banks require:
SEC Certificate of Incorporation (For Corporations and Partnerships)
DTI Registration (For Sole Proprietors)
BIR Certificate of Registration
Mayor’s Permit
Valid IDs of signatories
Opening a business account ensures proper financial management and compliance with tax regulations.
Step 8: Compliance with Ongoing Regulatory Requirements
To maintain legal operations, consulting firms must:
File annual financial statements (AFS) and General Information Sheet (GIS) with SEC.
Submit quarterly and annual tax returns with the BIR.
Renew business permits annually with the LGU.
Conclusion
Registering a consulting firm or professional services business in the Philippines involves multiple legal steps, from business name registration to compliance with tax and labor laws. Ensuring proper registration not only legitimizes the business but also opens opportunities for government incentives and corporate partnerships. Seeking legal and accounting assistance can help navigate the process smoothly and ensure compliance with all regulatory requirements.
Navigating the business landscape in the Philippines can be both rewarding and intricate. Whether you’re embarking on a new venture or scaling up, ensuring that your corporate endeavors are in line with local regulations is paramount.
At CBOS Business Solutions Inc., we pride ourselves on simplifying these processes for our clients. As a seasoned professional services company, we offer comprehensive assistance with SEC Registration, Visa processing, and a myriad of other essential business requirements. Our team of experts is dedicated to ensuring that your business is compliant, well-established, and ready to thrive in the Philippine market.
Why venture into the complexities of business registration and compliance alone? Allow our team to guide you every step of the way. After all, your success is our commitment.
Get in touch today and let us be your partner in achieving your business goals in the Philippines.
Email Address: gerald.bernardo@cbos.com.ph
Mobile No.: +639270032851
You can also click this link to schedule a meeting.
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