Summary:

• Business registration in Davao City starts with choosing your structure: sole proprietorship (DTI) or corporation/partnership (SEC).
• Secure Barangay Clearance and apply for a Mayor’s Permit from the Davao City Business Bureau.
• Register with the Bureau of Internal Revenue (BIR) for tax compliance, including books of accounts and official receipts.
• If you have employees, register with SSS, PhilHealth, and Pag-IBIG.
• Davao Accountants offers full-service business registration, including 100% remote setup via SEC eSECURE.

Introduction

Davao City, known for its business-friendly environment, strategic location in Mindanao, and strong local governance, has become one of the top destinations for entrepreneurs and investors in the Philippines. Whether you’re starting a sari-sari store or launching a tech startup, understanding the step-by-step registration process is crucial to operate legally and avoid penalties.

This 2025 guide walks you through every stage of business registration in Davao City—from choosing a structure to securing your Mayor’s Permit—so you can launch your business with confidence and full compliance.

Step 1: Decide on the Business Structure

Before anything else, choose the appropriate business structure that fits your goals:

• Sole Proprietorship – For individual entrepreneurs, registered with the DTI.
• Partnership – Registered with the SEC; can be general or limited.
• Corporation – Also registered with the SEC; ideal for larger ventures or when multiple owners are involved.
• One Person Corporation (OPC) – A special type of corporation for solo owners, also registered with SEC.

Pro Tip: If you’re unsure, consult with professionals like Davao Accountants to assess the tax and legal implications of each structure.

Step 2: Register Your Business Name

Where to Register:

• DTI – For sole proprietorships: https://bnrs.dti.gov.ph
• SEC – For partnerships and corporations: https://esparc.sec.gov.ph

Requirements:

• Unique business name (no existing or reserved names)
• Valid ID of the owner or incorporators
• Online account with DTI or SEC

Estimated Timeline:

• DTI: Immediate to 1 day
• SEC: 3–10 working days, including name reservation and submission of Articles of Incorporation

Step 3: Secure Barangay Clearance

Once your business name is registered, head to the barangay where your business will operate to get a Barangay Clearance.

Requirements:

• DTI Certificate or SEC Registration
• Valid ID
• Proof of business address (lease contract, tax declaration, etc.)
• Filled-out Barangay Clearance application form

Processing Time: 1 Day

Fees: Varies depending on business type and size

Step 4: Apply for the Mayor’s Permit at the Davao City Business Bureau

The Mayor’s Permit (also called the Business Permit) is a local requirement to legally operate within Davao City.

Steps:

1. Go to the Davao City Business Bureau (located at Sangguniang Panlungsod Building or via their online portal)
2. Submit the application and required documents
3. Pay business taxes and regulatory fees
4. Undergo inspections (fire, sanitary, zoning)

Required Documents:

• DTI or SEC registration
• Barangay Clearance
• Lease contract or land title
• Occupancy permit or building permit
• Fire safety clearance
• Sanitary permit

Timeline: 3-10 working days

Renewal: Annual, due by January 20

Step 5: Register with the Bureau of Internal Revenue (BIR)

After obtaining your local business permit, you must register your business with the BIR for tax compliance.

Where to Register:

• BIR Revenue District Office (RDO) with jurisdiction over your business address

Documents Needed:

• Mayor’s Permit or application
• DTI/SEC registration
• Valid government-issued ID
• Lease contract or proof of business address
• BIR Form 1901 (Sole Proprietor) or 1903 (Corporation/Partnership)
• BIR Form 0605 (Payment of Registration Fee – Php 500 annually)
• BIR Form 2000 (for documentary stamp tax)

Steps:

1. Submit documents and pay registration fees
2. Attend taxpayer’s briefing (some RDOs require this)
3. Register your books of accounts
4. Apply for Authority to Print (ATP) official receipts or invoices (or use the online e-invoicing system)

Step 6: Register with SSS, PhilHealth, and Pag-IBIG

If your business plans to hire employees—even just one—you must also register with the following agencies:

Social Security System (SSS)

• Form R-1 and R-1A
• Valid IDs and business permits

PhilHealth

• Employer Data Record (ER1)
• Business permit and BIR registration

Pag-IBIG Fund

• Employer Registration Form
• Business permit, IDs, and SEC/DTI documents

Registration with these agencies ensures you’re compliant with mandatory contributions and employee benefits.

Optional: Register for Other Licenses or Permits

Depending on your business type, you may need additional permits:

• FDA – For food, drugs, or cosmetics
• DENR – For businesses affecting the environment
• BSP – For finance-related businesses
• BOI or PEZA – For tax incentives or export-oriented businesses

Timeline Summary

How Davao Accountants Can Help

Business registration can be time-consuming, especially if you’re juggling permits, tax forms, and inspections on your own. Davao Accountants offers end-to-end assistance for:

• SEC or DTI registration
• Barangay and Mayor’s Permit application
• BIR registration and ATP processing
• Payroll setup and mandatory benefits registration
• Ongoing bookkeeping and tax compliance

We offer both in-person and 100% remote business registration using SEC eSECURE validation, making it easier for foreign and local entrepreneurs to launch their business in Davao City without needing to be physically present.

Conclusion

Registering a business in Davao City in 2025 is straightforward with the right guidance. While the process can seem overwhelming, each step ensures that your business is operating legally and ready to grow. Whether you’re a first-time entrepreneur or an established company expanding to Davao, proper registration is your foundation for success.

Need help with registration? Contact Davao Accountants today and let our team handle the paperwork while you focus on building your dream business.