The Philippines’ thriving real estate market, driven by rapid urbanization and growing demand for properties, makes starting a real estate brokerage firm an attractive venture. However, operating in the highly regulated real estate industry requires navigating a multi-step registration process across various government agencies.
Let’s walk through the business registration process step-by-step to help you get your real estate brokerage firm registered.
What is a Real Estate Brokerage Firm?
A real estate brokerage firm is a business that connects property buyers, sellers, or renters, earning commissions for facilitating transactions. In the Philippines, these firms employ licensed brokers or salespeople to handle deals, operating as sole proprietorships, partnerships, or corporations. They must comply with regulations from agencies like the Department of Trade and Industry (DTI), Securities and Exchange Commission (SEC), and Professional Regulation Commission (PRC).
Step 1: Choose Your Business Structure
The business structure you choose will affect your business’s registration process, taxes, and compliance responsibilities.
- Sole Proprietorship: Simplest, owned by one person, but exposes personal assets to business liabilities.
- Partnership: Involves multiple owners. A partnership agreement is essential to clarify roles and avoid disputes.
- Corporation: A separate legal entity offering limited liability protection. Ideal for larger firms with multiple stakeholders.
This guide covers sole proprietorships and partnerships. Registering a corporation requires professional assistance, so we suggest consulting a business registration company for assistance.
Step 2: Register Your Business Name
Choose a distinctive name for your real estate brokerage firm and register it based on your business structure:
- Sole Proprietorship: Visit the Department of Trade and Industry (DTI) website (bnrs.dti.gov.ph) or office to check name availability and register. Fees range from PHP 200–2,000, depending on scope (barangay, city, or nationwide).
- Partnership: Use the Securities and Exchange Commission (SEC) eSPARC portal (sec.gov.ph) to reserve your name for approximately PHP 100 (valid for 30 days).
Processing time typically takes 4–7 days, depending on processing queues.
Step 3: Obtain a Barangay Clearance
Obtain a Barangay Clearance from the barangay hall where your real estate brokerage firm is located. This document verifies compliance with local regulations. Bring the following:
- DTI or SEC registration certificate
- Proof of address (e.g., lease contract)
- Completed application form
- Fee: Typically PHP 300–1,000
Processing usually takes 2–3 days. Ensure you secure this clearance, as it’s required for subsequent registration steps.
Step 4: Apply for a Mayor’s Permit
To legally operate your real estate brokerage firm, secure a Mayor’s Permit (also called Business Permit) from your Local Government Unit (LGU) or Business Permits and Licensing Office (BPLO). Business permit requirements may differ slightly by LGU, but typically include:
- DTI or SEC registration
- Barangay Clearance
- Lease contract or proof of office ownership
- Community Tax Certificate (Cedula), available from the barangay or municipal hall
- Additional permits (e.g., Sanitary Permit, Fire Safety Inspection Certificate) for commercial offices
- Fees: PHP 2,000–10,000 annually, depending on location. The Mayor’s Permit ensures compliance and boosts credibility with clients and developers.
Step 5: Register with the Bureau of Internal Revenue (BIR)
To ensure tax compliance for your real estate brokerage firm, register with the Bureau of Internal Revenue (BIR) at your local Revenue District Office (RDO). Provide the following:
- DTI or SEC registration certificate
- Mayor’s Permit (Business Permit)
- Lease contract or proof of office address
- Valid ID
- Fee: Approximately PHP 500, plus costs for official receipts and books of accounts
Complete BIR Form 1901 (sole proprietorships) or Form 1903 (partnerships).
For annual sales below PHP 3 million, opt for simplified bookkeeping to ease tax filing. Higher sales require regular bookkeeping, which may need professional assistance as your firm grows.
Expect your Tax Identification Number (TIN) and Certificate of Registration within 5–7 days, which must be displayed at your business location.
Step 6: Secure PRC Licenses
Republic Act No. 9646 mandates that brokers must be licensed for all real estate transactions.
- Licensure Process: Brokers must pass the PRC Real Estate Broker Licensure Examination, which tests knowledge of real estate laws and practices.
- Application/Verification: Apply for the exam or verify licenses via the PRC online portal (prc.gov.ph). Exam schedules are posted annually.
Only employ PRC-licensed real estate brokers or salespeople to handle buying, selling, leasing, or negotiating real estate transactions. However, this license does not let you sell properties part of a development project (you’ll need a DHSUD License to Sell).
Step 7: Comply with Labor Laws
- Enroll employees in:
- Social Security System (SSS): For pensions and benefits.
- PhilHealth: For health insurance.
- Pag-IBIG Fund: For housing loans and savings.
- Department of Labor and Employment (DOLE): For labor compliance.
Step 8: Secure Additional Permits
Other permits may be necessary for operating your business. These include:
- Signage Permit
- DHSUD License to Sell (For brokerage Firms selling their developed properties to buyers)
- Various Land Development/Construction Permits (For brokerage Firms developing their own projects)
To ensure you’re in complete compliance with regulations, consult a professional business registration service.
Final Thoughts
Registering a real estate brokerage firm in the Philippines involves navigating multiple government agencies. As a highly regulated industry, strict compliance is critical to avoid penalties and business suspension. Consulting a professional business registration service is the best way to ensure you comply with legal regulations.
First Time Registering a Business? Here’s Where to Find Help
Registering a business in the Philippines can be a complex and challenging process. With numerous permits and licenses required by the government, it’s easy to miss a document or forget to renew it. Unfortunately, this can lead to costly fines or even force your operations to shut down.
Thankfully, the Business Registration Philippines team provides comprehensive support for your business registration, so you don’t have to stress over the paperwork.
We’ll handle the permits and renewals so you can focus on what matters most—running your business and achieving financial success.
Contact us today to schedule an initial consultation with one of our experts:
- Contact Us Here
- Fill Out the Form Below
- Call us at +63 (02) 8540-9623