Learning how to start a restaurant in the Philippines is a thrilling adventure! Whether you’re cooking up adobo as a solo owner or teaming up with a partner for a foodie dream, you need to get your business registered. This guide focuses on sole proprietorships (one owner) and partnerships (two or more owners), breaking down the process into simple steps.
Choose Sole Proprietorship or Partnership
First, decide how you want to run your restaurant:
- Sole Proprietorship: Perfect if you’re going solo. You’re the boss, but you’re also liable for all business debts.
- Partnership: Great if you’re investing with friends or family. You share profits and responsibilities, but draft a clear agreement to avoid confusion.
Both are great choices for small to medium restaurants. Corporations, which are more complex, are usually for larger restaurant businesses.
Register Your Restaurant’s Name
Pick a catchy business name for your restaurant and make it official. You can register the name via:
- Sole Proprietorship: Go to the Department of Trade and Industry (DTI) website here or to their office. Check if your name’s unique, then register it. Fees are around PHP 200-2,000, depending on if it’s for your barangay, city, or nationwide.
- Partnership: Register with the Securities and Exchange Commission (SEC) online via their eSPARC portal here. Reserve your name for about PHP 100 (good for 30 days).
This process usually takes 4-7 days depending on the queues.
Get a Barangay Clearance
Head to your barangay hall to get a Barangay Business Clearance. This shows your restaurant fits local rules. Bring these requirements:
- Your DTI or SEC certificate
- Proof of address (like a lease contract)
- A filled-out application form
- The fee is usually PHP 300-1,000.
The processing time is usually 2-3 days plus a visit to their office. Make sure to get the clearance because it’s needed for the next step.
Grab a Business Permit
Also called a Mayor’s Permit, to operate legally get this from your city or municipality’s Business Permit and Licensing Office. You’ll need:
- Barangay Clearance
- DTI or SEC certificate
- Lease contract of the business’s location
- Fire Safety Inspection Certificate (from the Bureau of Fire Protection)
- Your Community Tax Certificate (Cedula)
- Costs vary (PHP 5,000-15,000 yearly) based on your restaurant’s size and location. Renew this every year to stay legitimate.
Your restaurant’s location is crucial. The LGU will evaluate its suitability, ensuring proper zoning, ventilation, and compliance with safety and operational standards.
Failure to comply means you will not receive a permit.
The processing time is usually 1-2 weeks but may take longer depending on their investigation of your requirements. We recommend professional assistance to ensure a seamless application.
Sign Up with the BIR
Paying taxes is a must, so register with the Bureau of Internal Revenue (BIR) at the Revenue District Office near your restaurant. Bring:
- DTI or SEC certificate
- Business Permit (also called Mayor’s Permit)
- Lease contract
- A valid ID
Fill out BIR Form 1901 (sole proprietorship) or 1903 (partnership).
Choose Simplified Bookkeeping if you expect your sales are under PHP 3 million a year—it’s easier! If your sales are higher, you’ll need to pick Regular Bookkeeping which might require professional assistance when you begin operating.
After around 5-7 days, you’ll get a Taxpayer Identification Number (TIN) and a Certificate of Registration to display. Fees are about PHP 500, plus costs for receipts and books.
Secure a Sanitary Permit
Since you’re serving food, get a Sanitary Permit from the local health office. This ensures your restaurant is clean and safe. You’ll need:
- Health certificates for food-handling staff
- Water potability test results
- Your Business Permit (aka Mayor’s Permit)
- The health office will check your place before approving. Fees are around PHP 300-1,000, and you renew it yearly.
- Handle Extra Permits and Employees
Getting a permit could take 5-7 days.
Depending on Your Setup, You Might Need the Following:
- Liquor License: If you sell beer or wine, get this from your local government. This may take 1-2 weeks.
- Signage Permit: For big outdoor signs, check with the city’s zoning office. This may take 1-2 weeks.
- FDA license to operate: Restaurants that sell packaged food will need this document. This complex process may take 1-2 months.
If You are Hiring Employees, You Need to Register with:
- SSS: For social security benefits.
- (usually 1-2 weeks processing time)
- PhilHealth: For health insurance.
- (usually 2-4 days processing time)
- Pag-IBIG: For housing contributions.
- (usually 2-4 days processing time)
Submit the right forms to each agency and pay monthly contributions for your team. This is required to comply with Labor Law.
Follow Food Safety Rules
Keep your food safe by following the Food Safety Act of 2013. Train staff on proper food handling and storage. The Food and Drug Administration (FDA) might inspect to ensure you’re compliant.
Keep Up with Renewals
Once your restaurant’s open, keep records of sales and expenses for taxes. Renew your Mayor’s Permit, Sanitary Permit, and BIR registration every year. Stay on top of local rules to avoid fines.
Renewal time depends on the type of permit but often takes 1-2 weeks.
Final Thoughts
While business registration may seem complex, it’s a necessary step for any restaurant aiming to thrive in the Philippines.
Registering your business as a sole proprietorship or partnership is entirely achievable with proper preparation. Start early, organize your documents, and consult a legal professional for guidance. Once you’ve completed the process, you’ll be ready to launch your restaurant with confidence.
First Time Registering a Restaurant? 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 restaurant to shut down.
That’s where Triple i Consulting comes in. Our team of experienced lawyers and accountants provides comprehensive support for your restaurant registration, so you don’t have to stress over the paperwork. Our expertise and network enable us to streamline your registration process, ensuring it’s completed swiftly and correctly.
We’ll handle the permits and renewals so you can focus on what matters most—running your restaurant 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