How Much Does Registering a Franchise Business Cost?

1. For DTI Registration

It depends on the territorial scope you chose for your franchise:

● Barangay: PHP 230

● City/Municipality: PHP 530
● Regional: PHP 1,030
● National: PHP 2,030

2. For SEC Registration

It depends on the type of business structure.

a. For partnerships, the articles of partnership costs 1/5 of 1% of the partnership’s

capital but not less than PHP 2,000.

b. For corporations, the articles of incorporation costs:

● Stock corporation with par value: 1/5 of 1% of the authorized capital stock but
not less than PHP 2,000, or the subscription price of the subscribed capital
stock, whichever is higher.
● Stock corporation without par value: 1/5 of 1% of the authorized capital stock
computed at PHP 100 per share but not less than PHP 2,000, or the issue
value of the subscribed capital stock, whichever is higher.
● Non-stock corporation: PHP 1,000.

It’s recommended to use the SEC’s registration fee calculator here.

For corporations, you also need to pay for the by-laws, which cost PHP 1,000.

You also need to pay a legal research fee (1% of the filing fee), a documentary stamp

tax of PHP 30, and a name registration fee of PHP 100.

3. For BIR Registration

The total cost is PHP 1,360 inclusive of the annual registration fee, documentary stamp

tax, registration of book of accounts, and sales invoice.

4. For Business/Mayor’s Permit

The costs depend on the LGU. It can be anywhere from PHP 300 to PHP 5,000. Larger

cities typically charge higher than small municipalities. Note that you might need to

register both your franchise’s head office and physical store’s location if they are

different.

Tips & Warnings

● The timing of your registration is important, so don’t register too early.

As a beginner franchisee, it might be tempting to get the time-consuming
business registrations out of the way. However, if you register too early, you
might be taking on a burden that you don’t even need yet.
● Once you have your store set up, display the documents required for
compliance. These include the BIR certificate of registration, business permit,
and plate. Choose a visible location in your store where they won’t be
damaged.
● You might want to consider hiring a professional accountant who can
complete the government requirements for you. They can also help you with
the monthly, quarterly, and annual compliance documents. That way, you’ll be
able to save time and use that time to focus on growing your franchise
instead.