Learning goal

Legal setup isn’t the most exciting part of startup life.
But it’s one of the most important.

Without it, you can’t open a business account, invoice properly, apply for grants, or raise money.
More than that, it’s about showing the world you’re serious.

This guide walks you through the basics of registering your startup in the Philippines, with real talk, simple steps, and local context.

Why it matters

1. Legal status unlocks opportunities
   From grants to government programs, from client contracts to startup competitions—being registered opens doors.

2. You’ll avoid future stress
   Mix personal and business money? Skip receipts? That’s future chaos. Legal setup keeps you clean and compliant.

3. Fundraising, hiring, and scaling all need it
   Investors won’t touch an unregistered business. Neither will many corporate partners or formal programs.

Your path to registration

1. Choose the right legal structure

Here are the three most common types:

• Sole proprietorship
  Fast and cheap, but no legal separation. You’re personally liable.

• Partnership
  Shared responsibility—but limited in liability protection and harder to scale.

• Corporation (recommended for startups)
  Best if you have co-founders, plan to raise money, or want to protect personal assets.

If you’re building a high-growth startup, go for a corporation.

2. Steps to register a corporation (simplified)

1. Reserve your company name via SEC’s CRS

2. Prepare documents: Articles of Incorporation, By-laws, Treasurer’s Affidavit

3. Register with SEC

4. Register with BIR (for tax ID, books, and receipts)

5. Get barangay clearance and mayor’s permit

6. Open a company bank account

💡 Pro tip: Work with an accountant or legal service to save time—especially for BIR steps.

3. Common mistakes to avoid

• Mixing personal and business money

• Not issuing official receipts (yes, even for pilot sales)

• Registering too early before you’re ready

• Skipping legal agreements with your team (IP, equity, decision rights)

If you’re still validating, hold off on full registration.
But once you’re earning, building a team, or raising funds—make it official.

What to expect

• Clear steps, simplified for founders

• Tools and services that make it easier

• Help from startup-friendly professionals

• Stories from founders who’ve been through it

Quick checklist

You’re ready to register if:

• You’ve validated your idea and earned money

• You’re working with co-founders or collaborators

• You want to access funding, accelerators, or larger clients

• You’re ready to grow—and need the legal structure to match

StellarPH Tip

Talk to someone who just did it.

Your startup is real.
Make it official, so you can build boldly, without legal roadblocks.