A sole proprietorship in the Philippines is a business owned and managed by a single individual, where the owner and the business are legally the same entity.

• Full Control – The owner makes all business decisions and keeps all profits.
• Unlimited Liability – The owner is personally responsible for all debts and obligations of the business.
• Registration – Must register the business name with the Department of Trade and Industry (DTI) and secure local permits before operating.
• Taxation – Income is taxed as part of the owner’s personal income.

It’s the simplest and most common form of business for small entrepreneurs in the country.