F R E E LAN C E R
registration & basics



1 Basic Facts About Freelancing

Freelancing Means Hard Work
Freelancing Is a Commitment

4 Why Being a Registered Freelancer is Good for

You
Benefits of Freelancing
Benefits of Registering as a Freelancer

7 The Process of Registering as a Freelancer

Requirements for Registering a Freelance Business

Table of Contents Submitting Your Registration Requirements

Receipts & Bookkeeping
How to Obtain an Official Receipt
Registering Your Book of Accounts

13 Fantastic Freelancing Jobs & Where to Find Them

Raking in the Big Bucks
Websites for Freelancers

17 Your Home Base

The Perks of Working at Home
Setting Up Your Workspace
Identify Your Work Area
Tools of the Trade
Organize Your Files
 Freelancers: Registration & Basics 1

BASIC FACTS & IDEAS

ABOUT FREELANCING
Freelancing has become a buzzword for those who seek a especially for those who pursue this venture full time.
range of work opportunities and extra income. It offers In today's world, Freelancers generally take job
flexibility in the workplace, as well as a way to upgrade skill orders online through international freelancing sites like
sets. Homemakers and even the those not traditionally Upwork, Onlinejobs.ph, and local ones like Raket.ph.
working (like students) turn to freelancing and make use of Experienced freelancers either interact directly with or are
their knowledge and free time to earning money. sought after by clients. Other job sources are professional
All that said, freelancing can now become a networking sites, referrals, and headhunters. Even social
legitimate and stable business for some people, media sites offer opportunities through ads or posts.
 Freelancers: Registration & Basics 2



Freelancing websites claim to have over a million

registered Filipino users working on different fields. A
survey by Freelancing.ph says that as of 2016, the
population of freelancers comprises of predominantly
female users, aged 25 to 34 years old, and in Metro Manila.
Working as a General Virtual Assistant, it adds, is the most
popular niche among freelancers. Other top specializations
are content writing and strategy, digital marketing, web
Freelancing Means development, and customer support.
Learning and upgrading skills lead to more job offers,
Hard Work and thus more income. Simply put, freelancing offers an
opportunity for career growth, as long as you are willing to
keep learning.
Freelancers generally charge based on their location,
There’s a misconception that freelancing is expertise, and length of experience. That said, freelancers
for lazy or socially awkward people. Some in the Philippines charge the lowest hourly rate so far at
may also say that freelancing is for those $11.72, compared to those in Great Britain who charge
with limited career choices. This isn't so, $46.54 per hour. The US, in comparison, has an average
especially in the Philippines. rate of $37.87.
In the local setting, freelancers work 32 hours a week
on average, and in turn, earn P39,000 a month. Some earn
as much as P100,000 or more, but this may mean they
charge higher rates rather than work longer hours. More
seasoned freelancers tend to do both.
Hubstaff says developers make up the largest number
of freelancers worldwide. Other top niches are design and
multimedia, administrative jobs like data entry and virtual
assistants, and writing. In these specializations, Filipino
freelancers are among the most active talents in the
international workplace.
 Freelancers: Registration & Basics 3



Freelancers who hope for easy money will be

disappointed. Becoming a freelancer is no different from
setting up your own business, especially once you start
accepting regular jobs. That means managing your
finances, planning your activities, and upgrading your
services, all the while improving your own skills and
spending personal time.
Apart from the rigors of ensuring quality service, you
Freelancing Is a have to play the part of the businessman on paper too. You
will need to show proof that you are a legitimate service
provider, such as issuing receipts, showing permits, and
Commitment paying taxes.
There is a perception about freelancing as a business
that online freelancing sites engage in digital arbitrage,
meaning they enable employers to avail of cheap labor.
Yet another common misconception about This may seem the case, considering how low Filipino
freelancing is that it’s easy and stress-free. freelancers seem to charge on average. Add the fact that
It’s partly true that all you need is a suitable freelancing sites deduct from a freelancer’s fees for acting
computer or laptop, and a stable internet as middlemen.  
connection, and you’re set. Even so, working However, while freelancing sites help employers get
freelance needs as much discipline and effort services at minimal cost, they also ensure that freelancers
as a regular job. get the best rates possible, depending on one’s skills. As
mentioned earlier, freelancers charge based on their
location and forte, and some even consider cost of living in
their rates. It all boils down to the quality and quantity of
work you offer.
At the end of the day, freelancing can be a competitive
and rewarding career option. It can help boost career
growth, improve your competencies, and provide an ample
income stream at your own pace.
 Freelancers: Registration & Basics 4



Freelancing holds vast opportunities for career

growth, networking, and financial stability (part 1).
Employees, homemakers, and even the unemployed
have turned to freelancing to earn extra income and
explore the possibilities of their career paths.
Apart from the opportunities that it presents,
people enjoy various benefits from working freelance.

Benefits of Freelancing
1. Increasing demand 


Companies nowadays recognize the need to

outsource talents (https://www.forbes.com/sites/
abdullahimuhammed/2017/01/31/why-now-is-the-
best-time-ever-to-become-a-freelancer/
#72a3c62d7b32). Sometimes, new positions are
being created to accommodate freelancers. This is
a great opportunity for those with specialties, or
those branching out from their regular careers.
Popular positions are in the fields of web
development, administrative work, content, and
customer support.
Taking advantage of the rising demand for
freelancers leads to more earnings and
opportunities for growth.
 Freelancers: Registration & Basics 5

2. Flexibility and time management
 5. More personal quality time


As a freelancer, you are your own boss. You may Since you work at your own pace and setting, that
choose where to work, whether at home, coffee shop, leaves you more time to spend doing the things you
or your own office. You can also work on weekends, enjoy. You can travel, spend more time with your family
after your regular work shift, or any other convenient and friends, do household chores, study, or take care
time. of yourself (like getting a check-up or taking up martial
You can also manage your time according to what arts). Just remember to manage your time well in case
works best for you. That includes scheduling your you decide to squeeze in a job or two while hanging
interaction with clients, preparing materials, presenting out.
your output, and enjoying the fruits of your labor.
Freelancing already has a lot of personal benefits, but more can
be gained when you register yourself with the Bureau of Internal
3. Control over work pace
 Revenue (BIR). Believe it or not, registering with the BIR is
expected of every earning individual or company. The sole
Aside from being able to work any time, you can purpose for this is to ensure that you pay your taxes.
control how much work you can put in. If you’re a full-
time freelancer, you can use your time to your You may register (Full Suite Blog: Independent professional vs
advantage and accept as many projects as you can Sole Proprietor) as a sole proprietor, if your freelance work
handle. involves a small or home-based business, or as an independent
professional, if you provide services without being affiliated with
4. Higher income
 any company. Either way, you gain various advantages when
you are recognized as a tax-paying freelancer.
The prospect of earning in dollars is enough to draw in
freelancers, but in general, freelancing augments your
current salary, or gives you a new source of income.
Some employers pay good rates, but if you have the
experience and expertise to show for it, you can name
your price or negotiate.
 Freelancers: Registration & Basics 6

Benefits of Registering as
a Freelancer
1. A sense of legitimacy
 4. Avoiding charges of tax evasion


When you’re registered with the BIR and you issue The ultimate fear of businesses, tax evasion is
official receipts with your name on it, clients will feel punishable by law. Section 74 of the National
more confident that they’re obtaining the services of a Internal Revenue Code of 1997 simply states that as
legitimate business. Recognition as a registered long as you render services and earn from them, you
business also helps you get your name out into the need to pay the corresponding taxes.
market. As a taxpayer, you are expected to settle your
quarterly and annual income tax, business taxes,
2. Tax payments as proof of earnings
 and local tax requirements. When you register, the
BIR will brief you on your duties, so pay attention. (Full
Your annual income tax return (BIR Form 1701) serves Suite Blog: Freelancers Guide to Paying Income Tax)
as your proof of earnings. Keep your papers close and
present them when applying for loans from banks, 5. Fulfilling your moral and ethical obligations

social security (SSS), and other lending companies.
You can also use it when applying for credit cards or Registering helps you sleep better at night, knowing
visas to travel. you have fulfilled your duties as a worker, an upright
business provider, and a citizen of the Philippines.
3. Avoiding penalties

Whether as a professional or a small business owner,
Paying taxes may be tedious, but in the long run it will registering has advantages that further boost your work and
help keep your business or income generation secure. your brand, and the benefits gained as a freelancer.
As long as you pay your taxes on time, you can avoid
penalties and surcharges.
 Freelancers: Registration & Basics 7



THE PROCESS OF The Bureau of Internal Revenue classifies

freelancers and home-based service
REGISTERING AS A providers as self-employed workers
(Full Suite Blog: Independent
Professional vs Sole Proprietor).
FREELANCER Here is a summary of the registration process
you need to undergo with the BIR:

There's an idea out there that freelancers don’t need to pay taxes or 1. Gather the necessary BIR forms
(online or offline), along with your
register their businesses. (Full Suite Blog: Pinoy Freelancers & Income
documentary requirements.

Tax). While there are freelancers who intentionally evade these
responsibilities, many don’t actually know what they're supposed to do. 2. Submit your requirements to the BIR
RDO (Revenue District Office) that
your business address is under.

According to Section 74 of the National Internal Revenue Code of 1997
3. Obtain copies of your official receipts
an individual receiving income within or outside the Philippines is required (or sales invoices, if applicable) through
to pay taxes. You are considered as self-employed if you are:
 a BIR-accredited printer. 


• A sole proprietor who owns a small or home-based

business;
• A professional who practices a profession, even without
being affiliated with a company; or
• Anyone who “(pursues) an art and make their living
therefrom,” including writers, athletes, and others.

 Freelancers: Registration & Basics 8



Requirements for Registering a

Freelance Business

Prepare these documents before you start your registration.

1. Birth Certificate or any documents showing name,

address, and birthdate;

Just to be safe, prepare these beforehand:
2. Mayor’s Permit, if applicable;

1. Photocopy of your birth certificate

3. DTI Certificate of Business Name, if applicable;

2. Photocopy of your marriage certificate (if married) and
4. Professional Regulation Commission ID, if applicable; the birth certificate/s of your dependents, if you have any

and

3. Photocopy of proof of address

5. Payment of Professional Tax Receipt (PTR) from the
local government, if applicable
 4. Photocopy of ID with name, birth date, and signature


• NOTE: Ask your RDO for possible conditions when

submitting your PTR payment. Some cities don’t require
this. Others may ask you to submit this personally, or you
may be allowed to have an authorized party do so for
you. 

 Freelancers: Registration & Basics 9



Submitting Your Registration

Requirements
Once you have these documents, here’s what you’ll need to do: 4. Attend a taxpayer’s briefing at your RDO. This is where
you will learn your rights and responsibilities as a
1. Accomplish two copies of BIR Form 1901 (for taxpayer.

individuals) and submit it along with the required
attachments to the RDO that has jurisdiction over your 5. At this point, if you’ve submitted all of your requirements,
business’ address. If you already have a Tax you will be issued your TIN (in case you don’t have one),
Identification Number (TIN), this makes your application the BIR Certificate of Registration (COR or Form
easier. 
 2303), and an "Ask for a Receipt" Notice (ARN). The
COR will reflect the returns that must be filed and the
• NOTE: The BIR has a directory to help you find which taxes to be paid, so keep it close by.

RDO your business will be under. You may also call the
BIR Trunkline at 981-7000 to confirm your RDO You may opt to accomplish your BIR forms using the Offline
address.
 eBIRForms Package instead of manually filling them up. You
can encode, edit, and validate your details online. Print them out
2. Pay the registration fee of P500.00 using BIR Form and submit along with a confirmation email when you pay your
0605 (Payment Form) to any Authorized Agent Bank fees. Once you’ve paid everything, you can submit the printed
located within the RDO. Prepare one original and two forms to your RDO.
photocopies of this form.

Be careful when attempting to apply for a TIN online. If you’re
3. Pay P 15.00 for the Certification Fee and P15.00 for freelancing, you will need to go to BIR’s eRegistration system,
the Documentary Stamp Tax. which is for single proprietors and mixed income earners. If

 you’re an employee, don’t do it. Application of new TINs
online can only be done by employers. (Full Suite Blog: BIR Tin
Application for Employees)
 Freelancers: Registration & Basics 10



Once you become a registered professional, you’ll need to

Receipts & have your own sales invoices or official receipts (OR)
printed. The BIR has a strict policy regarding receipts. (Full
Suite Blog: Everything You Need to Know about the new
BIR Ruling on Official Receipts and Invoices) It would be
best to work on getting your receipts on the same day you’re
processing your registration.

You may sometime hear the terms “receipts” and “invoices”

interchangeably. Don’t get confused. If you’re selling goods,
you are expected to issue invoices. If you’re offering
services, you must issue ORs. (Full Suite Blog: Sales

Bookkeeping Invoice vs Official Receipt) So if you’re a freelancer who

offers services, you need to get ORs.

 Freelancers: Registration & Basics 11



How to Obtain an Official Receipt

1. Fill up 3 copies of BIR Form 1906, or Authority to Print a duplicate (or a triplicate if you’re running a huge
(ATP) Official Receipts, Invoices, and other Commercial operation). Your receipts will be preserved for 3 years
Invoices. Also, bring a copy of your BIR Certificate of from the close of the taxable year. You may use carbon
Registration (COR) or BIR Form 2303 and 0605.
 paper to help you make copies of your receipts. Or if you
can spare a few extra pesos, you may opt to get a
2. Submit your requirements to your RDO. You may have carbonized copy. This will save you the effort of stocking
to wait up to two weeks for your ATP to be released.
 up on carbon paper and rewriting details again. 


3. Submit your ATP to an accredited BIR printer. 
 • You may also need to issue a billing statement. A billing
statement is issued when you bill a client for services,
4. Wait for at least 10 to 15 working days for the release of after which you issue an OR once you’re paid. Some
your receipts.
 clients specifically request for billing statements while
some don’t. If you are unsure if you’ll need a billing
Take note of the following when you issue receipts: statement, it’s always best to get one so you don’t have
to worry about the downtime brought by updating your
• Receipts are serially numbered.
 ATP and printing out receipts. 


• The receipt should show the professional’s name, • If your business sells goods, you will need to issue a
business style, TIN, and business address. You may collection receipt. This is given to the client when
choose to add a logo or other customizations, but adding receiving payment after delivery of goods.

these will require approval and take more time printing.


• The receipt should be issued during every transaction.

The client will receive the original copy, and you will keep
 Freelancers: Registration & Basics 12



Registering Your Books of Accounts

1.    Submit a copy of BIR Form 1901.

2.    Bring your books of accounts (journal/ledger/
subsidiary professional income book and subsidiary
The BIR also requires you as a professional to maintain books
purchases/expenses book) and have them stamped by the
of accounts.  These could be managed by any acceptable
same RDO.
method of accounting (accrual or cash basis) in a consistent
3.    Pay P15.00 for the Documentary Stamp.
manner. Like your receipts, these will be preserved for 3 years
from the close of the taxable year for post audit examination.
The business registration process is a tedious task, but once
Take time to have them processed along with your registration
you accomplish everything, you can present yourself more
and receipts.
confidently to clients as an honest-to-goodness business (Full
Suite Blog: Independent Professional vs Sole Proprietor).
 Freelancers: Registration & Basics 13



Freelancing is not only a way to earn extra income and

experience, it also serves as an alternative way to start a
business. Some home-based businesses start as freelance
work (Full Suite Podcast: Freelancing vs Other Jobs), which
eventually gain their own following eventually becoming
their own brand. Otherwise, you can stick to what you're
good at because clients will keep coming if they want what
you've got to offer.

It helps that companies nowadays recognize the need to

outsource work (page 4), leading to the trend of hiring
freelancers. This is why freelancing has become competitive
and lucrative as a business or career.

 Freelancers: Registration & Basics 14



Raking in the Big Bucks

Filipinos are said to be among the most active $8 per hour, or a monthly average of $480 to $1280
freelancers worldwide (page 1). They take jobs in some (P24,000 to almost P65,000).
of the top industry niches, such as virtual assistants,
design and multimedia, and content. Working as General Content/article writers are also popular, but they earn
Virtual Assistants is the most popular niche among the least. They get paid a fixed rate between $9 and $25
Filipinos, followed by content writing and strategy, digital per 500-word article (around P450 to P1,200). SEO
marketing, web development, and customer support. specialists, while also paid fixed rates, get below $1,000
monthly (around P50,000) per client.
But how much do freelancers actually earn?
Other freelancing jobs that are becoming popular despite
While jobs for General Virtual Assistants are aplenty, a their moderate, varied rates are social media managers,
survey by Freelancing.ph showed that content editing application developers, recruiting managers,
and strategy is the highest paying job category, at an transcriptionists.  
hourly rate of $6 to $15 per hour. That’s up to $2,400 (or
about P120,000, as per the current exchange rates) on What’s assuring about freelance jobs is that their rates
average monthly. will probably go higher in the years to come. That’s
because there are other factors considered in setting
Project managers and web developers, next on the list rates, such as the location of the freelancer, expertise,
of high-earning jobs, both earn up to $1,920 (P97,000) on length of experience in a particular field, and even inflation
average monthly. The difference is that web developers rates and the demand.
charge $6 to $12 (around P300-P600) per hour, while
project managers charge a minimum of $9 (around P450).
General Virtual Assistants, on the other hand, earn $3 to
 Freelancers: Registration & Basics 15

Websites for Freelancers

Freelancers who can’t get direct referrals turn to job  It also hosts contests launched by businesses
portals for work. Job portals not only post regular job looking for creative ideas through crowdsourcing.
openings, but they also offer online jobs. Some of
these websites have become havens for Toptal (https://www.toptal.com/)
freelancers. Here are some of the popular websites – Toptal claims to hire the “top 3% of freelance
for freelance work. talent”, or the top software developers, designers,
programmers, and finance experts in the world. It
Upwork (https://www.upwork.com/) also boasts of an international clientele consisting of
– Upwork is one of the major sources of online jobs top brands, enterprise, and startup clients.
around the world. Among the most sought after jobs
here are web developers, virtual assistants, MyOutDesk (http://www.myoutdesk.com.ph/) –
writers, and consultants. virtual assistant jobs PH
– MyOutDesk offers part-time and full-time jobs for
Freelancer (https://www.freelancer.com/) real estate virtual assistants in the Philippines.
– Another popular website, Freelancer caters to Hired applicants are said to earn a guaranteed $500
businesses and freelancers in the field of website IT to $800 a month. They also offer trainings to
and software, mobile applications, and design. qualified applicants.
 Freelancers: Registration & Basics 16

RareJob (https://www.rarejob.com.ph/)   Raket.ph (https://raket.ph/)

– RareJob, an online English school, offers openings – A job search site with a local twist, Raket.ph makes
for freelancers who would like to become ESL tutors. use of the Filipino social dynamics of giving referrals
 Selected tutors teach English to Japanese students for a particular job. It also acts as a third-party to
via Skype. bridge clients and freelancers. The site currently has
over 38,000 freelancers and clients working together,
Not to be confused with RareJobs (https:// as well as thousands of unique inquiries for jobs.
rarejob.ph/), which is under the same company but
offers office-based jobs related to ESL.
OnlineJobs.ph (https://www.onlinejobs.ph/)
– Another website catering to Filipino freelancers,
99Designs (https://99designs.com/) OnlineJobs.ph opens the market for virtual
– Calling itself the world’s largest graphic design assistants and employees. Freelancers can earn a
marketplace, 99Designs connects businesses minimum of $300 to $350 a month (that’s full-time).
looking for logos, web and app design, and other
design templates. Thousands of Filipino designers to
date are part of 99Designs, and the Philippines is one If you’re new to freelancing, you need to take a job
of the website’s top designer communities. that matches your skills and pays good money for
them. Knowing the right job for you and the right
place to find it will help you go a long way.
 16



By now, you may have decided to start

freelancing. You’ve found the niche you want
to work in, and either you see yourself
managing a full-blown business or accepting
clients on a per-project basis. It could get
inconvenient to do your stuff in your
workplace or a coffee shop all the time, so a
good thing to consider is to work at home.
 Freelancers: Registration & Basics 18



The Perks of Working at Home

Having your own workplace at home is advantageous in a
lot of ways.
4. Working at home helps you achieve a work-life
balance. You have plenty of time to work, even at
1. Working at home can make you more productive. your own pace. With a flexible schedule, you can
With all of your resources close by, you can spend more quality time for yourself and your family.
concentrate on the tasks at hand and maintain your That includes finishing chores, studying, playing with
momentum. You get less of the distractions present your children and/or pets, and accomplishing
in regular offices. It also feels good when you work personal tasks that you can’t make time for as a
in a place where you’re most comfortable.
 regular employee.


2. Apart from commuting to your regular job (if you 5. Working at home can give you a sense of
have one), you don’t need to travel often. That independence. By learning to balance your time,
saves you time wasted mostly on traffic, gasoline, set goals, budget your expenses, and maintain
and fare, relieving you from a lot of stress.
 discipline, you can make your home-based job a
successful and profitable venture.
3. Working at home can be healthy. That means less
work-related stress plus more time to rest and
exercise.

 Freelancers: Registration & Basics 19



Identify Your Work Area

Pick an infrequently used part of your house, where you

Setting Up can easily move around. Make sure it’s well-lit and
ventilated. You may want a workplace with a good view, like
a window view, but ensure that it is less prone to distractions
such as environmental noise.

Once you have a space to work on, pick a suitable desk

where you can work at ease. You’ll also need a
comfortable chair, as well as added space for your tools
and paperwork. If you have the budget, you may want to get
space-saving furniture, like DIY shelves and double-duty
file cabinets. The key is to install office furniture that
provides functionality, ease, and comfort.

“But what if I want to work in my bedroom?” you may

ask. The same principle of functionality, ease,  and comfort
applies here. Just don’t get tempted to plop into bed every
Your Workspace now and then, unless you’re disciplined enough to work
where you’re most comfortable.

One other thing: keep your wires out of the way when you
can. Plan this way ahead while setting up your furniture.
Badly installed wires can cause fires.

 Freelancers: Registration & Basics 20



Tools of the Trade Organize Your Files

Once you know what equipment you have and need, The next thing you need to do is organize your papers. If
make some space in your workplace to keep them safe you registered with the BIR, you may already have your
from the elements. Your computer must be set up in a Certificate of Registration, also known as the BIR Form
manner where you don’t feel cramped. 2303, among others (page 7). Keep your books of accounts
on a dedicated shelf. You will need to look at them
Your basic tools as a freelancer are your computer/ periodically, especially now that you are required to pay
laptop, a telephone (if applicable), and internet income taxes (Full Suite Blog: Freelancer's Guide to Paying
connection. Later on, you may decide to get a printer or Income Tax). To prove that you’re a bonafide taxpayer,
scanner. If your job requires chatting online, invest in a display your Form 2303 and your Ask Your Receipt
video camera and headset. If you work with pictures or Notice in a conspicuous part of your home.
graphics, a camera and some art tools or software will be
useful. Think of what services you are offering, and what Other business-related documents you may have on hand
tools will make your job easier. Save and invest in them as are client profiles, email and letter templates, proposals,
you go along.
 directories, and other legal papers. File everything related to
your services in one cabinet, your clients’ papers on
another, and other materials and references in a shelf or
two.

 Freelancers: Registration & Basics 21



Design Your Office

Aesthetics will help your productivity at home. Here are

some basic ways to do this:

1. Assign a space for everything -- your equipment,

files, etc. -- in a way that flows best for the way you
work. 

The key to an organized workplace is not only to maximize its
2. Make sure you've got lots of storage and keep the functions, but also to make your surroundings pleasing to
room free from clutter (even organized messes can work in and visit.
silently stress the mind). 


3. Showcase objects that interest you like books and Working at home has a lot of perks. Your home office will be
and souvenirs so that you can continually inspire the first step to making a giant step for your freelancing
yourself throughout the day (If you have clients coming career, so establish it according to your needs and
over, your literary choices may pique their interest on preferences.
you.) 
 


4. If you can, paint your workspace with a color that helps

induce productivity or a state of relaxation. 

 Freelancers: Registration & Basics 22

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