Single Proprietorship Affidavit (Philippines)

A Single Proprietorship Affidavit in the Philippines provides a formal sworn account of the facts it concerns, executed in the manner the law requires for it to be relied on.

The Single Proprietorship Affidavit serves as a supporting document for numerous government and private sector transactions in the Philippines. The Bureau of Internal Revenue (BIR) accepts the affidavit in support of BIR Form 1901 registration applications where the applicant needs to establish that their business is a sole proprietorship rather than a partnership or joint venture for tax classification purposes under Sections 22 and 24 of the National Internal Revenue Code (NIRC, RA 8424). Philippine banks regulated by the Bangko Sentral ng Pilipinas (BSP) under BSP Circular No. 950 (2017) on Anti-Money Laundering Act (AMLA, RA 9160) customer due diligence require the affidavit as part of corporate account opening Know Your Customer (KYC) documents for sole proprietorship accounts.

For government procurement bidding under the Government Procurement Reform Act (RA 9184), the Philippine Government Electronic Procurement System (PhilGEPS) requires a Single Proprietorship Affidavit for sole proprietor bidders as part of Class A eligibility documents. The Implementing Rules and Regulations (IRR) of RA 9184, specifically Section 23.1, lists the required eligibility documents for bidders, and the affidavit substitutes for the corporate Secretary Certificate required from corporations.

The affidavit must be executed under the Rules on Notarial Practice (A.M. No. 02-8-13-SC), with the affiant personally appearing before the commissioned notary who verifies the affiant's identity through competent evidence of identity under Rule II, Section 12, and affixes the notarial certificate with the document number, page number, book number, and series year.

The legal framework governing the Single Proprietorship Affidavit (Philippines) in Philippines draws on several key statutes and regulatory bodies. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Parties executing a Single Proprietorship Affidavit (Philippines) in Philippines should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Revised Corporation Code (RA 11232, 2019) sets the foundational requirements.

A Single Proprietorship Affidavit is needed in the Philippines in several specific circumstances where a sole business owner must formally attest to their status.

A Single Proprietorship Affidavit is required when a sole proprietor applies for a corporate bank account with any BSP-supervised bank. Under BSP Circular No. 950 (2017) on AMLA compliance and Know Your Customer (KYC) requirements, banks require sole proprietors to submit a notarized affidavit alongside the DTI Certificate, BIR Form 2303, government-issued ID, and proof of business address.

A Single Proprietorship Affidavit is needed for PhilGEPS registration and government procurement bidding under RA 9184. The Bids and Awards Committee (BAC) of the procuring entity requires the affidavit as part of the eligibility documents package to confirm that the bidder is the sole owner with full legal authority to enter contracts on behalf of the business.

A Single Proprietorship Affidavit is required when a sole proprietor applies for a small business loan from the Small Business Corporation (SB Corp), the Development Bank of the Philippines (DBP), or the Land Bank of the Philippines. These government financial institutions require the affidavit as part of their loan documentation to confirm the borrower's sole ownership and authority over the business assets offered as collateral.

A Single Proprietorship Affidavit is needed when a sole proprietor renews their Mayor's Permit (Business Permit) with the Local Government Unit (LGU) following a business address change, business name amendment, or any change in the ownership structure. Some LGUs require a fresh affidavit when the DTI Certificate has been renewed or reissued.

A Single Proprietorship Affidavit is required for export permit applications with the Bureau of Export Trade Promotion (BETP) or import permit applications with the Bureau of Customs (BOC) where the importer/exporter is a sole proprietor.

A complete Philippine Single Proprietorship Affidavit must contain the following elements under the Rules on Notarial Practice (A.M. No. 02-8-13-SC).

Affiant Identification: Full legal name, nationality, civil status, address, and government-issued identification number (such as PhilSys ID, passport number, or driver's license number) of the business owner. The notary verifies identity through competent evidence of identity under Rule II, Section 12 of the Rules on Notarial Practice.

Business Information: The complete registered business name exactly as it appears on the DTI Certificate, the DTI Certificate number, the date of issuance, the registered business address, and the specific scope of the DTI registration (barangay, city/municipality, regional, or national).

Declaration of Sole Ownership: The affiant's sworn declaration that they are the true and sole owner of the business, that no other person or entity has any ownership interest or participation in the business, and that the DTI registration accurately reflects the business's ownership structure.

Declaration of No Partnership or Undisclosed Principals: An express statement that the business is not a partnership under the Civil Code (RA 386) and that the affiant is not acting as an agent or front for any undisclosed principal, in compliance with Anti-Dummy Law (Commonwealth Act 108) requirements applicable to businesses with nationality restrictions.

BIR and Tax Compliance Statement: A declaration that the affiant has registered with the Bureau of Internal Revenue (BIR) and holds a valid Certificate of Registration (Form 2303) authorizing the conduct of the stated business activities, and that the business complies with applicable tax obligations under the NIRC.

Notarial Certificate: The notary's certificate stating the place and date of notarization, the notary's commission number and expiry date, the document number, page number, book number, and series year, in compliance with Rule VI of the Rules on Notarial Practice (A.M. No. 02-8-13-SC).

Additional compliance elements for a Single Proprietorship Affidavit (Philippines) used in Philippines include: Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Forms-legal.com provides this template as a starting point for Philippines-compliant documentation.