How to register your business with the Bureau of Internal Revenue (BIR) in the Philippines? After securing a certificate of registration from the Department of Trade Industry (DTI) for single proprietorship, Securities and Exchange Commission (SEC) for partnership and corporation, and after obtaining a Mayor’s Business permit with the Local Government Unit (LGU), your next step to operate as a duly registered business is to secure a certificate of registration from the BIR.
Registering your business with the BIR will give you the authority to print your official receipts and other invoices, provide you or your corporation a Tax Identification Number (TIN) and register the books you will use to record your business transactions. Furthermore, your BIR certificate of registration will state the types of taxes you will pay, such as business taxes, withholding taxes and income tax. The following are the requirements and steps to register your business or company with the BIR.
For single proprietorship
1. Accomplish BIR Form 1901 and submit the same, together with the required attachments, to the Revenue District Office having jurisdiction over the registered address of the business establishment. The following are the forms and requirements to be attached with your application:
a. BIR Form 1901 – Application for Registration
b. Birth certificate or any valid identification showing name, address and birth date
c. Mayor’s permit or application for Mayor’s Permit
d. Department of Trade and Industry (DTI) Certificate of Registration of Business Name (to be submitted prior to the issuance of the BIR Certificate of Registration (COR)
2. Pay the Annual Registration Fee (P 500.00) at the Authorized Agent Banks of the RDO.
3. Pay P 15.00 for the Certification Fee and P15.00 for the Documentary Stamp Tax (in loose form to be attached to Form 2303).
4. The RDO shall issue the Certificate of Registration (Form 2303).
For partnerships and corporations
1. Accomplish BIR Form 1903 and submit the same together with the required attachments to the Revenue District Office having jurisdiction over the registered address of the business establishment. The following are the forms and documentary requirements to be attached with your application:
a. BIR Form 1903 – Application for Registration for Corporations/Partnerships (Taxable/Non Taxable)
b. SEC “Certificate of Registration (Certificate of Incorporation/Certificate of Co-Partnership) or “License To Do Business in the Philippines” in case of resident foreign corporation
c. Mayor’s Permit or application for Mayor’s Permit – to be submitted prior to the issuance of the BIR Certificate of Registration
2. Pay the Annual Registration Fee (P 500.00) at the Authorized Agent Banks of the RDO.
3. Pay P 15.00 for the Certification Fee and P 15.00 for the Documentary Stamp Tax (in loose form to be attached to Form 2303).
4. The RDO shall issue the Certificate of Registration (Form 2303).
5. Taxpayer must pay the Documentary Stamp Tax on the Articles of Incorporation as prescribed under Section 175 of the NIRC, on the 5th of the month following the date of issuance of said article (per RR 4-2000).
Further steps following the registration
1. Apply for Invoices/Receipts using BIR Form No. 1906 – Authority to Print. The BIR will give you an “Ask for a Receipt” Notice (ARN) together with the COR BIR form 2303, and it must be posted conspicuously in your business establishment.
2. Register books of accounts (Journal / Ledger / Subsidiary Income Book and Subsidiary Purchases/Expenses Book) and have them stamped by the RDO where the business is registered. The BIR examiner will usually advise you the types of books and taxes applicable to your business upon briefing.
3. Update registration information, if needed, using BIR Form No. 1905 (change of registered address, personal exemptions, additional tax types, etc.) Submit this at the RDO having jurisdiction over the place of business
Note:
Corporations, partnerships, joint ventures and all individuals engaged in trade or business shall accomplish and file the application before the commencement of the business operation.
Source: Bureau of Internal Revenue (BIR) Philippines
Victorino Q. Abrugar is a marketing strategist and business consultant from Tacloban City, Philippines. Vic has been in the online marketing industry for more than 7 years, practicing problogging, web development, content marketing, SEO, social media marketing, and consulting.
Thanks for the business tips. Your article really helped me a lot. ^_^
Keep up the good work. 🙂
ur so cute
How much po ang Penalty pag lumagpas n sa 30 days ang pg apply ng BIR certificate?
is this also the same when you are applying for a non profit?
Yes. The non profit corporation should also ask the BIR a ruling for the exemption of the organization on its income tax. Foundations are exempt from income tax pursuant to Section 30 of the Tax Reform Act of 1997 (R.A. 8424). However, income derived from its properties, real or personal, or from any of its activities conducted for profit regardless of the disvposition made of such income, is subject to tax. The BIR shall issue a Certificate of Registration to the foundation as Qualified Donee Institution. You may call the BIR RDO in your jurisdiction to confirm this matter.
this is very helpful..thanks.
bossing vic,
i was preparing all the required certifications to be process in order build up a business here in the city. currently right now i obtained the CEDULA and the DTI for registering my business name and i was about to go to the barangay for clearance and business permit and after that was the MAYOR’S and finally the BIR. My question is this,i’ve been told to fill up a BIR form 0605 to process the registration and certification from the BIR, what was the BIR form 0605 stand? all i read in your tips advice was to fill up BIR form 1901 and 2303? and one more thing, i still don’t have a TIN yet since i was OFW for the past 10 years and i return here for good and have my own. does the BIR form 1901 will provide me the same procedure as obtaining a TIN?
thanks and best regards!
@Phillip
BIR Form 0605 is the payment form you will use to pay your annual registration fee of P500. Yes, BIR Form 1901, your application for registration, will secure you a TIN if you never had a TIN before. BIR 2303 is the BIR certificate of registration, hence the BIR will be the one to provide it to you once your registration is done. For more tax articles and tips, you can select and go to our taxation/tax tips categories which is accessible in the sidebar bottom of this blog.
this dec.20, 2015 I open my bussiness,not already regsterd at the BIR,the problem is 10days upon my bussiness start I also renew all the requirements bcoz of 2016..what will I do?
Hi. I started a sewing and crafts supplies business here in our barangay 3 months ago. However, i am confused if i need to file an income tax return. My starting capital is 80 thousand pesos (for the supplies), and 40 thousand 2-mos advance 2-mos deposit for the rental fee of 10,000 per month. I have a business permit already.
Now, do i have to file an ITR after one year? For this 3-month period, i have a net loss of 6,000 every month. Could you please advise me? Thank you.
What kind of business permit do you have? Generally, business owners are required to be registered with the BIR and they shall file the applicable tax returns, whether there is tax payable or not. If you don’t have taxable income, then you only need to file, but not pay tax.
hello sir i just want to ask this question kung ok lng me magbayad ng income tax return kahit wala me na iregistered gaya ng farm, farming kc ung nailagay kung trabaho ok lng b un or required b akong kumuha ng business permit? thnk you for ur advise pls help me sir,,
Hi sir vic! I went to BIR last week to change my registration status from purely compensation earner to a self-employed professional (There was a huge mistake on my part because upon securing my TIN number last Dec. 2010, i filled up form 1902 instead of form 1901). I am a consultant in a government agency and we are not considered employee. I paid professional tax for 2011 and 2012. My concern is i haven’t paid the annual registration fee for 2011. Will there be a penalty imposed on me for not paying that? Thanks sir vic..I hope you could enlighten me on this..
Check out your BIR certificate of registration (BIR Form 2303). There, your taxes to be paid are stated. If you have not filed and or paid them on due time, then you are liable for penalties.
Bossing Vic:
Good day sir, my business started year 2010, i have DTI certificate and mayors permit for the succeding years, this year i’m planning to register my business with BIR, I should have done this when I opened up my business, my question is how much registration fee will I pay? Will I pay for the past 2 years I’m delinquent? and will I be charged a penalty? Your reply will be highly appreciated. Thanks in advance.
Jundacs
Well, business should be registered with the BIR before starting business operation. It depends on the discretion of the BIR if they will imposed penalty to you. BIR registration is at 500 per year, excluding penalties.
Hi Jundacs.
I am more worried about the taxes that you should have paid within the two-year period.
Thanks
I’m confuse why some of our donations to some instititions (foundations) were not recognized by BIR as legitimate expense(deductions) on our part. Is there any limitation on how much donation that we should give to foundation so that it will become ligitimate deduction? pls. reply. thanks and more power! God bless.
Yes, there are certain requirements and limitations. Its either full deductibility or limited, not more than 5% of taxable income without the donation, depending on the circumstances of the donee institution- accredited donee or not. In either case, you need a Certificate of Donation and proof of receipt of your donation to them and along with other documents, those are the required substantiation. Hope this helps.
Hello Mr. Vic,
I and my partner registered a business to SEC as partnership, registered to BIR and paid our taxes religiously. My problem now is I was not able to cancel my business at SEC or BIR when we decided to close our business in 2009. The registration is in my name. Now, I can’t register another business to BIR because of that negligence. What should I do now? I need your advice. Thanks…
I am confused, it that was a partnership, the registratin is under the name of the partnership and not under your personal name. At any rate, I think its either you deal with it or you defer the same by putting up a new non-personal entity like a corporation but still, you may have to deal with the issue in the future when the need arises.
hi vic..we had closed our business already since 2009 but unfortunately, we failed to inform the BIR about it. if i will register another business again, (using the same name) will there be some impediments in processing it?
Sir, I tried to register via ereg.bir.gov.ph. But the prompt told me that my name have already been registered in their records. I don’t remember any instance that I applied for TIN (I just graduated from college last year). Will there be any problem if there’s someone whose name is similar to mine? Thank you.
Hi, my friends and I are planning to put up a corporation. Just wanted to ask two questions –
1. Is it required to have at least one full time employee or is it alright if we’re all just part-time?
2. What are the taxes which have to be paid? Do we have to pay it/them monthly, quarterly or annually?
Your input would be a lot of help!
Hello. Should online business be registered to the BIR? Thank you.
Hi sir, question lang po. About foundations, for example they gave you an official receipt coming from them, is it valid if it does not have a TIN no. in it? It has an official receipt no. but no TIN no. I just know that foundations are exempted from tax but I don’t know if they are still required having TIN numbers
Thank you very much.
Hi,
Normally, how long will it take to register a business with the BIR? I registered my business (sole-proprietorship) with the BIR and it took me 2 weeks to get the COR then another 1 week for the Authorization to print my invoices/receipt with the printer. Is this normal?
Thanks!
Sir question po. Im putting up a photobooth business for extra income. currently employed po ako sa isang company. anong klaseng tax ang babayaran ko para maregister sa bir. i need official receipt kasi. and hindi rin kasi regular kita sa photobooth pano po yung tax if walang akong client. Thanks
Hi,
A rental business will be established in City A. Will the owner register this business to the BIR in Cainta, even though he already registered the rental business in City B (where the other rentals are located)?
Thanks
Hi Sir, nag-open po ako ng perfume refilling station last August 2012 pero di nakapag-apply sa BIR. Then, sinara ko po just last month kasi di po masyadong kumikita. We decided to have it consigned na lang sa kabilang store and gawing home based na lang yung business. Pano po ba yung process ng ganun? Magkano po kaya ang penalty sa BIR pag nagregister kami? Thanks.
tanong ko po lamang kung ano2 po kailangan para sa cor ng partnership? kasi po ang problema ay pagpapalit ng may ari. yung saamin po ay hindi po kasama ang pangalan ko sa deed of donation. kc po hinihingi po ng bir na dapat ay kami ng asawa ko ang nakapangalan. nakapangalan po sa asawa ko at sa kapatid niya at 2pinsan na american citizen na. ano po eto paupahan ng building. yung may ari po ay tiyahin ng asawa ko pero binigay na po sa amin. ang problema ang lupa nasa pangalan nung 3american citizen. kailangan po ba talaga nasa panagalan namin? kasi po yung nilagay namin na puhunan ay hati kami sa lupa para building?
hello po..what if kung yung sole proprietor eh gusto pa ulit magtayo ng another business na pang individual pa rin? kailangan pa bang mag register ulit w/ another tradename?
Thanks.
Hello,
My question is a matter which I have already inquired from a freelance accountant/bookeeper who I have hired to complete the documentation process for my Single-Proprietorship business to operate legally and so far she has been able to deliver within the timelines. However, last week I came across a setback that is rooted on some application requirements from an Internet Service Provider. Here is the issue;
I applied for a connection and had paid the One-Time Fee so that I could have an account created but was told that I needed to submit the following before they can start the process of physically setting up the connection at my business situs:
1. DTI registration
2. BIR 2303
3. Mayors Permit
4. Photocopy of ID
Having been informed of this prerequisite I then conferred with my bookeeper to have them processed but she advised me to let the ISP know that we can only provide at this point items 1 and 4 because items 2 & 3 can only be secured AFTER the Local Government inspectors have completed and approved their inspection of the place of business. This was readily rebutted by the ISP explaing that other applicants are able to comply so they are saying that my bookeeper may have not have processed the business registration according to the recommended flow and that is why I am in this irregular situation in relation to my internet installation workflow.
This has now given me a Catch 22 scenario where I may not be able to time the installation of the line prior to my contractor installs my ceiling panels which will affect the other project timelines. My question is WHO is correct and telling me the truth?
Please help.
Thanks,
James E. Vergara
Hi. DTI registration only registers your business “trade name”, but not your business operation. Before, you can operate, your business should first be registered with the BIR and at the Mayor’s Office. BIR Form 2303 is your BIR certificate of registration. Before you can start operation, you should have first official receipts/invoices authorized by the BIR. You can only say that your business is duly registered if you already have a BIR certificate of registration (BIR Form 2303) and Mayor’s Permit. You should also apply for your Authority to Print receipts/invoices and register your book of accounts with the BIR. I can tell, that your business registration process is not yet completed. We can discuss this matter further in our official forums at http://BusinessForum.Ph – you can join us for free and ask any question related to business.
Hi there,
Just a query on BIR Form 2303, if the company lost its copy, what will be the procedure in requesting for another set of copy? What forms needed to be filled-up and where to file? Thanks.
Hello Sir Vic,
Will BIR also issue 2303 to a foundation? Or what is the equivalent BIR form for its registration? Thanks.
It’s the same BIR Form 2303. Please join our official online business forums at http://www.BusinessForum.Ph to accommodate all your questions.
Hello,
I’d like to ask, is it possible to have BIR process your Business Registration / Authority to Print WHILE your TIN is processing RDO Transfer? Due to BIR cause-related reasons (they cancelled my TIN just now and then), we are now way behind schedule for opening. Therefore, we’d like to process the Business Registration and ATP in conjunction with our RDO Code transfer.
Also, won’t there be any issue in the RDO Transfer because I am currently employed in Makati but my business is in Laguna.
And lastly, how long does the processes usually take? Its a real bummer that we got delayed in opening because of their mistake, and if the process of registration is also lengthy, I don’t know what to do anymore.
Thanks!
Hi Sir Vic,
Medyo confused lang po ako. About itr. Ive been work 2years in sole p. under the services of photography
Kaso freelance ata po ang tawag sakin. Kasi ang salary is 15k per month. No benefits. And vat pa yung company namin.
Paano ko po malalaman if need ko mag file ng itr or kung anong taxes pa. Eh wala naman ako mapapakita sa bir na pay slip ko.
Kasi po im planning mag tourist. Sa japan eh need po ng itr. Sana matulungan nyo po ako.
Thank you.
good morning sir,we are putting up a home-based e-ticketing services what are the forms that we gotta apply and how much can it cost us?we live in a baranggay in laguna and a so far from the city.here in calumpang,liliw..thank you and please advice us on what to do..thank you and GOD bless
Is your business a franchise or not? If not, I suggest you register it as a Barangay Micro Business Enterprise to avail of some benefits like income tax exemption if your business will be eligible. We can discuss it further in our forums. Join us for free. http://www.businessforum.ph/threads/563-Registration-as-a-Barangay-Micro-Business-Enterprise-(BMBE)-RA-9178
Is it okey if i’ll just bring photocopies of dti and mayor’s permit?
I think it’s okay since attachments should only be a photocopy. You can check the BIR Application form’s instructions and guidelines page. It should state there if the required is only a photocopy or not.
Hi Sir. Good day. I have an internet cafe business and I just got my DTI and mayor’s permit last july 2013. Afterwards, I went to the nearest BIR office to register my business and now I already have my COR but then when I read a certain article about steps in registering business in the BIR,I read that there is this BIR form 2000,I’m confused about that form because I haven’t file that form. Is it really included in the steps Sir?
And Sir what’s the next step after having the COR? What kind of books of accounts applicable to my internet cafe business and is it VAT or non-VAt?
Thank you Sir and God bless.
i want to register my printing business. However, I want to start as smart as possible. Please advise on what to do. I have read your instruction but i want to know about the things to do like what to file on forms, what amount to declare. I am not renting my place with a little capital. what forms of receipt do i need to have. thanks
ano po ba ang process kapag renting boutique and type of business.
helo.. good day Im interested to build a business but side line business lan po.. what requirements ko need i process and home base business?.. Thank you..
Hello, Sir Vic!
Just a few questions regarding BIR and TIN registration. If I do have a TIN number being an employee and have put up a business under SIngle Prop. Do I use the same TIN I have from my employer and how do I file and pay for my taxes for both?
Hello sir/ ma’am,
I have the same concern po…please advise me too. Thank you in advance.
Hi. I registered my carwash business on DTI more than a month ago.Do i have to pay for penalty if i register my business on BIR after a month of my DTI registration? Thanks and regards,
Hi Sir. We are currently in the process of registration for our business partnership. However, when we applied for the tin at the bir, they had a problem involving thier online system. Everytime they input our data in thier system, the software crashes. And they just simply samy they cant do anything. Any thoughts? Thanks.
Hi Sir, thank you very much for your helpful business articles.
It says in one of your post that a single proprietorship will be registered under the owners name. Since I already have a personal TIN, do I still have to fill out BIR Form 1901 to register my online business? And since I do have a TIN number being an employee and am now putting up a business under a Single Proprietorship, do I use the same TIN I have from my employer? How do I file and pay for my taxes for both?
Regarding tax payment, if in case my business doesn’t have a profit in a certain month, is there still a tax that I need to continuously pay?
And do I really need to secure a Mayor’s Permit (or a proof of application) before I can secure my BIR registration?
You also said in one of your replies to the comments in your blog that we can opt to register to BIR before we start operating however there are some comments saying they got penalized for not registering to BIR in a period of a month. Will I really get penalized for not registering within a month after registering to DTI?
I am hoping you could clarify as I this is my first time to do all these. Thank you very much.
Hi Sir. I started a small business few months ago and unfortunately I had a late ATP and I just had my printed receipts just recently. My question is, Is it required to put any OR no. In my book of account if the ATP was issued late? Or is it possible to present a journal without OR? I already paid my taxes but I’m worried that i would get any penalty upon tax mapping. Hope I’ll get a reply. Thanks
Hi Sir Vic,
We only got our COR on April 22, 2015. I filed the Expanded withholding tax and Withholding tax on compensation on April 23, 2015 for the period of March 2015 (we already have operations prior to registration). BIR now is charging us penalty, they said that even without our COR, we can file our taxes on the due date of the return. I remember in my previous experience, I was trying to file in a different RDO manually, because we are under EFPS, the BIR staff said that we cannot file the tax if it is not in our COR, so we updated the COR and they activated the return in our EFPS. That is my basis why I didn’t file on the due date of the withholding taxes prior to securing the COR. Is there a regulation about this matter? The officer in our current RDO advised that we just include the report in our April 2015 return so that we will not be charged with penalty. I’m a little uncomfortable though, does that mean we may no longer file the tax return for March 2015? I’m also concerned that BIR may find a hole in our filing if I follow their advice.
Thank you in advance for your help.
hi good day!
DO YOU have AN Idea if what will be the requirements on how to get certified true copy of COR?THANKS N Advance ! gbu
Hi sir,
I just want to ask if ano mga requirements na kukunin ko para makakuha ng business permit or licence. I want to build a company, a contractor of kitchen and closet cabinet fabrication and installation. For secure and to trust us with the client.
Please advice thank you so much!
My wife wants to set up business while still doing his daytime job. What will happen with her BIR status as employed if she will register her TIN no as single prop while employed? Hoping to hear from you soon
Hi good day!
Im came from vietnam, i have planning to do business in Philippine. I want to register Coffee shop business but I hear someone said that you must to deposit an amount requirement in the bank so better you looking for Filipino to register the business name because it will be easier to get the business permit. We have to apply as below:
Sec Registration
BIR
BRBY
Business Permit
SSS
Philhealth
Pagibig
What should i do If for foreigner register business ?
please advise me..kung pde po b n by january nko magfile s bir kc lahat ng requirements ko for 2016 e for renewals..magstart lng nman po this dec.20,2015 ng aking business..may penalty npo b un kung sakali hindi ko sya maregister for only 10days of running my business?
Hi Vic
do you have any template of a small entereprise taxation for small business for services?Do we have link here on site?
Thanks so much for advance assistance.
Mark
Hi sir.,
Good day.,
Ask lang po ako kung magkano po ba ang kailangan na capital sa isang business para makakuha ng certificate of registration mula sa BIR.,
Maraming salamat po..God bless…
Thank you for your post. I have recently registered my business name with the DTI. Do I have to apply for invoices and what kind of book of account should I use given that I provide online services through a website portal. In other words, I work from home. I would appreciate your immediate response on this matter. Thanks!
Hi! What to di if i lost my TRN? How to continue payment via gcash if transaction failed? Thank you.
HI,
I have a question related to BIR, We are a Singapore based entity doing business in Philippines.If we don’t apply for BIR and COR what would be tax implications. How much tax would be deducted on our revenue.
Please reply.
hi sir, nagapply ako DTI since 2014 pa pero hindi ko pa naregister sa BIR kasi wala naman pang operations. magkano na kaya penalty pag niregister ko na ngayon? thanks
Good Evening Sir,
We have a (9) pisonet units in kalayaan ave makati city. We have DTI / MAYOR’S Permit & Barangay Clearance…. we started jan.2016….starting jan.2016 till upto this month we are only earning between 6,000 to 10,000 net only a month… (DO WE STILL NEED TO FILE A APPLICATION OF REGISTRATION 1901 FORM TO BIR)
Hi sir. May i ask how much did you pay for mayor’s permit. Thanks