How to Register Business with BIR: An Ultimate Guide

Last Updated on 09/12/2020 by FilipiKnowOpens in a new tab.

BIR business registration is a primary requirement to legally start your enterprise. It is important to note that once you’ve successfully registered with the BIR, there is no going back. This means that you need to follow all businessOpens in a new tab. and taxOpens in a new tab. laws to avoid criminal liability.

 

BIR Business Registration Requirements.

Prepare the following requirements1 before going to the RDO where your business is located:

1. Self-employed Individuals/Professionals.

  • 2 original copies of accomplished BIR Form 1901Opens in a new tab.2;
  • 1 photocopy of a valid Government ID (if a professional, please present your PRC IDOpens in a new tab.);
  • 1 photocopy of proof of residence either from the barangay or the homeowner’s association;
  • 1 original copy of a sample layout of official receipts/sales invoices (these are available at the RDOOpens in a new tab. where you’ll complete the registration);
  • 1 photocopy of DTI Business Name Certificate (if applicable);
  • 1 photocopy of BMBE Certificate (if applicable);
  • 1 photocopy of Working Visa for Foreign Nationals;
  • 1 photocopy of Franchise Document for common carriers (e.g. PUVs, PUJ, etc.);
  • 1 photocopy of Permit to operate if under PEZA or BOI; and
  • 1 original copy of Special Power of AttorneyOpens in a new tab. if transacting through a representative. 

2. Corporations and Partnerships.

  • 2 original copies of accomplished BIR Form 1903Opens in a new tab.;
  • 1 photocopy of the SEC Certificate of IncorporationOpens in a new tab. (in case of corporations) or Certificate of Recording (in case of partnerships);
  • 1 photocopy of Articles of Incorporation or Articles of Partnership (whichever is applicable);
  • 1 photocopy of BMBE Certificate (if applicable);
  • 1 photocopy of Franchise Document for common carriers (e.g. PUVs, PUJ, etc.);
  • 1 photocopy of Permit to operate if under PEZA or BOI; and
  • 1 original copy of board resolution if transacting through a representative;

3. For Registration of Manual Books of Accounts.

  • 2 original copies of accomplished BIR Form 1905Opens in a new tab.;
  • 1 photocopy of a valid Government ID (if a professional, please present your PRC IDOpens in a new tab.);
  • Bound books of cash receipt and cash disbursement ledgers (mandatory for all businesses);
  • Bound books of general journals and general ledgers (mandatory for all businesses except freelancersOpens in a new tab., licensed and non-licensed professionals);
  • Bound books of sales journals and purchase journals (mandatory for VAT registered entities);
  • 1 original copy of Special Power of AttorneyOpens in a new tab. if transacting through a representative; and
  • 1 original copy of board resolution if transacting through a representative of a corporation/partnership.

4. For Authority to Print Invoices/Receipts.

  • 2 original copies of BIR Form 1906;
  • 1 photocopy of a valid Government ID (if a professional, please present your PRC IDOpens in a new tab.);
  • 1 original copy of the final sample of the receipt/invoice – which is available at the RDOOpens in a new tab.;
  • 1 original copy of Special Power of AttorneyOpens in a new tab. if transacting through a representative; and
  • 1 original copy of board resolution if transacting through a representative of a corporation/partnership.

Note: 

  • That for new business registrants, you may buy BIR Printed Receipts/Invoices (BPR/BPI)3 for Php 30 per 50 sets. The amount may vary depending on the RDO. 
  • That you can only use the official receipts and sales invoices printed by the BIR as primary evidence of a transaction. 
 

How to Apply for BIR Business Registration in 7 Steps.

Follow the steps below to learn how to secure a certificate of registration with the BIR4.

1. Complete all the requirements and proceed to the RDO where your business is located.

To find out the Revenue District Office (RDO) that has jurisdiction over your business location, click hereOpens in a new tab..

2. Secure a queuing number for the new business registrant lane from the guard.

3. Submit the requirements and pay the registration fee.

This shall be paid using BIR Form 0605.

4. Apply for the transfer of registrationOpens in a new tab..

This shall be done if the applicant has an existing TIN and is not registered under the current RDO. You may use the same BIR Form used in registering your books of accounts.

5. Pay the registration fee of Php 500 plus Php 30 documentary stamp tax.

6. Claim the COR, ATP, and “Ask for Receipt” Notice upon approval.

This may take a day if the officers are available.

7. Attend the scheduled ‘taxpayer’s initial briefing’.

The BIR provides a free seminar that discusses the rights, duties, and responsibilities of new business owners.

However, it is still recommended to consult a licensed accountant so that you’re informed of the specific requirements expected of your business since there are topics that the BIR officer may skip or forget to emphasize.

 

 

Frequently Asked Questions.

1. Can I do the BIR business registration online?

Unfortunately, BIR registration cannot be done online. However, you may download and fill out the application form ahead of time. 

2. How much is the total cost of the BIR business registration?

The overall cost of the BIR business registration is Php 1,360. Please refer to the table below for the cost breakdown.

BIR: 
Annual Registration Fee500.00
Documentary Stamp Tax  30.00
Registration of Books of Accounts800.00
Sales Invoice  30.00
TotalPHP1360.00

3. I’m a freelancer/online seller. Do I still need to register my business? 

Yes. Regardless of the level of your income, as long as you are regularly earning from a source that is not under the employee-employer relationship, you should register your business.

4. Aside from the BIR business registration, what else should I secure to start my business correctly?

Please refer to this articleOpens in a new tab. for a more in-depth business registration process.

5. What is the BIR penalty for the late registration of business?

Based on RMO 7-20155, late registration of businesses shall be subject to the following penalties depending on the location of the business:

  • Cities – Php 20,000
  • 1st class municipalities – Php 10,000
  • 2nd class municipalities – Php 5,000
  • 3rd class municipalities – Php 2,000

6. Can we start a business without BIR registration?

No. Before you can start your business, you need to complete the following:

You may refer to this article for a more detailed business registration guide.Opens in a new tab.

 

References.

  1. Revenue Memorandum Circular No. 57-2020Opens in a new tab.
  2. Revenue Memorandum Circular No. 27-2019Opens in a new tab.
  3. Revenue Memorandum Circular No. 117-2019Opens in a new tab.
  4. Revenue Memorandum Order No. 19-2018Opens in a new tab.
  5. Revenue Memorandum Order No. 7-2015Opens in a new tab.

Miguel Antonio Dar II, CPA

Miguel Dar is a CPA and an experienced tax adviser specializing in tax audits. He gives tax advice to different start-ups and clarifies tax concerns of individual taxpayers. This includes helping clients register their businesses, training in tax and bookkeeping for start-up businesses, settling open cases, tax planning for future tax compliance, and responding to tax-related inquiries.

3 thoughts on “How to Register Business with BIR: An Ultimate Guide

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