BIR – Page 2 – FilipiKnow

BIR business registration is a primary requirement to legally start your enterprise. Once you’ve successfully registered with the BIR, you have to follow all business and tax laws to avoid penalties or criminal liabilities. That’s why most businesses did not fail to file their taxes even during the pandemic. In fact, in October 20211, the number of payments made online rose to 4.6 million transactions. As more and more people have become open to doing their taxes online, the BIR has also introduced an online system for business registration through the introduction of NewBizReg in June 20212. This guide will teach you how to register your new business in BIR either through online or walk-in registration. BIR Business Registration Requirements Whether you are registering your business online or through your local BIR Revenue District Office (RDO), you need to prepare the following requirements3: 1. Self-employed Individuals/Professionals 2 original copies of accomplished BIR Form 19014;1 photocopy of a valid Government ID (if a professional, please present your PRC ID);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 RDO 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; and1 original copy of Special Power of Attorney if transacting through a representative. Editor's Note: The list of requirements may vary depending on the nature of your business. For instance, when I registered an online business as a sole proprietor in early 2022, the BIR personnel only asked for a photocopy of the DTI Business Name Certificate, a photocopy of my valid ID, and the 2 original copies of the duly-accomplished BIR Form 1901. The same personnel guided me on how to properly fill out the form and what information should be provided. 2. Corporations and Partnerships 2 original copies of accomplished BIR Form 1903;1 photocopy of the SEC Certificate of Incorporation (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; and1 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 1905;1 photocopy of a valid Government ID (if a professional, please present your PRC ID);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 freelancers, 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 Attorney if transacting through a representative; and1 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 ID);1 original copy of the final sample of the receipt/invoice - which is available at the RDO;1 original copy of Special Power of Attorney if transacting through a representative; and1 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)5 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 by Going to an RDO: 7 Steps Follow the steps below to learn how to secure a certificate of registration with the BIR6. 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 here. 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 registration (if applicable) 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. As of 2022, most RDOs are now conducting the said briefing for new business registrants online via Zoom. The schedule of the meeting as well as the Meeting ID and passcode needed to access the meeting are usually posted on the bulletin board or the respective RDO's official social media pages. Source: BIR Revenue District Office 25A - West Bulacan Official Facebook Page. 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. How To Apply for BIR Business Registration Online: 8 Steps 1. Visit the BIR’s NewBizReg Website 2. Download the forms and document samples from the website Click on the link for the business structure that applies to you. You’ll find a list of requirements as well as download links for whatever forms you might need. 3. Prepare all of the necessary documents Fill up the necessary forms and scan the required documents. It’s a good idea to have them all in one folder on your computer for easy access. Also, make sure to follow the file size and file format instructions. All files must be in PDF and not more than 4MB. 4. Answer the tax type questionnaire You can download it through the NewBizReg Website or through this link. This will be used to determine your filing and payment obligations. After completely answering the tax type questionnaire, scan it and include it in your folder of documents to be submitted to the BIR. 5. Pay the Registration Fee and Documentary Stamp Tax If the taxpayer applicant has an existing TIN, you can pay the PHP 500 Registration Fee and PHP 30 Documentary Stamp Tax through BIR’s online payment channels. If the taxpayer applicant does not have an existing TIN, then you’ll need to wait for an email from the BIR on how you can pay. You may also be asked to just pay upon pick up of the Certificate of Registration. 6. Get the email address of your RDO from BIR’s NewBizReg Website. You can find out your RDO and their email from BIR’s NewBizReg website simply by entering your business address. As you can see in the picture above, the RDO details show up at the bottom, as well as the required format of your email’s subject. 7. Email your documents to RDO It’s time to send your email. From the previous step, you should have gotten the RDO’s email. Make sure to copy and paste the email subject you received from NewBizReg. Next, you need to attach all of the required documents for your application. Lastly, to avoid your email from being marked as spam, make sure to write an email body. After a while, you should receive a confirmation email that your application was received. It will still be processed manually by BIR’s staff and they should get back to you within 3 working days. 8. Pick up your Certificate of Registration If all of your documents are in order, you should receive an email from the BIR regarding a successful registration. The schedule for picking up your Certificate of Registration (COR) should be included in that email. Just drop by your RDO on the scheduled date. Congratulations! You are now registered with the BIR. Make sure to display your COR in a visible place at your business to comply with BIR regulations. Frequently Asked Questions 1. 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. Annual Registration FeePHP 500Documentary Stamp TaxPHP 30Registration of Books of AccountsPHP 800Sales InvoicePHP 30TotalPHP 1360.00 2. 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. 3. Aside from the BIR business registration, what else should I secure to start my business correctly? Before registering with the BIR, you should have: Registered your business name with DTI (Sole Proprietorships) or SEC (Partnerships & Corporations) After registering with the BIR, you need to: Secure a business permit (mayor’s permit) from your city/municipal office. You can actually do this at the same time as your BIR registration.If your business has employees, then you need to register each of them with DOLE, SSS, PhilHealth, and Pag-IBIG. Please refer to this article for a more in-depth guide on the business registration process. 4. What is the BIR penalty for the late registration of business? Based on RMO 7-20157, late registration of businesses shall be subject to the following penalties depending on the location of the business: Cities - PHP 20,0001st class municipalities - PHP 10,0002nd class municipalities - PHP 5,0003rd class municipalities - PHP 2,000 5. Can we start a business without BIR registration? No. Before you can start your business, you need to complete the following: BIR Certificate of RegistrationDTI Business Name RegistrationLGU Business Permit You may refer to this article for a more detailed business registration guide. References