BIR Registration Guidelines for Businesses in the Philippines

Even before the COVID-19 pandemic, more and more Filipinos have geared towards becoming entrepreneurs, and it’s no longer a surprise because most of us are skillful, and most of importantly, willful in earning extra while following one’s passion. However, as easy as it may sound to just follow what your heart desires when starting up a business, many are unaware of the regulatory requirements that must be met by any startup business in the Philippines, especially that of BIR registration.

BIR is the national government agency that regulates the country’s finances and monetary policies, and supervises the taxation in the Philippines that involves the collection of internal revenue taxes, fees and charges, forfeitures, penalties, and fines. Some may be well-informed about the procedure of getting a TIN for their business and for their employees, but find it tedious and becomes impatient throughout the process. Then, they stop in the middle and think that having a registered business name would be enough.

Wrong.

Not registering your business with the BIR could cause you penalties and fines, and now that BIR has sought a simpler way of registering your business and becoming a legit taxpayer in the Philippines, there are lesser reasons not to continue with the business registration process. There may be some reports, however, of delays and confusion with the application process and the requirements because some still follow the old procedure. Nevertheless, it is one’s obligation to pay proper taxes. As a matter of fact, to make it easier now for applicants, BIR has removed Mayor’s Permit as a primary requirement, specifically for online business owners, which will be tackled in the next blog.

After the SEC registration, as a brick-and-mortar business owner, you must now secure a Mayor’s Permit from the Municipality where your business is located. Once you have successfully claimed the said permit, it’s time to head over to the BIR branch office with jurisdiction over the area where your business establishment is located to get a Certificate of Registration.

BIR REGISTRATION PROCESS and LIST OF REQUIREMENTS

1) Accomplish BIR Form 1903 or the Application for Registration for Corporations or Partnerships – Taxable or Non-Taxable and submit along with the following requirements:

• SEC Certificate of Registration
• Mayor’s Permit or application for Mayor’s Permit
• Contract of Lease
• Other documents to be submitted if applicable:
  • Certificate of Authority (if Barangay Micro Business Enterprises (BMBE) registered entity)
  • Franchise Agreement
  • Proof of Registration/Permit to Operate with BOI, PEZA, SBMA or BCDA

2) Pay the Annual Registration Fee of P500 at the Authorized Agent Banks (AABs) of the concerned RDO

3) Pay the Documentary Stamp Tax (DST) on Subscription and Lease or the BIR Form 2000

THINGS TO REMEMBER:

Once you have been given the receipt of the above requirements, your BIR official will inform you when the Form 2303 or the BIR Certificate of Registration is going to be ready for claiming. The next step will include the following:

1) Apply for Sales Invoices or Official Receipts through BIR Form 1906 or the Authority to Print Receipts and Invoices. To obtain this, you must submit the following:

• BIR Form 1906 (Authority to Print)
• BIR Certificate of Registration (Form 2303)
• Final and clear sample of Principal and Supplementary Commercial Receipts and Invoices
• BIR Certificate of Registration of Accredited Printer
• BIR Annual Registration Fee or the Payment Form (Form 0605) of Accredited Printer
• Job order
• Quarterly report of Accredited Printer

2) Register books of accounts and have them stamped by the RDO where your business is registered. BIR examiner would usually advise you the types of books and taxes applicable to your business upon the initial taxpayer’s briefing. Here’s the list of requirements you must file upon the registration of books of accounts:

• BIR Certificate of Registration (Form 2303)
• New sets of books of accounts, such as but not limited to:
  • General Journal
  • General Ledger
  • Cash Receipt
  • Cash Disbursement
  • Subsidiary Sales Journal
  • Subsidiary Purchase Journal

3) Attend the taxpayer’s initial briefing to be conducted by the RDO for new registrants to inform them of their rights and duties and/or responsibilities

Recommendations:

• Post an “Ask for Receipt” Notice (ARN) issued to your along with the BIR Certificate of Registration in your place of business.
• You must file the application on or before you commence business operations.
• The Documentary Stamp Tax (DST) on the Articles of Incorporation (AOI) is always due on the 5th of the month following the date of issuance of the AOI (as prescribed under Section 175 of the National Internal Revenue Code of 1997).
• Register with the BIR on or before payment of DST dues, if the DST is required to be paid within five (5) days after the close of the month.
• You are given thirty (30) days to acquire your official receipts and print sales invoices you’re your BIR certificate of Registration has been issued to you.

Source(s):

https://philippinesbusinessregistration.com/company-registration/requirements/bir-registration/