Tax BlogTax ComplianceHow to Register a Business With BIR in the Philippines

May 19, 20220
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Business registration is necessary to make your business officially legal to operate in the Philippines. Part of the company registration process involves visiting various government agencies and accomplishing their requirements. All foreign and local entities must register with the Securities and Exchange Commission (SEC) as domestic or foreign corporations, branches, partnerships, or with the Department of Trade and Industry (DTI) for sole proprietorships. Another requirement is registration with the Bureau of Internal Revenue (BIR). 

Why should I register my business with BIR?

The BIR is the tax governing agency in the Philippines. As such, they collect internal revenue taxes, charges, and fees. They also control finance, taxation, and monetary policy in the Philippines. The Philippine government tasks the BIR to enforce fines and penalties on persons and companies failing to file their tax compliances on time. Corporations that aim to do business in the Philippines have a legal obligation to register with BIR to obtain their BIR Certificate of Registration and participate in tax compliance.

What happens if I fail to register my business with BIR?

If a corporation, partnership or sole proprietorship does not register its business with the BIR, they may face penalties ranging from various fines to imprisonment. Additionally, failure to register can lead to fines and penalties from other government agencies including the Securities and Exchange Commission, Local Government Units, Social Security System, Pag-IBIG, and PhilHealth.

Advantages of BIR Business Registration

  • The ability to print official receipts and invoices with your company name on it
  • Legitimate transactions for your business through the issuance of official receipts and sales invoices 
  • The capacity to register your books of accounts annually with BIR

How to register a business with BIR?

Depending on whether your company is a corporation/partnership or sole proprietorship, here is a guide on how to register your business in the Philippines with the BIR:

For Corporations and Partnerships:

  1. Accomplish and submit the following to the BIR together with the required supporting documents to the Revenue District Office (RDO) in charge of your business’ location:
    1. BIR Form 1903 – Application for all types of business entities
    2. BIR Form 0605 – Tax payment form for Annual Registration
    3. BIR Form 1905 – For registration of Books of Account
    4. BIR Form 1906 – Application for Authority to Print Receipts
    5. BIR Form 2000 – For DST Shares and DST Lease for a Domestic Corporation
      1. Below is the list of the supporting documents needed:
        1. For micro corporations, the certificate of Authority for Barangay Micro Business Enterprises (BMBE)
        2. Contract of Lease
        3. Franchise Agreement
        4. Mayor’s Permit or application for Mayor’s Permit 
        5. Proof of Registration/Permit to Operate with BOI, PEZA, SBMA, or BCDA (tax incentive programs)
        6. SEC Certificate of Registration (or License to do business in the Philippines for resident corporations)
  2. Pay the initial registration fee and the annual registration fees at the Authorized Agent Banks (AABs) of the RDO. 
  3. Settle the Documentary Stamp Tax (DST) on Subscription and Lease (BIR Form 2000). The amount you will recompense depends upon the amount of your capital and how much you pay for your monthly rent. 

For Sole Proprietorships:

  1. Accomplish BIR Form 1901 and submit it with the required supporting documents to your business location’s RDO. The supporting documents include:
    1. Barangay Business Clearance
    2. Certificate of Lease (rented) or Certificate of Land Title (owned)
    3. Government-issued Identification ID/Document (Birth Certificate, Driver’s License, Passport, etc.)
    4. DTI Certificate of Registration
    5. Mayor’s Permit
  2. Pay the registration fee for the loose DST or Proof of Payment for Annual Registration Fee (ARF). 
  3. Submit a photocopy of your BIR form payments and other requirements to your RDO. 

What to do after getting a BIR Certificate of Registration?

  1. Apply for Sales Invoices/Official Receipts through BIR Form 1906 (Application for Authority to Print Receipts and Invoices). You will be required to submit the following documents:
    1. BIR Form 1906 (Authority to Print)
    2. BIR Certificate of Registration (BIR Form 2303)
    3. Final and clear sample of Principal and Supplementary Commercial Receipts and Invoices
    4. BIR Certificate of Registration and Accredited Printer
    5. BIR Annual Registration Fee (BIR Form 0605) of Accredited Printer
    6. Job Order
    7. Quarterly Report of Accredited Printer
  2. Register books of accounts and have them stamped by the RDO where your business is registered. The BIR examiner will usually recommend the types of books and taxes applicable to your business at the initial taxpayer’s briefing. You will need to submit the following documents upon registration of your books of account:
    1. BIR Certificate of Registration (BIR Form 2303) 
    2. New sets of books of accounts, such as but not limited to:
      1. General Journal
      2. General Ledger
      3. Cash Receipt
      4. Cash Disbursement
      5. Subsidiary Sales Journal
      6. Subsidiary Purchase Journal
    3. Attend the taxpayer’s initial briefing conducted by the RDO for new registrants to learn about your rights and duties/responsibilities as a taxpayer. 

Complete your business registration in the Philippines by complying with BIR 

The sooner you register your business with BIR, the faster you will have the freedom to legally promote and operate your business in the Philippines. Proper registration with the Philippine government agencies paves the way for better business opportunities and avoiding legal problems in the future. 

BIR registration is just one of many steps your company needs to go through to legalize business operations. To learn more about business registration, please read this article.

Instead of doing these tedious tasks yourself, you can Contact Us Here, fill out the form below, call us at +63 (02) 8540-9623, or email us at info@tripleiconsulting.com to book a FREE 30 minute consultation with one of our BIR registration experts.

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