In the Philippines, registration with the Bureau of Internal Revenue (BIR) is one of the first and most crucial steps to formalize your business and ensure compliance with local tax laws and regulations.
Completing your BIR registration provides you a tax identification number (TIN), a nine-digit number to help BIR identify and track your company's tax activities. You will also receive a BIR Certificate of Registration, Books of Account, and Authority to Print, which are important documentary requirements to securing financial services for your business, attracting paying clients, and availing government benefits or tax credits.
BIR registration is a critical step in legitimizing a business, as it allows the company to legally issue official receipts, file taxes, and avail of tax credits or deductions. It also helps the government monitor and collect taxes which are essential for funding public services and infrastructure. The BIR registration process ensures that businesses contribute to the national economy through proper tax collection, thereby playing a key role in the country's development and governance. Compliance with BIR requirements also protects businesses from penalties, fines, or legal issues associated with tax evasion or non-compliance.
All types of Philippine businesses are required to register with the BIR — whether they are set up by a sole proprietor, a partnership (professional, general, or limited), or a corporation (stock or non-stock).
For sole proprietorships, mixed-income earners, and freelancers, BIR registration must be your first step prior to launching your business. Meanwhile, for corporations and partnerships, BIR registration is the next step after completing registration with the Securities and Exchange Commission (SEC), since one of the BIR registration requirements is your SEC Certificate of Registration.
The registration process might seem daunting, but the good news is that BIR online business registration is available to speed up the process. If you prefer to complete new business registration with BIR in person, they also have branches all over the country. Just keep in mind that BIR processes applications within 3-5 business days, so if you applied in person, you'll have to return to your branch in a few days' time to claim your Certificate of Registration.
Pursuant to Republic Act (RA) No. 11976 or the Ease of Paying Taxes (EOPT) Act, which aims to simplify the Philippine tax compliance system, business taxpayers are no longer required to pay the annual BIR registration fee of ₱500.00 beginning January 2024.
As of 2020, the BIR no longer requires a business permit/mayor's permit to register for a new business.
You may also see BIR's official list of requirements or contact the BIR directly (8981-7000 or 8929-7676) to ensure you have all the documents you need before proceeding.
There are two ways to complete your BIR new business registration. You can complete your application for BIR registration in person at your nearest BIR Revenue District Office (RDO), or complete BIR online registration at their website, the NewBizReg Portal (https://www.bir.gov.ph/newbizreg/)
Once you have your documents, submit them at the BIR Revenue District Office (RDO) that has jurisdiction over the address where your business will be operating. Know your BIR RDO by checking your BIR forms, or by contacting BIR at 8981-7000 or 8929-7676.
After you’ve submitted the required documents, here are the next steps:
If the idea of doing all those makes you cringe, BIR registration online is now available via the NewBizReg Portal. This BIR e-registration system lets you send your application, documents, and fees via email. According to BIR, your application shall be processed manually within three (3) working days from the date of email acknowledgement receipt of your documents.
The BIR requirements for business registration are the same as above. Simply have your documents scanned (BIR requires pdf formats no larger than 4MB each). Afterwards, proceed to the NewBizReg Portal at https://www.bir.gov.ph/newbizreg/.
Once your BIR office confirms their receipt of documents, you will be asked to pay the corresponding BIR registration fees via their ePayment Channels. Ensure that you respond promptly to emails from BIR regarding your business registration to speed up the process.
Compliance is not only the reason your company needs to register with the BIR. Here are the main reasons to get registered as soon as possible.
Avoid Fines and Jail Time
Operating an unregistered business hurts your reputation, and carries financial penalties. For businesses operating in matters of public health and safety, operating without a license may equate to a prison sentence.
Get Approved for Loans and Other Financial Services
BIR registration is important if you want to apply for funding and financial services. For instance, to open a corporate bank account, you’ll need a TIN and BIR Certificate of Registration. You’ll also need to be registered if you intend to apply for a bank loan or other types of financing. First Circle, for example, will only underwrite your business for a Revolving Credit Line if it is BIR-registered.
More Business Opportunities
Having a solid financial and legal reputation means you are reliable when it comes to compliance and supplier payments. This offers you opportunities to land new clients or find business services and supplies at more affordable prices. It will also be easier to explore opportunities in untapped sectors or markets, submit bids for government contracts, or even export your products.
Contribute to Society
More than half of the government’s revenues come from the BIR’s collections, which are used to fund government services and improve the country’s assets and infrastructure. People often complain about taxes, but they are essential in financing government activities that aim to uplift citizens’ lives.
BIR business registration is one of the important steps to legalize your business. Doing so means you get to conduct your business legitimately, showing customers and government agencies that you are compliant with business requirements and regulations.
Need more guides on registration? Learn how you can register your business with the SEC, PhilGEPS, or DTI.
