Registration with the Bureau of Internal Revenue (BIR) is one of the most crucial tasks new businesses need to accomplish.
New companies won’t be able to operate without a tax identification number (TIN), which you can only get through BIR registration. The BIR assigns this nine-digit number to individual and corporate taxpayers to identify and track registrants and their records. At the end of the registration process, you will also be given a Certificate of Registration, Books of Account, and Authority to Print; these are all crucial to securing business and financial services, or servicing paying clients.
Which Types of Businesses Require BIR Registration?
All types of Philippine businesses need to be registered 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).
BIR Business Registration Process
The registration process might seem daunting, but as long as you have the documentary requirements on hand, you will be able to avoid delays. After submission, BIR will process your application in 3 to 5 business days. If your application has no issues, you should receive your Certificate of Registration afterwards.
What are the general BIR Registration Requirements for businesses?
For Sole Proprietors
- BIR Registration Form 1901 (download the latest version here)
- Any government-issued ID
- BIR Printed Receipt/Invoice or sample of own receipts
- BIR Registration fees: P500.00 Annual Registration Fee, P30.00 Loose Stamp/s to be affixed on the Certificate of Registration
For Partnership or Corporation
- BIR Registration Form 1903 (download the latest version here)
- Securities and Exchange Commission (SEC) Certificate of Incorporation or Certificate of Recording
- Articles of Incorporation or Articles of Partnerships
- BIR Registration fees: P500.00 Annual Registration Fee, P30.00 Loose Stamp/s to be affixed on the Certificate of Registration
Other documents you’ll need to submit, if applicable:
- DTI Certificate
- Work Visa for Foreign Nationals
- Franchise Documents and Agreement if you’re setting up a franchise business
- Memorandum of Agreement for Joint Ventures
- Certificate of Authority if you are registered as a Baranggay Micro Business Enterprise
- Proof of Registration or Permit to Operate from the Board of Investment, Philippine Export Zone Authority, Bases Conversion Development Authority, or Subic Bay Metropolitan Authority
- If transacting through a Representative: Special Power of Attorney (SPA), and any government-issued ID of the authorized representative
You may also visit the BIR website or contact the BIR directly (8981-7000 or 8929-7676) to ensure you have all the documents you need before proceeding.
Application for registration via BIR RDO
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:
- Pay your BIR registration fees. These are the Annual Registration Fee, Certification Fee, and Documentary Stamp Tax on Subscription and Lease. You may also be asked to pay at an Authorized Agent Bank that works with your RDO.
- Wait for the notice from BIR that your Certificate of Registration (Form 2303) is ready.
- After receiving your Certificate of Registration, you will be required to complete the Application for Authority to Print Receipts and Invoices. You’ll need the BIR Form 1906 to register your books of account and attend the taxpayer's initial briefing.
BIR Business Registration Online via NewBizReg Portal
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/.
- Complete the form on the website with your business details.
- Choose “Email your application” and wait for your email service to open a new email.
- Copy the generated email information in the BIR portal, then attach your BIR requirements.
- Send the email to the “To” email address in the BIR portal.
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.
Why is BIR registration important?
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.
