Before venturing out on your own to start a business here in the Philippines, you need to make sure that you are fully registered with the Bureau of Internal Revenue (BIR). This makes your business legal to operate and sets you up for necessary tax payments as you operate down the line. We cover the necessary requirements that you need to complete your BIR Business Registration.
BIR Business Registration Requirements:
- DTI Certification (for single proprietors)
- Tax Identification Number (TIN) (for professionals and consultants)
- Articles of partnership from the SEC (for partnerships )
- SEC Certificate of Incorporation (for a corporation)
2. Title for Business Address
- Contract of Lease for renters
- Land Title and Tax Declaration for owners
3. Mayor’s Permit
4. Barangay Clearance
BIR Business Registration Process:
Step 1: The first thing that you need to do is accomplish several forms from the BIR that are specific to your situation and business model. For single proprietorships, you need BIR Form 1901 (the application form). For partnerships and corporations, the application form is BIR Form 1903. These are the requirements specific to the different business types.
All applications will require the BIR forms 0605 (Payment form) and 2000 (Documentary Stamp Tax on Lease form). If you’re starting a corporation, make sure to fill out a subset of BIR Form 2000 of the Documentary Stamp Rax on Subscription. You can download the forms online.
Step 2: The next thing is to research which the Revenue District Office (RDO) has particular jurisdiction over the business address you are registered to operate under. Again, this information is readily available online. If you’re looking online, just press Ctrl+F and type in the city you’re in to more easily find it.
Step 3: The person you’re looking for at the RDO is the officer of the day. They’re the ones to assess how much you need to pay to register based on your documentation. The registration fee itself will cost you PHP 500. The Documentary Stamp Tax on Subscription will depend on your starting capital. The Documentary Stamp Tax on Lease depends on how much your rental is. Submit all the documents asked for in “Step 1” with the addition of a photocopy of your DTI certificate if you’re a single proprietor or SEC certificate if you’re a partnership or corporation. Make sure to attach your Contract of Lease as well.
Step 4: Payment is done at accredited banks which are usually close to the RDO. The teller will require the BIR Form 0605 and Documentary Stamp Tax on Lease for everyone. Those applying as corporations will need to hand in the Documentary Stamp Tax on Subscription.
Step 5: With receipt in hand, go back to the RDO and queue up in the registration section. When your turn is up, hand in photocopies of BIR Form payments, the special BIR payment form from the bank where you paid, and all other requirements—that’s everything we’ve talked about so far. The only new requirement added is a photocopy of your Mayor’s Permit.
Step 6: Attend a seminar. You are asked to attend a seminar about tax filing and make sure to get your “Ask For Receipt” sign.
Step 7: Purchase your books of account. For Value Added Tax (VAT), that’s the journal, ledger, cash receipts, cash disbursement forms, subsidiary sales journal, and subsidiary purchase journal. For Non-Value Added Tax, that’s all except for the last two.
Step 8: Register the books of account you purchased. These require you to fill our BIR Form 1905. Hand this along with the books to the Registration Section where you will have to wait for them to release it back to you.
Step 9: Apply for an Authority to Print (ATP) with BIR Form 1906 and photocopies of your Certificate of Registration and your paid BIR Form 0605.
Step 10: After all of the steps above, you just need to wait for two weeks for the printing of your Official Receipts and Invoices.
After following all the steps listed above, you are good to go!