Getting a BIR business registration is like getting the green light to legally kickstart your business. Once you’re in the system, it’s crucial to play by the rules—follow all the business and tax laws to avoid getting into trouble.
Even when things were tough during the pandemic, most businesses made sure to pay their taxes. In October 2021, a whopping 4.6 million transactions happened online for tax payments.
Now, because more people are cool with doing stuff online, the BIR has this new system called NewBizReg that lets you register your business online. It started in June 2021.
This guide is here to help you figure out how to register your new business with the BIR, and you can do it either online or by showing up in person.
Business Registration Requirements (BIR)
Whether you’re signing up for your business online or going to the local BIR office, you’ll need to get a few things together:
1. For People Working Alone or as Professionals
2 copies of a form called BIR Form 1901
Just so you know, what you need might change based on what your business is like. For example, when I started my online business by myself in 2022, the BIR folks only wanted a copy of my business certificate, a copy of my ID, and 2 copies of the BIR Form 1901. They also helped me fill out the form.
2. For Companies and Business Partnerships
- 2 copies of a form called BIR Form 1903.
- 1 copy of a certificate from the SEC (for companies) or a recording certificate (for partnerships).
- 1 copy of the rules or agreement your business follows (whatever is needed).
- 1 copy of a special certificate if your business is small.
- 1 copy of any special permission if your business is in transportation.
- 1 copy of the permit to operate if your business is under PEZA or BOI.
- 1 paper from your company saying it’s okay for someone else to do the paperwork.
3. For Keeping Track of Money Manually
- 2 copies of a form called BIR Form 1905.
- 1 copy of a valid ID (like a professional license if you have one).
- Special books for keeping track of money going in and out (all businesses need this).
- More special books for recording business stuff (unless you’re a freelancer or a professional).
- Even more books if your business is into VAT.
- 1 paper saying someone else can do the paperwork.
- 1 paper from your company saying it’s okay for someone else to do the paperwork.
4. For Printing Invoices/Receipts
- 2 copies of a form called BIR Form 1906.
- 1 copy of a valid ID (like a professional license if you have one).
- A paper showing what your receipt or invoice will look like (get this from the BIR office).
- A paper saying someone else can do the paperwork.
- A paper from your company saying it’s okay for someone else to do the paperwork.
Note: If you’re starting a new business, you can buy ready-made receipts or invoices from the BIR.
How to Complete BIR Business Registration at an RDO?
Follow these simple steps to get your business officially registered with the BIR:
1. Gather Your Documents and Go to the Right BIR Office
Find out which Revenue District Office (RDO) is in charge of your business location by clicking here.
2. Get a Number for New Businesses from the Guard
3. Hand in Your Documents and Pay the Fee
Pay the required fee using a form called BIR Form 0605.
4. Apply for Registration Transfer (if Needed)
If you already have a TIN but need to switch your registration to a different RDO, use the same form you used to register your books.
5. Pay the ₱500 Registration Fee Plus ₱30 for Stamp Tax
6. Pick up Your Registration Papers Once Approved
It might take a day, depending on the officers’ availability.
Update: Starting July 2023, the BIR will change the “Ask for Receipt” notice to “Notice to Issue Receipt/Invoice” in all stores in the Philippines. If you’re a registered business, you can get the new notice by updating your registration info.
7. Attend the ‘Taxpayer’s Initial Briefing’
Join a free seminar by the BIR that covers what you need to know as a new business owner. As of 2022, many RDOs do these briefings online through Zoom. Check the bulletin board or the RDO’s social media for the schedule and details.
But, it’s still a good idea to talk to a licensed accountant. They can help make sure you don’t miss any important details since the BIR officer might forget to mention some things.
How to Complete BIR Business Registration Online?
1. Go to the BIR website called NewBizReg.
2. Get the Forms
Click on the link for your type of business to find a list of what you need. Download the forms and keep them in a special folder on your computer.
3. Prepare Your Stuff
Fill out the forms and scan the papers they ask for. Put all these things in the folder on your computer. Make sure your files are in PDF format and not too big.
4. Answer Some Questions
There’s a questionnaire about taxes. You can download it from NewBizReg or use the link they give. Answer the questions, scan it, and put it in your folder.
5. Pay the Fee
If you already have a TIN, pay the ₱500 fee and ₱30 stamp tax online. If you don’t have a TIN, wait for an email with payment info.
6. Find Your RDO
Use NewBizReg to find the email of your Revenue District Office (RDO) by entering your business address.
7. Email Your Papers
Send an email to your RDO using the provided email. Attach your filled forms and questionnaire. Don’t forget to write something in the email so it doesn’t go to spam. Wait for a confirmation email within 3 days.
8. Get Your Registration Certificate
If everything’s good, the BIR will email you about your successful registration. Follow their schedule to pick up your Certificate of Registration at your RDO. Put it up in your business so everyone can see it.
Congratulations! Your business is officially registered with the BIR! Display your Certificate of Registration where people can see it.
Frequently Asked Questions
1. How much does it cost to register a business with the BIR?
The total cost for BIR business registration is ₱1,360. Check the table below for a breakdown:
- Annual Registration Fee: ₱500
- Documentary Stamp Tax: ₱30
- Registration of Books of Accounts: ₱800
- Sales Invoice: ₱30
- Total: ₱1,360.00
2. I’m a freelancer/online seller. Do I need to register my business?
Yes, you should. If you’re making money regularly outside a typical job, you need to register your business.
3. Besides BIR registration, what else do I need to start my business right?
Before registering with the BIR, make sure you’ve:
Registered your business name with DTI (for Sole Proprietorships) or SEC (for Partnerships & Corporations).
After BIR registration, you must:
- Get a business permit (mayor’s permit) from your city/municipal office. You can do this at the same time as your BIR registration.
- If you have employees, register them with DOLE, SSS, PhilHealth, and Pag-IBIG.
4. What’s the penalty for late BIR business registration?
Late registration penalties vary by location:
- Cities: ₱20,000
- 1st class municipalities: ₱10,000
- 2nd class municipalities: ₱5,000
- 3rd class municipalities: ₱2,000
5. Can I start a business without BIR registration?
No, you can’t. Before starting your business, make sure you have:
- BIR Certificate of Registration
- DTI Business Name Registration
- LGU Business Permit