How to Register in BIR

By dickburge5273 | Business Tips

Jul 05

One of the things that a business owner should do before he can start to operate the business is to register it in the Bureau of Internal Revenue. But before that, they will have to secure other necessary documents from Department of Trade and Industry (for sole proprietorship) or Security and Exchange Commission (partnership or corporation), and then the Mayor’s Permit. And once all these papers have been complied, the next step is to get the business registered in the BIR.

Below are the steps on how to register in BIR for both single proprietorship & partnership/corporation:

 

For Single Proprietorship:

1. Duly accomplish the 1901 BIR Form and submit it together with the requirements to the Revenue District Office (RDO) having jurisdiction over the address where you are planning to establish your business.

2. Pay the Php500.00 annual registration fee using the payment form BIR 0605 at any authorized banks of the RDO.

3. Pay a total of Php30.00 (Php15.00 for the Certification Fee and Php15.00 for the Documentary Stamp Tax) and these are to be attached to Form 2303.

4. The RDO shall issue the Certificate of Registration (BIR Form 2303).

 

For Partnerships and Corporations:

1. Duly accomplish the 1901 BIR Form and submit it together with the requirements to the Revenue District Office (RDO) having jurisdiction over the address where you are planning to establish your business.

2. Pay the Php500.00 annual registration fee using the payment form BIR 0605 at any authorized banks of the RDO.

3. Pay a total of Php30.00 (Php15.00 for the Certification Fee and Php15.00 for the Documentary Stamp Tax) and these are to be attached to Form 2303.

4. Attend the Taxpayer’s Briefing upon receiving the BIR Certificate of Registration and the Ask for the Receipt Notice (ARN).

5. Apply for receipts using BIR Form 1906.

6. Register books of accounts and have the same RDO stamp it for approval.

 

Once it has been approved, business owners will have to do the following:

  • Display the BIR Certificate of Registration and Ask for a Receipt Notice in the official and professional place of business.
  • Keep the book of accounts for those who have quarterly revenues that exceed Php150, 000.00.
  • Issue receipts or invoices for every payment received.

The other requirements that are needed to be passed together with the 1901 BIR Form:

  • DTI Certificate of Business Name (if applicable)
  • PRC ID (if applicable)
  • NSO Birth Certificate
  • Mayor’s Permit (if applicable)
  • Payment of Professional Tax Receipt (PTR) (if applicable)
  • Affidavit indicating the rates, manner of billings, and the factors considered in determining service fees (as specified in BIR Revenue Regulation 4-2014)

Some tips before you go to the BIR to register your business:

  • Be early when you go to Bureau of Internal Revenue to avoid congestion.
  • Bring all the necessary documents.
  • Bring a lot of patience. You might have a lot of waiting to do.

After the filing of the necessary documents, the business can already begin to operate. However, business owners should always keep in mind that every year, it is required to renew the business permit with the Local Government Unit and Bureau of Internal Revenue. Failure to comply with the renewal of business permit, will result to a penalty.

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