How to Register a Business in BIR

Last Updated – Nov 22, 2022 @ 11:33 am

If your goal is to become your own boss, you may be thinking about launching a business. But after you’ve thought of a great business idea, got your stocks ready, and hired your employees, you can’t start operating just yet.

You first need to register it.

In the Philippines, both local and foreign business owners are required by law to register their business with various agencies.

This includes the Securities and Exchange Commission, or the Department of Trade and Industry, then the Local Government Unit where your business is located, and finally, the Bureau of Internal Revenue or BIR.

Business registration in the Philippines may seem intimidating and difficult for beginners, but you’ll be surprised at how simple it is.

Whether you’re doing it alone or you have staff to help you move things along, registering your business with BIR is easy. Here’s an in-depth guide on how to do it.

What is BIR?

The Bureau of Internal Revenue or BIR is an agency affiliated with the Department of Finance. This agency is tasked to calculate and collect national internal revenue fees, taxes, and other charges.

This agency is also in charge of executing any penalties, fines, and forfeitures, including the implementation of judgments rendered by the court in its favor.

In short, this agency is in charge of all finance, monetary, and taxation policies in the Philippines. All of these are designed to strengthen and improve the lives of Filipinos.


Why am I required to register my business in BIR?

Registering your business with BIR will allow you to do the following:

  • Formally register your Tax Identification Number or TIN provided during your SEC registration
  • Give you authority to print official invoices/receipts
  • Register the books of accounts required to annually register with BIR which will serve as your official business transaction record for the fiscal year

Along with your BIR Certificate of Registration (BIR FORM 2303) also comes the types of taxes you’re required to pay, including:

  • Value-added tax
  • Withholding taxes
  • Corporate income tax

Related: 8 Tax-Saving Strategies in the Philippines


Benefits of Registering your Business in the Philippines

Why should you go through all the trouble of registering your business with BIR? We’ve compiled the reasons below. 

You can avoid legal problems

By registering your business, you’ll be out of trouble with the government for any violations, including tax evasion and tax fraud, provided you submit accurate records.

This will also save you from penalties such as fines related to operating a business without a BIR registration.  

It makes you a legitimate business

Once your business is registered, you will be an official business owner.

Registering your business with BIR will also give you an official business record of your business transactions, which signals your status as a tax-paying business owner.

It builds trust not only with customers, but also with employees and suppliers

A business registered with BIR will have a credible reputation that will build trust between you and your clients. Employees and suppliers will also have more trust in your business.

It helps you market your brand fully

By registering your business with BIR, you’re already one step ahead of your competitors. It gives you the advantage to spread the word about your brand.

It also allows you to expand your business as you grow to other cities and provinces across the country.

Without a BIR registration, you’ll have to worry about being restricted due to fear of being caught.

You can transact with other companies

Businesses, especially large corporations, will not transact with anyone that does not comply with rules set by the government.

If you want to work with larger companies, you need to make sure your business is registered and operating within the bounds of the law.

Related: Best Business Bank Accounts in the Philippines

You can limit personal liability

When you register your business, your company will become a separate legal entity. Therefore, you can protect your personal assets if you incur debts and losses.

Debts attached to your company will not be connected to your name. 

You can sell products/services online

Online shopping can transform your business in ways you never thought were possible.

If you want to sell on Shopee or Lazada, you need to submit a BIR registration, among other legal documents

It allows you to raise capital

Need a loan for your business or looking for an investor? Banks and investors, among other formal lenders, require a BIR registration to prove that you’re a legitimate business.

This document is also integral for you to receive any kind of government assistance, especially during times of national crisis such as a pandemic. 


What are the Requirements For Registering a Business in BIR?

Here are the documents you need to register your business in BIR. These are categorized based on the type of business:

Sole Proprietorship:

  1. BIR Form 1901 (download here).
  2. Any government-issued ID that shows the name, address, and birthdate of the applicant. If the ID has no address, bring any proof of business or residence address
  3. BIR Printed receipt/invoice (available for sale at the BIR new business registrant counter) or Final and clear sample of own principal receipt invoices (sample available at the BIR new business registrant counter)
  4. Php530 payment that covers:
    • Php500 Registration Fee
    • Php30 Loose stamp/s to be affixed on the Certificate of Registration

Additional documents, if applicable:

For those transacting through a representative:

  1. Special Power of Attorney
  2. Any government-issued ID of the representative
    • DTI certificate with business name
    • Work Visa (for foreign nationals)
    • Franchise documents (such as Certificate of Public Convenience)
    • Trust Agreement (for Trusts)
    • Death certificate of deceased (for Estates Under Judicial Settlement)
    • Certificate of Authority, if Barangay Micro Business Enterprises (BMBE) registered entity
    • Proof of Registration/Permit to Operate BOI/BOI-ARMM, PEZA, BCDA, TIEZA/TEZA, SBMA, etc.

For Corporations/Partnerships: 

  1. BIR Form No. 1903 (download here)
  2. SEC Certificate of Incorporation / Certificate of Recording (for partnerships) / License to do business in the Philippines (for foreign corporations)
  3. Articles of Incorporation OR
  4. Articles of Partnerships
  5. BIR Printed Receipt/Invoice (available for sale at the BIR new business registrant counter) OR Final & clear sample of own Principal Receipts Invoices (sample available at the BIR new business registrant counter)
  6. Php530 payment that covers:
    • Php500 Registration Fee
    • Php30 Loose stamp/s to be affixed on the Certificate of Registration

Additional documents, if applicable:

For those transacting through a representative:

  1. Board Resolution indicating the purpose and the name of the authorized representative OR Secretary’s Certificate
  2. Any government-issued ID of the authorized representative.
    • Franchise Documents (such as Certificate of Public Convenience) 
    • Franchise Agreement
    • Memorandum of Agreement (for Joint Venture)
    • Certificate of Authority, if Barangay Micro Business Enterprises (BMBE) registered entity
    • Proof of Registration/Permit to Operate BOI/BOI-ARMM, PEZA, BCDA, TIEZA/TEZA, SBMA, etc.

For Cooperatives, Associations, and other Non-Individuals:

  1. BIR Form No. 1903 (download here
  2. SEC Certificate of Incorporation / Certificate of Recording (for partnerships) / License to do business in the Philippines (for foreign corporations)
  3. Articles of Incorporation OR
  4. Articles of Partnerships
  5. BIR Printed Receipt/Invoice (available for sale at the BIR new business registrant counter) OR Final & clear sample of own Principal Receipts Invoices (sample available at the BIR new business registrant counter)
  6. Php530 payment that covers:
    • ·Php500 Registration Fee
    • Php30 Loose stamp/s to be affixed on the Certificate of Registration

Additional documents, if applicable:

For those transacting through a representative:

  1. Board Resolution indicating the purpose and the name of the authorized representative OR Secretary’s Certificate
  2. Any government-issued ID of the authorized representative
    • For cooperatives:
      • Cooperative Development Authority (CDA)
      • Certificate of Registration
      • Articles of Cooperation
    • For Homeowners Association:
      • Certificate of Registration issued by Housing and Land Use Regulatory Board (HLURB)
      • Articles of Association
    • For Labor Organization, Assoc. Or Group of Union Or Workers:
      • Certificate of Registration issued by the Department of Labor and Employment (DOLE)
      • Constitution and by-laws of the applicant union

For Branch

  1. Registration of branch:
    • For individual: BIR Form 1901 (download here
    • For non-individual: BIR Form No. 1903 (download here)  
  2. BIR Printed Receipt/Invoice (available for sale at the BIR new business registrant counter) OR Final & clear sample of own Principal Receipts Invoices (sample available at the BIR new business registrant counter)
  3. Php530 payment that covers:
    • Php500 Registration Fee
    • Php30 Loose stamp/s to be affixed on the Certificate of Registration

Registration of Facility Type: 

  • For individual: BIR Form 1901 (download here
  • For non-individual: BIR Form No. 1903 (download here)  

Additional documents, if applicable:

For those transacting through a representative:

  1. Board Resolution indicating the purpose and the name of the authorized representative OR Secretary’s Certificate
  2. Any government-issued ID of the authorized representative

For Non-Individual: 

  • Board Resolution indicating the purpose and the name of the authorized representative or Secretary’s Certificate
  • Any government-issued ID of the authorized representative
  • DTI Certificate or SEC Registration Certificate (if with business name)
  • Articles of Incorporation/Partnership, if the line of business is different from the Head Office (for Branch only)
  • Franchise Documents (such as Certificate of Public Convenience) (for Branch only)
  • Franchise Agreement (for Branch only)
  • Memorandum of Agreement (for Joint Venture and Branch only)
  • Certificate of Authority, if Barangay Micro Business Enterprises (BMBE) registered entity. (for Branch only)·  Proof of Registration/Permit to Operate BOI/BOI-ARMM, PEZA, BCDA, TIEZA/TEZA, SBMA, etc. (for Branch only)

Walk-in: How to Register a Business in BIR (Step-by-Step Guide)

Follow these steps to register your business in any BIR office.

  1. Complete all your requirements (listed above), and visit any Regional or District BIR office
  2. Go to the New Business Registrant lane and secure a queue number.
  3. If applicable, apply for transfer of registration. This is only applicable to individuals that have an existing TIN and is not registered in the current regional or district office.
  4. Pay the registration fee.
  5. Upon approval, claim your Certificate of Registration, Application for Authority to Print Receipts & Invoices, and “Ask for Receipt” notice. Depending on the availability of officers, this may take a day.
  6. Attend an initial briefing for taxpayers. This scheduled free seminar is needed for you to know your rights, responsibilities, and duties as a business owner. 

Online: How to Register a Business in BIR (Step-by-Step Guide)

You don’t have to leave your house to register your business with BIR (at least not until you claim your Certificate of Registration). Here’s how to register your business online through NewBizReg

  1. Prepare an e-copy of your documents, and download the necessary forms needed. Keep in mind that files must not exceed 4MB, and they must all be in PDF.
  2. Download the tax-type questionnaire here and answer the form to know your filing and payment obligations. 
  3. Pay the fee through any of the online payment channels listed here
  4. Get your RDO’s email address from the NewBizReg website. You can do this by entering your business address. The RDO details will be displayed at the bottom, along with the required format of your email subject.
  5. Email the documents to your RDO. Make sure to write something on the email body so your email will not be marked as spam. You’ll receive a confirmation email immediately after the receipt of your application. This will be processed manually by BIR officers and staff. Expect them to get back to you after 3 working days. 
  6. Once done, BIR will send you an email regarding your registration. Along with the email is your schedule to pick up your Certificate of Registration. After picking this up, you’re finally registered with BIR. 

Registering in BIR FAQs

How much does it cost to register a business in BIR?


As stated above, it costs Php530 to register your business in BIR.

Do small businesses need to register in BIR?


Not all. However, all businesses, big or small (still earning over Php250,000 annually), should register in BIR to ensure proper tax compliance. This applies to foreign and local entities alike. 

Who is exempted from BIR registration? 


According to the Department of Trade and Industry, small business owners who earn Php250,000 and below per year are permitted not to register their business with BIR. 

What happens if I fail to register my business with BIR?


If a corporation, sole proprietorship, or partnership fails to register with BIR, it will face penalties that range from fines to imprisonment.

About MJ de Castro

MJ de Castro is the lead personal finance columnist at Grit PH.

MJ started her career as a writer for her local government’s City Information Office. Later on, she became a news anchor on PTV Davao del Norte.

Wanting to break free from the shackles of her 9-to-5 career to live by the beach, she pursued remote work. Over the years, she has developed a wide specialization on health, financial literacy, entrepreneurship, branding, and travel.

Now, she juggles writing professionally, her business centering on women’s menstrual health, and surfing.

Education: Ateneo de Davao University (AB Mass Communication)
Focus: Personal Finance, Personal Development, Entrepreneurship, & Marketing

Reader Interactions

Leave a Reply

Your email address will not be published. Required fields are marked *