How to Register Your Business with the Bureau of Internal Revenue (BIR)

Before anything else, if your business is a sole proprietorship, you have to secure the Department of Trade and Industry (DTI) permit first before you can register your business with the BIR.  Other than DTI, you also have to secure your Mayor’s Permit to operate in the area where your business is situated.

If you operate as a partnership or a corporation, then you have to secure your Securities and Exchange Commission (SEC) certificate first before going to the BIR.

Below is a simple step on how to register with BIR

1. Accomplish BIR forms, form 1901 for single proprietorship and form 1903 for partnership or corporation.  These forms require some information about you and your business.  Be honest as much as possible in your information to help you with less intervention from the law.  Attach the documentary requirements like birth certificate, Mayor’s permit, DTI/SEC Registration and the BIR form.  Be careful to preserve the paper
2. Pay fees such as Annual Registration Fee for 500 pesos, Certification Fee for 15 pesos and Documentary Stamp for 15 pesos. If uncertain on what fees to pay, ask friends and families who had transacted with BIR to avoid problems.
3. The Revenue District Officer of the BIR shall issue the Certificate of Registration. The Certificate of Registration serves as proof that you are allowed to coordinate business in your area.
4. Apply for receipts/invoices with an authority to print from the BIR. You will be given with an “Ask for Receipt” notice and corresponding BIR form 2303 to be posted in your place. Depending on the size and circumstance of the business, the BIR is now simplifying its rules on the quantity of receipts to be printed.  If before, you are required to produce many receipts, the case is different now.  You can operate in the business with minimal supervision from the authorities most especially if your business is starting up.  You can only print three to five receipts for use to minimize printing expense as well as maximize your income.
5. Register for books of accounts such as ledgers and journals to be used in recording your business sales. You should have them stamped with the RDO wherein the business is registered.  Remember once you have your journals and ledgers, record all your income and expenses to avoid tax problems.
6. Update registration information if needed and submit it to RDO for approval.

Business permits, licenses and BIR registration of a business is ideally done before the operation of the business.  However, some municipalities and cities allow a temporary period for start-up companies to process their permits even if they are softly or slowly opening their business.

To be sure that this is allowed, you have to ask your local government unit where the business is operating to avoid further reprimand and penalty from the BIR.  Penalties are expensive that not complying BIR rules could destroy your start-up business due to non-compliance of the law.