29 Oct How to Acquire a BIR Registration

Taxes are the life blood of a country’s economy. Anyone who claims rights to a property, receives government benefits, or owns a business is obligated to contribute to the nations’ growth. As a certain PSA on TV goes, taxes build a nation.

Anyone who has taken their first steps into the realm of entrepreneurship are aware that starting a business goes beyond than the savvy marketing and profit-making mindset. The little parts matter, even the mundane documents that need to be secured to legitimize a business.

In this article, we’ll tackle the importance of getting a BIR registration for your business and enumerate the steps in acquiring one.

The BIR Certificate of Registration

BIR Form 2303, or the Certificate of Registration, is issued by the Bureau of Internal Revenue to certify that a corporation is legal and recognized by the government. Getting a BIR Certificate of Registration is usually the next step after acquiring a Mayor’s permit from the local government unit. A BIR registered business is required to pay taxes to the government which includes corporate income taxes, value added taxes, and the withholding taxes of its employees. In return, they can print official receipts and invoices for record keeping and register books of accounts to serve as a record of business transactions in a fiscal year.

But first, the Prerequisites

Before you go to your assigned Revenue District Office for a BIR registration, make sure that you have the listed documents below. These will be included in your application form.

1. Your Mayor’s permit together with a Barangay clearance.

2. A contract of lease if you rent area where your business is located, or a land title if you own it.

3. The necessary certifications, particularly your DTI certification, the Articles of Partnership (if it’s a         business partnership) or a Certificate of Incorporation (if you own a company), and a Tax Identification Number (TIN)

4. A Certificate of Authority if you own a BMBE (Barangay Micro Business Enterprises) registered business.

5. A Franchise Agreement if you own a franchise.If applicable, a Proof of Registration or a Permit to Operate from  BOI, PEZA, SBMA or BCDA.

6. If applicable, a Proof of Registration or a Permit to Operate from BOI, PEZA, SBMA or BCDA.

Steps to Acquiring a BIR Registration

1. Fill up 3 copies of either a BIR form 1901 if your business is a sole proprietorship, or a 1903 if it’s a partnership or corporation. Attach all the necessary documents then submit it to the assigned Revenue District Office (RDO) of your business’ establishment’s registered address. The forms are available in all BIR offices or can be downloaded from their website.

2. Have the officer of the day assess your total payments which includes the Annual Registration Fee worth 500 pesos and the Documentary Stamp Tax which will depend on either your total capital or your monthly rent.

3. Take the assessed forms to the authorized agent bank of your assigned RDO and pay the necessary fees. Photocopy the BIR form payments and submit them back to the RDO. The BIR officials will then give you a tentative date of the certificate’s release. Some RDO’s might require you to attend a seminar before releasing your Certificate of Registration. Nevertheless, don’t forget to ask for an “Ask for Receipt” sign.

Congratulations! Your business is ready to go. However, there are some loose ends you need to tie up first such as:

a. Purchasing and registering your Books of Accounts which includes your journal, ledger, cash receipts, and cash disbursement forms.
b. Applying for an ATP (authority to print) so that you can print your own receipts. 

And lastly, don’t forget to file your tax returns and pay your taxes on time. 

Do you have the time to do all these? Don’t worry, focus on your business strategies and marketing plans, Bliink will take care of your Business Registration. We are a team of seasoned professionals who can do the job perfectly for you.