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As more and more businesses are shifting to online platforms, The Bureau of Internal Revenue (BIR) has ordered online sellers to register their business and settle their taxes not later than July 31.

 “To give notice to all persons doing business and earning income in a any manner or form, specifically those who are into digital transactions through the use of any electronic platforms and media, and other digital means, to ensure that their businesses are registered pursuant to the provisions of Section 236 of the Tax Code, as amended, and that they are tax compliant,” as per issued Memorandum Circular 60-2020.

But BIR clarified that those earning less than P250,000 annually are exempted from paying taxes.

Newly-registered business entries including existing registered business must comply with the provisions of the Tax Code and other applicable tax revenue issuances including the following:

  • Payment of correct taxes due on time
  • Filing of required tax returns
  • Withholding of taxes
  • Keeping of registered books of accounts and other accounting records of business transactions
  • Issuance of registered sales invoice or official receipt for every sale of goods or services to clients, customers, or buyers.
Related: Starting a business? Here are 5 things you should know

How to register your online business

Sole proprietorship

You can register your business name online through the Department of Trade and Industry (DTI’s) Business Name Registration System (BNRS). 

Registering your business through DTI’s BNRS
  • Make sure your business name is available. Type the keywords of your preferred trade name on the Business Name Search Page of the BNRS website. If your preferred name is available, proceed with your DTI business registration
  • Fill out the online registration form. Your tax identification number (TIN) is needed on this online form.
  • Pay the corresponding business registration fee. For convenience, you can opt to pay online via GCash.
  • Claim your Certificate of Business Name Registration. Once you complete the process, download your certificate for printing.

Registering your business corresponds with registration fees depending on the territorial scope of the business

  • Barangay – PHP 200
  • City/Municipality – PHP 500
  • Regional – PHP 1,000
  • National – PHP 2,000

Corporations and Partnerships

You can register your business through the Securities and Exchange Commission’s (SEC’s) Company Registration System (CRS). Create an account on CRS using a valid e-mail address and upload the necessary documents for SEC review and approval.

Registering your business under BIR

After registering your business with the DTI or the SEC, the next step is to register under the BIR.  Recently, BIR issued Revenue Memorandum Circular No. 57-2020 (RMC No. 57-2020) dated March 12, 2020 entitled, “Streamlining of Business Registration Requirements and Revised Checklist of Documentary Requirements.”

Under RMC No. 57-2020, Mayor’s Permit is no longer part of the mandatory requirements for BIR registration.

Sole proprietors and mixed-income individuals

You need to fill out BIR Form 1901 (version 2018) and submit the following documentary requirements:

  • Any identification issued by an authorized government body (e.g. Birth Certificate, passport, driver’s license, Community Tax Certificate) that shows the name, address and birthdate of the applicant;
  • Payment of P500.00 for Registration Fee and P30.00 for loose DST or Proof of Payment of Annual Registration Fee (ARF) (if with existing TIN or applicable after TIN issuance);
  • BIR Printed Receipts/Invoices or Final & clear sample of Principal Receipts/ Invoices;
Other documents needed only if applicable:
  • Special Power of Attorney (SPA) and ID of authorized person, in case of authorized representative who will transact with the Bureau;
  • DTI Certificate (if with business name);
  • Franchise Documents (e.g. Certificate of Public Convenience) (for Common Carrier);
  • Certificate of Authority, if Barangay Micro Business Enterprises (BMBE) registered entity;

Steps to registering business for sole proprietors and mixed-income individuals under BIR

  1. Accomplish BIR Form 1901 and submit the same together with the documentary requirements with the New Business Registrant Counter of the RDO having jurisdiction over the place where the head office and branch, respectively.
  2. Pay the Annual Registration Fee (P500.00), loose DST (P30.00) and/or payment for the BIR Printed Receipt/Invoice (if taxpayer opted to buy for use) at the New Business Registrant Counter in the BIR Office.
  3.  The RDO shall then issue the Certificate of Registration (Form 2303) together with the “Notice to Issue Receipt/Invoice”, Authority to Print, BIR Printed Receipts/Invoices (if applicable) and eReceipt as proof of payment.

Corporations or partnerships

You need to fill out BIR Form 1903 (version 2018) and submit the following documentary requirements:

  • Photocopy of SEC Certificate of Incorporation; or
  • Photocopy Certificate of Recording (in case of partnership); or
  • Photocopy of License to Do Business in the Philippines (in case of foreign corporation);
  • Articles of Incorporation or Articles of Partnerships;
  • Payment of P500.00 for Registration Fee and P30.00 for loose DST or Proof of Payment of Annual Registration Fee (ARF) (not applicable to those exempt from the imposition of ARF);
  • BIR Printed Receipts/Invoices or Final & clear sample of Principal Receipts/ Invoices;
Other documents needed only if applicable:
  • Board Resolution indicating the name of the authorized representative and Secretary’s Certificate, in case of an authorized representative who will transact with the Bureau;
  • Franchise Documents (e.g. Certificate of Public Convenience) (for Common Carrier);
  • Memorandum of Agreement (for JOINT VENTURE)
  • Franchise Agreement;
  • Certificate of Authority, if Barangay Micro Business Enterprises (BMBE) registered entity 

Steps to registering business for corporations or partnerships under BIR

  1. Accomplish BIR Form 1903 version 2018 and submit the same together with the documentary requirements with the New Business Registrant Counter of the RDO having jurisdiction over the place where the head office and branch, respectively.
  2. Pay the following at the New Business Registrant Counter in the BIR Office.
  • Annual Registration Fee (P500.00);
  • Documentary Stamp Tax (P30.00) (if applicable)
  • BIR Printed Receipt/Invoice (if opted to buy for use)
  1. The RDO shall then issue the Certificate of Registration (Form 2303) together with the “Notice to Issue Receipt/Invoice”, Authority to Print, BIR Printed Receipts/Invoices (if applicable) and eReceipt as proof of payment.

Registering your business activities will benefit your venture in the long run. This adds to your credibility and boosts your reputation as a business. And once you  registered your business, it’s one of the signs that you’re taking your business seriously and that you’re now heading to business growth.

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