How to Register a New Business with BIR (Form 1903)
All partnerships, corporations, cooperatives, associations, and other juridical entities doing business in the Philippines are required to register with the Bureau of Internal Revenue (BIR) using BIR Form 1903. This comprehensive guide walks you through the entire process of registering your business with BIR, including the documentary requirements, fees, step-by-step procedures, and the tax obligations that come after registration.
BIR Business Registration at a Glance
Estimated Cost
P500 Annual Registration Fee (ARF) plus P30 for Documentary Stamp Tax (DST) on the registration certificate, plus the cost of documentary stamps for books of accounts. Budget approximately P1,000 to P1,500 for all BIR registration-related fees.
Processing Time
3 to 5 working days from submission of complete requirements at the Revenue District Office (RDO). Actual processing time may vary depending on the RDO and the completeness of your documents.
Key Fact
BIR Form 1903 is the application form specifically for registration of partnerships, corporations, and other non-individual taxpayers. Individual sole proprietors use BIR Form 1901 instead. Registration must be done before the start of business operations.
Who Uses BIR Form 1903?
BIR Form 1903 (Application for Registration for Corporations, Partnerships, Including GAIs and LGUs) is used by the following types of entities registering with BIR for the first time:
Domestic Corporations
Stock and non-stock corporations incorporated and registered with the Securities and Exchange Commission (SEC) under the Revised Corporation Code of the Philippines.
Partnerships
General partnerships, limited partnerships, and professional partnerships registered with SEC that conduct business or professional activities in the Philippines.
Cooperatives
Agricultural, credit, consumer, marketing, and multi-purpose cooperatives registered with the Cooperative Development Authority (CDA).
Other Entities
Joint ventures, associations, branches of foreign corporations, representative offices, regional headquarters, and government-owned or controlled corporations (GOCCs).
Requirements for BIR Business Registration
Prepare the following documents before visiting the Revenue District Office (RDO). Having complete requirements will ensure a smooth and faster registration process.
| Document | Details |
|---|---|
| BIR Form 1903 | Application for Registration for Corporations/ Partnerships. Fill out completely with the corporation's name, TIN, registered address, business activity, and other required information. Available at the RDO or downloadable from the BIR website. |
| SEC Certificate of Registration | Certified true copy of the SEC Certificate of Incorporation or Registration. For cooperatives, present the CDA Certificate of Registration instead. This proves the legal existence of the entity. |
| Articles of Incorporation / Partnership | Certified true copy of the Articles of Incorporation (for corporations) or Articles of Partnership (for partnerships) as filed with SEC. This document establishes the purpose, structure, and authorized capital of the entity. |
| TIN of the Corporation/Partnership | The entity's Tax Identification Number, which is usually assigned by BIR upon or after SEC registration. If not yet assigned, the TIN will be issued during the BIR registration process. |
| Mayor's Permit / Business Permit | The business permit issued by the local government unit (LGU) where the principal office or place of business is located. If the mayor's permit is still being processed, a proof of application or official receipt of payment may be accepted. |
| Barangay Clearance | Clearance or certification from the barangay where the business is located, confirming that the business is operating or intends to operate in the area. This is typically required before the mayor's permit is issued. |
| Contract of Lease / Land Title | If the business premises is rented, submit a copy of the contract of lease. If the property is owned by the corporation or any of the incorporators, submit a copy of the Transfer Certificate of Title (TCT) or Tax Declaration. |
| P500 Annual Registration Fee | The Annual Registration Fee (ARF) of P500 must be paid every year on or before January 31. For new registrants, this is paid upon initial registration. Pay using BIR Form 0605 at any Authorized Agent Bank (AAB) within the RDO's jurisdiction. |
| Documentary Stamp Tax (P30) | P30 DST for the Certificate of Registration (BIR Form 2303). This is paid together with the ARF using BIR Form 0605. |
Step-by-Step: BIR Business Registration Process
Follow these eight steps to register your new corporation, partnership, or other juridical entity with the Bureau of Internal Revenue. Make sure you have completed your SEC or CDA registration and obtained your local permits before heading to the BIR.
Secure SEC or CDA Registration
Before registering with BIR, your entity must first be registered with the Securities and Exchange Commission (SEC) for corporations and partnerships, or with the Cooperative Development Authority (CDA) for cooperatives. Obtain your SEC Certificate of Registration, Articles of Incorporation or Partnership, and By-Laws. SEC may also assign a TIN to the entity during this process through the Philippine Business Registry (PBR).
Tip: If you registered through the SEC Company Registration System (CRS) or the Philippine Business Hub, your TIN may have already been issued automatically. Check your SEC registration documents for the assigned TIN before visiting the BIR.
Get Barangay Clearance and Mayor's Permit
Go to the barangay hall where your principal office or place of business is located and secure a Barangay Clearance. Then proceed to the city or municipal hall to apply for the Mayor's Permit (Business Permit). These local permits are required before BIR registration and must be renewed annually.
Important: The barangay clearance and mayor's permit must reflect the exact business name and address that you will register with BIR. Any discrepancy may cause delays in your BIR registration.
Go to the RDO Where the Principal Office Is Located
Visit the Revenue District Office (RDO) that has jurisdiction over the city or municipality where your principal office or place of business is located. This is the RDO where you will file your tax returns and conduct all BIR transactions. Bring all your documents and proceed to the New Business Registrant section or the Registration area.
Tip: You can find the correct RDO by visiting the BIR website and checking the list of Revenue District Offices with their jurisdictions, or by calling the BIR Contact Center at (02) 8538-3200.
Submit BIR Form 1903 with Complete Requirements
Present the duly accomplished BIR Form 1903 along with all the required documents to the RDO's registration officer. The officer will review your application and documents for completeness. Make sure you have both original and photocopies of all documents, as the RDO may need to verify originals and keep the photocopies on file.
Checklist: BIR Form 1903, SEC/CDA Certificate, Articles of Incorporation/Partnership, Mayor's Permit, Barangay Clearance, Contract of Lease or Land Title, and valid ID of the authorized representative filing the application (with Secretary's Certificate or Board Resolution authorizing the representative).
Pay the Registration Fees
Pay the following fees at the Authorized Agent Bank (AAB) within the RDO's jurisdiction using BIR Form 0605 (Payment Form):
- P500 -- Annual Registration Fee (ARF)
- P30 -- Documentary Stamp Tax (DST) for the Certificate of Registration
After payment, return to the RDO and present the validated BIR Form 0605 (bank-stamped) as proof of payment. If there is no AAB within the RDO premises, the RDO officer will direct you to the nearest authorized bank.
Receive Your Certificate of Registration (Form 2303)
Once your application is processed and approved, the BIR will issue your Certificate of Registration (COR), also known as BIR Form 2303. This document confirms your registration with BIR and lists the taxes you are required to file, your tax type, and your filing deadlines.
Important: The COR (Form 2303) must be displayed prominently at your principal place of business at all times. Failure to display the COR is a violation that may result in penalties. Keep a photocopy for your records.
Register Your Books of Accounts
After receiving your COR, you must register your books of accounts with the BIR before using them. You can use either manual books (bound journals and ledgers) or computerized books (with prior approval through a BIR permit). The required books typically include: Journal, Ledger, Cash Receipt Book, and Cash Disbursement Book.
Note: Each book must be stamped and registered by the BIR. There is a documentary stamp tax of P30 per book. Computerized Accounting System (CAS) users must secure a separate BIR permit by filing a letter of notification with the RDO.
Apply for Authority to Print (ATP) Official Receipts and Invoices
The final step is to apply for an Authority to Print (ATP) your official receipts, sales invoices, and other commercial documents. File BIR Form 1906 at your RDO and, once approved, have your receipts and invoices printed by a BIR-accredited printer. You cannot issue official receipts or invoices without a valid ATP.
Tip: Your business is now fully registered with BIR once you have your COR, registered books of accounts, and printed official receipts/ invoices. Make sure to comply with all filing deadlines indicated on your COR to avoid penalties.
Tax Obligations After Registration
Once your business is registered with BIR, you are required to comply with the following tax obligations. These are specified on your Certificate of Registration (Form 2303).
Corporate Income Tax
Domestic corporations are subject to Regular Corporate Income Tax (RCIT) of 25% on taxable income (or 20% for domestic corporations with net taxable income not exceeding P5 million and total assets not exceeding P100 million). Minimum Corporate Income Tax (MCIT) of 1% on gross income applies beginning the 4th taxable year. File quarterly and annually.
VAT or Percentage Tax
If gross annual sales or receipts exceed P3 million, the business must register as a VAT taxpayer and charge 12% VAT on sales. If below the threshold, the business may opt to be a non-VAT taxpayer and pay 3% Percentage Tax instead. File VAT returns quarterly (BIR Form 2550Q) and Percentage Tax monthly (BIR Form 2551Q).
Withholding Taxes
As an employer or payor, you are required to withhold taxes on compensation paid to employees (Withholding Tax on Compensation), and on certain income payments to suppliers and contractors (Expanded Withholding Tax or EWT). File monthly (BIR Form 1601-C for compensation, 0619-E for EWT) and annually (BIR Form 1604-C).
Quarterly and Annual Filing
File Quarterly Income Tax Returns (BIR Form 1702Q) every quarter and the Annual Income Tax Return (BIR Form 1702) on or before the 15th day of the 4th month following the close of the taxable year. Attach Audited Financial Statements (AFS) if gross annual sales exceed the threshold set by the BIR.
Complete Example: ABC Trading Corp Registers with BIR
ABC Trading Corporation is a newly incorporated domestic corporation engaged in the wholesale and retail sale of general merchandise. The incorporators have completed their SEC registration and are now ready to register with BIR. Here is how they completed the process:
SEC Registration Completed
ABC Trading Corp registered with SEC through the Company Registration System and received their SEC Certificate of Registration, Articles of Incorporation, and By-Laws. SEC also assigned a TIN to the corporation during the registration process. The authorized capital stock is P1 million with P250,000 subscribed and P62,500 paid up.
Secured Local Permits
The company secured a Barangay Clearance from Barangay Poblacion, Makati City (P500) and applied for a Mayor's Permit at the Makati City Hall (approximately P5,000 to P15,000 depending on capitalization). They also signed a 2-year lease contract for their office space in Makati and prepared a photocopy for BIR submission.
Visited the RDO and Filed Form 1903
The company treasurer, authorized by a Board Resolution, went to RDO No. 47 (South Makati) and submitted BIR Form 1903 along with all the required documents. The registration officer reviewed the documents and confirmed everything was complete. The treasurer then went to the Authorized Agent Bank (AAB) inside the RDO and paid the P500 ARF + P30 DST = P530 using BIR Form 0605.
Received COR and Registered Books
After 3 working days, the RDO released ABC Trading Corp's Certificate of Registration (BIR Form 2303). The COR listed the taxes the company must file: Income Tax, VAT (since projected sales exceed P3 million), Withholding Tax on Compensation, and Expanded Withholding Tax. The company purchased 4 manual books of accounts (Journal, Ledger, Cash Receipt Book, Cash Disbursement Book) and had them registered and stamped at the RDO, paying P30 DST per book (P120 total).
Applied for ATP and Printed Receipts
ABC Trading Corp filed BIR Form 1906 (Application for Authority to Print) at the RDO for their official receipts, sales invoices, and delivery receipts. After approval (2 working days), they brought the ATP to a BIR-accredited printing press and had 10 booklets of official receipts and 10 booklets of sales invoices printed. The company was now fully registered and ready to start business operations.
Cost Summary for ABC Trading Corp's BIR Registration
This excludes SEC registration fees, barangay clearance, and mayor's permit costs, which are separate from the BIR registration. Total timeline from SEC registration to full BIR registration: approximately 3 to 4 weeks.
Frequently Asked Questions
What is the difference between BIR Form 1901 and BIR Form 1903?
BIR Form 1901 is used by self-employed individuals, single proprietors, estates, and trusts for registration. BIR Form 1903 is used by corporations, partnerships, cooperatives, associations, joint ventures, and other juridical entities (non-individual taxpayers). If you are registering a sole proprietorship under your own name or DTI-registered trade name, use Form 1901. If you incorporated a company through SEC, use Form 1903.
When should I register with BIR after SEC registration?
You must register with BIR within 30 days from the date of incorporation as indicated in your SEC Certificate of Registration or before the start of business operations, whichever comes first. Failure to register on time may result in penalties and surcharges. It is best practice to complete your BIR registration as soon as you receive your SEC certificate.
Can I register my business with BIR online?
BIR has introduced the Online Registration and Update System (ORUS) that allows new businesses to register online through the BIR website. However, the online system may not yet cover all types of registrations, and you may still need to visit the RDO to submit original documents and complete the process. Check the BIR website (www.bir.gov.ph) for the latest updates on online registration availability.
What happens if I do not register my business with BIR?
Operating a business without BIR registration is a violation of the National Internal Revenue Code (NIRC). Penalties include a fine of not less than P5,000 but not more than P20,000 and imprisonment of not less than 6 months but not more than 2 years. Additionally, you will not be able to issue valid official receipts or invoices, which can affect your business transactions and deductibility of expenses for your clients.
Do I need to register each branch separately with BIR?
Yes. Each branch, facility, or place of business must be registered separately with the BIR. You must file a separate BIR Form 1903 for each branch and register with the RDO that has jurisdiction over the branch location. Each branch will receive its own COR (Form 2303) and must pay the P500 Annual Registration Fee separately. The branch must also have its own set of registered books of accounts and ATP.
What is the Annual Registration Fee and when is it due?
The Annual Registration Fee (ARF) is P500 per year per business establishment. For new registrants, it is paid upon initial registration. For subsequent years, the ARF must be paid on or before January 31 of each year using BIR Form 0605. Failure to pay the ARF on time results in a penalty of 25% surcharge plus 12% interest per annum on the unpaid amount.
What is BIR Form 2303 and why is it important?
BIR Form 2303 is the Certificate of Registration (COR) issued by BIR to every registered taxpayer. It contains your TIN, registered name, business address, tax types you are required to file, and your filing deadlines. The COR must be displayed prominently at your principal place of business. It serves as proof that your business is registered with BIR and is essential for applying for ATP, registering books of accounts, and conducting other BIR transactions.
Can a cooperative register with BIR using Form 1903?
Yes. Cooperatives registered with the Cooperative Development Authority (CDA) use BIR Form 1903 for their BIR registration. Instead of the SEC Certificate of Registration, cooperatives submit their CDA Certificate of Registration and Articles of Cooperation. Qualified cooperatives may enjoy tax exemptions under Republic Act No. 9520 (Philippine Cooperative Code of 2008) and the NIRC, but they still need to register with BIR to avail of these exemptions and to comply with reporting requirements.
Important Reminders
- Register within 30 days of incorporation: Do not delay your BIR registration after receiving your SEC or CDA certificate. Late registration may result in penalties and could affect your ability to start business operations on time.
- Display your COR (Form 2303) at all times: The Certificate of Registration must be displayed conspicuously at the main entrance or a visible area of your principal place of business. Non-display is punishable by a fine of P1,000 for the first offense.
- Pay the Annual Registration Fee every January: The P500 ARF is due on or before January 31 of each year. Set a reminder so you do not miss this deadline and incur penalties.
- Do not issue receipts without ATP: Issuing official receipts or sales invoices without a valid Authority to Print (ATP) is a BIR violation. Always complete the ATP process before issuing any commercial documents.
- File and pay taxes on time: Check your COR for the specific taxes you are required to file and their deadlines. Late filing and payment result in 25% surcharge, 12% interest per annum, and compromise penalties. Use the BIR eFPS (Electronic Filing and Payment System) or eBIRForms for convenient filing.
- Keep proper records and books of accounts: All registered books of accounts must be kept and updated for at least 10 years from the last entry date, as required by the NIRC. BIR may audit your books at any time within the prescriptive period.
- Register branches separately: If your business opens branches or additional places of business, each one must be registered with the RDO where it is located. Each branch needs its own COR, books of accounts, and ATP.
- Update BIR when business information changes: If your business changes its name, address, business activity, or any information on the COR, you must update your registration with BIR using the appropriate form (BIR Form 1905) within 30 days of the change.
Need Help?
Contact BIR
- BIR Contact Center: (02) 8538-3200
- BIR Trunkline: (02) 8929-7676
- Email: contact_us@bir.gov.ph
- Website: www.bir.gov.ph
- BIR eServices: bir.gov.ph/e-services
- Office Hours: Monday to Friday, 8:00 AM to 5:00 PM
Disclaimer
This guide is provided for general informational purposes only. The requirements, steps, fees, and procedures mentioned here may vary depending on the BIR you visit. We recommend visiting your nearest BIR first to confirm the specific requirements and process before preparing your documents.