After registering a business with the SEC (in case of a corporation or partnership) or DTI (in case of a sole proprietorship), and with the local government unit for a business permit, the next step is to register the business with the Bureau of Internal Revenue (BIR) for purposes of taxation.
In general, 3 transactions must be applied with the BIR, namely:
1. Application for Certificate of Registration (COR);
2. Application for Authority to Print Receipts & Invoices (ATP); and
3. Registration of Books of Accounts or Authority to Use Computerized Accounting System.
A. Application for Certificate of Registration.
What forms and documents to be filed?
1. BIR Form 1901 for Individuals;
2. BIR Form 1903 for Corporations and Partnerships;
3. BIR Form 0605 for annual registration;
4. DTI or SEC Certificate of Registration, whichever is applicable; and
5. Barangay Clearance & Business Permit.
What are the fees to be paid?
1. Annual registration fee.
2. Documentary stamp tax for the issuance of shares of stocks, in case of stock corporations.
3. Documentary stamp tax for the business space lease agreement, if applicable.
Important Reminder:
The BIR will issue a Certificate of Registration (BIR Form 2303), and Ask for Receipt Notice. Display these together with the BIR Form 0605 in a conspicuous place inside the business establishment.
B. Application for Authority to Print Receipts and Invoices:
What are the forms and documents to be filed?
1. BIR Form 1906;
2. Copy of BIR Certificate of Registration (BIR Form 2303); and
3. Copy of the current year's Registration Fee. (BIR Form 0605).
Once the ATP has been issued, it must be delivered to an accredited printer for printing of Official Receipts (for seller of services) and Invoice (for seller of goods).
C. Registration of Books of Accounts:
What are the types of books of accounts?
1. Manual books of accounts - these are available in local bookstores and office supplies stores, commonly referred to as journals, columnar, and ledgers.
2. Computerized books of accounts - this refers to a Computerized Accounting System (CAS).
3. Loose-leaf books of accounts - these are printed and bounded journals and ledgers generated using a computer program that is not considered as a CAS. An example of this is the use of MS-Excel.
What is the procedure for registration?
1. For manual books, request for BIR stamping of journal, columnar, and ledger purchased from a local bookstore or office supply store. Present a copy of BIR COR and BIR Form 0605 (Annual Fee).
2. For computerized books, apply for registration by submitting the following:
a. BIR Form 1900;
b. Technical description of the accounting system;
c. Copy of BIR COR (BIR Form 2303); and
d. Copy of Annual Registration Fee (BIR Form 0605).
3. For loose-leaf books, apply for registration by submitting the following:
a. BIR Form 1900;
b. Sample print-outs of journals & ledgers;
c. Copy of BIR COR (BIR Form 2303); and
d. Copy of Annual Registration Fee (BIR Form 0605).
At the end of the year, loose-leaf books must be bounded for BIR stamping.
You may email info@arinaslaw.com for assistance with business registration.
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