Business Registration Procedures and Practical Matters

REGISTRATION PROCEDURES
There are several possible routes in the registration procedures. You can either be registered to BIR as an
employee, a professional or sole proprietor, a business with juridical personality such as when you register
as a corporation or partnership, or when you only have one-time transactions or ONETT payments (donation,
estate).
In this module we will discuss BIR registration for employees, as well as an overview of the entire business
registration process for professionals, sole proprietors and businesses starting from DTI or SEC registration
up to BIR registration as well as basic compliance requirements. Please take note that a taxpayer can only
have one TIN. Securing more than one TIN is a criminal offense punishable by fine and imprisonment  under
the provision of Section 275 on “Violation of Other Provisions of this Code or Regulations in General”.

LGU DTI

Title IX of the National Internal Revenue Code discussed BIR compliance requirements, as amended. Chapter
II discusses the administrative provisions.
Every person, natural or juridical, subject to any internal revenue tax shall register once with the appropriate
Revenue District Officer. BIR registration is simpler for an employee than a sole proprietor or a corporation.
Section 236 prescribes that registration be made
(1) Within ten (10) days from date of employment, or
(2) On or before the commencement of business; or
(3) Before payment of any tax due, or
(4) Upon filing of a return, statement or declaration as required in this Code.
The registration shall contain the taxpayer's name, style, place of residence, business and such other
information as may be required by the Commissioner in the form prescribed therefor. Provided, That the
Commissioner shall simplify the requirements of self-employed individuals and/or professionals.
EMPLOYEE REGISTRATION
RMO 037-19 prescribes the amended policies, guidelines, and procedures on the registration of employees.
Employers shall secure the TIN of new employees or employees for initial registration (without existing TIN)
using the eRegistration (eREG) System within 10 days from the date of employment. Since it is the employer
who will register the employee, the employee will be registered under the employer’s RDO having jurisdiction
over the place of business where the employer’s head office or branch is located.
In the following cases after initial registration, the following process must be followed by the employee
earning purely compensation income:

Transfer/ Change PROCEDURE

Submit duly accomplished BIR Form 1905 to the old

RDO where the employee is registered to have it
Change in Employer
transferred to the RDO having jurisdiction over the
employee’s place of residence

Submit duly accomplished BIR Form 1905 to the old

Same employer but employee is transferred to RDO where the employee is registered to have it
another branch belonging to a different RDO transferred to the RDO having jurisdiction over the
employee’s place of residence

If employer’s old RDO is the same as the RDO of

Same employer but employer transferred to a
location belonging to a different RDO
the place of residence of the employee, no need to
carry the employee’s registration record by the
transferring employer.
If the employer’s old RDO, however, is different
from the RDO of the place of residence of the
employee, the employee registration record shall be
automatically carried by the said transferring-
employer to its new RDO. The transferring-
employer is responsible for the transfer of RDO and
shall request from its employees an accomplished
BIR Form 1905.

Professional and Sole Proprietors

Below is the simplified and general registration process for professional and sole
proprietors.
DTI Registration
You can refer to this for the DTI Registration discussion

https://www.youtube.com/watch?v=uH8Vgs4O17o&feature=youtu.be

LGU Registration
Requirements for registration of business on Barangay and City/ Municipality level may
vary depending on the ordinance in effect in such local government unit. The
requirements presented here are the general permitting requirements on the LGU level.
The reason why the DTI was discussed first is because the DTI registration certificate is
a requirement in securing the Mayor’s Permit. The first step is to secure a clearance
from the barangay where the business is located. To secure the clearance, most
barangay require the DTI Certificate, two valid IDs of the registered sole proprietor in
the DTI Certificate and proof of address (Contract of Lease, if rented, and Transfer
Certificate of Title, if owned). The business owner then goes to the Business Processing
and Licensing Office (BPLO) located in the City or Municipal Hall of the LGU where the
business is located.
Most LGUs have BOSS system every permitting season -which is the entire month of
January since the deadline for securing and paying of permit is every 20 th of January,
though some LGUs may extend it. BOSS stands for Business registration One Stop
Shop where required permits that is normally settled from different departments in the
City or Municipal Hall can be settled at once at the BOSS. These other permits required
for the issuance of the Mayor’s Permit are the Zoning Clearance, Sanitary Permit, Fire
Safety Inspection Certificate, and other special requirements depending on the type of
business. After completing the required forms and documents, the taxpayer must pay
the necessary fees to secure the Mayor’s Permit and Business License Plate. This
process is applicable for non-professional sole proprietors. For professionals, they must
secure Professional Tax Receipt (PTR) or Professional Permit from the Local
Government unit. You must bring your PRC license to do this.

BIR Registration
Prior to going to BIR, the taxpayer must prepare the following documents and forms:
 3 pcs. Form-1905 (Application for Registration Information Update)
 3 pcs. Form-0605 (Payment Form)
 Form-1906 (Application for Authority to Print Receipts and Invoices)
 3 pcs. Form-1901 (Application for Registration)
 2-columnar (manual books)
 Original Certificate of Employment
 Photocopy of Valid ID containing your address
The payment for registration amounts to Php500 and additional Php30 for the
Documentary Stamp Tax on the Certificate of Registration. The taxpayer should also
prepare additional money for payment of the printing of receipts and invoices.
The taxpayer should follow the process:

1. Pay registration fee at any accredited bank worth Php500 (Bring your form 0605)
2. Buy Two Columnar Books (manual books)
3. Proceed to Authorized Printer of BIR for the Official Receipts (Bring your form
1906)
4. Head back to BIR and Proceed to COR Counter
Submit the following:
Form -1901
Stamped received 0605
Stamped two-columnar
Form 1906
COE (for mixed income earner)/ DTI (sole proprietors) / PRC license (professionals)
Photocopy of two valid IDs
Upon submission, you will get the receiving copy of the 1901 as proof.
You should have the following documents issued by the BIR as proof of registration:
 Certificate of Registration (Form 2303) - Usually takes three days to a week
processing
 BIR Stamped Form 1901
 Notice to Issue Receipt/ Invoice
 0605 Proof of Payment of Php500 Reg Fee
 BIR Printed Receipts/ Invoice or Authority to Print
Keep these documents for compliance as discussed in the Retention Period for
Documents. The Certificate of Registration (COR BIR Form 2303) will show the name of
the taxpayer, TIN, RDO, line of business, and the tax types the taxpayer is subject to.
Depending on the tax types, the taxpayer must comply with the filing requirements.
Though securing the COR is a one-time endeavor, the taxpayer must still file BIR Form
0605 and pay the annual registration fee of Php500 on or before the last day of
January. The registration fee shall be paid to an authorized agent bank located within
the revenue district, or to the Revenue Collection Officer, or duly authorized Treasurer
of the city or municipality where each place of business or branch is registered.
Corporations including Partnerships and Cooperatives (whether Taxable or Not)
Below is the simplified and general registration process for corporations including
partnerships and cooperatives, whether taxable or not.

SEC Registration
For the SEC Registration procedures, refer to this
SEC Company Registration System - Securities and Exchange Commission
 
LGU Registration
The process of securing the Mayor’s Permit for corporations and partnerships is the
same for individual business owners except for the additional requirements specific to
corporations/ partnerships. Additional documents may include Articles of Incorporation,
SEC Registration Certificate, and other industry-specific documentary requirements.
 
BIR Registration
Prior to going to BIR, the taxpayer must prepare the following documents and forms:
 3 pcs. Form-1905 (Application for Registration Information Update)
 3 pcs. Form-0605 (Payment Form)
 Form-1906 (Application for Authority to Print Receipts and Invoices)
 3 pcs. Form-1903 (Application for Registration)
 3 pcs. Form-2000 (Documentary Stamp Tax)
 SEC Registration Certificate
 Mayor’s Permit
 
The payment for registration amounts to Php500 and additional for the Documentary
Stamp Tax on Subscription based on how much your capital is. The taxpayer should
also prepare additional money for payment of the printing of receipts and invoices.
Submit the documents to the officer of the day for assessment.
After the assessment, the taxpayer should follow the process:

1. Pay registration fee and other fees assessed at any accredited bank. Make sure to go to
the Authorized Agent Bank by the BIR within the jurisdiction of the RDO. Bring the
relevant forms for stamping in the bank:
1. BIR Form 0605
2. BIR Form 2000
2. After the payment has been made, submit all the documents to the COR counter
1. 3 pcs BIR Form 1903
2. Photocopy of Paid BIR FORM 0605 (Payment Form)
3. Photocopy of Paid BIR FORM 2000 (Documentary Stamp Tax on
Subscription)
4. Photocopy of Mayor’s Permit
5. Contract of Lease or Land Title/Tax Declaration
The Certificate of Registration is released in 3 days to a week.
 
 
 

3. Purchase Books of Accounts. Normally for VAT (Value Added Tax), there are six (6)
Books of Accounts while there are four (4) Books of Accounts for NON-VAT and these
are:

Non-
Kind of Books VAT
VAT

Journal ✓ ✓

Ledger ✓ ✓

Cash Receipt ✓ ✓

Cash Disbursement ✓ ✓

Subsidiary Sales
✓
Journal

Subsidiary Purchase
✓
Journal
 4. Register the Books of Accounts by submitting the following documents:
1. Accomplished BIR Form 1905
2. Books of Accounts
3. Submit BIR Form 1905 and Books of Accounts to the Registration
Section and wait for the release.
5. Apply for Authority to Print accountable forms
1. Accomplished BIR Form 1906
2. Photocopy of COR and paid Registration BIR 0605
6. Lastly, proceed to any BIR authorized printer and print your receipts (Official Receipts
and/or Invoices). This normally takes one to two weeks to be printed.
 
Keep these documents for compliance as discussed in the Retention Period for
Documents. The Certificate of Registration (COR BIR Form 2303) will show the name of
the taxpayer, TIN, RDO, line of business, and the tax types the taxpayer is subject to.
Depending on the tax types, the taxpayer must comply with the filing requirements.
Though securing the COR is a one-time endeavor, the taxpayer must still file BIR Form
0605 and pay the annual registration fee of Php500 on or before the last day of
January. The registration fee shall be paid to an authorized agent bank located within
the revenue district, or to the Revenue Collection Officer, or duly authorized Treasurer
of the city or municipality where each place of business or branch is registered.
A person maintaining a head office, branch or facility shall register with the Revenue
District Officer having jurisdiction over the head office, branch, or facility. For purposes
of this Section, the term 'facility' may include but not be limited to sales outlets, places of
production, warehouses, or storage places. If the business has 100 branches, one 0605
BIR Form must be filed, and annual registration fee must be paid for each of the 100
branches.
SEC. 241 of the Tax Code specifies that the certificate or receipts showing payment of
taxes issued to a person engaged in a business subject to an annual registration fee
shall be kept conspicuously exhibited in plain view in or at the place where the business
is conducted; and in case of a peddler or other persons not having a fixed place of
business, shall be kept in the possession of the holder thereof, subject to production
upon demand of any internal revenue officer.