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Frequently Asked Questions (FAQS)

On How to Register your Business


Prepared by:

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FAQs
1. What is a Sole Proprietorship?
A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type
of business entity that is owned and run by one natural person and in which there is no legal
distinction between the owner and the business. The owner is in direct control of all elements and
is legally accountable for the finances of such business and this may include debts, loans, loss
etc. (en.wikipedia.org.)
2. What is a corporation?
According to Corporation Code (B.P. 68), A corporation is an artificial being created by
operation of law, having the right of succession and the powers, attributes and properties
expressly authorized by law or incident to its existence.
3. What is partnership?
By the contract of partnership two or more persons bind themselves to contribute money,
property or industry to a common fund, with the intention of dividing the profits among
themselves (Article 1767 of the New Civil Code).Two or more persons may also form a
partnership for the exercise of a profession.
4. What is a cooperative?
A co-operative (also known as co-op, cooperative or coop) is an autonomous association
of people united voluntarily to meet their common economic, social, and cultural needs and
aspirations through a jointly owned and democratically controlled business (en.wikipedia.org.).
5. What is the main difference between a corporation, partnership, cooperative and a sole
proprietorship when it comes to registration?
The main difference is the government agencies regulating the entity. Depending on the
structure of your business, your first step is to get a certificate of registration for your business
name in one of these agencies:

Department of Trade and Industry (DTI) for single proprietorship

Securities and Exchange Commission (SEC) for partnerships or corporations

Cooperative Development Authority (CDA) for cooperatives

6. If your business is a sole proprietorship, what are the steps in registering your business?
1. Register your Business with the DTI and obtain a Business Name Registration
Certificate1
2. Obtain Barangay/municipality/regional clearance from the concerned local government
where you will set up your office
3. Go to the mayors office in order to secure a business permit in the municipal level
4. Go to the Bureau of Internal Revenue (BIR) district office where your business will be
located
5. Obtain a Tax Identification Number (TIN)
6. Fill out an application form for Certificate of Authority to Print Receipts and Invoices
7. Have your Book of Accounts, Receipts and Invoices stamped by the BIR
8. Apply as a self-employed member of the Social Security System (compulsory for
business owners in the Philippines)2
7. What are the government agencies involved when you are planning to set up your
business?

DTI
SEC
Barangay
City/Municipality
BIR
SSS

8. What is DTI?
The Philippine Department of Trade and Industry (Filipino: Kagawaran ng Kalakalan
at Industriya, abbreviated as DTI) is the executive department of the Philippine
Government tasked to expand Philippine trade, industries and investments as the means to
generate jobs and raise incomes for Filipinos. It acts as catalyst for intensified private sector
activity in order to accelerate and sustain economic growth through comprehensive industrial
growth strategy, progressive and socially responsible trade liberalization and deregulation
1 www.dti.gov.ph
2 www.sss.gov.ph

programs and policymaking designed for the expansion and diversification of Philippine trade both domestic and foreign (en.wikipedia.org.).

9.What is SEC?
The Securities and Exchange Commission (Filipino: Komisyon sa mga Panagot at
Palitan, commonly known as SEC) is the agency of the Government of the
Philippines responsible for regulating the securities industry in the Philippines. In addition to its
regulatory functions, the SEC also maintains the country's company register (en.wikipedia.org.).
10.What are the guidelines in choosing a business name?3
1.Choose a business name
2.Search for a business name
3. Register your business name
4.Submit Documentary Requirements
5. Pay your Application
11. How do you choose your business name?

Think of at least three business names in case your first preference cannot be registered
If the name you have chosen is already similar or confusingly similar to a registered
business name, your next preferred business name will be considered4

12. What is an acceptable business name?


The following factors shall be considered:5

The root word or words of the name shall be considered (e.g. island instead of
Islander)
The business name should describe the nature of the business
It should be comprised of any or all of the following:
o Letters

3 http://www.bnrs.dti.gov.ph/web/guest/faqsfiling
4 www.gov.ph
5 www.gov.ph

o Numerals
o And punctuation marks that are part of the English and Filipino Language
13. What is not an acceptable business name?
Names which are not acceptable:6

Those which are or whose nature of business is illegal, offensive,


scandalous, or contrary to propriety.

Those which are identical or nearly resemble business names


already registered with the Department of Trade and Industry, the
Securities and Exchange Commission (SEC), Cooperative
Development Agency (CDA), Department of Labor and
Employment (DOLE) or any other government office authorized by
law to register names, because these are likely to cause confusion or
mistake in the minds of the public and prejudice the interest of the
owner of the registered business name or firm name taking into
consideration the following:

nature of the business

product/service handled

spelling, sound and meaning

use of dominant/descriptive words and

such other factors as maybe determined by the BTRCP Director


Names composed purely of generic words;
Name which by law or regulation cannot be appropriated;
Names, words, terms, or expressions used to designate or distinguish, or suggestive of
quality of any class of goods, articles, merchandise, or service;
Names or styles used by the government in its governmental functions;
The names or abbreviation of names, of any nation, inter-governmental or international
organization unless authorized by the competent authority of that nation, intergovernmental or international organizations;
Names which are deceptive, misleading or which misrepresent the nature of the
business;
Such other names which in the opinion of the Director are undesirable or analogous to
the above.

6 http://www.bnrs.dti.gov.ph/web/guest/faqsfiling

14.How do you search for a business name?


An online search facility is provided in the WEBNRS for you to find registered business
names in the Philippines. The search facility should not be used to determine the availability of a
business name for registration.7 This can only be determined at the time of lodgment of an
application to register a business name.
There are two search criteria available for the public, namely Begins With and Contains. You can
conduct a search by typing the exact business name or a few words contained in a business name.
It would be best to enter the name you have chosen in the space provided exactly as you would
like it to be registered.8
15.How do I complete the application?
Complete BTRCP Form No. 16. Information marked with an asterisk (*) is a required field to be
filled out. Otherwise you will receive an error message prompting you to fill them before the
succeeding page is displayed.9
16. What are the documentary requirements in the application form?
The list of documentary requirements to be submitted to the proper DTI office where your
business is located in indicated in the Transaction Reference Number (TRN) Acknowledgement
found in the last page of the online application form. The TRN Acknowledgement should be
signed and submitted to DTI also.10
17. How do I pay the Application Form?
Payment of application fee can be made at the DTI office indicated in your Transaction
Reference Number acknowledgement form.11
You have the option to pay through G-Cash (to avail of G-Cash Services, you have to register
with Globe)
Business hours are Monday to Friday, 8:00 am to 5:00 pm.
7 www.gov.ph
8 http://www.bnrs.dti.gov.ph/web/guest/faqsfiling
9 www.dti.gov.ph
10 www.dti.gov.ph
11 www.dti.gov.ph

18. What are the requirements in securing a business name in DTI?


A. For Single Proprietorship12
Requirements
i. Must be a Filipino Citizen
ii. Filipinos whose names are suggestive of alien nationality must submit
proof of citizenship such as birth certificate, PRC ID, voters ID, passport
iii.
If the applicant has a foreign sounding name, acquired Filipino citizenship
by naturalization, election, or by other means provided by law, he must
submit proof of his Filipino citizenship such as:
Naturalization certificate and Oath of Allegiance,
Affidavit of election or ID card issued by the Bureau of
Immigration and Deportation, or
Valid ID card issued by the Integrated Bar of the Philippines (IBP)
or Professional Regulatory Commission (PRC)
Processing Fee of P 150.00 + P 15.00 Documentary Stamp
B. For Foreign Investor (Single Proprietorship)13
Requirements
i. Photocopy of Alien Certificate of Registration (ACR) updated the current
year. Present original for comparison.
ii. Accomplished DTI form No. 17 R.A. 7042.
iii. Current written appointment of Filipino Resident Agent.
iv. Clearance from other involved agencies such as Department of Science
and Technology (DOST)
v. In case of alien retailer, current years permit to engage in retail business
per R.A. 1180.
C. For Special Documentary Requirements14
Requirements
i. Copy of Certificate of Business Name Registration of the main office/
establishment
ii. Bulk Sales Certificate, if the business name was obtained pursuant to Act
No. 3952 as amended (The Bulk Sales Law) and Affidavit executed by the
transferee-applicant

12 www.dti.gov.ph
13 www.dti.gov.ph
14 www.dti.gov.ph

iii. DTI Accreditation Certificate for applicants engaged in repair service


covered by and pursuant to Presidential Decree No. 1572 and its
Implementing Rules and Regulations
iv. DTI Accreditation Certificate for applicants engaged in importation,
manufacture, sale or servicing of the fire extinguisher, supplies and
equipment pursuant to Presidential Decree 721 and its Implementing
Rules and Regulations, as amended
v. DTI Bonded Warehouse License for applicants engaged in the business of
warehouse as defined under Act 2728 (Law on Brokerage Business)
vi. Consent agreement, or equivalent contract if a business is covered by a
Franchise or similar agreement
vii. Affidavit executed by all compulsory heirs authorizing a representative to
renew a business name under the name of the deceased registrant solely
for the purpose of winding up the business operation
viii. Deed of Sale, Assignment or Transfer, as the case may be, and a notarized
written waiver from further use of the same business name, in cases
contemplated
ix. Affidavit executed by the applicant declaring his/her relationship with the
deceased registrant within the second degree of consanguinity or affinity
and a notarized consent and waiver executed by all the compulsory heirs
or other legal heirs, in the absence of compulsory heirs
x. Affidavit executed by the registrant declaring that the purpose of
registration is to perpetuate the memory of the deceased in his/her
expertise or interest and a notarized consent and waiver executed by all the
compulsory heirs or other legal heirs, in the absence of compulsory heirs
xi. Such other documents required in this Order, those as may be required in
subsequent laws and regulations and those which in the opinion of the
Director are necessary to protect the interest of the government and the
public
19. What happens after submitting my application?
The registrant should comply with all the necessary requirements for registration within
fifteen (15) workings days for the application to be processed. Otherwise, the application shall
be considered abandoned.
If the proposed names can no longer be registered, or when a document is rejected, the
applicant shall be informed to resubmit proposed names or the required documents, as the case
may be, within the fifteen (15) working days from notification.
Failure to resubmit the same within the prescribed period shall be deemed abandonment
of the application and the corresponding fee or fees paid shall not be refunded.
20. What is the next step after completing the requirements in DTI?

Obtain Brgy. Clearance.


21.Why is there a need for Brgy. Clearance?
This document certifies that the person is a good resident in a barangay and has a good
moral character. It also signifies that the applicant does not have any negative record15
22. What are the requirements in securing a Brgy. Clearance?
Requirements:
Business Name Registration Certificate
Two Valid IDs
Proof of Address of business location (Note: If you will be operating from home, your
home address will suffice)
23. What are the steps in Brgy. Hall?
Steps:
Here are the steps of the application procedure:16
1.

Go to your places Barangay Hall. Inform the officer that you are applying for a Barangay
Clearance.

2.

State the reason why you need a Barangay Clearance (ID requirement, employment,
Postal ID, etc.).

3.

Present your Cedula. You can also get this from the Barangay.

4.

Pay the application and processing fees.

5.

Wait for your Barangay Clearance to be released.

24. Can we get the the brgy. Clearance within a day?


Yes.

15 aq.ph/how-to-get-a-barangay-clearance-in-the-philippines/
16 aq.ph/how-to-get-a-barangay-clearance-in-the-philippines/

25.What is the next step after obtaining a Brgy. Clearance?


Secure a business permit in the municipal level.17
26. What is a business permit?
Business permits regulate safety, structure and appearance of the business community. They act
as proof that your business follows certain laws and ordinances. Requirements vary by
jurisdiction, and failure to comply often results in fines or even having your business shut down.
Research the permits you need before you start any work, set-up or property purchase. That way,
you can make sure compliance is in order and avoid the additional expenses and delays of fixing
things later.18
27. What are the requirements in securing a business permit?
REQUIREMENTS FOR SECURING BUSINESS PERMITS

New Applicant19

1. Barangay Clearance
2. DTI/SEC Registration
3. SSS Clearance
4. Two valid IDs
4. Homeowners Clearance for Business (if operating in subdivision)
5. Locational Clearance (if required)
6. Fire Clearance (if required)
17 RR 7-2012
18 http://smallbusiness.chron.com/
19 http://generaltrias.gov.ph/business-and-investment/requirements-for-businesspermit/

7. Building Permit (if required)


8. Certificate of Occupancy (if required)
9. Environmental Clearance (if required)
28. What if renewal of business permits?
For Renewal20

1. Barangay Clearance for Business


2. DTI/SEC Registration
3. SSS Clearance
4. Homeowners Clearance for Business (if operating in subdivision)
5. Locational Clearance (if required)
6. Fire Clearance (if required)
7. Building Permit (if required)
8. Certificate of Occupancy (if required)
9. Environmental Clearance (if required)
10. Statement of Gross Income/Financial Statement
11. Previous Mayors Permit
12. Latest Payment Receipts
29. What are the steps and procedures in applying for business permits?
STEPS IN APPLYING FOR A BUSINESS PERMIT21

Step 1 : Business Permit and Licensing Office


Secure and Fill-up the Application Form.
Step 2 : Municipal Environment and Natural Resources Office
20 http://generaltrias.gov.ph/business-and-investment/requirements-for-businesspermit/
21 http://generaltrias.gov.ph/business-and-investment/requirements-for-business-permit/

Secure an Environmental Clearance Certificate (if required)


Step 3 : Fire Department (Community Service Center Building)
Secure a Fire Safety Clearance Certificate.
(Inspection of the business premises may be required)
Step 4 : Rural Health Unit (Community Service Center Building)
Secure a Sanitary Permit.
(Inspection of the business premises may be required)
Step 5 : Bureau of Internal Revenue
Responsible Officer / Staff affix his/her signature in the application form and explain
BIR procedures.
Step 6 : Municipal Planning and Development Council
Secure a Location Clearance if required.
Step 7 : Engineering Office
Secure a Building Permit / Certificate of Occupancy if required.
Step 8 : Business permit and Licensing Office
Assessment of business taxes and fees of the Business Permit and explanation of
the permitsconditions, regulations, and ordinances pertaining to the operation of
the business.
The Licensing Office then endorses the permit.
Step 9 : Municipal Treasurers Office
Payment of the necessary taxes and fees.
Step 10 : Office of the Municipal Mayor
The Municipal Mayor or his duly authorized representative approves and signs the
Business Permit.
The permit is released to the client.

30.What is the next step after securing a business permit?


Get a Tax Identification Number (TIN)22 from the Bureau of Internal Revenue (BIR)
31. What is Primary Registration?
Primary Registration - the process by which a person, whether an individual, including
estates and trusts, or a corporation and other juridical entities, upon application and full
compliance with the registration requirements prescribed in these Regulations, is registered with
and consequently included in the registration database of the Bureau of Internal Revenue (BIR).
(RR 7-2012)
32.What is secondary registration?
Secondary Registration shall pertain to subsequent registration activities after the
issuance of BIR Certificate of Registration (COR) relative to the printing and issuance of official
receipts/sales invoices; keeping/registering of books of accounts and other accounting records;

22 RR 7-2012

applying for certain accreditation requirements and securing other applicable registration-related
permits (RR 7-2012)
33. What is Tax Identification Number?
Taxpayer Identification Number (TIN) - shall pertain to the system-generated reference
index number issued and assigned by the BIR to each and every person registered in its database.
In all of the business and/or personal transactions of the registered person whether these are with
government offices or otherwise, this reference index number is required to be indicated.
The TIN comprises of a 9 to 13 digit numeric code where the first 9 digits is the TIN proper and
the last 4 digits is the branch code. The branch code digits may be increased depending on future
systems enhancements and policy declarations of the Commissioner of Internal Revenue (CIR).
(RR 7-2012)
34. What is the legal basis of TIN?
Any person, whether natural or juridical,, required under the authority of the Internal Revenue
Code to make, render or file a return, statement or other documents, shall be supplied with or
assigned a Taxpayer Identification Number (TIN) to be indicated in the return, statement or
document to be filed within the Bureau of Internal Revenue, for his proper identification
purposes (Sec. 236 (i) of the Tax Code)
35. What are the primary requirements in the BIR?
Requirements23
Business Name Registration Certificate
Mayors Permit
Brgy. Clearance
Proof of your business Address (e.g. lease/ rental agreement, land title)
Book of Accounts, to be stamped by the BIR (which can be purchase in office
supplies stores)
Receipts and Invoices from BIR accredited print shops, to be stamped by BIR

36.How can I get a TIN?


Go to BIR district where your business can be located. Ask for assistance. You can get your TIN
within a day.
If you are Self Employed, Mixed Income Individuals, Estates/ Trusts, Fill up BIR form 1901,
23 www.gov.ph

BIR Form 1902- For Individuals Earning Purely Compensation Income, and Non- Resident
Citizens and Resident Alien Employee.
BIR Form 1903-For corporations/ Partnerships (Taxable and Non Taxable) Including
Government Agency Institutions (GAIs) and Local Government Units (LGUs)
BIR Form 1904-For One Time Taxpayer and Person registering under E.O. 98 (Securing a TIN
to be able to transact with any government office)
37. What are the documentary requirements in BIR form 1901?
A.1. For Single Proprietor, mixed income Individuals24
1. Birth Certificate or any document showing name, address and birth date of the applicant
2. Mayors Permit-if applicable to be submitted prior to the issuance of Certificate of
Registration
3. Other documents for submission only if applicable:

Contract of lease
DTI certificate of Registration Business Name, if business trade name
shall be used
Certificate of authority if Barangay Micro Business Enterprises (BMBE)
registered entity
Proof of Registration/ Permit to operate with Board of Investment (BOI/
Board of Investment for Autonomous Region for Muslim Mindanao (BOIARMM), Philippine Export Zone Authority (PEZA), Bases Conversion
Development Authority (BCDA) and Subic Bay Metropolitan Authority
(SBMA)
Sworn Statement of Capital
Waiver of Husband to claim additional exemption;
Marriage contract; and
NSO Birth Certificate of declared dependents

B.For Trust- trust Agreement


C. For Estate- Death certificate of the Deceased
38.Is it required that the documents are original?
No. Photocopy only25 but bring with you the original for verification purposes.

24 BIR form 1901

39. What are the procedures in Application for BIR Form 1901?
1. Accomplish BIR form 1901 and submit the same together with the documentary requirements
to the RDO having jurisdiction over the place where the head office and branch, respectively.26
2. Pay the annual Registration Fee (P 500) at the Authorized Agent Banks (AABs) of the
concerned RDO
3. Pay Documentary Stamp Tax (DST) loose DST/ BIR form 2000* for DST on Contract
of lease, etc.) Present Proofs of payment.
4. Submit requirements for ATP and registration of books of accounts.
5. Attend the taxpayers initial briefing to be conducted by the RDO concerned for new
registrants in order to apprise them of their rights and duties/ responsibilities
6. The RDO shall then issue the Certificate of Registration (Form 2303) together with the
Ask for Receipt Notice, Authority to print and Books of Accounts27
40. When is the deadline of submission of BIR Form 1901?
All individuals engaged in trade or business shall accomplish and file the application on
or before the commencement of business, it shall be reckoned from the day when the first sale
transaction occurred or within (30) calendar days from the issuance of Mayors
permit/professional Tax Receipt (PTR) by the LGU, whichever comes earlier.28
41. What are the procedures in Application for TIN of an estate under judicial settlement?29
1. Accomplish BIR form 1901 and submit the same together with the documentary
requirements to the RDO having jurisdiction over address of the estate.

25 BIR form 1901


26 RR 7-2012
27 RR 7-2012
28 RR 7-2012
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2. Pay the annual Registration Fee (P 500) at the Authorized Agent Banks (AABs) of the
RDO
42. When is the Deadline for registration of an Application of TIN of an estate?
Application for registration shall be accomplished and filed before filing a return, statement or
declaration as required in the Tax Code and payment of any tax due.30
43. What are the procedures in Application for TIN in Trust Agreement?
1. Accomplish BIR form 1901 and submit the same together with the documentary
requirements to the RDO having jurisdiction over address of the estate.31
2. Pay the annual Registration Fee (P 500) at the Authorized Agent Banks (AABs) of the
RDO
44. When is the Deadline for registration of Application for TIN in Trust Agreement?
Application for registration shall be accomplished and filed before filing a return, statement or
declaration as required in the Tax Code and payment of any tax due.
45. What are the documentary requirements in BIR form 1902 of an Individual earning
purely compensation income
1. NSO birth certificate of the applicant; or
2. Passport (in case of non-resident alien not engaged in trade or business)
3. Waiver of husband on his right to claim additional exemptions, if wife will claim;
4. Marriage contract if applicable
If the husband want to reacquire from his wife the privilege of claiming the additional
exemptions for the dependent children, he shall execute a cancellation of the previously-executed
waiver of the privilege to claim additional exemptions in favor of the wife, which Notice of
Cancellation of Waiver of the privilege of claiming the Additional Exemptions shall be filed
separately, together with the registration update form, with the RDOs having jurisdiction over
the registration o the husband and of the wife.32

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5.NSO Certified Birth Certificate of declared dependents if any:


46. What are the procedures for Application of BIR Form 1902 (Individual earning purely
compensation income)?
1. Accomplish BIR form 1902 and submit the same together with the documentary requirements
to the employer33
2. The employers shall accomplish the applicable sections of the application form
3. Submit BIR form 1902 to the Revenue district Office (RDO) having jurisdiction over
the place of office of the employer where such employee is expected to report for work
47. When is the deadline for Application of BIR Form 1902 (Individual earning purely
compensation income?)
New employees shall accomplish and file the application within (10) days from the date
of the employment34
48. What are the documentary requirements of Non-Resident citizen?
Passport with Visa of the applicant35
49. What are the procedures in Application of BIR Form 1902 (Non-Resident citizen)?
Accomplish BIR form 1902 and submit the same together with the required attachments RDO
having jurisdiction over the place of residence of the applicant36
50.When is the deadline Application of BIR Form 1902 (Non-Resident citizen)?
Application for registration shall be accomplished and filed before filing a return,
statement or declaration as required in the Tax Code and payment of any tax due.37
51.What are the documentary requirements for OCWs /Seamen earning purely foreign
source income?
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1.Birth certificate or any valid identification showing name, address and birth date; and or
passport with VISA; or
2. Employment contract38
52. What are the procedures Application of BIR Form 1902 (OCW/Seamen)?
Accomplish BIR form 1902 and submit the same together with the required attachments RDO
having jurisdiction over the place of the applicant39
53.When is the deadline for Application of BIR Form 1902?
Application for registration shall be accomplished and filed before filing a return,
statement or declaration as required in the Tax Code and payment of any tax due40
54.What is the form required when the applicant is corporation?
BIR form 1903.41
55. What if it is a Partnership?
The same as corporation.42
56. What are the documentary requirements of corporation and partnerships?
1. Copy of SEC registration and Articles of Incorporation/ Articles of Partnership, as the case
maybe:43
2. Copy of Mayors Business Permit or duly received application for Mayors Business permit, if
the former is still in process with the LGU44
38 RR 7-2012
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41 BIR form 1903
42 BIR form 1903
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3.Other documents for submission if applicable:45

Contract of Lease
Certificate of Authority if Barangay Micro Business Enterprise
(BMBE)registered entity
Franchise Agreement
License to do Business in the Philippines, in case of Resident Foreign
Corporation;
Proof of Registration/ Permit to Operate with BOI, SBMA,BCDA,PEZA

57. What are the documentary requirements in cooperatives?


1. Copy of Cooperative development authority (CDA) certificate if Registration and Articles of
Cooperation
58.What are the documentary requirements for new application of Authority to Print
BIR form 1906 together with the following:
-Job order
-Final and clear sample of principal and supplementary Receipts and invoices
59. What are the documentary requirements for new registration of books of accounts?

45 RR 7-2012

BIR Form 1905


BIR Certificate of Registration
Registration Fee of P500.00 (Payment Form 0605)
New set of books of accounts
o For VAT Taxpayer
Journal
Ledger
Cash Receipt
Cash Disbursement
Senior Citizens Sales Book
Subsidiary Sales Book
Subsidiary Purchase Book
o For Non-Vat Taxpayer
Journal
Ledger
Cash Receipt
Cash Disbursement
Senior Citizens Sales Book

60. What are the procedures in accomplishing BIR form 1903?


1. Accomplish BIR form 1903 and submit the same together with the documentary
requirements to the RDO having jurisdiction over the place where the head office and branch,
respectively.
2. Pay the annual Registration Fee (P 500) at the Authorized Agent Banks (AABs) of the
concerned RDO
3. Pay Documentary Stamp Tax (DST) loose DST/ BIR form 2000* for DST on Contract
of lease, etc.) Present Proofs of payment.
4. Submit requirements for ATP and registration of books of accounts.
5. Attend the taxpayers initial briefing to be conducted by the RDO concerned for new
registrants in order to apprise them of their rights and duties/ responsibilities
6. The RDO shall then issue the Certificate of Registration (Form 2303) together with the
Ask for Receipt Notice, Authority to print and Books of Accounts46
61. When is the deadline for registration of BIR Form 1903?
1. Corporations and their branches shall accomplish and file the application on or before the
commencement of business, it shall be reckoned from the day when the first sale transaction
occurred or within 30 calendar days from the issuance of Mayors Permit/PTR by LGU, or
Certificate of Registration issued by the Securities and Exchange Commission (SEC), whichever
comes earlier47
2. In the case of corporations(Taxable or Non -taxable) where documentary stamps tax
(DST) is required to be paid within 5 days after the close of the month, BIR registration shall be
done on or before payment of DST due
3. Partnerships , associations, cooperatives, Government agencies and instrumentalities
(GAIs shall accomplish and file the application before or upon filing of any applicable tax
return, statement or declaration as required by this Code, as amended.48

46 RR 7-2012
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48 RR 7-2012

62. What are the documentary requirements when an applicant is Government Agencies
and Instrumentalities (GAIs) and Local Government Units (LGUs)?
Unit or Agencys Charter.
63. What are the Procedures for Registration of BIR Form 1903 (GAIs and LGUs)?
Accomplish BIR form 1903 and submit the same together with the required attachments
to the RDO having jurisdiction over the registered address of the Government agencies and
instrumentalities
64. When is the deadline for registration of BIR Form 1903 (GAIs and LGUs)?
Application for registration shall be accomplished and filed before filing a return,
statement or declaration as required in the Tax Code and payment of any tax due
65. What are the documentary requirements in BIR form 1904 (For Payor of capital gains
tax (Stock and Real Properties)?
1. For Payor of capital gains tax (Stock and Real Properties)49
-Birth Certificate or any document showing name, address and birth date of taxpayer applicant
with signature but not limited to:

Drivers license
Integrated Bar of the Philippines (IBP) Identification Card
Professional Regulation Commission (PRC) identification card; and/or
Passport (also in case of non-resident alien not engage in trade or
business)

-Marriage contract if applicable


-Deed of sale
2.Donors tax
-Birth certificate or any document showing name, address and birth date of
taxpayer (donor) but not limited to:

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Drivers license
Integrated Bar of the Philippines (IBP) Identification Card
Professional Regulation Commission (PRC) identification card; and/or
Passport (also in case of non-resident alien not engage in trade or
business)

-Marriage contract
-Deed of Donation
3.Estate tax
-Death certificate
4.For payor of Final Tax on winnings
-Certification from awarding company/person
5.For vehicle registrants
-Birth certificate or any document showing name, address and birth date of the
applicant
-Cash invoice or official receipt or deed of sale
6.For other applicant
- Birth certificate or any document showing name, address and birth date of the
applicant50
66.What are the procedures in registration of BIR form 1904?
1. For Payor of capital gains tax
Stocks
Accomplish BIR form 1904 and submit the same together with the required attachments
to the RDO having jurisdiction over the registered address of the seller/transferor.
Real Properties
Accomplish BIR form 1904 and submit the same together with the required attachments
to the RDO having jurisdiction over the location of the property.
2.Donors tax
If donation is real property
Accomplish BIR form 1904 and submit the same together with the required attachments
to the RDO having jurisdiction over the address/domicile of the donor at the time of the donation
If donation is personal property
50 BIR form 1904

Accomplish BIR form 1904 and submit the same together with the required attachments
to the RDO having jurisdiction over the address/domicile of the donor at the time of the donation
3.For Payor of Estate tax
Accomplish BIR form 1904 and submit the same together with the required attachments
to the RDO having jurisdiction over the domicile/permanent residence of the decedent at the time
of death
4.For payor of Final Tax on winnings
Accomplish BIR form 1904 and submit the same together with the required attachments
to the RDO having jurisdiction over the residence of the applicant
5.Vehicle Registrant
Accomplish BIR form 1904 and submit the same together with the required attachments
to the RDO having jurisdiction over the registered address of the applicant
67.When is the deadline of registration of BIR Form 1904 ?
Application for registration shall be accomplished and filed before filing a return,
statement or declaration as required in the Tax Code and payment of any tax due.51
68.What are the requirements of the persons registering under E.O. 98?
For Individual:
1.NSO Birth Certificate of the applicant;
2.Passport (in case of non-resident alien not engaged in trade or business)
3.Marriage Contract, if the applicant is a married woman
Non-Individual:
Document to support transaction between a non-resident foreign corporation and the
withholding agent.
69.What are the procedures of the persons registering under E.O. 98?
Accomplish BIR form 1904 and submit the same together with the required attachments
to the RDO having jurisdiction over the residence of the applicant
70.When is the deadline of persons registering under E.O. 98?
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Application shall be accomplished and filed before transacting with any government
agencies or instrumentalities.

71.Who are required to register with the BIR?


Any person subject to any revenue tax shall register once with the appropriate Revenue
District Officer52
1.within 10 days from the 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 the NIRC
5.Death of individual
6.full settelement of the tax liabilities of the estate
7.discovery of a taxpayer having multiple TINs and
8. dissolution, merger or consolidation of juridical person
72.Are taxpayers required to register their business annually?
No .taxpayers are required to register only before commencing their business. However,
they are required to pay the registration fee of P 500.00 annually.53
73.When is the taxpayer required to apply for registration and pay the registration fee?
New taxpayers shall apply for registration and pay the registration fee before commencing their
business. Thereafter, taxpayers should pay the annual registration fee not later than January 31
every year.54
74.Where should a taxpayer register?

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All taxpayers are required to register with the RDO having jurisdiction over the head office,
branch office, place of production or storage place where inventory of goods for sale or use in
business are kept.55
75.Are non-resident aliens and non-resident foreign corporations receiving income from
sources within the Philippines required to register with the BIR?
Yes. Non-resident aliens not engaged in a trade or business (NRA-NETB) or NRFC shall be
issued TINS for purposes of withholding taxes on their income from sources within the
Philippines. The withholding agent shall apply for the TIN in behalf of the NRA-NETB or
NRFC prior to or at the time of filing their monthly withholding tax return as applicasnt under
EO 98,series of 1998 (Sec. 4.1v of RR 7-2012)
76.If a taxpayer is engaged in VATable activity, but the gross sales or receipts from business
or practice of profession P 1,919, 500 or below, is he required to register?
Yes, he is required to register as a Non-Vat taxpayer. However if his gross sales or
receipts is more than P 100,000.00 but does not exceed P 1,919, 500, he has the option to register
as VAT taxpayer. In the case of marginal income earners with gross sales or receipts of P1,
00,000 and below, they have no other option but to register as Non Vat Tax payer.56
77.Are branches, storage places and places of production also required to pay the Annual
registration Fee (ARF) of P500?
Each branch is required to pay the ARF of P 500.However, storage and production places are
liable to the ARF only when sales operations are conducted thereat.57
78.Who are required to register without paying the ARF?
a)
b)
c)
d)
e)
f)
g)

Cooperatives duly registered with the CDA


Individual residents earning purely compensation income
OCWs/OFWs
Marginal income earners
GAIs in the discharge of their governmental functions
LGUs, in the discharge of their governmental functions
Tax exempt corporations such as those enumerated under sec. 30 if the tax code as
amended, in pursuance of tax-exempt activities
h) Non stock non profit organization not engaged in business
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i) Persons subject to tax under one time transactions


j) Persons registered under EO 98, series of 1998; and
k) Facility/ies where no sales transactions occur
79.Are taxpayers transferring business address within the year either with the same district
or to another district required to pay another registration of fee P 500?
No. since the ARF is payable annually, they are no longer required to pay the registration fee to
the new district office, provided the P 500 was already paid.
80.After complying with all the requirements for registration, what documents will be
issued to the taxpayer as proof of registration?
Certificate of registration (BIR form 2303) for newly registered taxpayer and validated
payment form (BIR form 0605) for every renewal .However, employees, Onett Taxpayers, and or
persons who have secured a TIN under EO 98,series of 1998 with the BIR shall not be issued
COR58
81.Who will issue COR?
The RDO having jurisdiction of the head office or branch .59
82.When will the COR be issued to the taxpayer?
The COR will be issued within the period/time prescribed under the existing BIR
Citizens Charter together with the approved authority to print and registered books of
accounts.60
83.How many COR (BIR form 2303) shall be issued by the Revenue District Office?
For every application for registration, there shall be a corresponding COR to be issued to
the head office and each branch being registered.61
84.What will the taxpayer do with the COR and the Proof of payment of Annual
Registration Fee (ARF)?

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The original copy of COR and the duly validated BIR form 0605 as proof of payment of
ARF are required to be displayed in any conspicuous place in the head office and branch office.
85.What are the instances when a taxpayer can apply for cancellation of his registration?
The Tin/registration cancellation shall take place upon:
All taxpayers who filed for cancellation of registration due to closure/ cessation or
termination of business, except for branches, shall be subjected to immediate investigation by the
BIR office concerned to determine the taxpayers liabilities.
86.Is there a particular form prescribed by Application for Cancellation of Registration?
Yes BIR form 1905 (Application for Registration Information Update)62
87.Where shall the application for registration information update be filed?
It shall be filed with the RDO who issued COR. for VAT taxpayer; he shall further notify
the RDO where the Home Office registered.63
88.What is the Penalty provision related to Primary Registration?
1.Failure to register- (Those who are found unregistered during TVCD- Subject to the penalties
under prevailing issuances)64
2.Late Register- (Those who are voluntary registering, but beyond the prescribed period as
indicated in these Regulations) Compromise penalty of P 1,000.00 in addition to the unpaid
ARF and penalties due thereon for every year that the business is in operation. This provision
shall not apply to application of TIN employees.65
3.Late payment of ARF-Subject to 25% surcharge and 20% interest per annum and P200
penalty.66

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89. What form is needed if I want to Updates, Transfer Records or Transfer my


Registration to another RDO?
BIR Form 190567.
90.Where is the venue of filing BIR Form 1905?
RDO having jurisdiction over the intended business address or residence (for transient/nomadic
businesses) with the application copy furnished the old RDO.
91. What are the documentary requirements for BIR Form 1905?
1.Copy of DTI Certificate of Registration of Business Name, if a business trade name
shall be used, if applicable
2. Copy of Mayors Business Permit or duly received Application for Mayors Business
Permit, if the former is still in process with the lGU
3.Copy of Contract of Lease executed for the new place of business, if applicable
92.What is a Mixed Income Earners?
It shall refer to a compensation-earner who at the same time is engaged in business or
practice or of profession.68
93.What is Marginal Income Earners?
It shall refer to those individual whose business do not realize gross sales or receipts exceeding P
100,000 in any 12 month period.69
94.What is a self-employed individual?
One who may either be a single proprietor engaged in business or in the practice of his
profession.
95.What is the Form used in Application for Authority to Print Receipts and Invoices?
BIR Form 1906.70
67 BIR Form 1905
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70 BIR Form 1906

96.What are the required attachments in BIR Form 1906?


For New Taxpayers:71
-Original Printed Job Order
-Original Copy of Sample layout/template of OR/SI/CI
-Photocopy of Loose-Leaf Permit, if applicable
For Old Taxpayers:
-Original Printed Job Order
-Original Copy of Sample layout/template of OR/SI/CI
-Photocopy of previous Authority to Print Receipts and Invoices, if not available
-Photocopy of Loose-Leaf Permit, if applicable
97.Can the Registration of TIN be cancelled?
Yes. The cancellation of registration may either pertain to cancellation of business
registration and/or the assigned TIN. Application for TIN/Registration cancellation shall take
place upon:
1.Death of an Individual;
2.Full Settlement of the tax liabilities of the estate;
3.Discovery of a taxpayer having multiple TINs; and
4.Dissolution, merger or consolidation of juridical person72
98.Is there an amount charged for a request of certification?
Any request for certification that may be requested by a taxpayer from the BIR district office
where he is registered on matters relating to his registration shall be charged with a fee in an
amount not exceeding one hundred pesos (P 100) in an addition to the documentary stamp tax
imposed under Sec. 188 of the Code, as amended subject to change upon approval of the CIR
thru a subsequent issuance.

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99.Why is it that GAIs ,LGUs and Non Stock/Non-Profit organizations is exempted from
paying ARF?
It is predicated on the fact that their undertakings/endeavors are not directed nor intended
to generate income/profit.73
100. What will happen when an individual paying ARF dies and the same business is
continued by the person or persons interested in his estate?
Those continuing the business should register as a separate entity reflecting in said registration
that is pursuing the business enterprise as heirs of the estate of the decedent.74

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