Business Registration for Individuals

A guide on how to register a business for Individuals

What makes you an Individual Taxpayer?

• Resident citizens receiving income from sources within or outside the Philippines
  • Employees deriving purely compensation income from two or more employers, concurrently or successively at any time during the taxable year
  • Employees deriving purely compensation income regardless of the amount, whether from a single or several employers during the calendar year, the income tax of which has not been withheld correctly (i.e. tax due is not equal to the tax withheld) resulting to collectible or refundable return
  • Self-employed individuals receiving income from the conduct of trade or business and/or practice of profession
  • Individuals deriving mixed income, i.e., compensation income and income from the conduct of trade or business and/or practice of profession
  • Individuals deriving other non-business, non-professional related income in addition to compensation income not otherwise subject to a final tax
  • Individuals receiving purely compensation income from a single employer, although the income of which has been correctly withheld, but whose spouse is not entitled to substituted filing
  • Non-resident citizens receiving income from sources within the Philippines
  • Aliens, whether resident or not, receiving income from sources within the Philippines

Basic Registration Guidelines

1. Persons doing business online with no TIN- Register business following existing policies in securing TIN and Registration of business
2. Persons doing business online who already have TINs but the business is not yet registered-
   1. Individuals- whether the tin was issued due to ONETT or employment, register the business, using BIR Form 1901, with the RDO having jurisdiction over place of business, if with physical establishment. Otherwise, with the RDO having jurisdiction over the place of residence. The concerned RDO shall effect the update of the taxpayer classification and include the business activity of online selling. 

The Certificate of Registration shall be issued to those who engage in business upon the compliance to these requirements:

1. Fill up Registration form
   1. 2 original copies of BIR Form No. 1901
2. Present any government-issued ID that is readable and untampered
   1. Birth Certificate
   2. Passport
   3. Drivers License
   4. TIN
3. Other documents required
   1. DTI Certificate (if you already have a business name)
4. Payments to the New Business Registrant Officer (NBRO) posted in the New Business Registrant Counter (NBRC)
   1. Registration Fee (PHP 500) using Form 0605.
   2. Loose Documentary Stamp Tax for affixture to COR (PHP 30)
5. Secure BIR Printed Receipts (BPR) or BIR Printed Invoices (BPI) or the Authority To Print (ATP)
   1. BPR/BPI- depending on the printing cost per RDO or
   2. ATP- own choice of printer from the list of accredited printers

Once completed, the taxpayer will receive a copy of the BIR-received Registration Form 1901, notice to issue Receipts/Invoice (NIRI), BPR/BPI or ATP, and the proof of payment registration fee. 

The payment form to be used for processing the payment for BIR Annual Registration of PHP 500 is BIR Form 0605. JuanTax provides this form for ease of use.