How to Register Your Online Business under the BIR

Online selling is a popular income generating activity nowadays. Unlike regular selling, this one is pretty easy to maintain as an online seller only needs a stable internet connection, a mobile communication gadget, a little capital, and a bunch of patience and time. Stay-at-home moms, students, or even employed individuals can be online sellers as long as he or she is ready to face all the challenges that come with online selling and determined to maintain the business.

To be able to stay on this kind of business, a seller needs to build his or her reputation among his customers and to the public. One way to increase your credibility as a legitimate seller is to have your business registered under the proper government agencies, one of which is the Bureau of Internal Revenue (BIR).

First, a seller must apply for a taxpayer identification number (TIN) and register as a self-employed individual. This registration process also covers registration of Books of Accounts and application for Authority to Print Receipts.

business registration

The applicant must proceed to a BIR Revenue District Office (RDO) which has jurisdiction over his or her place of residence. This is also the same for those who conduct business in a nomadic or roving manner, such as peddlers, mobile store operators, store owners, and the likes.

Documentary Requirements

Upon arrival at the RDO, the seller must get ahold of BIR Form 1901, or the Application for Registration for Self-Employed (Single Proprietor/Professional), Mixed Income Individuals, Non-Resident Alien Engaged in Trade/Business, Estate and Trust; and BIR Form 1906, or the Application for Authority to Print Receipts and Invoices.

He or she must also prepare and bring the following documents;

  • Any Identification issued by an authorized government body that shows the name, address, and birthdate of the applicant;
  • Photocopy of Mayor’s Business Permit; or Duly received Application for Mayor’s Business Permit if the permit is still under process with the LGU; and/or Professional Tax Receipt / Occupational Tax Receipt issued by the LGU or DTI Certificate;
  • New sets of permanently bound books of accounts;
  • Proof of Payment of Annual Registration Fee (ARF) (if with existing TIN or applicable after TIN issuance); and

Final & clear sample of Principal Receipts/ Invoice

The applicant may also bring other additional supporting documents such as Franchise Documents or Certificate of Authority, for Barangay Micro Business Enterprises.

business registration

These documents will be submitted to the Client Support Officer (CSO) in the RDO. The CSO, in turn, will interview the client to determine the applicable tax type. The same officer will encode and generate TIN.

The applicant will, then, pay for the Annual Registration Fee in the amount of P500.00 and for the Documentary Stamp Tax worth P15.00. After payment, he or she will have to present proofs of payment.

After receipt of the proof of payment, the CSO will generate Certificate of Registration and Authority to Print (ATP) and forward the documents to the Client Support Services Chief, for his review and subsequent initial.

business registration

Take note that the processing of TIN is based on the completeness of the documents presented. Incomplete application will be received by the RDO but shall only be processed upon completion of requirements within five working days.

For more details about the application and registration processes under the BIR, you may consult their Citizen’s Charter, or visit their website at www.bir.gov.ph.