How to Register Online Business in BIR: A Step-by-Step Guide

  • Home
  • /
  • How to Register Online Business in BIR: A Step-by-Step Guide

July 8, 2023


Key Takeaways:

  • Registering your online business in the Philippines with the Bureau of Internal Revenue (BIR) is crucial for its legality and legitimacy.
  • Before BIR registration, ensure your business name is registered with the Department of Trade and Industry (DTI), and you’ve secured a Barangay Business Clearance.
  • Not every online seller needs to register. Exceptions include those selling products intermittently or irregularly and individuals selling homemade items as a hobby.
  • There are clear, step-by-step procedures for registering your online business via walk-in and online methods.

Embarking on an online business venture in the Philippines? Don’t let the legalities bog you down.

Knowing how to register an online business in BIR can be a straightforward process if you follow the right steps.

You’re joining a digital economy that is changing quickly and added a vast PhP 2.08 trillion to the country’s Gross Domestic Product (GDP) in 2022, making up 9.4 percent of the economy. This astounding number is an 11% jump from the PhP 1.87 trillion recorded in 2021.

To join this fast-paced digital world, knowing how to register an online business with BIR is essential. This will ensure your business is legal and set up for success.

This guide will help you navigate this process step-by-step, ensuring your business operates within the law.

Do I Need to Register My Online Business in the Philippines?

how to register online business in bir

To determine whether your online business needs to be registered in the Philippines, we refer to Revenue Memorandum Circular No. 60-2020. According to this circular, the Bureau of Internal Revenue (BIR) requires registration from all individuals engaging in business and generating income through digital transactions, electronic platforms, media, or other digital means.

However, it’s important to note that not all online sellers must register, as the government clarified shortly after issuing the order. Those who sell products intermittently or irregularly and individuals selling homemade items as a hobby are exempted from the Department of Trade and Industry (DTI) and BIR registration. The DTI considers these online sellers to be in the preliminary stages and, therefore, do not require registration.

In summary, you only need to register your online business if you earn regular income through any online means, regardless of the size of your business. The recent BIR memo covers online sellers, freelancers, YouTubers, bloggers, and others who generate income online.

6 Benefits of Online Business Registration

Smiling young woman in casual clothes standing near gray wall with colorful online business sketch drawn on it. Business concept

Starting an online business has challenges, but getting registered doesn’t have to be one. Registering your online business can give you many benefits that will help it grow and succeed. Here are six significant benefits of registering a company online:

  1. Legitimacy. Registering your online business gives it a legal status, which gives your customers more trust and confidence in you.
  2. Access to Financial Services. Registered businesses find it easier to get loans, lines of credit, and other services that can help them grow.
  3. Legal Protection. Registered businesses get the protection of the law, which can be very helpful when there are problems with contracts or other business matters.
  4. Enhanced Business Image. Having a registered business makes you look more professional, which makes your business more appealing to customers, investors, and business partners.
  5. Access to government programs and services. Registered businesses can get government help through grants, tax breaks, and other programs to help them grow.
  6. Ease of Doing Business. The Philippines has made it easier for entrepreneurs to start their online businesses legally and quickly by streamlining the business registration process.

Registering your online business has a lot of benefits, such as increasing your credibility, giving you legal protections, and making it easier for you to use financial services and government programs.

But how do you start the process of signing up?

Don’t be afraid; it’s not as complicated as it sounds. The Philippines has made much progress toward making this process easier for business owners.

Are you ready to move forward with your online business? Register your online business in the Philippines with our step-by-step guide. Read on!

Step 1: Register Your Business Name in DTI (Online Registration Process)

A laptop, with brown cardboard box, miniatures paper box and a little cart with miniature cardboard box in it.

Prepare your business name.

When preparing a name for your business, we suggest you list at least 3-5 business names. This is because your first few names may already be taken. It is also a good idea to choose business names that are creative and unique, as this will make it more likely that they will be available.

Here are some tips for choosing a business name:

  • Make sure the name is easy to remember and pronounce.
  • Use keywords that are relevant to your business.
  • Keep the name short.
  • Avoid using generic or common words.

Confirm its availability on their website through BNRS.

You can use the DTI website to check if a business name is available. Enter the name in the search bar and the website will show you if the name is taken. You can also use the website to get ideas for business names.

Once you have chosen a business name, you can register it with the DTI by proceeding to the next step.

Fill up the Online Registration Form

  1. Navigate to the Registration page on the BNRS (Business Name Registration System) website. You can access this page here. Carefully read through the Terms and Conditions. After reading, please select the I Agree button at the page’s end.
  2. Proceed to complete the online registration form. Ensure you fill out all fields with a red asterisk, as they are mandatory. The form must also include your Tax Identification Number (TIN).
  3. Make payment for the business name registration fee within seven days following your online application submission.The cost of registering a business name with the DTI depends on the territorial scope of the business:Territorial Scope FeeBarangay 200City/Municipal 530Regional 1030National 2030
  4. After confirming your payment, select “Register New Business” to finalize the online DTI registration of your business name.

Please note: A late submission of the DTI business name registration will result in an extra charge of 50%.

Once your payment has been confirmed, you’ll receive both a Certificate of Business Name Registration (CBNR) and an Official Receipt (OR) in the email address you provided during the registration process.

Step 2: Get Barangay Clearance

online store concept

Prepare the required documents:

  1. DTI Certificate of Registration
  2. Two valid IDs
  3. Proof of Address. Contract of Lease (if rented) or Certificate of Land Title (if owned)

Next, take the following steps:

  1. Proceed to the barangay center in the same area as your business and submit the requirements.
  2. Complete the application form provided.
  3. Pay the necessary fees and then you can receive your Barangay Business Clearance.

Step 3: Register Your Online Business with the BIR

online shopping concept, young men using laptop and holding credit card

Once you have obtained a certificate from the DTI, you are ready to register your online business with the Bureau of Internal Revenue or BIR.

Register your business in person at the Revenue District Office (RDO) overseeing your residential area or through the NewBizReg online portal. To get your BIR Certificate of Registration, here’s what you need:

BIR Online Business Registration Requirements:

  1. Completed registration form (BIR Form No. 1901)[4]
  2. Valid Identification (e.g., birth certificate, passport, driver’s license, etc.)
  3. DTI Certificate of Registration
  4. Annual registration fee (₱500)
  5. Documentary stamp tax (₱30)

Important Note: Since June 9, 2020, a mayor’s permit is no longer needed to register an online business in the Philippines. This change streamlines the registration process. However, you still need a DTI Certificate of Registration and a Barangay Business Clearance. The exemption from the mayor’s permit applies to online businesses without a physical presence in the Philippines. But you must obtain a mayor’s/business permit if your online business has a physical store.

Online Business Registration For Walk-In Application

Here’s how to register your online business in the Philippines with the BIR through a walk-in application:

  1. Visit the Revenue District Office (RDO) with jurisdiction over your residential area.
  2. Complete two copies of BIR Form No. 1901. Under the ‘Taxpayer Type’ section, select the category that suits your situation:
    • Single Proprietorship Only: Choose this if your sole income source is online selling.
    • Professional and Single Proprietor: Select this if you’re an online seller and also practice a profession (for instance, engineer, accountant, dentist, etc.)
    • Mixed-Income Earner – Compensation Income Earner & Single Proprietor: This is for individuals who are employed and also earn from online selling as a sideline.
    • Mixed-Income Earner – Compensation Income Earner, Single Proprietorship & Professional: This applies if you’re an employee who also sells online and has a profession.
  3. Submit the completed business registration requirements to the BIR officer.
  4. Head to the New Business Registrant Counter to pay the registration fee and the documentary stamp tax.
  5. Obtain BIR-printed receipts (BPR) / BIR-printed invoices (BPI) or the Authority to Print (ATP).
  6. The BIR will issue the following documents to you:
    • Certificate of Registration (COR)(BIR Form No. 2303)
    • Your copy of BIR-stamped Form No. 1901 with your TIN (if you were not previously issued with a TIN)
    • Notice to Issue Receipt/Invoice
    • BPR/BPI or ATP
    • Proof of payment for the registration fee

Online Registration through NewBizReg Portal

The BIR NewBizReg Portal is an online platform that allows businesses to register with the Bureau of Internal Revenue (BIR) in the Philippines. The portal was launched in 2020 as an alternative to traditional paper-based registration. It’s a convenient, easy, and secure way to register your business.

To register your business through the BIR NewBizReg Portal, you will need to:

Step 1: Prepare scanned PDF copies of all necessary documents. The total file size of all attachments per email should not exceed 4MB.

Step 2: Identify your filing and payment obligations.

  • Download and complete the tax-type questionnaire to ascertain your applicable tax liabilities.
  • Scan the completed questionnaire and attach it to your email application.

Step 3: Pay the P500.00 Registration Fee and P30.00 for loose Documentary Stamp Tax (DST).

  • Taxpayer applicants with an existing Taxpayer Identification Number (TIN) can pay the registration fee and DST online via the BIR’s ePayment Channels.
  • If you don’t have a TIN yet, you can wait to receive an email instruction on when to pay, or you can pay the registration fee and DST at the New Business Registrant Counter at the RDO when picking up your Certificate of Registration.

Step 4: Email and attach all required documents to the email address of the concerned RDO.

How to Submit: To find the email address of your RDO, enter the necessary details (such as province, city/municipality, barangay, business type, and full name) into the appropriate fields on the NewBizReg Portal. After submitting this information, the portal will display the number and email address of your RDO.

  • After filling out the necessary fields, click the “Email your Application” button to submit.
  • You’ll receive an email acknowledgment from the official email address of the concerned RDO confirming receipt of your application. The application will be manually processed within three (3) working days from the date of acknowledgment receipt of complete documentary requirements.

Step 5: Wait for an email indicating the scheduled pick-up date for your Certificate of Registration and purchasing of BIR Printed Receipts/Invoices or Authority to Print, if applicable.

Here are some additional tips for registering your online business with the BIR:

  • Make sure that you have all of the required documents before you start the registration process.
  • Read the instructions carefully before submitting your application.
  • Keep a copy of your application and all supporting documents for your records.
Asian woman working on her ecommerce business

It’s a wrap!

In conclusion, registering your online business with the BIR is not as daunting as it may seem. With a thorough understanding of the procedures, patience, and proper documentation, you’ll operate legally in no time.

Remember, a registered business provides legitimacy and opens doors for growth and opportunities in the long run.

As you embark on this exciting journey in the e-commerce world, always remember that every successful entrepreneur starts with a first step, and yours is ensuring your business is registered and compliant.

Keep going, and may your business thrive in the ever-expanding digital marketplace!

References:

Philippine Statistics Authority: Digital Economy Contributes 9.4 Percent to the Gross Domestic Product in 2022; https://psa.gov.ph/digital-economy

BIR Files Internal: Revenue Memorandum Circular No. 60-2020; https://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/2020%20RMCs/RMC%20No.%2060-2020.pdf

DTI Resources: Funding Your Business; https://www.dti.gov.ph/resources/e-library/fund-your-business/

About the author 

Yesh Quijano

Yesh Quijano is an entrepreneur and digital marketer who's been in the game for over 11 years. He started several businesses and helped countless others reach new heights. His goal is to make digital marketing for SMEs simple, accessible, and effective. When he's not working, you can find him cuddling with his two cats.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}
>