BIR Registration Process in the Philippines: A Complete Guide (2026 Update)

Local and foreign investors intending to set up a business in the Philippines must register with several government agencies before they can legally begin operations. Registration is generally a three-step chain: the Securities and Exchange Commission (SEC) (for corporations and partnerships) or the Department of Trade and Industry (DTI) (for sole proprietors), the Local Government Unit (LGU) where the business is located, and finally the Bureau of Internal Revenue (BIR).

Thanks to ongoing digitalization efforts, much of this chain can now be completed online, and several steps that used to cost money or require extensive paperwork have been simplified or removed entirely. This guide walks through the current process and flags what has changed.

1. The Registration Chain: SEC → LGU → BIR

SEC registration comes first. Once approved, a Certificate of Incorporation (or, for foreign entities, a License to Do Business) is issued and the corporation’s legal existence is formally recognized. As of April 2025, the SEC requires most domestic stock corporations to register through SEC ZERO, a fully digital, paperless system built into the existing eSPARC portal. SEC ZERO uses electronic authentication (via eSECURE and eSAP) in place of wet-ink signatures and notarization, and the SEC no longer issues physical certificates — the digital Certificate of Incorporation carries the same legal weight as the old paper version.

LGU registration is next. Businesses typically secure a Barangay Clearance first, then apply for a Mayor’s/Business Permit from the city or municipality where the business will operate. Many LGUs now offer this through a Business One Stop Shop (BOSS), though processes still vary by locality.

BIR registration is the final step before a business can legally issue receipts, hire employees, or file taxes — and it’s the focus of this guide.

Note: SEC’s eSPARC system is also integrated with the Philippine Business Hub, which lets a newly incorporated company carry its SEC-submitted information over to register with the BIR, SSS, PhilHealth, and Pag-IBIG without re-entering the same data.

2. What the BIR Actually Does

The BIR is the Philippines’ primary tax administration agency, operating under the Department of Finance. Its mandate is to assess and collect national internal revenue taxes, fees, and charges, and to enforce penalties connected to tax matters. (It does not set monetary policy — that authority belongs to the Bangko Sentral ng Pilipinas.)

3. What’s Inside Your Certificate of Registration (BIR Form 2303)

Once issued, your COR lists the specific taxes your business is registered to pay, which typically include:

• Corporate income tax
• Value-added tax (VAT) or percentage tax, depending on your revenue threshold
• Withholding taxes (on compensation, expanded withholding, fringe benefits, etc.)

BIR registration also gives you the authority to issue official invoices, formally activates the Tax Identification Number (TIN) tied to your SEC registration, and sets up the books of accounts you’re required to maintain as the official record of your business transactions.

4. Two Ways to Register: Online (ORUS) or Manual (RDO)

The BIR now offers two registration paths:

• ORUS (Online Registration and Update System) — a web-based platform at orus.bir.gov.ph that lets taxpayers register a new business, apply for a TIN, request Authority to Print, register books of accounts, and download a digital Certificate of Registration without visiting an RDO in person.
• Manual filing at the Revenue District Office (RDO) with jurisdiction over your registered business address — still fully valid, and sometimes necessary for transaction types not yet supported on ORUS (e.g., certain loose-leaf book registrations).

Which path makes sense depends on your business type and how comfortable you are navigating a government digital portal; corporations with more complex structures (branches, foreign ownership, etc.) often still end up coordinating with their RDO directly even when starting online.

5. Step-by-Step: Registering Your Business with the BIR

Step 1: File BIR Form 1903 and Submit Supporting Documents

Form 1903 (Application for Registration for Corporations/Partnerships) is filed with the RDO covering your business address, either through ORUS or manually. Required attachments:

• SEC Certificate of Incorporation (or License to Do Business, for resident foreign corporations)
• Mayor’s Permit, or proof that an application is pending (the BIR Certificate of Registration cannot be released without this)
• Contract of Lease (if applicable)

Submit if applicable:

• Certificate of Authority (for Barangay Micro Business Enterprise/BMBE-registered entities)
• Franchise Agreement
• Proof of registration with BOI, PEZA, SBMA, or BCDA

Step 2: Pay the Documentary Stamp Tax (DST)

The ₱500 Annual Registration Fee has been removed effective January 22, 2024 under the Ease of Paying Taxes Act (RA 11976) — you no longer need to file BIR Form 0605 or pay this fee, whether you’re a new registrant or a business renewing registration.

You will still need to pay:

• DST on the Articles of Incorporation, due on the 5th day of the month following AOI issuance (Section 175, National Internal Revenue Code)
• DST on Lease, based on your monthly rental (BIR Form 2000), if applicable
• A small loose DST (currently around ₱30) tied to certain registration transactions processed through ORUS or at the RDO

Step 3: Receive Your BIR Certificate of Registration (Form 2303)

Once your documents clear, the BIR issues your COR — either as a downloadable digital certificate via ORUS or a physical copy from your RDO. Along with it, you’ll receive an “Ask for Receipt” Notice (ARN), which must be posted, together with your COR, at your place of business.

6. After Registration: Invoicing Requirements Have Changed

This is one of the biggest shifts in recent years. Under the Ease of Paying Taxes Act and its implementing regulations (RR 7-2024), the Official Receipt (OR) is no longer the primary document for sales — a unified Invoice now covers both goods and services. Businesses that kept issuing plain “Official Receipts” as their primary sales document after mid-2024 risk being treated as if they failed to issue an invoice at all, which carries penalties.

Key points:

• Use Sales Invoice / Service Invoice / Cash Invoice / Charge Invoice (any label containing “Invoice”) as your principal document for every sale.
• Official Receipts can still be issued, but only as a supplementary document proving payment was received — not as the primary sales record.
• The mandatory-issuance threshold for invoices rose from ₱100 to ₱500 (VAT-registered sellers must still issue an invoice for every sale regardless of amount).
• Authority to Print (ATP) is now free of charge.

To secure your Authority to Print (BIR Form 1906), submit:

• BIR Form 1906
• BIR Certificate of Registration (Form 2303)
• Final sample layout of your invoices/receipts
• Your accredited printer’s Certificate of Registration and latest Registration Fee proof
• Job order and quarterly report from the accredited printer

7. Registering Your Books of Accounts

You’re still required to maintain books of accounts, and the BIR examiner will typically advise which types apply to your business during your initial taxpayer briefing. Common books include:

• General Journal
• General Ledger
• Cash Receipts Book
• Cash Disbursements Book
• Subsidiary Sales Journal
• Subsidiary Purchase Journal

What’s changed: permanently bound loose-leaf books and computerized books of accounts (CAS/CBA) are now registered through ORUS, which generates a QR code as proof of registration — affixed to the first page of a bound book, or printed and filed for computerized records. Manual registration at the RDO is now reserved for exceptional cases, such as loose-leaf formats not yet supported by ORUS.

Also note: the required retention period for books of accounts and other accounting records was shortened from ten years to five.

8. Attend the Initial Taxpayer Briefing

New registrants are required to attend a briefing conducted by their RDO, covering their rights and compliance responsibilities going forward.

9. A Few Things to Remember

• Corporations and their branches must complete BIR registration on or before commencing business operations.
• Businesses are now classified as micro, small, medium, or large taxpayers based on gross sales — micro and small taxpayers get certain concessions, such as shorter income tax return forms and reduced penalties for late filing.
• Once your COR is issued, you have 30 days to have your invoices and sales documents printed (or configured, if using a computerized system).
• If you’re transferring your business address or closing operations, registration updates and cancellations can now be filed electronically or manually — cancellation takes effect upon mere filing, subject to the BIR’s right to audit afterward.

Quick Reference: What Changed and When

Sources

This guide reflects the Ease of Paying Taxes Act (Republic Act No. 11976, effective January 22, 2024) and its implementing Revenue Regulations (RR 3-2024, RR 7-2024, RR 11-2024), along with SEC Memorandum Circular No. 3, Series of 2025, on SEC ZERO. Since tax administration rules are revised periodically through new Revenue Regulations and Memorandum Circulars, businesses should confirm current requirements with their RDO or a licensed tax professional before filing.