Who Has To Register With Bir Philippines

This summarizes the procedures, costs and the requirements associated with setting up a business in the Philippines. ( This procedures for open new Corporation visitor)

	Process	Time to complete
1	Obtain bank certificate of deposit of the paid-in capital	one day
2	Verify the availability of the visitor name with the Securities and Commutation Commission (SEC)	1 mean solar day
three	Register incorporation with the Securities and Exchange Commission	3 days
iv	Obtain customs tax document (CTC)	one day
v	Use for a Barangay (district) clearance	ii days
6	Obtain Mayor's permit/municipal license to operate at the Licensing Department of the Mayor's Part	11 days
7	Receive inspection from the Mayor'south Office	five days
8	Purchase special books of account at bookstore	i solar day
9	Register for taxes at the Agency of Internal Revenue (BIR)	2 days
x	Payment of documentary stamp taxes	1 day
11	Obtain the authority to print receipt/invoices with the Bureau of Internal Revenue (BIR)	i day
12	Print receipts and invoices at the print shops accredited by the BIR	fourteen days
thirteen	Submit receipts and invoices to the BIR for approval, have receipts/invoices and books of accounts stamped by BIR	1 day
fourteen	Initial registration with the Social Security System (SSS) and	1 calendar week
15	Complete registration with SSS and Philippines Wellness Insurance Visitor (PHIC)	1 day

Procedure 1. Obtain depository financial institution certificate of deposit of the paid-in capital

Time	1 day
Price	No charge
Comment	Fees vary from bank to bank. Some banks in Manila do non charge any fee, but others charge upwards to PHP 105 for each document. Become UP

Process 2. Verify the availability of the company proper noun with the Securities and Exchange Commission (SEC)

Fourth dimension	1 day
Cost	PHP40
Comment	The availability of the proposed company proper name tin can be verified via the SEC online verification system at no accuse. Notwithstanding, the SEC charges Php40/month upon official reservation of the company name. Within the reserved menstruation, the company must file its application for incorporation. In the upshot that the reservation catamenia expires without the visitor filing its application for incorporation, such reservation must be renewed/extended by paying Php40/month failure of which will foreclose the company from using such reserved proper noun. Get Upwards

Process 3. Register incorporation with the Securities and Exchange Commission

Time	3 days
Cost	filing fee for articles of incorporation PHP 1,000 +issuance fees PHP 1,000+ PHP 510 bylaws fee + PHP 470 - stock and transfer book registration fee + PHP 75 - membership volume registration fee
Comment	To register an incorporated company with the Securities and Exchange Commission (SEC), the promoters must file the following documents: the corporate proper noun verification slip; the articles of incorporation and bylaws; the treasurer's affidavit; the depository financial institution certificate of deposit; the authority to verify the bank account; the incorporator's tax identification number; affidavit of incorporator or managing director undertaking to change corporate proper noun , officers, stockholders, and and then forth. Through SEC i-Register, the SEC provides a Web-based, online visitor registration arrangement and the choice to reserve a company name. (Registration forms may exist downloaded from the SEC Web site.) Although registration forms may at present exist downloaded from the SEC website, the registration papers must exist filed and the filing fee paid at the SEC role. Applications are submitted for pre-processing evaluation prior to filing. Whereas the company now obtains a temporary identification number (Tin can), in the by, the visitor obtained the TIN from the Acquirement District Office. To obtain the TIN, the company requires a Barangay (commune) clearance, a mayor's permit, and a re-create of the SEC-issued registration document (issued every bit role of this process). Other documents may be required (east.g., homeowner's clearance, lease contract). As authorized past the Bureau of Internal Revenue (BIR), the SEC at present issues pre-generated TINs only if a company'southward application for registration or incorporation has been approved. Although the SEC issues the TIN, the company must still register with the BIR: this time, to identify applicable tax types, to pay an annual registration fee, to register and postage stamp the books of accounts, and to obtain sales invoices and receipts. Get UP

Process 4. Obtain community revenue enhancement certificate (CTC)

Time	1 day
Cost	PHP 500
Comment	To obtain a Barangay clearance, a company must obtain a customs tax certificate. The company is assessed a basic and an additional community taxation. The basic community tax rate depends on whether the company legal course is a corporation, partnership, or association (PHP 500 or lower). The additional community tax (non to exceed PHP 10,000.00) depends on the assessed value of existent property the company owns in the Philippines at the rate of Php2.00 for every Php5,000.00 and on its gross receipts, including dividends or earnings, derived from business activities in the Philippines during the preceding year, at the rate of Php2.00 for every Php5,000.00. GO Upward

Procedure 5. Use for a Barangay (commune) clearance

Time	2 days
Cost	PHP 800
Comment	No metropolis or municipality may consequence any license or permit for whatever business or action unless a clearance is start obtained from the Barangay (district) where the business or activeness is located or conducted. To obtain a business let, the applicant submits a concern transaction course (BTF) which contains vital information to process the awarding. the BTF is available in the Business organization Promotions and Development Role located at ground floor of the Manila City Hall. the accomplished BTF together with the following requirements volition be submitted to the Bureau of Permits (BP): Barangay Clearance, SEC Registration, Public Liability Insurance (for restaurants, parlors, cinemas, malls etc) Say-so Letter of the alphabet of possessor with ID, Lease Contract/Tax Declaration, SSS (Certification/Clearance) and Customs Taxation Document, The BP personnel encodes the business transaction form details and the requirements for the processing and ciphering of business let fee. The BP personnel issues a computer generated Business Identification Number (BIN) skid to the bidder. The bidder proceeds to the License Division of the Urban center Treasurer'southward Function for computation and cess of Concern tax and Regulatory Fees. The applicant presents the issued BIN to the licensing officeholder on duty. The latter then compute and generate the License and Regulatory Fees Form (LRF) which shall exist given to the applicant. The bidder then gain to the cashier and presents the issued LRF Form. The cashier receives and records payment of the applicant and validates the LRF Class which serves as the official receipt. The applicant and then goes back to the business transaction office. Later on verifying that payment has been fabricated, a BP personnel generates the Business Allow and secures the blessing and signature of the Dept Head of the BP. Upon approval, the BP personnel releases the Business Permit to the applicant. The fee charged by the Barangay depends on the company's paid-up capital and the land area it occupies—a PHP 500 minimum plus PHP 300 for the Barangay clearance plate. GO Upwardly

Procedure six. Obtain mayor's permit/municipal license to operate at the Licensing Section of the Mayor'southward Office

Time	eleven days
Cost	The fees vary depending on the local government unit of measurement (city/municipality) issuing the mayor'due south allow (PHP 900, sanitary permit fee + 0.2% of upper-case letter for license fee + PHP 2000, allow fee for businesses engaged in retail + PHP ii,500 garbage collection fee
Comment	An application for business organisation permit begins with the filing with the Bureau of Permits, City Mayor'due south Office, Manila Urban center Hall. The following documents ( original and photocopies) are required: Taxpayers identification number (TIN), BIR-issued certificate of registration (COR") and a proof of payment of annual registration fees paid to BIR. The Bureau so classifies the business and identifies the agencies/units/offices whose endorsement/approval would be required for the processing of the permit. The application would then be forwarded to the appropriate agencies involved for their approval. An inspection of the business location is likewise conducted. Upon completion of all necessary approvals/endorsements from the various government departments/units/agencies, the Bureau problems the Business Allow which shall then be forwarded to the Licensing Section of the Metropolis Treasurer's Office for assessment and drove of taxes and other fees (i.e. garbage fee, etc.) The Licensing Division generates a Argument of Account showing a breakdown of all applicable local (business organization) taxes and charges. The Business concern Permit and License are released upon payment of taxes and other applicable charges. GO UP

Procedure seven. Receive inspection from the Mayor's Role

Fourth dimension	5 days
Cost	No charge
Comment	The Mayor's Office conducts an inspection to verify that the visitor volition acquit the action stated in the awarding for business permit. There is no demand to gear up an appointment for this inspection. The inspection generally occurs within the showtime 5 days of filing the application for the operating let. Become Upward

Procedure 8. Buy special books of account at bookstore

Time	1 day
Cost	PHP 400
Annotate	To register with the Bureau of Internal Revenue, promoters must purchase special books of business relationship, available at bookstores nationwide. One set (of four books, the cash receipts account, the disbursements account, the ledger, and the general journal) may cost nigh PHP 400. GO UP

Procedure 9. Register for taxes at the Bureau of Internal Revenue (BIR)

Time	ii days
Cost	PHP 500 (registration fee) + PHP 15 (certification fee) and PHP 100(documentary postage tax, in loose course to exist attached to Grade 2303)
Comment	After the taxpayer obtains the Can, the company must pay the annual registration fee of PHP 500 at any duly accredited bank, using payment course BIR Form 0605). To register the BIR taxpayer must first accomplish BIR Grade 1903 and submit the same together with the required attachments to the Revenue District Role having jurisdiction over the registered address of the business establishment. In the Philippines, companies may be assessed various taxes: VAT, a community tax, a local tax, and income tax. When a visitor registers as a taxpayer, it must betoken in the application the types of taxes it expects to exist liable for, including VAT. Get UP

Procedure x. Payment of documentary stamp taxes

Time	1 solar day
Toll	PHP1 for every PHP 200 of upper-case letter
Comment	Section 174 of the National Internal Revenue Code, as amended, requires the payment of documentary stamp taxes on the original issuance of shares of stock at the charge per unit of PHP1 on each PHP 200 or a partial part thereof of the par value of the shares of stock. payment must exist made the 5th of the month post-obit the date of issuance of said registration certificate or issuance of shares. Become Upward

Procedure 11. Obtain the authority to print receipt/invoices with the Bureau of Internal Revenue (BIR)

Time	ane solar day
Cost	included in procedure 9
Annotate	The authority to impress receipts or invoices must be secured by the printer earlier the sales invoices or receipts may be printed. Philippine law does non require a company to print its official invoice forms at designated impress shops. If a company has secured the authority to print receipts and invoices, it tin ask any authorized printing visitor to impress its official invoice forms. However, if a company wants to impress its own invoice forms (every bit detailed in Procedure nine), the company must obtain a special permit from the Agency of Internal Revenue. According to requirements stipulated past the Large Taxpayer Service, new taxpayers must submit the following documents to the Revenue Commune Office or the office with jurisdiction over the taxpayer'southward head role: - Duly completed application for dominance to print receipts and invoices (BIR Form 1906) - Job society. - Final and articulate sample of receipts and invoices (machine-printed). - Application for registration (BIR Forms 1901 or 1903). - TRU grade or photocopy of Can card. - Proof of payment of almanac registration fee (BIR Form 0605). Become Upwards

Procedure 12. Print receipts and invoices at the print shops accredited past the BIR

Time	fourteen days
Toll	PHP 4,000 (between PHP 3,000 and PHP 5,000)
Comment	The minimum print number is 25 booklets. GO Upwards

Procedure 13. Submit receipts and invoices to the BIR for approval, accept receipts/invoices and books of accounts stamped by BIR

Time	1 day
Cost	No charge
Comment	In practice, the books of accounts are presented for stamping upon filing the application. These books tin can be obtained from Bureau of Internal Revenue (BIR). To register books of account and invoices, founders must present the following documents: - All required books of accounts. - VAT registration certificate. - SEC registration certificate. - BIR Form Due west-5. Co-ordinate to the Revenue Regulation No. 26-03 dated September 18, 2003, in lieu of the usual stamping of BIR registration on every booklet of manually-printed receipts and invoices to ostend or signify registration, the printer indicated in the BIR duly approved "Authorisation to Impress Receipts and/or Invoices" (ATP) shall issue to the taxpayer a duly stamped BIR-registered "Printer's Certificate of Delivery of Receipts and Invoices" (PCD) for printed receipts and invoices which shall be made bachelor and ready for inspection anytime by duly authorized revenue personnel. The higher up-mentioned certificate may be issued either on a "1-time basis" for full delivery of ordered receipts/invoices or on a "piece-meal footing" in instance of fractional delivery, in which latter case, the corresponding PCD shall be issued to the taxpayer every time a delivery of the ordered receipts/invoices is made. Consequently, manually-printed receipts/invoices are deemed duly registered receipts or invoices every bit required nether Section 237 of the National Internal Revenue Code of 1997 only if they are covered by a duly approved and issued "Authorization to Impress Receipts and/or Invoices" and BIR-registered "Printer's Certificate of Delivery of Receipts and Invoices. No receipt or sales/commercial invoice shall be issued past a seller to any customer or customer unless the one-time has received his copy of the duly stamped BIR-Registered "Printer's Certificate of Delivery of Receipts and Invoices" indicating the inclusive serial numbers of the receipts/invoices printed and delivered and the due dates of submission of the re-create of the PCD to the concerned BIR offices. Within thirty (xxx) days from issuance of the PCD, the taxpayer or the printer, as the case may exist, shall submit to the concerned BIR office that has jurisdiction over the taxpayer-user's principal identify of business the triplicate copy of the PCD, together with the certified photocopy of canonical ATP and the taxpayer's Sworn Statement enumerating responsibilities and commitments of the taxpayer-user. 1 copy thereof shall likewise be submitted to the BIR Acquirement Commune Office that has jurisdiction over the master place of concern of the printer. Become Upward

Procedure 14. Initial registration with the Social Security Arrangement (SSS) and

Fourth dimension	i week
Cost	No accuse
Comment	Nether the new single registration process, the employer is required to register with the SSS using the business registration form or BR-1. registration with SSS automatically causes registration with Philhealth thus the employer shall no longer be required to go to Phihealth for registration as registration with . Based on BR-i submission, the SSS shall encode the employer details and event the following: SSS employer number, together with the employer'due south copy of the processed Br-one,SSS information Brochure, employer identification bill of fare and listing of employer obligations and mail service-registration requirements. Go UP

Procedure xv. Complete registration with SSS and Philippines Health Insurance Company (PHIC)

Time	1 day
Cost	no charge
Comment	After initial registration, the employer submits within 30 days from the issuance of employer number by SSS and Philhealthh the post-obit: To SSS- employment report (SS grade R-1A), specimen signature card (SS form L-501), sketch of business address and validated miscellaneous payment return form (SS course R-6) or special bank receipt, showing payment for the employer registration plate, if non paid upon initial registration. To Philhealth: fellow member registration forms for each employee with the required supporting documents. Get Upwardly

Source: http://www.sas-ph.com/Tax-Accounting-Topics/philippines-business-registration.html

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