Have you ever wondered what your next step should be after registering with the DTI and LGU? What BIR requirements for new business do you need to prepare to fully legalize its operations?
In this blog, we’ll dive deeper into the steps to make your business legal and compliant with tax rules. Here’s a quick and simple guide to the documents you’ll need for BIR registration.
But if you don’t have time and you need help ASAP with your business registration, let our team do it for you!
*Always make sure to know which taxpayer profile you need to register as: Sole Proprietor, Professional, or Corporation. For questions, email us at customercare@taxumo.com.
BIR requirements for new business – what to prepare?
- Form 1901: This form is for freelancers, self-employed individuals, and business owners. You need it to officially register yourself or your business with the BIR.
- Form 1906: Once registered, you’ll need this form to get permission from the BIR to print your official receipts and sales invoices for your customers.
- Valid IDs: You’ll need at least two valid government IDs as part of the registration process.
- DTI Certificate (for businesses with trade names): If your business uses a name other than your own (like “ABC Store”), you’ll need a certificate from the Department of Trade and Industry (DTI) to register that name.
- Barangay Clearance: This document shows that your business is approved by the local barangay where you operate.
- Books of Accounts: Depending on your taxpayer type, you’ll need to register and maintain a set of books for recording your transactions. For non-VAT taxpayers, the minimum requirement includes four books:
- General Journal
- General Ledger
- Cash Disbursement Journal
- Cash Receipt Journal
Post-Registration: Tax Compliance
After registering your business, it’s important to keep up with BIR rules. Here are some tax duties you’ll need to stay on top of:
Withholding Taxes
You might have to withhold taxes from payments to your suppliers or contractors, depending on your business. It’s important to track these and issue certificates (like BIR Form 2307) for compliance.
Issuing Invoices
As a registered business, you need to issue sales invoices or receipts for every sale. Make sure they’re filled out correctly and follow BIR rules.
Maintaining Books of Accounts
Keep your books of accounts updated with all your business transactions. This makes tax filing and staying compliant much easier.
Tax Filing & Compliance
Make sure to have your quarterly and annual tax filing in check. This can help you to minimize of the penalties. Find tools that can help you monitor not just your business finances but also on your taxes as well.