Bir 2303 Certificate Of Registration

[Cristoforo Kanoy]

Nomatter if you are a business, big or small, or a self-employed freelancer, Philippine laws require that for your company to operate, you need a registration certificate from the Bureau of Internal Revenue (BIR). This BIR Certificate of Registration (COR) is also referred to as BIR Form 2303 and is the document that proves you have been given the legal rights to operate your business in the Philippines.

The BIR Certificate of Registration is a required document for all licensed professionals who have been granted a license under the Philippine Regulatory Commission, non-licensed professionals like freelancers or individuals with alternative digital careers like social media influencers, partnerships, sole proprietorships, cooperatives, and corporations. Additionally, this certificate grants partnerships, corporations, and cooperatives a Tax Identification Number (TIN). This will also indicate the kind of taxes you will have to pay come financial year-end.

If you are starting small, you may not need to feel the urgent need to register your business, and understandably so, as it can be a time-consuming and costly process. However, legitimizing your business by registering it with the BIR will open more doors for you as a business owner or freelancer.

For example, some corporation prefer to work with small companies or freelancers with official receipts because they need those documents for their own records and tax filing. More importantly, financial institutions need to see your registration documents and other pertinent records to grant you a loan. Without these proper certificates, you will have a hard time expanding your operations.

Moreover, the right documentation will make them feel more confident when it comes to making purchases or requesting services from you. Operations without these proper documents on display appear shady and not worthy of trust. The same goes for online sellers, which is why the BIR currently requires all ecommerce stores to register and the said move comes with government benefits.

Once your business is legitimized, more opportunities open up in terms of advertising. You will feel much more confident to market your goods and services if your company is granted legal rights to operate. You can then set up web campaigns, ad campaigns and participate in other forms of marketing that would require your business to first be a certified one, like television commercials, newspaper ads, and billboard ads.

Additionally, big-time clients, like those reaching out for you to be a supplier or partner merchant, will require you to submit a copy of your certificate of registration to confirm if you are a legit business.

Moreover, having a legit business instead of operating under an informal economy will protect you from legal troubles later on. Companies that do not register themselves with the BIR do end up paying fines and penalties for non-compliance.

We can help you secure the right documents, prepare the correct forms, and facilitate the whole process so you can sit back and relax. Take advantage of our free 30-minute consultation so we can get things rolling.

From the perspective of governance and tax compliance in the Philippines, the BIR Form 2303 or the Certificate of Registration, is one of the most important documents for businesses in the Philippines.

BIR Form 2303 is commonly referred to as the COR in practice. So throughout this article, we will use BIR Form 2303 and the COR interchangeably when referring to this important tax compliance document.

Depending on the type of business being set up, the first step of the company registration process may be to register with the Department of Trade and Industry, or DTI, or the Securities and Exchange Commission, or SEC.

Once a business has performed the initial registration with the primary government agency (i.e. SEC, DTI), it will then be necessary to register with the BIR in order to register the business as an official taxpayer in the Philippines.

The COR is the document that a business receives at the end of this BIR registration process and effectively outlines and confirms the specific tax obligations of the relevant business. Tax obligations can vary depending on the type of business being registered and the information provided during the registration process!

As mentioned above, for anyone that is running a business for a commercial purpose in the Philippines, the business must be registered with the tax authorities, the BIR. The result of a successful registration is the issuing of the BIR2303 or COR.

Whether you are intending to operate as a sole proprietorship, self-employed, partnership, freelancer, consultant or standard domestic corporation in the Philippines, a COR will need to be obtained at the outset.

Whether your PH business is a small online business selling commercial goods to the Philippine market through online platforms such as Shopee or Lazada, or a large corporate entity with significant annual revenues, the obligation to register for and obtain a BIR2303 remains the same!

The Business Permit, however, is a form of business licence that companies in the Philippines must renew every year at the start of each year in accordance with their BIR compliance obligations. The COR does not need to be renewed each year.

While the BIR2303 or COR is a document that a company will obtain from the BIR at the point that the business is registered, there may still be a need to update the COR during the lifetime of a PH business.

One reason for updating a COR might be to update the various tax categories for which the business is registered. For example, a company may have initially registered the business for Percentage Tax. As the business progresses and sales/revenue increases, the business may exceed the monetary threshold for Percentage Tax registration (i.e. gross annual sales and/or receipts exceeding PHP3,000,000). At this point, the company will have an obligation to update their tax registration and transition from Percentage Tax to VAT.

The various steps required with other agencies in the Philippines prior to applying for the COR are enough to form the subject of another article. While not exhaustive, outlined below are just some important documents that must be submitted with BIR Form 1903.

Obtaining the COR is just one step along the way on the registration process for a new business in the Philippines. However, there are a number of tasks that must be completed once the COR is obtained by a business.

After receiving the COR, a business is still required to apply for an Authority to Print Invoices/Receipts from the BIR. The application should be completed within 30 days from the date of the COR. Generally, this can be done at the same time as applying for the COR.

On or before 31 January every year, a business must submit process payment to the BIR for the annual registration fee of PhP500. The filing and payment of annual registration fee is completed via BIR Form 0605.

Filing and payment of the annual registration fee is a key element of the compliance framework that arises every year in the Philippines. It is also a relatively straightforward compliance requirement.

Visit cloudcfo.ph or contact the CloudCfo Team directly by emailing enq...@cloudcfo.ph. Tell us about your business and your specific financial requirements and we can then identify how the CloudCfo Team can add real value and support for the finance function of your business here in the Philippines!

DISCLAIMER: This article is strictly for general information purposes only. Nothing in this article constitutes or intends to constitute financial, accounting, regulatory or legal advice and must not be used as a substitute for professional advice. It is still necessary to consult your relevant professional adviser regarding any specific matter referenced above.

Also known as BIR Form 2303 and Certificate of Registration (COR), this type of document gives you the legal rights to operate your business in the Philippines. All professionals licensed by the Philippine Regulatory Commission, Non-Licensed Professionals like freelancers and people with digital careers, sole proprietors, partnerships, corporations and cooperatives should have this sheet of paper, and should take care of it.

It provides you with Tax Identification Number (TIN) for your business, if you are a partnership, corporation or a cooperative. If you are a professional or a sole proprietor, your personal TIN is the one indicated in the Certificate of Registration. It also states the types of taxes you will settle.

Some people also think that once one registers, the BIR will know that they exist. But, in reality, once a Client withholds taxes and gives you a 2307 form or a Certificate of Creditable Tax Withheld at Source, BIR already expects you to pay taxes as a business. To know more about 2307 forms, check this link:

You can build your business website and set up marketing campaigns on different social media platforms without worrying about legal issues. This will boost your sales and give you the opportunity to recover the costs of your taxes.

Clients usually have a vendor accreditation process where they will require you to submit your COR (Form 2303) and other documents. Clients need these to be able to vet that you are a legit business and that they will be able to get an official receipt from you which they will need to log payment to you in their books. Remember that those who can issue official receipts catch the bigger clients!

Hi Taxumo, I have office and workshop where my fabrication is being done. They are in different place but within the same RDO. My question is Do I still need to Register my my Workshop. We lines of business is equipment fabrication.

Hi Carl, the safe answer is YES, get your office registered as the head office and your workshop as a branch. The reason is it makes sense for both to be registered because business is conducted in both venues. For the workshop, for example, the LGU will need to make sure the proper permits (fire, etc) are in place.

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