How to Register a New Business with the BIR: TIN, COR, and BIR Form 2303 Explained

Registering a new business with the BIR means filing BIR Form 1901 (individuals, sole proprietors, professionals) or BIR Form 1903 (corporations and partnerships) at the Revenue District Office (RDO) with jurisdiction over the business address. Approval produces two things: a Taxpayer Identification Number (TIN), if the applicant doesn’t already have one, and a Certificate of Registration (COR), BIR Form 2303, listing the specific tax types the business must file.

Which BIR form starts registration? #

The form depends on taxpayer type, not business size: BIR Form 1901 covers individuals — sole proprietors, professionals, and mixed-income earners — while BIR Form 1903 covers corporations, partnerships, and other juridical entities. Both are filed at the RDO covering the place of business, not the owner’s residence, unless the two coincide.

What does BIR Form 2303 actually list? #

BIR Form 2303, the Certificate of Registration, is the document a business must display conspicuously at its place of business, and it functions as the BIR’s record of exactly which returns that taxpayer is obligated to file. It names the registered trade name, the RDO code, the date of registration, and — critically — the specific tax types the business is registered for, such as income tax, VAT or percentage tax, and withholding tax on compensation or expanded withholding tax if the business will act as a withholding agent.

A COR is not generic — two businesses in the same industry can carry different tax-type lists depending on projected gross sales and elections made at registration. Getting the tax-type choice right at this stage avoids filing returns for tax types the business isn’t actually registered for, or missing ones it is.

VAT, percentage tax, or the 8% rate — what gets decided at registration? #

Registration requires an upfront choice between VAT registration and percentage tax registration, which determines which quarterly return the business will file for the life of the registration until changed. A business expecting annual gross sales or receipts above ₱3,000,000 must register as VAT; below that threshold, it registers under the 3% percentage tax on gross sales under NIRC Section 116, filed via BIR Form 2551Q.

Self-employed individuals and professionals below the VAT threshold can also elect the flat 8% income tax rate in lieu of both percentage tax and the graduated income tax schedule — see 8% Income Tax Rate vs Graduated Rates for how that election works and who it favors. The election is made at registration (or at the start of a taxable year for existing taxpayers) and must be renewed by re-electing it each taxable year.

What did the EOPT Act change about registration cost? #

Registering a business used to carry a recurring cost that new registrants budgeted for automatically: a ₱500 Annual Registration Fee (ARF), paid via BIR Form 0605 by January 31 every year. The Ease of Paying Taxes Act (RA No. 11976), effective January 22, 2024, abolished the ARF entirely — businesses registering today, and existing businesses going forward, no longer pay it or file Form 0605 for that purpose. This removes a small but universal annual cost and one more form from a new registrant’s calendar.

Registration steps in order #

1. Determine the correct form — BIR Form 1901 for individuals, BIR Form 1903 for corporations/partnerships.
2. File at the RDO with jurisdiction over the place of business, with supporting documents (valid ID, proof of address, DTI/SEC registration for the business name, and any applicable local permits).
3. Choose the tax-type registration — VAT, percentage tax, or the 8% rate election if eligible — since this determines which returns BIR Form 2303 will list.
4. Register Books of Accounts in the chosen format (manual, loose-leaf, or Computerized Accounting System) — see BIR Books of Accounts: Manual, Loose-Leaf, and Computerized Accounting System Requirements for how to pick the right one.
5. Receive the TIN (if new) and BIR Form 2303, and display the COR at the place of business.
6. Register invoices/receipts for issuance to customers, as required under the EOPT Act’s invoicing rules.

A worked example #

A freelance graphic designer earning an estimated ₱1,200,000 a year registers as a sole proprietor using BIR Form 1901. Because projected gross receipts fall well under the ₱3,000,000 VAT threshold, she elects the 8% income tax rate instead of percentage tax plus graduated rates, registers manual books of accounts as a first-year filer with modest transaction volume, and receives a COR listing income tax (8% rate) and no VAT or percentage tax obligation. No ₱500 ARF applies under the EOPT Act.

Summary #

New business registration runs through BIR Form 1901 or 1903 at the RDO, producing a TIN and a BIR Form 2303 that fixes the specific tax types the business must file — a choice worth getting right the first time. The EOPT Act removed the ₱500 Annual Registration Fee that used to recur every January. See 8% Income Tax Rate vs Graduated Rates for the tax-type election and Your First Excel to DAT Conversion for what comes after registration once filings begin.