TIN, DTI and SEC — Philippines business registration
What you need before issuing your first invoice in the Philippines: TIN, BIR Form 2303, DTI or SEC registration and the Authority to Print (ATP) or CAS permit.
Starting to invoice in the Philippines requires three stacked registrations: a business permit from the Department of Trade and Industry (DTI) for sole proprietors or from the Securities and Exchange Commission (SEC) for partnerships and corporations; a barangay clearance and local Mayor's Permit from the city or municipality; and a tax registration with the Bureau of Internal Revenue (BIR) that produces a Taxpayer Identification Number (TIN), the Certificate of Registration (BIR Form 2303) and either an Authority to Print (ATP) for manual booklets or a Permit to Use a Computerized Accounting System (CAS) for software-issued invoices. Without all three layers, any invoice you issue is non-deductible for the buyer and exposes you to penalties under Section 264 NIRC.
- TIN: 9 digits (individuals/HQ) + 3-digit branch suffix, issued by BIR.
- BIR Form 2303: Certificate of Registration listing tax types.
- DTI: business name for sole proprietorship (registration via BNRS portal).
- SEC: registration of partnerships and corporations via eSPARC portal.
How it works
Choose the entity type. Sole proprietorship is the simplest — registered with DTI Business Name Registration System (BNRS) online for PHP 200-2,000 depending on territorial scope. Partnerships and corporations register with the SEC through the eSPARC (Electronic Simplified Processing of Applications for Registration of Company) portal — minimum capital varies, with One Person Corporations (OPC) under Republic Act 11232 (Revised Corporation Code, 2019) allowed since 2019.
Obtain a Barangay Clearance from the barangay where the business is located, then a Mayor's Permit (Business Permit) from the City or Municipal Treasurer. Documents typically required: DTI/SEC certificate, lease contract or proof of ownership of premises, Community Tax Certificate (CEDULA), Fire Safety Inspection Certificate and Sanitary Permit. Annual renewal every January.
Register with the BIR at the Revenue District Office (RDO) covering your business address. File BIR Form 1901 (sole proprietor / professional), 1902 (employee), 1903 (corporation/partnership) or 1904 (non-resident). Pay the PHP 500 annual registration fee (BIR Form 0605) — the Ease of Paying Taxes Act (RA 11976) removed this fee from 22 January 2024. You receive the TIN and the Certificate of Registration (BIR Form 2303).
Decide between Authority to Print (ATP) and Computerized Accounting System (CAS). For paper booklets of Sales Invoices and Official Receipts you file BIR Form 1906 and have a BIR-accredited printer produce the books under RMO 29-2002 — the booklets have BIR-assigned serial ranges and a 5-year validity. For software-issued documents you file a CAS application under RMC 5-2021, providing the system documentation, sample outputs and a sworn declaration of compliance with BIR rules.
Register your Books of Accounts (manual, loose-leaf or computerized) with the BIR within 30 days of business commencement and before any transactions. Manual books are stamped at the RDO; loose-leaf books require an annual permit; computerized books require the CAS permit. All books must be retained for ten years under Section 235 NIRC — first five years in original form, last five in electronic form with a sworn statement.
Legal framework
- National Internal Revenue Code of 1997 (RA 8424) — Sections 236, 237, 264.
- Ease of Paying Taxes Act (RA 11976, 2024).
- Revised Corporation Code of the Philippines (RA 11232, 2019).
- Revenue Memorandum Order No. 29-2002 (ATP rules) and RMC 5-2021 (CAS rules).
Frequently asked questions
Do freelancers need to register with DTI and BIR?
BIR yes, DTI optional. A freelancer registers with the BIR using Form 1901 as a self-employed individual or professional and receives a TIN and Certificate of Registration. DTI registration is required only if the freelancer uses a business name other than their legal name; using your own name (e.g. 'Maria Santos Consulting Services' where Santos is your surname is borderline) lets you skip DTI but still register with BIR. Either way you must obtain a Mayor's Permit and Books of Accounts.
What is the difference between an OPC and a sole proprietorship?
A One Person Corporation (OPC), allowed since the Revised Corporation Code (RA 11232, 2019), is a corporation with a single stockholder — it has a separate legal personality and limited liability protection. A sole proprietorship has no separate personality: the owner is personally liable for all debts. The OPC files SEC documents, has higher compliance costs and corporate income tax (25% under CREATE) — sole proprietorship pays individual income tax on net business income.
What is the Authority to Print (ATP)?
An ATP (BIR Form 1906) is the permit to have an accredited printer produce paper booklets of Sales Invoices and Official Receipts under RMO 29-2002. Each ATP assigns a serial range to the booklet (e.g. SI No. 0001-0500) and is valid for five years. Once you migrate to a Computerized Accounting System (CAS) under RMC 5-2021 or onto the BIR EIS under RR 8-2022, you no longer need an ATP for those document types.
Can foreigners register a business in the Philippines?
Yes, subject to the Foreign Investments Negative List (Executive Order 175, 2022). Many activities are fully open to 100% foreign equity; some (mass media, retail trade below USD 200,000 paid-up capital, etc.) are restricted. Foreign-owned corporations register with SEC and obtain a TIN as a domestic corporation. Foreign individuals working in the Philippines also need a TIN, plus an AEP (Alien Employment Permit) from DOLE and a 9(g) visa from the Bureau of Immigration.
What happens if I issue an invoice without BIR registration?
Section 264 NIRC penalises the issuance of receipts or invoices without BIR registration, and the failure to register, with a fine of PHP 1,000 to PHP 50,000 and imprisonment of two to four years. The buyer cannot claim the input VAT or the expense as deductible — exposing them to deficiency assessments. The BIR can also close the establishment under the Oplan Kandado programme (RMO 3-2009) for repeat violations.