If you own a sari-sari store or are planning to start one, you’re already part of a proud tradition of Filipino micro-entrepreneurs. Sari-sari stores have long been at the heart of local communities, providing everyday goods and services just steps away from home.
But here’s something many sari-sari store owners often overlook: even the smallest businesses need to be registered with the Bureau of Internal Revenue (BIR).
Over the years, I’ve spoken to hundreds of small business owners. A common question is, “Kailangan pa bang magparehistro sa BIR kahit maliit lang ang kita?”
The answer is yes. And in this guide, we’ll walk you through why registration matters, what it involves, and how to do it the right way.
Why BIR Registration Is Important
If you’re operating a sari-sari store, even if it’s from your home or a small stall, the law considers it a business. Under the National Internal Revenue Code, all persons engaged in trade or business must register with the BIR before starting operations.
Beyond legal compliance, BIR registration can benefit you in practical ways. A registered store can access government support programs, apply for small business loans, and participate in public procurement or supply opportunities. It also builds credibility and opens doors to growth.
One of our clients in Cavite, Nanay Lorna, started a small store out of her garage. She was hesitant to register at first. But after learning about a local MSME support program that required BIR registration, she decided to comply. Within months, she secured a microloan and expanded her inventory. That single step turned her small sideline into a reliable family income.
Who Needs to Register?
BIR registration applies to all individuals or businesses that regularly sell goods or services for profit. If you:
- Sell products such as canned goods, snacks, or household items
- Earn income from daily or weekly sales
- Handle cash transactions with customers
then you are operating a business in the eyes of the law.
Even if your earnings are small, or you run the store from home, BIR registration is still required. There are, however, tax exemptions and incentives available for micro-entrepreneurs, such as those classified under the Barangay Micro Business Enterprise (BMBE) program, which we’ll touch on later.
Step-by-Step Guide to Registering Your Sari-Sari Store with the BIR in 2025
1. Register Your Business Name
Before registering with the BIR, you need to register your business name with the Department of Trade and Industry (DTI). This ensures that your store has a unique and legally recognized name.
Choose a business name that reflects your store’s identity, such as “Aling Nena’s Store” or “Corner Convenience.” Business name registration can be done online through the DTI Business Name Registration System.
2. Secure Barangay and Mayor’s Permits
After obtaining your business name certificate, the next step is securing a barangay clearance and mayor’s permit. These are issued by your local government and confirm that your business is authorized to operate in your area.
Requirements typically include:
- DTI Certificate of Registration
- Valid government-issued ID
- Proof of business address
- Application forms provided by the barangay or municipal hall
Fees vary depending on your location, but expect to pay between 500 to 2,500 pesos for local permits.
3. Fill Out BIR Form 1901
This is the official form for registering self-employed individuals or sole proprietors. You can get the form from the nearest BIR Revenue District Office (RDO) or download it from the BIR website.
You’ll need to submit the following:
- DTI Certificate
- Barangay and Mayor’s Permits
- Valid ID
- Payment of ₱500 BIR registration fee
- Documentary Stamp Tax (₱30 per form or document)
- Location sketch or map of your business
Once submitted, the BIR will process your Certificate of Registration (COR), which includes your Taxpayer Identification Number (TIN) and your assigned tax type.
4. Register Your Books of Accounts
As a sari-sari store owner, you are required to maintain books of accounts to record your business transactions. These can be manual ledgers or columnar notebooks, depending on what your RDO recommends.
You must have your books stamped and registered by the BIR before you start using them.
5. Apply for Authority to Print (ATP) Official Receipts
You also need to apply for an Authority to Print (ATP) receipts. Once approved, you’ll be able to issue official receipts to customers. This is important if you plan to engage with suppliers, wholesalers, or government programs that require ORs.
You can choose between printed booklets or computer-generated receipts, depending on your business volume and setup.
How Much Does It Cost to Register a Sari-Sari Store?
Below is a general breakdown of the estimated costs for registration in 2025:
Registration Item | Estimated Cost |
DTI Business Name | ₱200 – ₱2,000 |
Barangay Clearance | ₱500 – ₱1,000 |
Mayor’s Permit | ₱1,000 – ₱2,500 |
BIR Registration Fee | ₱500 |
Documentary Stamp Tax | ₱30 – ₱90 |
Books of Accounts | ₱100 – ₱300 |
Printing of Receipts | ₱1,500 – ₱2,500 |
Note: Costs vary by city or municipality. Always check with your local offices for the most accurate figures.
What Taxes Are You Required to File?
If your sari-sari store earns less than ₱250,000 annually, you are exempt from income tax. However, you are still required to register with the BIR and file tax returns.
For those earning above the threshold, expect to file:
- Percentage Tax (3 percent of gross sales, filed quarterly)
- Quarterly and Annual Income Tax Returns
- Annual BIR registration renewal (₱500 due every January)
Some small businesses may qualify under the BMBE Law and be exempt from income tax. This is another reason registration is worth the effort. It puts you in a better position to apply for tax exemptions legally.
Common Mistakes to Avoid
Many small business owners delay or avoid registration due to fear, confusion, or cost. Here are the most common pitfalls:
- Believing that small businesses are exempt from BIR registration
- Failing to renew annually (especially every January)
- Not issuing receipts when required
- Operating without any form of accounting or records
- Ignoring updates or compliance notices from the BIR
Avoiding these mistakes will save you from penalties, surprise audits, and lost opportunities.
Why Registration Is an Investment, Not a Burden
Registering your sari-sari store may feel like an added burden, especially when profits are modest. But it’s more helpful to view registration as an investment in your business.
One example is a sari-sari store owner from Quezon City who registered in 2023. Soon after, she was invited to participate in a public school’s food supply program. Without a BIR certificate and official receipts, she would have been disqualified.
Compliance makes you visible and credible. It protects your business from legal risks and sets the foundation for growth.
Frequently Asked Questions
Is online registration available?
Some steps like DTI registration can be completed online. However, BIR registration for new businesses is typically done in person at your assigned Revenue District Office.
What if I only earn ₱150,000 per year?
You may be exempt from income tax, but BIR registration is still required. You also need to file annual tax returns, even if reporting zero income.
Do I need to hire an accountant?
For most sari-sari stores, formal accounting services are not required. Many business owners manage their own bookkeeping with basic training and assistance from seminars or community-based MSME support programs.
Final Thoughts
Every sari-sari store, no matter how small, contributes to the Philippine economy. By registering your business with the BIR, you’re not just complying with the law. You’re positioning your store to benefit from the many resources and opportunities available to registered micro-enterprises.
BIR registration may seem daunting at first, but the long-term benefits far outweigh the initial effort and cost. From access to loans and government programs to potential tax incentives under the BMBE law, the gains are clear.
MSME Philippines is committed to helping Filipino entrepreneurs take the right steps toward legal compliance and long-term growth. With the right knowledge and support, even the smallest tindahan can build a strong foundation for success.
Start smart. Register right. Your business deserves it.