What is ocn in bir 2303?

Let’s face it, clients, whether individuals or other partner companies, will gravitate towards legitimate merchants to ensure that their transactions are secure and that they get their money’s worth. Moreover, dealing with BIR registered businesses and freelancers means they can avail of official receipts, which is essential in the compilation of their own financial records, accounting, bookkeeping, and taxes. It is always important to remember that companies and freelancers who issue receipts get more opportunities and clients.

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.

Credibility provided by legitimization of your business through registration will help build your customer’s trust in you. As businesses are required to display all their certifications, these will reassure your customers that you and your company perform to quality standards.

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.

There is nothing that tugs on one’s conscience more than doing something illegal. By registering your business or yourself as a freelancer, you can clear your conscience as you would be working in compliance with the law.

BIR Form 2303 is just the BIR reference number of the document issued by the BIR in the form of the Certificate of Registration. It provides you with Tax Identification Number (TIN) for your business, if you are a partnership, corporation or a cooperative. BIR Certificate of Registration (COR) or BIR Form 2303 is a basic requirement. What is the purpose of BIR Form 2303? The BIR Form 2303, also called Certificate of Registration (COR), is an official document that gives the holder the legal. OUTBOUND CORRESPONDENCE NUMBER (OCN) - a systems-generated control number which serves as reference for every Authority to.

Source: www.thewiseguyph.com

The BIR Form 2303, also called Certificate of Registration (COR), is an official document that gives the holder the legal rights to operate a business in the Philippines. It is proof that a business is registered as a taxpayer with the Bureau of Internal Revenue (BIR).

The BIR Certificate of Registration provides a corporation, partnership, or cooperative with a business TIN (Taxpayer Identification Number). However, self-employed and mixed-income individuals such as freelancers, professionals, and single proprietors are not issued a separate business TIN. Instead, their existing personal TIN is the one printed on their COR and used in transactions with the BIR, other government agencies, and private institutions like banks.

The COR also serves as a reference for the types of taxes that a taxpayer is required to pay (e.g., income tax, percentage tax, value-added tax, withholding tax, etc.), including their due dates.

You should register your business not only because it’s required but also advantageous to your enterprise or career. Here are the reasons to register with the BIR:

As soon as you start a business or self-employment, you must secure a BIR Form 2303 to comply with the law. It’s a requirement for a business to legally operate in the Philippines.

The BIR imposes penalties to unregistered businesses, with a fine of Php 5,000 to Php 20,000 and a jail term of six months to two years.

Related: How to Find Business Idea: An Ultimate Guide to the Best Business Ideas in the Philippines

To expand and raise funds for your business, you’ll need to open a bank account, get loans and/or credit cards, acquire a lease, apply as a product distributor/dealer, bid as an accredited contractor/supplier with a company or government office, or perform any other financial transactions.

In such dealings, the BIR Certificate of Registration is one of the business documents required from self-employed individuals, entrepreneurs, and corporations.

There’s no accepted substitute for the COR. So if you can’t submit this document, don’t expect to get approval for whatever you’re applying for. This will only raise doubts about the legitimacy of your business, and nobody wants to deal with an illegal business.

A registration certificate from the BIR gives you peace of mind knowing that your business is legitimate in the eyes of not just the government but also your customers, suppliers, investors, and other stakeholders.

With your COR prominently displayed in your place of business, customers get the impression that your business is worthy of their trust and patronage. It makes them feel safe doing business with you because your operation is licensed and authorized by law.

Having your business registered with the BIR gives you the confidence to promote it online and offline. It’s also a great idea to indicate in your business profile that you’re registered with the BIR and DTI or SEC. If your brand reaches more people, the more customers you attract and retain.

File your application for registration with the BIR using the BIR Form 1901 at the Revenue District Office (RDO) having jurisdiction over your business address or home address.

Aside from submitting supporting documents for filing the BIR Form 1901, you’ll be required to pay an annual registration fee of Php 500, certification fee of Php 15, and documentary stamp tax of Php 15.

Once you’ve completed the registration process, you’ll be issued a BIR Form 2303 along with other registration documents.

Related: How to Register with BIR as a Self-Employed/Mixed-Income Individual: A Guide to BIR Form 1901

The annual registration fee (ARF) is the one that must be renewed every year, not the BIR Form 2303. BIR registration is done only once (when you start your business or self-employment), and the COR issued to you is for permanent use until you decide to replace it.