Is NBI and BIR Approval Required to Start a Food Business?

Starting a food business in the Philippines sounds exciting, but before serving your first customer, you need to ensure your legal papers are in order. Yes, NBI and BIR approvals are generally required to start operating a legitimate food business, especially if you want to avoid penalties, build credibility, and open business bank accounts.

Why NBI Certificate is Required

The National Bureau of Investigation (NBI) issues a clearance certificate to verify that the individual starting the business has no criminal record. While this isn’t always asked when registering the business name, it’s frequently requested when:

• Applying for Mayor’s Permit but if you new then complete NBI online registration process.
• Submitting documents to Barangay or LGU offices
• Opening a food stall in public markets or malls
• Registering a sole proprietorship with DTI

This certificate proves your identity and assures local authorities and stakeholders that you are fit to operate a business without any pending criminal cases.

Why BIR Approval is a Must for a Food Business

The Bureau of Internal Revenue (BIR) registration is non-negotiable if you plan to issue official receipts, pay business taxes, or open corporate bank accounts. You can begin the process by visiting www.bir.gov.ph tin number to secure your TIN and ensure full tax compliance from day one.

Upon registering with the BIR, you will:

• Be assigned a TIN (Tax Identification Number)
• Register your books of accounts
• Print official receipts and invoices
• Receive your Certificate of Registration (COR)

Skipping this step could mean hefty penalties and closure notices, especially during random inspections.

Step-by-Step BIR Registration for Food Business

1. Secure a TIN – If you’re an individual/sole proprietor, you can use your existing TIN or apply for a new one.
2. Fill Out BIR Form 1901 or 1903 – Based on your business structure.
3. Submit DTI Certificate or SEC papers – For business name legitimacy.
4. Submit Barangay Clearance and Mayor’s Permit – These are local government requirements.
5. Pay Registration Fee (₱500) – At the nearest Authorized Agent Bank or via ePayment channels.
6. Register Books of Accounts – Either manual or computerized.
7. Apply for Authority to Print Receipts – This allows you to issue legal sales invoices.

Step-by-Step NBI Application

1. Register Online – Go to official webpage to create an account.
2. Choose Schedule – Select a branch and date for appearance.
3. Pay Fee (₱130–₱170) – Depending on mode of payment and branch.
4. Appear in Person – For biometric capture.
5. Claim Certificate – Often on the same day, unless there’s a “hit” for name matching.

Other Important Permits for Food Business

While BIR and NBI approvals are important, don’t forget these:

Permit	Issued By	Why It’s Needed
DTI/SEC Registration	DTI (Sole) / SEC (Corp)	For legal business identity
Barangay Clearance	Barangay Hall	Local approval
Mayor’s Permit	City/Municipal Hall	To legally operate within locality
Sanitary Permit	City Health Office	To ensure food safety
FDA License (Optional)	Food and Drug Administration	For packaged goods and large-scale production

Penalties for Skipping BIR or NBI

Operating without proper documentation can cause serious trouble. Here are some consequences:

• Business Closure by LGUs or BIR
• Hefty Fines up to ₱25,000 for unregistered receipts
• Reputational Damage
• Legal Action including imprisonment for tax evasion

Running a food business is not just about the food it’s about trust, compliance, and accountability.

Can You Start First and Register Later?

Technically, no. You must register before you start any commercial activity.

BIR penalties can apply the moment you receive income from a business activity without a valid Certificate of Registration.

Some small vendors attempt to delay registration, especially for home-based or online food sales, but they’re still at risk for future audits. It’s better to be safe and start legally.

How to Speed Up the Process

• Use online portals for BIR and NBI.
• Prepare all documents ahead (ID, proof of address, business name).
• Get help from business registration consultants if needed.
• Visit your local Negosyo Center for free assistance and walkthroughs.

Online Food Sellers: Are You Exempt?

No. The BIR clarified that online businesses are not exempt from registration. If you sell food via GrabFood, Facebook Marketplace, or Shopee, you are still required to:

• Get a TIN
• Register your business
• Issue e-receipts or paper receipts
• File taxes accordingly

Serving delicious food is only part of running a successful business the other part is staying compliant. Whether you’re opening a carinderia or launching a full-fledged restaurant chain, legal documents like NBI clearance and BIR registration are foundational.