10/12/2025
Newly Registered Business?? Which TIN are you filing to apply for TIN certificate? TIN 1 or TIN 2? Don't Guess, Get It Right! And file the correct TIN with IRC.
Your guide to stress free filing. 👇
✅TIN 1: FOR COMPANIES 🏢
TIN 1 is the form for companies, partnerships, and trusts. If your business is registered with the IPA as a company, this is the TIN to complete and file with IRC!
Take note that when your business is registered with IPA under business name registration the type of TIN you will complete is determined by the number of shareholdings in the business. When your business has only one shareholder – it will be classified as sole trader and so you will complete and file TIN 2. Typically that is mostly the case under business name registration. However, that is not the case, when you have multiple shareholders for your business that is registered under business name registration. This form (TIN 1) has to be completed and not TIN 2. As multiple shareholders would automatically classify your business as partnership. This differentiation is critically important as typically business registered under Company Registration complete and file TIN 1 irrespective of the number of shareholders and business registered under business name registration complete and file TIN 2 unless there is more than one shareholder. Hence the need for clarity and clarification.
The combination of filling. If your business is registered under company registration you will complete a single TIN 1 form for your company, partnership or trust and each TIN 2 for the directors.
Still confuse about the two types of business registration through IPA click this link to our earlier post about the about the difference between Business Name Registration Vs. Company Registration: https://www.facebook.com/photo.php?fbid=122119443674936681&set=pb.61578100430319.-2207520000&type=3
✅Information you would expect to provide in TIN 1 include;
1️⃣ Legal Structure: You will have to state the nature of your business i.e company, partnership, or trust. You'll also provide your IPA company registration number. Obtained fom IPA certificates
2️⃣ Business Details: You’ll provide official registered company as indicated in the IPA certificate, the date of incorporation and other related information.
3️⃣ Physical Address: You'll provide the company’s registered office address and the principal place of business (where business is located and operation - it could be a section and lot number or street and building.
4️⃣ Director Information: The form requires the full names, addresses, of all directors, partners, or trustees.
In addition, each Director, partner or trustees will be required to provide a copy of their valid identification (ID). IRC has 3 categories to establish proof of identification. Category A – Passport, NID and Drivers License. Category B – Birth Certificate, Employment ID, Superannuation Statement, Bank Card, Bank Statement, Statutory Declaration, Land Tittle and etc... Category C – Payslip, Contract of Employment, Shareholders Certificate, Qualification Certificates, Loan Agreement and etc... If you have one item in Category A, you can provide that – IRC will accept.
If you are unable to provide one item in A, you will be required to provide two items from Category B and 3 items from Category C. If you are still not able to provide that too you can provide 1 item from Category B and 5 items from Category C. When providing items in category B and C, it has to also include an ID size photo commissioned by Commissioner of Oaths.
5️⃣ Business Activity: Accurately describe what your company does.
6️⃣ Contact Details: Include the name and contact details of the person authorized to act on behalf of the company for tax matters.
7️⃣ Bank Account: You must provide the business bank account details for all tax-related transactions and refunds, for newly registered businesses this part is not applicable.
✅TIN 2: FOR INDIVIDUALS & SOLE TRADERS 🧑💼
TIN 2 is the form for individuals, including sole traders, employees, and those earning rental or other personal income.
The combination of filling: This is the only form you complete and file. No other additional form(s) as is the case in filing TIN 2. Reminder again! Only use this form to complete and apply for your business TIN when your business has only one shareholder – sole trader.
✅Information you would expect to provide in TIN 2 include;
1️⃣ Personal Information: You'll provide your full legal name, date of birth, gender, contact details and other personal information.
2️⃣ Identification: A copy of your valid photo ID is required. IRC has 3 categories to establish proof of identification. Category A – Passport, NID and Drivers License. Category B – Birth Certificate, Employment ID, Superannuation Statement, Bank Card, Bank Statement, Statutory Declaration, Land Tittle and etc... Category C – Payslip, Contract of Employment, Shareholders Certificate, Qualification Certificates, Loan Agreement and etc... If you have one item in Category A, you can provide that – IRC will accept.
If you are unable to provide one item in A, you will be required to provide two items from Category B and 3 items from Category C. If you are still not able to provide that too you can provide 1 item from Category B and 5 items from Category C. When providing items in category B and C, it has to also include an ID size photo commissioned by Commissioner of Oaths.
3️⃣ Sole Trader Details: If you are a sole trader, you will need to specify this and provide your registered business name and its principal place of business (where business is physically located, not post-office box).
4️⃣ Representative Information: If a lawyer or an accountant or a professional will represent you in filling your tax returns, you will be required to provide the representative information.
5️⃣ Bank Account: You can provide your personal bank account details in an event of tax refunds. For new business this information is not necessary
6️⃣ Contact Details: Ensure your personal contact number and postal address are correct for all correspondence from IRC.
7️⃣ Signature: You will have to sign towards the end of the TIN form to verify all the information you have provided is accurate.
✅Choose the correct TIN form to make the process smoother and faster. Good luck! 👍
✅Bonus Information!!
Follow these steps 3 simple steps to get your business formalities in order and open business account with a commercial bank:
Step1️⃣ : Apply for your business registration with IPA and obtain your business certificate. The process takes 5 to 10 working days. 📝
Step2️⃣: Use the IPA issued certificate along with the correct TIN form and apply for TIN certificated. This process takes 5 to 10 working days. ⏳
Step3️⃣: Use the IPA business certificate and the IRC TIN certificate and visit any commercial bank (BSP, TISA, Kina Bank, National Banking Corporation) to open your business account. This takes about 5 working days. The bank will require you to also provide business/company profile and a letter to open the business account🏦
We provide the following services:
✅📍 Business Name Registration K450
✅📍 Company Registration K950
✅ 📍Company Name Reservation K150
✅ 📍TIN Registration K150
✅ 📍Letter to BSP or other banks to open business account K70
✅ 📍Business/Company Profile K350
✅ 📍Professional Business Logo and Letter Head K300
Email us at [email protected] and will assist you right away.
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🎯Business Name vs. Company Registration in PNG Explained in just 1 Minute.
‼️Don't Register Your Business Until You Read This!
🤔Still confuse or trying to understand the difference between busines name registration and company registration. We got you.
✅BUSINESS NAME REGISTRATION
1. Legal Status
A Business Name is simply a trading name. It does not create a separate legal entity; the owner and the business are legally the same.
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2. Liability
The owner has unlimited personal liability, meaning their personal assets are not protected from the business's debts or legal issues. The owner is personally liable for business financial debts and obligations in an event the business is unable to settle its financial debts.
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3. Formation and Registration
This process is simpler and more affordable compared to a company. It involves a straightforward application to the IPA with owner and business details.
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4. Ongoing Compliance
The primary ongoing obligation is an annual renewal with the IPA. Changes in ownership or address must also be promptly updated.
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5. Taxation
Business profits are treated as the owner's personal income for tax purposes.
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6. Credibility and Funding
A Business Name may be seen as less formal, which can make it more challenging to secure significant loans from NDB, BSP or other commercial banks and may attract investment.
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7. Benefits Over a Company
The main benefits are simplicity and low cost. It's the ideal choice for small-scale, low-risk ventures with small setup capital and administrative requirements.
✅COMPANY REGISTRATION
1. Legal Status
A Company is a separate legal entity from its owners. It has its own legal personality, meaning it can enter contracts, own assets, and be sued in its own name.
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2. Liability
A key benefit is limited liability, which protects the personal assets of the shareholders from the company's debts and legal obligations. The owner is not personally liable for the company’s financial debts and obligations in an event the company is not able to settle these financial debts and obligations.
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3. Formation and Registration
This is a more formal and complex process than a business name. It requires a name reservation, comprehensive documents including details of directors and shareholders, and compliance with the Companies Act 1997.
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4. Ongoing Compliance
A company has more rigorous ongoing obligations, including lodging annual returns with the IPA, maintaining detailed records, and adhering to specific legal duties for its directors.
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5. Taxation
The company is taxed as a separate entity on its profits (corporate tax). Shareholders are then taxed on any dividends they receive.
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6. Credibility and Funding
A company structure offers enhanced credibility with banks like NDB and BSP including investors, making it easier to secure loans, attract investment, and bid on larger contracts.
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7. Benefits Over a Business Name
The main benefits are limited liability, enhanced credibility, and greater flexibility for growth. It is the ideal structure for high-risk ventures, securing funding, and operating in regulated industries.
🚀Need to register a business, email us at [email protected] and will have your business registered within 5 days.
