How to Renew Business Permits in the Philippines: A Refresher

Whether you’re just starting a business in the Philippines or a long-time business owner, it’s important to plan goals and map out business strategies for the new year ahead. Before you start planning marketing or operations strategies, make sure to take care of your business permits and registration first.

Some business owners put this off at the last minute, but before you know it, the January 20 deadline is up. Aside from monetary penalties and fines, you’re risking your business operations when you don’t renew your business permits and registration on time.

 

Consequences of Failing to Complete Business Permit Renewal

• Fine of not less than P5,000 but not more than P20,000 and imprisonment of not less than 6 months but not more than 2 years (BIR).
• Local Government Units or LGUs normally impose a 25% surcharge on top of the unpaid amount and an additional 2% interest for every month that you’re delayed if filing is not accomplished by January 20th.
• Closure and/or seizure of properties and assets (for extremely delinquent accounts).

Avoid red tape and make sure to renew your business permits before the year ends. Here are the simple steps you need to accomplish for the renewal of your barangay permit, mayor’s permit, and BIR registration.

 

Barangay Permit Renewal

Getting your Barangay Permit or Barangay clearance is the first step, as it’s necessary for your Mayor’s Permit.

Processing Time: 1 day

What to Bring:

• Original Barangay Permit from 2017
• Original 2017 Official Receipt

What to Do:

1. Go to your barangay hall.
2. Ask the clerks for a renewal application form. Fill out the form and submit it, along with the original copy of last year’s Barangay Permit and Official Receipt.
3. Your renewal application and requirements will be assessed. The fees will vary depending on the nature of your business.
4. If all is in order, you will be asked to pay the corresponding fees.
5. You will be given an official receipt that indicates when you can claim your new Barangay Permit.
6. Go back to the barangay hall on the said date to claim your Barangay Permit.

 

Mayor’s Permit Renewal

Once you have your Barangay Permit, you can then process your Mayor’s Permit renewal.

Processing Time: 1 to 2 weeks, depending on the number of people getting their business permits.

What to Bring:

• New Barangay Permit (2018)
• Original 2017 Mayor’s Permit
• Original 2017 Official Receipt
• 2017 Income Statement (audited or unaudited)
• 2017 Contract of Lease (or covering stay during 2017)
• Local Insurance (Either from City Hall or Private Insurance Company)
• Community Tax Certificate (CTC) / Cedula (acquired at City Hall)

What to Do:

1. Go to the Business Permits and Licensing Office of the City Hall or Municipal Hall where your business operates.
2. Fill out an application form.
3. Submit your form together with the requirements for assessment.
4. If all is in proper order and there are no missing documents, you will then be asked to pay for the Mayor’s Permit fees at the City Treasurer’s Office.
5. You will be given a receiving copy at the City Treasurer’s Office with a stamped date when you can claim your Mayor’s Permit.
6. Present your receiving copy when you claim your new Mayor’s Permit.

 

BIR Registration Renewal

Now that you have your new Barangay Clearance and Mayor’s Permit, you can renew your BIR business registration. You need to have this filed no later than January 31, 2018 to avoid penalties. Fines and surcharges can amount to P5,000 to P20,000.

Processing Time: 1 day

What to Bring:

• BIR Payment Form 0605. You can download and print it out, or you can fill out a form at the BIR office.

What to Do:

1. Go to your designated BIR Revenue District Office (RDO) and submit your accomplished BIR Payment Form 0605 to the officer-of-the-day for assessment. You can find the contact details and location of your specific RDO here.
2. Pay the annual business registration fee of P500 at the bank that’s accredited by your RDO.

 

Final Tips

Starting a business in the Philippines doesn’t have to be a stressful endeavor as long as you allot the proper time and schedule for securing the necessary business permits. If you procrastinate and do it at the last minute, you may not meet the government-mandated deadlines. Make sure that you start doing it before the year ends to avoid long lines at the barangay hall, city hall, and BIR office.

Have photocopies of your requirements ready, so you don’t need to go back and forth just to find a photocopier. Be patient! Some government offices are not air-conditioned and you may have to wait in line for a long time, so arm yourself with a hand fan and bottled water for your own comfort.

 

Need help with business permits and registrations? Click here to contact EnterPH today.