3 Easy Steps to Renew Your Business Permit in the Philippines
Registered enterprises in the Philippines must renew their local business permit between January 1 and 20 every year with the Local Government Unit (LGU) where their official business address is located.
As an entrepreneur, it is important to be aware of the deadlines and requirements needed when renewing your business permit. Failure to renew your business permit will result in hefty fines or worse, closure and seizure of your company’s properties and assets.
Step #1: Secure a Barangay Permit
Secure a Barangay Permit from the barangay hall where your business is located. To obtain a Barangay Permit, you must present the following requirements:
- Original and photocopy of last year’s Barangay Permit
- Original and photocopy of last year’s Official Receipt
- Accomplished Renewal Application Form (2 copies)
- Other requirements indicated in the Renewal Application Form
Once you have completed your application, take note of the date indicated on the official receipt as it dictates when you can return to claim your permit.
Step #2: Secure a Mayor’s Permit
The next step in your permit renewal process is to acquire a Mayor’s Permit. The process of obtaining this permit may last for 1-3 weeks. The requirements needed are:
- New Barangay Permit (Current Year)
- Original Copy of Previous Mayor’s Permit
- Original Copy of Previous Official Receipt
- Last Year’s Income Statement (audited or unaudited)
- Last Year’s Contract of Lease
- Local Insurance (either from City Hall or Private Insurance Company)
- Community Tax Certificate (CTC) / Cedula (acquired from City Hall)
You must submit your application for assessment at the local Business Permits and Licensing Office of the City or Municipal Hall where your company is located. Once approved, pay the necessary fees to obtain a receiving copy at the City Treasurer’s Office, which shall provide a date of when you can claim your Mayor’s Permit.
Step #3: Secure a BIR Business Registration Certificate Renewal
You must submit your new Barangay and Mayor’s Permit, along with an accomplished BIR Payment Form 0605, at your business’ designated BIR Revenue District Office (RDO). Once approved, pay the annual fee of ₱500 at the bank accredited by your RDO.
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