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Business Permit Renewal in the Philippines
A business permit is a significant prerequisite in operating a business legally. It is imperative to keep your permits up to date to avoid penalties and possible closure of your entity. Renewing your business permit will also grant you smooth sailing business operations.
However, renewing your business permit means going to different offices, such as the local government unit (LGU), Cityhall, and Bureau of Internal Revenue (BIR), where your business is located. With a complete suite of business registration services, our team is dedicated to helping local and foreign companies renew their business permits.
Step-by-Step Guide on Business Permit Renewal in the Philippines
To renew your BIR Business Registration Certificate, you must acquire a barangay permit and a mayor’s permit. Below are the requirements and procedures in obtaining the following documentary requirements.
Step 1: Secure Barangay Permit
The first step in renewing a business permit is to secure a permit from the barangay hall where your business is located. Ensuring to acquire a barangay permit is essential to proceed to the next step. Given that all requirements are met, you can acquire your barangay permit within a day.
- 2 copies of the Renewal Application Form
- Original and photocopy of last year’s Barangay Permit
- Original and photocopy of last year’s Official Receipt
- Other requirements indicated in the Renewal Application Form
Step 2: Secure Mayor’s Permit
The second step after acquiring a barangay permit is to secure mayor’s permit from the business permit licensing office (BPLO) of the city or municipality where your business takes place. Considering that all prerequisites are submitted, you can acquire your permit within 1-3 weeks.
- New Barangay Permit
- Original Mayor’s Permit from last year
- Original Official Receipt from last year
- Income Statement from last year (audited or unaudited)
- Contract of Lease from last year
- Local Insurance (either from City Hall or Private Insurance Company)
- Community Tax Certificate (CTC)/Cedula (can be acquired from City/Municipal Hall)
Step 3: Secure BIR Business Registration Certificate Renewal
The last step in the process is to renew your BIR Business Registration Certificate in order for you to continuously print official receipts, register books of accounts, pay business-related taxes, and give TIN (Tax Identification Number) to employees.
- BIR Payment Form 0605
- Payment of Registration fee of P500.00
Deadline of Business Permit Renewal
The deadline for business permit renewal with the LGU is every January 20. You have the option to pay the renewal fees on a quarterly basis, which shall be due 20 days after the close of each quarter (April 20, July 20, and October 20).
On the other hand, the deadline for renewal of the BIR Business Registration is every January 31. The annual registration fee of P500.00 must be filed and paid to the BIR on or before January 31.
Non-compliance of your business permit renewal is subject to a 25% surcharge on the tax assessed, plus an additional 2% penalty for every month of non-renewal after the deadline. For extremely delinquent accounts, the penalty is closure and/or seizure of properties and assets.
As for BIR, the penalty for non-renewal of business permit is a fine of not less than P5,000.00 but not more than P20,000.00 and imprisonment of not less than 6 months but not more than 2 years.
Renew Your Business Permit with Ease
Renewing your business permit is an essential requirement to continuously operate your business legally in the Philippines. Non-compliance may result in fines and forfeiture of business operations. With a large pool of business consultants and business registration services, our team is dedicated to helping you streamline your business permit renewal.
Renew Your Business Permit Easily
With a large pool of business consultants, our team is dedicated to helping you renew your business permit on time.