To avoid incurring unnecessary penalties, every business needs to Renew Business Permit in the Philippines
You need to Renew Business Permit in the Philippines even if you just register your business last December and even if you didn’t start operating your business last year.
Requirements, fees and procedures may vary depending on the local government unit (LGU).
When is the Deadline to Renew Business Permit in the Philippines?
Deadline to Renew Business Permit in the Philippines with the LGUs is on January 20,
While the deadline of filing and paying for the annual registration with the BIR is on January 31.
What are the Penalties for if you’re late to Renew Business Permit in the Philippines?
If filing and payment is not accomplished on or before January 20, the Local Government Unit (LGU) will impose a 25% surcharge on the unpaid amount plus 2% interest per month.
LGU can charge you again 25% surcharge and 2% interest per month if you’re declared Gross Sales/Receipts are lower than the Actual Gross Sales/Receipt as per Audited Financial Statement and Income Tax Return.
Failure to renew your business permit on time, may result in Municipal or City Hall ordering the closure of your business.
Aside from Local Government Unit (LGU), you still need to file and pay Annual Registration Fee to the BIR on or before January 31 to avoid paying compromise penalties of P1,000, 25% surcharge, and 20% interest per annum.
How to Renew Business Permit in the Philippines?
STEP 1: Renew your business to the Barangay Hall
1. Go to your Municipal or City Hall to Get Application Form for Business Renewal.
2. Go to Barangay Hall and tell the Barangay Secretary that you want to Renew Your Business Permit in the Philippines.
3. Present them a copy of your DTI Certificate of Business Registration or SEC Certificate of Registration.
4. Pay corresponding Fees.
5. After you renew Business Permit in the Philippines in the Barangay Hall, You can now get your New Barangay Business Permit.
STEP 2: Renew your business to the Municipal or City Hall
1. Go to the Business Processing and Licensing Office (BLPO) for your business renewal fees assessment.
2. Your assessment will be based on is the line of your business and your annual gross sales for the previous month.
3. You might be ask to present DTI Certificate of Business Registration or SEC Certificate of Registration, Sworn Statement of Gross Sale Receipt, SSS Clearance, and Barangay Business Permit.
4. Pay your Business Tax, Community Tax Certificate (CEDULA), and other Fees
5. Proceed to the following Office/Agency for Verification of Documents.
A. Municipal Planning & Development Coordinator (MPDC) Office
Go to your Municipal Planning & Development Coordinator (MPDC) Office for checking of your Zoning Permit.
If you still the same business name, same business owner, and same business address, you’re only required to pay and get zoning Certificate.
Pay P25 to the Treasury Office, then go back to MPDC to get your Zoning Certificate
But if you change your business name, business owner, or business address. You need to apply for a new Zoning Permit again.
B. Municipal Assessor Office
Go to your Municipal Assessor Office for Real Property Assessment of Land and Building where your business establishment is located.
i) Tax Clearance – You can get this after paying your Real Property Tax or Amilyar at Treasurer’s Office.
To know what you need to pay, you can request Statement of Account of Real Property Tax or AMILYAR to the Treasury Office.
If you lose your previous receipt or statement of account (SOA), you can seek help in the Assessor’s Office to give you necessary information about your Real Property. They will need a copy of your land title.
ii) Tax Declaration – You can get this at Assessor’s Office after submitting Tax Clearance, gov’t issued valid ID, and Cedula.
C. Bureau of Fire Protection
Go to your Bureau of Fire Protection for Fire Safety Inspection Certificate and re-assessment of business establishment.
Fire Safety Inspection Fee (FSIF) is 10% of Regulatory Fees and Charges plus P200.
Depending on the size and nature of the business establishment, the business owner/s might be advice to buy fire extinguisher/s and signage to a third party retail store.
Submit Map/Sketch of your Business Location so your business can be easily find by the Fire Inspector.
After inspection, Go back to Bureau of Fire Protection (BFP) get your Fire Safety Inspection Certificate.
D. Municipal Health
Go to your Municipal Health for Sanitary Permit and Health Card Certificate of the owner and employees of the business.
i) To get Sanitary Permit, Municipal Health Officer will take water sample from your business establishment.
Prepare a Map/Sketch of your Business Location so that your business can be easily find by the Sanitary Officer.
ii) To Get Health Card Certificate, the owners and all employees must go to a third party Diagnostic Laboratory to undergo:
1. X-Ray (Chest), 2. Urinalysis, 3. Hepatitis B, 4. Stool, and 5. Drug Test.
While waiting for the results, the Health Officer will give you a promissory note so that you can proceed to getting your business permit for renewal done.
After the test, you need to go back to the Municipal Health Officer and give him/her the results.
After you completed the requirements, you can now go back to the person who assess your business and submit your documents and the duly accomplish application form. The person in charge is usually located in the Treasury Department.
Ask your schedule of when you will come back to get your New Business Permit and New Sticker at the Business Processing and Licensing Office (BPLO).
After you Renew Business Permit in the Philippines with Municipal or City Hall, Renewing your business in the BIR is the next step.
STEP 3: Renew your business in the BIR
1. File Annual Registration Fee using BIR Form No. 0605 from eBIR Form or eFPS.
2. Wait for e-Mail confirmation from BIR.
3. Print and submit 3 sets of BIR Form 0605 and e-Mail Confirmation in your Authorized Agent Bank (AAB) and
4. Pay P500 pesos for every home office or branch you have.
To those who are using Manual Books of Accounts, you are not required to renew and re-stamp your books to BIR annually. They are only renewed if your books are almost exhausted or used.
When your Books of Account is almost exhausted and used, bring your OLD and NEW Books of Account to the Bureau of Internal Revenue (BIR) for registration of your NEW Books of Accounts.
That’s it, you already know the basic of what you need to do to Renew Business Permit in the Philippines.
If you don’t have time and patience to do-it-yourself (DIY), you can do what other business owners are already doing. They outsource it to someone they trust and who is familiar with the business renewal process.
Friendly Reminder
When you’re outsourcing it to someone. Always ask for evidence that your business is really renewed. To avoid being overcharged, Always ask for receipt.
If you want to avoid losing your documents, make it a habit to organize and label your documents ASAP. It’s always good if you have a back-up of all the documents you submitted.
If you want to avoid the hassle of longer lines and the risk of incurring unnecessary penalties, It’s better if you finish your business renewal on or before January 10.
If you have questions regarding tax, accounting, and business registrations, you can contact us here.
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