While some people are busy starting their 2019 resolution, business owners are busy renewing their permits for 2019. It is mandatory to renew all the permits annually, failure to do so will result in you paying hefty penalties. Although there are different policies about the penalties depending on which municipality your business location is, the usual computation is a surcharge + interest, depending on how many months or days that you are late.
To help you prepare ahead of time, here is everything you need to know in renewing your business permit:
What to Renew
- Barangay Clearance
- Mayor’s Permit
- Bureau of Internal Revenue (BIR) Certificate of Registration
Because of its usual humble structure, securing a barangay clearance seems a bit of a hassle to obtain because it seems to be irrelevant. Unfortunately, it is one of the main requirements for Business Permit, so better head to your barangay office ASAP. As always, the release day and the fees vary, it can be released on the same day or after a few days. The deadline is before January 20th, so you still have time to process your Business Permit.
- Barangay Clearance from last year (original and photocopy)
- Receipt of last year payment
- Contract of lease
- Official Receipt of Insurance
- Renewal Fee
- Go to Barangay Hall where your business is located for evaluation.
- Barangay Official/Representative will check your requirements and tell you if you’re good to go for payment.
- Barangay will issue or renew your Barangay Clearance.
Some Barangay offices only require the previous clearance and the contract of lease. For clarifications, better give them a call directly.
If you watch the news, the long lines in different city halls in the country is evident since all businesses are renewing their permits, sole proprietors, partnerships and corporations. Because of this, some municipalities like in Cebu has extended their business renewal date up to the 25th. But for the rest, the deadline is still on January 20th. However, to accommodate the influx of renewals, municipalities offer extended hours and some are even open on Saturdays.
- New Barangay Permit
- Previous year’s Mayor’s Permit (original and photocopy)
- Comprehensive General Liability Policy Insurance (CGLP)/Local Insurance
- Community Tax Certificate or Cedula
- Contract of Lease
- Submission of new Mayor’s Permit application (you can get this from the Business Permits and Licensing Office of City Hall)
- SEC Articles of Incorporation
- Declaration or Certification of Gross Sales (issued by a Certified Public Accountant)
- Renewal fee
- Submit all the requirements at the Civic Center or Business Permits and Licensing Office (BPLO) for evaluation.
- After they assessed the documents, pay the renewal fee of Php2,000 (or it depends on your last year’s gross revenue) at City Treasurer Office. Keep the receipt.
- After 1-2 weeks, submit the receipt at the Bureau of Permits and Licencing Office (BPLO) and they will issue you your renew Mayor’s Permit.
Bureau of Internal Revenue (BIR) Certificate of Registration
Good news for people who are already cramming with the government mandated renewal! The deadline to pay the annual registration fee with BIR is on January 31st!
- BIR Form 0605
- Payment Fee of Php500
- Fill out the BIR form 0605
- Go to an Authorized Agent Bank (AAB) and pay the Php500
Once you have all the new certificates, do not forget to post or place those in your business establishment as mandated by law. Failure to do so will have corresponding penalties.
Make sure to renew your permit ahead of time or 1-2 weeks before the deadline to avoid the long queue and cramming. If your schedule is full to process all these things, send us a message now and let us take care of it for you!