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Comprehensive guide to business permit renewal (for January 2015 deadline)

Renew your business permit with less hassle through the help of this simplified comprehensive guideline.
By Danella Yaptinchay |
Comprehensive guide to business permit renewal (for January 2015 deadline)

It’s ideal to start the year by planning goals and mapping out business strategies, but you need to take care of a crucial aspect of your business first – renewing your business permits and licenses. Most business permits expire on the 31st of December.This means that businesses need to renew their permits before the end of January. The deadline for renewal of permits with your local government units (LGUs)— the barangay and city hall where your business is located—is on January 20, while the deadline for the annual registration with the BIR is on January 31.

Why you need to renew your business permits on time

Not only will you get penalties if you fail to renew, your business will also be prohibited to operate within your LGU’s area.

To make things easier for you, we have broken down everything you need to know about having your permits renewed into three parts:

Barangay Permit/Clearance renewal*

You will need:

•    Previous year’s Barangay Permit, original
•    Previous year’s official receipt / proof of payment

How to renew:

•    Submit your accomplished application form together with the requirements at the Barangay Permit Division
•    Wait for the assessment
•    Pay corresponding fees

*The releasing and securing of Barangay Permit can be done within a day.

Mayor’s/ Business Permit renewal*

You will need:

•    New Barangay Permit
•    Previous year’s Mayor’s Permit / Business Permit, original
•    Previous year’s official receipt / proof of payment, original
•    Previous year’s Income Statement, audited or unaudited
•    Contract of Lease (2014, or covering stay during 2014)
•    Local Insurance (Paid at City Hall or external companies)
•    Community Tax Certificate (CTC) / Cedula (Paid and acquired at City Hall)

How to renew:

business_permit_renewal_1.JPG•    Submission of application form
Submit accomplished application form together with the complete requirements for evaluation. Application form is available at the Business Permits and Licensing Office of your City Hall
•    Assessment
Assessment of necessary fees at the Business Permits and Licensing Office
•    Payment
Payment of fees is made at the City Treasurer’s Office
•    Receiving
After processing of payment the City Treasurer’s Office will give you a receiving copy. The receiving copy of payment will be presented upon claiming of Mayor’s Permit
•    Release of Mayor’s Permit
Present the proof of payment at Business Permits and Licensing Office to claim your renewed Mayor’s Permit

*Releasing of renewed Mayor’s Permit will take 1 to 2 weeks depending on the volume of renewal transactions.

**Requirements for LGUs vary based on location. Refer to your LGU for specific/additional requirements.

BIR Registration renewal

You will need:

Accomplished BIR form 0605

How to renew:

•    Go to the officer of the day at your Revenue District Office (RDO) for assessment
•    Pay the annual registration fee of P500.00 at any BIR-accredited bank in your RDO

Sounds easy, right?

You will need to manage your expectations, though. Processing of business permit renewals takes some time. Be prepared to practice patience while transacting and waiting at lines.

Some tips to make it easier for you:

1.    Renew your business permits early! Do NOT wait until the last day of filing to renew. Chances are, you are going to be stuck in long lines among many who have waited to renew until the last day.

2.    Double check your Municipal/ City Hall’s requirements for business permit renewals.

3.    Make several copies of required documents.

4.    Bring your own pen and have extra copies of application forms needed just in case you need to rewrite your application.

5.    Lastly, DO NOT transact with fixers or brokers. Get professional assistance if you want to avoid the hassle and if you want faster processing and renewal of your business permits.A pro can take the burden of preparing the documents, queuing, and filling out forms for you.Full Suite is a firm that specializes in business registration services for small and medium enterprises, including services like business permit registration.


About the author:

Danella Yaptinchay has a background in hospitality, media sales, and journalism. Previously a globetrotter, she landed back in the Philippines a few years ago and has found her niche in the entrepreneurial scene here. She is currently the Managing Director of a services company providing backend support to small businesses called Full Suite. She is the co-founder of co.lab, a coworking space, and of the media company Homegrown. In constant pursuit of balance and self-development, she tries to apply the practices of yoga to her daily life.

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