The year 2021 has just begun, and for enterprising individuals, this means tax document preparations, inventories, and most importantly, renewal of business permits.
Registered enterprises in the Philippines are required to renew local business permits within January 1 to 20 for the year 2021 and every year after. Whether your business has only been in operation for a year, or if you are a veteran conglomerate, here is how you can renew your business permits.
At the onset of every year, all registered business establishments must be up to date to renew business permits at their local government units (LGU) to continue operations. Procedures for renewal may vary from one LGU to another, but the following steps must be completed regardless of your business location.
Step 1: Fill out the Renewal Application Form
Visit your City Hall and fill out the specified form: Application for Renewal of Business Permit. Make sure all information noted down is true and free of discrepancies. Double-check all information noted down before submission of this form to avoid a big hassle.
Step 2: Compile and Submit Needed Requirements
Submit the filled-out Application for Renewal of Business Permit to the Bureau of Permits along with original copies and photocopies of these documents required documents:
• Previous Mayor’s Business Permit (if applicable)
• Barangay Clearance for Business (from local barangay where your enterprise is located)
• Community Tax Certificate or Cedula
• Recent payment receipts
• Declaration of Gross Sales/ Receipts
• Previous year’s value added tax return or percentage tax return
• Latest income tax return with audited financial statement, if applicable
Other requirements may be requested depending on the LGU of your business location.
Step 3: Pay the Required Fees
Immediately after submitting both the application form and documents at the Bureau of Permits assessment window, continue to the cashier to pay your regulatory fees and license. Depending on your LGU’s policies, you may be given a receipt or stub. If so, follow any additional steps stipulated in these forms. Government agencies usually have step-by-step processes for each location pasted on the walls. Do note that the population congestion in your area may also affect the standard procedure.
Step 4: Receive your Approved Business Permits
After completing your payment, your renewed business permits will be given to you. You may need to follow additional procedures depending on your city requirements. The average renewal of business permits takes 30 minutes to 1 day if your city has no extra requirements and if the number of applicants has not reached the quota.
If your renewal location has a large number of applicants, you may be asked to wait more than a day to wait for your permits. If so, claim your stub or other forms and visit the office on the day mentioned. For added security, ask for a contact person with whom you may keep in touch regarding printing and issuing your permits.
Sanctions for Non-Renewal
Failure to renew a business permit within the period mentioned above will result in stiff penalties and surcharges. As such, keep track of the deadline because there are no extensions. Additionally, your business operations will also be prohibited within the LGU territory if you fail to comply with business permit renewal.
Pro-Tips for Easy Processing
Though the standard procedure cannot be changed to make the process of renewal more practical, there are tips that you as a business owner/ manager can take note of to make the preparation easier and hassle-free.
• Apply for renewal early to avoid long lines and large crowds.
• Prepare cash. Most government agencies do not accept credit card transactions. Having cash on hand saves you the burden of leaving your spot in the queues to find an ATM.
• Have all documents ready and forms filled beforehand. You may request the application form days before you plan to visit your local Bureau of Permits. Don’t forget to bring your pen and a clipboard for easy filling out of forms should you need to add some other information.
• Prepare multiple copies of each document in case more than one copy is needed.
• Read about your City’s specific policies for renewal. Check for any additional requirements and prepare beforehand. – Make use of online application and payment portals of your LGU if available.
Final Wrap Up
Business permits are your license to operate your business. It is issued by the LGU granting you the privilege to trade and sell within its jurisdiction. With this authorization, you ascertain that you comply with rules and regulations. This permit also shows your clients that your company is a credible and legitimate business entity. If you don’t want to pay fines or risk your business being shut down, give us a call to facilitate your renewal. We give free 30-minute consultations so you can start the New Year on the right track.
