If you just started a business in the Philippines, two dates you always need to keep in mind are January 20 and January 31. These are the deadlines to renew your business license and registration with the local government units and the BIR, respectively.
Late renewals can result in hefty fines. The LGUs may charge 25% on top of your tax assessment, plus 2% interest for every month you are late. The BIR can fine you between P5000 and P20,000, and penalize you with imprisonment for 6 months to 2 years. Failure to renew your license and registration may also mean closure of your business and, in extreme cases, seizure of your assets.
Fortunately, the renewal process is relatively simple and easy. Here’s a step by step guide for your reference:
Step 1: Renew your business permit with your barangay
- Prepare the following documents:
- Original and one photocopy of your business permit for the previous year
- Original and one photocopy of your Official Receipt for the previous year
- 2 copies of accomplished application form for business renewal, which you may get from your municipal or city hall
- Other documents specified on the form, such as your SEC or DTI registration
Go to the barangay hall, and request for a barangay renewal form
Accomplish the form and submit it along with the required documents
Pay the application fees and receive the Official Receipt, which indicates when you may claim your new Barangay Permit
Step 2: Renew your business permit with the mayor’s office
- Prepare the following documents:
- New Barangay Permit
- Original Mayor’s Permit for the previous year
- Original Official Receipt for the previous year
- Audited and unaudited Income Statements of your business for the previous year
- Business insurance
- Contract of lease for your premises for the previous year
- Community Tax Certificate
Go to your city or municipal hall’s Business Processing and Licensing Office
Obtain and accomplish an assessment application form
Submit the form for assessment, along with the needed documents
Once the assessment is completed, pay the corresponding fees, including your Business Tax, Community Tax Certificate, and others at the Treasurer’s Office
Renew your Zoning Permit at the Municipal Planning and Development Coordinator. If you had a change of address, you’ll need to get a new Zoning Permit.
Pay real property tax or amilyar at the Municipal Assessor Office for Real Property Assessment of Land and Building and obtain a Tax Clearance and Tax Declaration
Renew your Fire Safety Insurance Certificate
- Go to the Bureau of Fire Protection (BFP) and apply for a re-assessment of your premises
- Pay the corresponding Fire Safety Inspection Fee
- You may be required to purchase fire extinguishers and signage
- Provide the bureau with a map showing the location of your business
- Once the inspection is completed, get your new Fire Safety Insurance Certificate from the BFP office
Renew your Sanitary Permit and Health Card Certificate with the Municipal Health office
After you have completed Steps 6 to 9 above, go back to the assessor’s office at the municipal or city hall to submit your renewed permits and licenses. The office will let you know when you can expect to receive your new Business Permit
Step 3: Renew your BIR Registration
There are two ways to renew your BIR registration – by going to your local BIR office or doing it online.
BIR office procedure:
- Get a BIR Form 0605 at the BIR office and accomplish it there, or download the form here and accomplish before going to the BIR office
- At the BIR office, have your BIR Form 0605 information assessed by the officer of the day
- Once your application for renewal is approved, pay the P500 annual business registration fee at an Authorized Agent Bank (AAB)
BIR online procedure:
- Go to the eBIRForms site and download the Offline eBIRForms Package.
- Fill out BIR Form 0605 electronically
- After completing the form, click “Validate”. The system automatically checks and validates the information you enter.
- After completing the validation process, the system will notify you that a confirmation email will be sent to your email address
- Once you receive the email confirmation, print out 3 copies of the accomplished BIR Form 0605 and the email confirmation
- Bring the documents to an AAB and pay the P500 annual business registration fee
Note that you don’t need to register your books annually. You can have new books registered with the BIR once your existing ones are consumed and you need new ones.
For expert guidance and assistance in renewing your annual permits and licenses, give us a call today.