Happy New Year! Since it’s the start of 2023, business owners must comply with government mandated requirements to get them all set up and legally operating for the new year. In the Philippines, the business permit for all registered businesses expires on December 31 and the deadline for renewal is until January 20. Here’s how to renew your business permit without any glitches:
Step 1: Renew Barangay Clearance or Permit
The first step in the whole process is the renewal of the Barangay Clearance or Permit and its deadline is on January 20. This document verifies that your business complies with local government requirements. You need this document to get the Mayor’s Permit.
It only takes one day to renew this permit, as long as you have the appropriate documents and forms. Please prepare the following:
• Previous year’s Barangay Clearance-original and photocopy
• Previous year’s Official Receipt-original and photocopy
• 2 copies of the completed application form
• Other requirements noted in the application form
Steps for Barangay Clearance Renewal:
- Obtain the application forms from the barangay hall nearest to your business.
- Complete the form and submit it with all the documents noted above.
- Pay the corresponding fees once the documents have been assessed and approved.
- Get the Official Receipt and take note of the date of release of the Barangay Clearance.
- Come back for the new Barangay Clearance.
Step 2: Renewal of Mayor’s Permit or Business Permit
The second step you need to undertake is renewing the Mayor’s Permit or Business Permit (title depends on where you live). This is due on January 20, so take note of the date. You can only proceed to this step when you have obtained the Barangay Clearance.
It usually takes one to three weeks to have this renewed. It’s best to get a head start and prepare the requirements to avoid delays. Check out what you ought to bring below:
• New Barangay Clearance
• Original Mayor’s Permit (previous year)
• Original Official Receipt (previous year)
• Audited or unaudited income statement (previous year)
• Lease Contract (previous year)
• Local insurance (private insurer or City Hall)
• Cedula or Community Tax Certificate from City Hall
Check out the steps for Mayor’s Permit or Business Permit Renewal:
- Fill out application forms from the Permit or Licensing Office at the City Hall nearest your business.
- Complete the appropriate forms and submit them with all the requirements.
- When the agent receives and approves the requirements, pay the permit fees at the Office of the City Treasurer.
- Get the original receipt and take note of the date stamped for the release of the Mayor’s Permit or Business Permit.
- Go back on the given date to claim your new permits and certificates.
Step 3: BIR Registration Renewal
The last step is to complete the BIR Registration Renewal by January 31. You need the Barangay Clearance and Mayor’s Permit to be entertained by the RDO nearest to your place of business. This certification from the BIR is vital because it gives you the authority to operate legally, print official receipts, register account books, pay business taxes, and provide TIN for employees.
With the complete requirements, it usually takes one day to process this renewal permit. If you’re ready to renew your BIR Business Registration, don’t forget the following:
• BIR Payment Form 0605 (download, fill out, and print)
• Barangay Clearance-original and photocopy
• Mayor’s Permit-original and photocopy
Steps for BIR Registration Renewal
- Go to the RDO where your business is registered.
- Submit BIR Payment Form 0605 to the officer on duty for assessment.
- All the requirements will be assessed and evaluated.
- Once approved, pay the PHP500 registration fee to an accredited bank.
- Claim the registration documents once you have proof of payment.
Pay attention to the pertinent deadlines and plan ahead to avoid delays. You can face penalties for late renewal of business permits with your LGU and BIR. This will impact your profits and could potentially affect your operations. To avoid these issues, contact our team for business registration services. We can help renew your business permits swiftly, helping you avoid unnecessary renewal delays and giving you peace of mind to operate soundly.