2021 is finally here and we’re already preparing to conquer this year. It’s a whole new year of possibilities and opportunities, but before diving headfirst, make sure all your business permits are renewed to avoid unnecessary penalties.
Here is the list of permits that you need to renew:
A barangay clearance is a permit issued by your local barangay. This document verifies the business’ compliance with the requirements of the local government.
Deadline: January 20
- Barangay clearance from the previous year
- Some Barangays have additional requirements so be sure to inquire
Where to file: Barangay Hall or Office of the Barangay Captain in your area where your business jurisdiction is under
A mayor’s permit is a business permit processed at the city hall – the office of the mayor. It is a document issued to an entity to operate or conduct any business, trade or activity within the city after the submission of the requirements and payments for the imposed taxes and fees.
Deadline: January 20
- Barangay Permit (Current Year)
- Original Mayor’s Permit (Last Year)
- Original Official Receipt (Last Year)
- Audited or Unaudited Income Statement (Last Year)
- Contract of Lease (Last Year)
- Local Insurance (either from City Hall or Private Insurance Company)
- Community Tax Certificate (CTC) / Cedula (acquired from City Hall)
- Other additional requirements that certain City requires so be sure to inquire
Procedures: Bring your filled out unified application form with the supporting documents to the business registration and renewals center of your LGU.
Where to file: City Hall in your area where your business jurisdiction is under
BIR Certificate of Registration
BIR Certificate of Registration is renewed every year. This certificate gives you a continuous right to print official receipts, register books of accounts, pay business taxes and gives TIN (Tax Identification Number) to employees.
Deadline: January 31
- Submit the BIR Form 0605 electronically through the eBIR Forms portal
- Pay the fee in any Authorized Agent Bank / Collection Agent or GCASH. You can check here if your bank is an authorized agent bank of your RDO.
DTI Business Name Registration Certificate
This certifies you have the authority to use your business name and that no other business is using the said name. DTI’s business name registration is valid for 5 years from date of registration.
- early filing – 180 calendar days prior to the expiration date of your registration or;
- regular filing – within 90 calendar days immediately following the expiration of your registration
Procedures: Use DTI’s BNRS Portal to renew your Business Name Registration
Fee: This varies according to the scope of your business:
- Barangay = P200;
- City or Municipality = P500;
- Regional = P1,000; and
- National = P2,000.
It’s better to get these done as soon as possible and never consider setting this aside. Here are the penalties you will face if you failed to renew your business permit:
Bureau for Internal Revenue (BIR)
According to Section 258 of the National Internal Revenue Code:
- a fine of not less than Five thousand pesos (P5,000) but not more than Twenty thousand pesos (P20,000)
- Imprisonment of not less than six (6) months but not more than two (2) years.
Local Government Units (LGU)
According to the Local Government Code of the Philippines:
- A twenty-five percent (25%) surcharge on the tax assessed, plus an additional two percent (2%) penalty for every month which the business permit was not renewed
- Closure and/or seizure of properties and assets for extremely delinquent accounts
If you need help with renewing your business permits, let F&Q Accounting Services help you! We have Business Registration and Renewal services that can assist you to start this year properly. Contact us today at firstname.lastname@example.org so we can start supporting you!