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UPDATED: GUIDE: 2024 Business Permit Renewal (Requirements, Fees, and More!)

Business Permits in the Philippines are renewed every January. Starting from the deadline for renewing your business permit is from January 1 to 20, and failure to do so will have fines imposed and, at worst, revocation of operating rights. The following are Business Permit Renewal Requirements in 2023:

• A photocopy of the previous Business Permit
• Certificate of Building Occupancy
• Fire Safety Inspection Certificate
• Income Tax Return

These documents are the ones that are primarily needed. Although, some businesses might need additional documents, such as Health and Safety Inspection Certificates for restaurants and food processing plants. Moreover, you also need to present your BIR registration.

Barangay Business Permit

Barangay Business Permits are required to operate a business in your local government. Here’s what to do to renew your Barangay Business Permit.

What to bring: 

• 2 copies of the filled-out application form from your Barangay
• Original and photocopy of the last year’s Official Receipt
• Original and photocopy of previous year’s Barangay Permit
• Requirements indicated on the application form (This will depend on what business you’re running)

What to do: 

1. Go to the barangay hall where your business is located.
2. Fill out the renewal application form. 
3. After filling it out, submit the form with the original copy of the previous year’s Barangay Permit and Official Receipt for evaluation.
4. Pay the corresponding fees after approval. Prices will vary depending on the nature of your business.
5. Claim the Official Receipt of the Barangay Business Permit Permit. The date for claiming your Barangay Permit will also be written on the receipt.  
6. Return to the barangay hall on the indicated date and claim your new Barangay Permit.

Mayor’s Permit

The Mayor’s Permit is what allows you to conduct business. After obtaining your Barangay Business Permit, you will proceed to the city hall to get the Mayor’s Permit. Like the Barangay Business Permit, the deadline for renewing your Mayor’s Permit is only until January 20 every year.

What to bring:

• New Barangay Permit (Current Year)
• Last Year’s Original Mayor’s Permit
• Previous Year’s Original Official Receipt
• Last Year’s Income Statement (audited or unaudited)
• Previous Year’s Contract of Lease
• Community Tax Certificate (CTC) / Cedula (acquired from City Hall)
• Local Insurance (either from City Hall or a Private Insurance Company)

What to do:

1. Go to the City/Municipal Hall where your business is located and proceed to the Business Permits and Licensing Office.
2. Fill out the renewal application form.
3. For assessment, submit the application form with the other documentary requirements (Barangay Business Permit, Income Tax Return, Fire Inspection Certificate, etc.).
4. Once approved, pay the fees for the Mayor’s Permit at the City Treasurer’s Office.
5. Obtain a copy of the receipt at the City Treasurer’s Office. Remember the stamped date when you can claim your Mayor’s Permit (It might take 1 to 3 weeks.)
6. Return to the city/municipal hall on the indicated date and present your receiving copy to claim your new Mayor’s Permit.

Bureau of Internal Revenue (BIR) Registration Renewal

Your new Barangay Permit and Mayor’s Permit are required for the next step, which is the renewal of your BIR Business Registration. With the help of this certificate, your registered business will be able to print official receipts, keep track of financial transactions in records, pay business-related taxes, and provide TINs (Tax Identification Numbers) to staff members.

The process for renewing your BIR Registration is simple. 

1. Go to your business’ designated BIR Revenue District Office. 
2. Fill out the BIR Payment Form No. 0605  application form. You can also download it here.
3. Submit the accomplished form to the officer of the day for assessment. 
4. Once the form is approved, pay the yearly business registration fee, Php500, at the bank accredited by your local BIR office.

What are the consequences of late or no renewal?

Failure to renew your Barangay and Mayor’s permits and your BIR registration will result in penalties. The penalty rates are as follows:

• A surcharge of 25% on unpaid taxes, fees, and charges;
• A monthly interest of 2% on anything left unsettled until the company has paid all debts, including the surcharge

Suppose you’re operating while violating legal permits. The LGU has the power to seize your property in such circumstances. They can also halt your business operations until you pay off any outstanding debts.

Additional Things to Remember And Reminders from DTI

New and existing businesses are being reminded by the Department of Trade and Industry (DTI) to submit or renew their business registrations and names. Moreover, the DTI advises business owners to plan to prevent problems and fines. 

When submitting documents, remember to be honest about the details. For example, list your assets, liabilities, expenses, equity, and taxes to avoid inconsistencies in your business profile.

You can ask the help of a reputable attorney for tax filing and business registration in the Philippines if you have any problems or other worries regarding the renewal procedure. –WhatALife!/Vaughn

Source: (1), (2), (3)

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Also Read: GUIDE: How to RENEW your Business Name online via DTI’s BNRS?