With the end of the year coming to a close, business owners and entrepreneurs need to get ready. New Year’s resolutions aren’t the only thing to deal with come January. New Year means yet again complying with crucial business requirements such as submission of income tax documents, conducting inventories, and the most important of all – renewal of business permits.
Most business permits expire on the 31st of December and are required to be renewed before the end of January. As early as now, you should be all set to renew your business permit.
To help you get through the process smoothly, let us share with you important steps, facts, and helpful tips to guarantee your yearly renewal of business permit less stressful and complicated.
How to Renew Business Permits
Every start of the year, business establishments need to comply with the legal requirement of renewing business permit with their respective local government units (LGUs) to be able to continue operating.
Procedures for obtaining a permit may vary depending on the city where your business is located, but these are most likely the steps you need to complete.
Step 1: Fill out the Application Form
Head to your city hall and fill out the relevant form: Application for Renewal of Business Permit.
Step 2: Submit the Necessary Requirements
Submit the filled-up Application for Renewal of Business Permit form to the Bureau of Permits together with the original and photocopies of the following documents:
• Department of Trade and Industry Business Name Registration (for sole proprietorships)
• Securities and Exchange Commission Articles of Incorporation (for corporations)
• Cooperative Development Authority Registration (for cooperatives)
• Previous Mayor’s Business Permit
• Barangay Clearance for Business (from the local barangay where your business is located)
• Community Tax Certificate or Cedula
• Business Taxpayer Identification Number (TIN) from the Bureau of Internal Revenue
• Social Security System Certification or Clearance including your SSS number and each of your employees
• PAG-IBIG Clearance
• Latest Payment Receipts
• Declaration/Certification of Gross Sales/Receipts
• Income Tax Returns (ITRs)
• Financial Statements (FS)
Other documents may be required by your city, depending on your business type such as:
• Lease Contract (if you are renting your business space)
• Homeowners Association Clearance (if your business is operating in subdivision or village)
• Fire Safety Clearance
• Environmental Clearance (for construction businesses)
• Cultural Tourism Affairs office (CTAO) certificate (for tourism-oriented establishments)
Keep in mind that requirements from city to city differ, but generally, you will need these documents’ original copies, as well as photocopies.
Step 3. Pay the Necessary Fees
After you submit your application form and documents at the window where they will need to be assessed, proceed to the cashier and pay the license and regulatory fees that need to be settled.
If you are handed out receipts, claim stubs, or anything of the like at any step along the process, make sure you keep them and take note of the details indicated. If you lose these important pieces of paper, it will add hours, or even days, to your process.
Step 4: Get Your Approved Business Permits
Once you have completed your payment, you will receive your renewed business permits. There may be additional steps, depending on your city requirements, but most likely, renewal of business permits only takes 30 minutes or 2 hours or 1 day.
If your city asks you to return on a designated date for your payment, come back on the given time and date.
What Will Happen If You Fail to Renew Your Business Permits?
Penalties are imposed upon business on failure to renew business permits. Your business establishment will also be disallowed to operate within the territory of the LGU if you fail to renew your business permits.
Tips for Fast and Glitch-Free Business Permits Renewal
• Do not wait for the last day of filing. Renew your business permits early so that there will be no long queues and massive influx of those applying for renewal.
• Prepare a good amount of patience and cash before setting off for renewal.
• Make sure that you have all the necessary documents and your application form is properly filled out before trooping to the city hall.
• Make several copies of the required documents in case many duplicate copies are needed.
• Be familiar with the process of renewal permits. Check out your city or municipality’s website to learn the steps on how to apply for renewal of business permits. You can also read this article we have written in the past or this blog by Homegrown.ph to give you better idea.
• Lastly, do NOT transact with fixers or brokers. Get the help of a professional service like Full Suite if you want a fast processing of renewing your business permits. We can take the burden of preparing the documents, queuing in lines and filling out forms for you.