Guide to Business Permit Renewal in the Philippines

• Understand the business permit renewal process to avoid penalties and fines. 
• Consider outsourcing to a reliable accounting company in the Philippines that can assist you through the business permit renewal process. 
• Identify and gather the required documents to renew your business permit on time. 

Companies in the Philippines need to secure a business permit to operate legally in the country. They can get this document from their local government unit (LGU) after they submit certain requirements. The business permit isn’t a one-time thing, you’ll have to renew it annually. The deadline for a business permit renewal is from January 1 to 20 every year. Depending on the LGU your company is in, the deadline might be different. Failure to renew your permit leads to penalties such as: 

1. 2% additional penalty for each month of non-renewal and includes surcharges. 
2. Delinquency of renewal can lead to the seizure of assets and closure of your business. 
3. You’ll also incur a 25% surcharge on your assessed business tax. 

Why should you renew your business permit on time? 

Business permit renewal is a must so that you can continue operating without problems and avoid the penalties that the local government imposes. Renewing on time also boosts your company’s positive perception in the eyes of your customers. The date for renewing your permit is from January 1 until the 20^th. However, you shouldn’t wait until the end of December to begin the process and procurement of documents. The ideal time is a month before the deadline; however, consider doing the preliminary tasks two months ahead.  

Early preparation reduces the stress and the hassle of renewing your business permit. It gives you more than enough time to submit all the requirements. If you’re missing one or a few documents, you still have time to procure them without incurring penalties for being late. The sooner you finish your renewal process, the sooner your team can revert their focus to important tasks. To make the process more efficient, consider outsourcing to a reliable firm.  

What are the requirements for a business permit renewal? 

You need to submit the necessary documents to comply with business permit renewal. The requirements may vary depending on the LGU your company is operating in. These are the basic requirements: 

1. A copy of your company’s business permit from the previous year along with its official receipt. 
2. Barangay Business Permit or Barangay Clearance. You can get this document at your local barangay hall. To obtain this you also need to submit your latest Barangay Business Permit along with its official receipt, application form for renewal, and other documents that your LGU requires.  
3. DTI, SEC, or CDA Registration 
4. Cedula or Community Tax Certificate 
5. Quarterly VAT returns 
6. Latest income tax returns 

Your LGU might also ask for additional documents depending on the industry and type of business you operate. It’s better to ask for a complete list so that you can collect all the requirements efficiently. You can also hire an outsourced service provider to do this for you. 

You also need to pay fees to complete your business permit renewal, some of these include: 

1. Local business tax 
2. Zoning fee 
3. Building inspection fee 
4. Mayor’s permit fee 
5. Sanitary inspection fee 

Your LGU might also ask for other fees not mentioned above. 

Where can you renew your business permit? 

Before going to your LGU’s Municipal Hall or City Hall you should already have a Barangay Clearance or Permit. This process of coming and going is time-consuming and tedious. The Philippine government’s digitalization initiatives have led to the creation of BOSS or the Business One-stop Shop System (BOSS) that many LGU’s have implemented. You can get your Mayor’s Permit and Barangay Business Permit more easily with the new system in place. Some LGU’s allow you to select a renewal schedule so that you don’t have to queue for a long time. This simplified process makes it easier for companies to finish their renewal on time. Some LGU’s offer online services for those that want to renew their business permit. The process can take up to a couple of weeks. That’s why it’s better to begin it as early as possible. 

Should you outsource your business permit renewal? 

Now that you are familiar with the process of renewing your business permit, you should consider outsourcing it instead of delegating it to your own employees. An accounting company in the Philippines can do it for you. An outsourced service provider knows the ins and outs of renewing a business permit in the country. They can point out which documents you need to submit, where to file them (depending on your LGU), and the fees you need to pay to complete the process. An experienced team makes sure you do things correctly and beat the deadline. They can also start the process early so that you can submit the necessary documents weeks before the due date. Early submission relieves the stress and hassle of queuing and spending hours going in and out of your LGU. 

Who should you outsource your business permit renewal to? 

When you’re considering outsourcing the renewal of your business permit, make Manila Bookkeepers your first choice. The company has been assisting companies with renewing their business permits for years. You can rely on Manila Bookkeepers to guide you through the process so that you have all the requirements ready once the deadline arrives. They can go through the checklist of documents and make sure you fill out all the forms.  

Other than renewing your business permit, they also offer first-rate accounting and bookkeeping services. They can review your books to make sure they contain updated financial data in them you can use. They can assist you in complying with local tax laws so that you pay your dues on time. Tax compliance is a must for companies that want to operate in the Philippines. Manila Bookkeepers makes sure you follow all regulations and policies to avoid incurring penalties and frequent audits by local authorities. Their team can process your payroll and ensure the computations are accurate. They offer transfer pricing services that ensure your transactions are compliant with laws. You can rely on their team to deliver the services you need.