Your cheat sheet to business permit renewal requirements, schedules, and fees for 4 major documents.
Operating a business in the Philippines, or anywhere for that matter, is no easy feat. Not only do you have to make sure that your business earns enough to cover overhead expenses and make profit, you also have to see to it that all business documents are properly filed and updated on time. By doing so, your enterprise remains legitimate and always ready to take in new business.
According to Chris Ramasola, proprietor and chief creative director of Ramasola Visuals, “Clients want to make sure they are working with reliable and responsible business owners. As a business owner, you don’t want to lose potential projects just because you are unable to present updated, valid documents.”
Plus, how much is the penalty for late renewal of business permit?
“The penalties of operating with expired licenses and permits can cost up to thousands or tens of thousands of pesos. That would be a huge blow to your business, so it’s best to just avoid being penalized,” says Samuel Francisco, owner of SRF Media Productions.
With so many types of government-issued business documents and permits and deadlines to remember, there’s always the danger of missing payment or renewal schedules. Here’s a quick guide to the documents you need to update regularly, the requirements for renewal, and business permit renewal deadlines you have to remember.
1. Barangay Clearance
Purpose: This certifies that your business complies with the requirements of the barangay where your business operates.
Procedure: Submit the requirements to your barangay’s permit division. After evaluation, pay for the fee at the cashier. You can obtain your renewed barangay clearance the same day.
Renewal deadline: January 20 of every year
2. Mayor’s Permit/Business Permit
Purpose: Similar to the barangay clearance, the mayor’s permit or business permit ensures that your business complies with all the ordinances of the particular city or municipality you operate in. This is important because each municipality or city has its own set of ordinances. Self-employed individuals can only secure a mayor’s permit after registering with the Department of Trade and Industry (DTI); corporations and partnerships should first register with the Securities and Exchange Commission (SEC).
Procedure: Be sure to double-check for additional documents required by your particular city, if any. Submit the requirements to the Civic Center or Business Permits and Licensing Office (BPLO) for evaluation before paying the fee at the City Treasurer’s Office. You can claim the renewed mayor’s permit after one to two weeks. Just present the receipt to BPLO.
Renewal deadline: January 20 of every year
3. BIR Certificate of Registration
Purpose: The Certificate of Registration is secured when a business or company is opened. With this, the business can print official receipts, register books of accounts, pay business-related taxes, and provide a Tax Identification Number (TIN) to each of its employees.
Requirement: Written BIR Form 0605 (Payment Form)
Procedure: Go to an Authorized Agent Bank to pay the fee.
Renewal deadline: January 31 of the taxable year
4. DTI Business Name (BN) Registration Certificate
Purpose: This certifies you have the authority to use your business name and that no other business is using the said name. Remember that without all the other pertinent business documents like barangay clearance, TIN, and other licenses, this certificate is useless.
Procedure: Log on to DTI’s Business Registration Name System (BNRS) and be ready with the following information: certificate number, business name, and owner’s name. Make the payment online and download the certificate.
Fee: Fees vary according to the scope of your business: barangay, P200; city or municipality, P500; regional, P1,000; and national, P2,000.
Renewal deadline: The DTI BN registration certificate is valid up to five years from date of registration. You can opt for early filing (180 calendar days prior to the expiration date), or regular filing (within 90 calendar days immediately following the expiration of the registration).
Keeping track of these documents and filing them on time can definitely take up a business owner’s time. For small-scale operations, as in the case of freelance photographer Jun Pinzon, he and his wife prefer to take care of updating these business documents themselves.
Others like Ramasola prefer to hire a professional to see to these matters. “That way, we can focus our attention on our clients’ creative and marketing needs, which is why they hired us in the first place,” Ramasola explains.
Whichever method you prefer, the rule remains the same: Don’t wait for the deadline and file your business permit renewal applications ahead of time to avoid being inconvenienced — and incurring unnecessary expenses for penalties.
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