We’ve updated this guide to provide additional notes on what’s changed in the business registration renewals process for 2021.
Renewing government registrations are a necessary part of running and keeping a business. It’s a way to establish the legitimacy of your enterprise. Chris Ramasola, proprietor and chief creative director of Ramasola Visuals, says, “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.”
Forgetting to renew your business registrations comes at a cost. “The penalties of operating with expired licenses and permits can cost up to thousands or tens of thousands of pesos,” advises Samuel Francisco, owner of SRF Media Productions. “That would be a huge blow to your business, so it’s best to just avoid being penalized.”
Fortunately for us, the business registration renewal process has been streamlined since the implementation of the Ease of Doing Business Act. As mandated by the central government, all local government units (LGUs) now provide one-stop application processing centers for new business registrations and renewals.
This streamlining is further facilitated by the use of a unified application form to support all submissions for renewal – no more hand cramps from filling out a dozen documents! The one-stop Negosyo centers are usually located within the city or municipal hall but for smaller towns, they might be in a separate venue.
Not sure what you need to prepare? Here’s a quick guide to the documents you need to renew at the start of the year and the deadlines you have to remember.
Where: One-stop business registration center at your LGU
Purpose: This certifies that your business complies with the requirements of the barangay where your business operates.
Requirements:
Fee: P500
Renewal deadline: January 20 of every year
Where: One-stop business registration center at your LGU
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).
Requirements:
Procedure for 1 & 2: Bring your filled out unified application form with the supporting documents to the business registration and renewals center of your LGU. Be sure to double-check for additional documents required by your particular city or business type, if any. Submit the requirements for pre-evaluation and correct any errors or fulfill any deficiencies noted by the staff at the desk. Submit all documents for final assessment before paying the fee at the next counter.
Fee: P2,000
Renewal deadline: January 20 of every year
Where: Online through eBIR Forms portal or your registered Revenue District Office.
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: Form 0605 (Payment Form)
Procedure: Submit the BIR Form 0605 electronically through the eBIR Forms portal (download and installation required). Make sure to note that the application is for BIR registration renewal. Alternatively, you can go to your RDO and submit your registration renewal there. Bring three copies of the form and go to an Authorized Agent Bank within your RDO to pay the fee. (Note that the BIR no longer processes payments in their offices.)
Fee: P500
Renewal deadline: January 31 of the taxable year
Where: Online through DTI’s Business Registration Name System (BNRS)
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. This registration is not required for freelancers.
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 in a timely manner can definitely take up a business owner’s time. With the one-stop business registration centers, it’s easy enough to get all this done in a day.
However, given the occupancy restrictions due to COVID-19 social distancing rules, queues might be longer than usual. Some LGUs might have limits to the number of applicants in a day and you may be refused entry if you arrive too late. Remember to factor this in when planning your trip to city hall.
If waiting in line is not your idea of fun, you can also opt 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 until the last minute to file your business permit renewal applications. Doing this will help you avoid being inconvenienced – or stressed – and having to pay large penalties.
Still unsure about the entire process? We’ve put together a comprehensive resource for new business owners like you at Globe myBusiness. Up your business game with our nifty and free Diskarte Kit, an easy-to-use marketing planner. After all, we need to find creative ways to grow or adapt our business and deal with these crazy times.
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