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The article was updated in April 2023
Businesses in the Philippines need valid and up-to-date permits to continue operations. It is important to stay on top of business permit renewal in the Philippines to avoid the corresponding penalties.
For this article, we will focus on permits that require annual renewal. We’ll discuss the deadline and process to renew these permits. We will also explain the penalties for businesses that fail to renew their permits.
Of the documents obtained when you register a company in the Philippines, the following require annual renewal:
- Barangay (village) permit
- Mayor’s permit (also known as the business permit)
- Bureau of Internal Revenue (BIR) registration
The deadline to renew the barangay permit and mayor’s permit is January 22. Note, however, that the local government has the authority to change this date. The BIR registration renewal deadline is January 31.
|Document||Deadline for renewal|
|Barangay permit||January 22|
|Mayor’s/Business permit||January 22|
|BIR registration||January 31|
These dates apply to all businesses regardless of the date of establishment. As such, even companies registered in December must renew their permits in January.
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Barangay Permit Renewal
The requirements for barangay permit renewal are the following:
- Previous barangay permit (the original and a copy)
- The receipt for the payment of the previous barangay permit (the original and a copy)
- Completed application form
Mayor’s/Business Permit Renewal
An authorized representative must submit the following documents for business permit renewal:
- New barangay permit
- Your previous business permit (the original and a copy)
- The receipt for your payment of the previous business permit (the original and a copy)
- Your income statement from the previous year
- Lease contract covering your stay until next year
- Local insurance
- Community tax certificate (CTC) otherwise known as cedula
BIR registration renewal
To apply for BIR registration renewal, you must prepare BIR form No. 0605. To do this, here’s a guide to help you:
STEP 1: Visit the link below to download and install the eBIRForms package. https://www.bir.gov.ph/index.php/eservices/ebirforms.html
STEP 2: Fill in your BIR registration details based on your BIR Certificate of Registration.
STEP 3: Search for form 0605 in the list of BIR forms section and fill out the details.
STEP 4: You can now click submit after completing the form. Once everything is validated, you’ll receive an email confirmation sent to your email address.
STEP 5: Pay the registration fee in an authorized bank and print 3 to 4 copies of form 0605, or pay the BIR annual registration fee via GCash online.
Keep in mind that the BIR annual registration fee renewal is due by January 31st every year.
STEP 1: Obtain an application form for the renewal of your business permit from your local district office.
STEP 2: Fill out the application form and visit the City Hall in order to update your business license. Along with the form, please present the following documents:
- DTI Certificate of Business Registration
- SEC Registration
- Sworn Statement of Gross Sale Receipt
- SSS Clearance
- Barangay Business Permit
- Audited Financial Statement of the previous year
- Income Tax Return
- VAT Returns
You will likely receive your permit within a week of applying, but it may take up to two weeks (varies depending on the town).
Note that all submissions must be in person. An authorized representative must go to each government office to fulfill requirements. It is not possible to renew these documents online.
Emerhub can renew the above documents on your behalf. Our staff will submit the required documents to the relevant authorities on your behalf. Fill out the form below to contact us or send an email to [email protected].
Renewing each document involves going to separate government agencies. As such, the entire process from preparing documents to submission will take several days. Our consultants advise preparing for renewal in advance to avoid missing the deadline.
Failure to renew your permits will result in penalties. We discuss the penalties for late or no renewal below.
Failure to renew your barangay and business permits, as well as your BIR registration will result in penalties. The rates for the penalties are as follows:
- A 25% surcharge on any unpaid taxes, fees, and charges;
- A 2% monthly interest on anything left unsettled until the company pays the debts, including the surcharge
Continuing to operate without valid permits for an extended period of time is a serious violation. In such cases, the LGU has the authority to confiscate your assets. The LGU also has the power to stop your business activities until you settle any outstanding debts.
Need help with the application or renewal of business permits in the Philippines? Our consultants will be happy to assist you. Fill out the form below or send an email to [email protected].
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