Business Permits and Peace on Earth 2018

As the rest of the Philippines counts down to Christmas — only 85 days to go! — we at Full Suite count down to January 20, the due date for business permit renewals.

We’re all anticipating holiday traffic, countless parties, lots of end-of-the year work and then the hangover in January from the buzz of all that activity. So we say, make renewing your business permits one less thing to think about this season. Since it’s a necessary routine freelancers, entrepreneurs and business owners have to go through every January, why not be proactive about it?

After all, don’t you love that feeling of ticking things off your checklist? Getting ahead of your deadline? It’s totally possible when it comes to this annual paperwork requirement.

We’ve taken it upon ourselves to start getting everyone prepared for this process waaaaay ahead of time to reduce the stress when the time comes to get it done.

We’ve updated all the relevant articles on our blog to make sure they’ve got the most accurate details and guides to renew your business permits this coming January.

With a few months ahead of ourselves, we’ve got enough time to gather the requirements that we need and see what may be missing.

A lot can be said about the power of procrastination, but in this case I would argue for the power of preparation. There’s really no reason why you can’t ensure that you’ve got all your existing paperwork, ready for submission in January. And then come January 2, boom! You’re all set to go.

‘Tis indeed the Season for Business Permit Renewal. And once you start preparing for it better year after year, you’ll find that it will become a peaceful holiday season, too.

We’re ready for 2018. Are you ready?

We’d love to hear from you if you have questions, concerns or ideas.

 

Business Renewal Guide 2018

The Entrepreneur’s Tax Checklist for the Holidays

We are fast approaching the end of the year, and there are a number of things that we, as entrepreneurs, have to stay on top of to best manage our business’ finances, and one of those is our taxes.

Preparing for tax season as early as possible will help us avoid penalties, as well as ensure that our holidays don’t get ruined by tax-related concerns.

Entrepreneur’s Tax Checklist

All businesses—from freelancers to corporations, need to comply with the BIR’s rules and regulations on filing taxes.

Filipinos, however, usually do everything at the last minute, which puts them at risk for penalties. To avoid this, we have put together a tax checklist to guide you on what you’re supposed to be preparing as early as now.

Current Business Owners:

Bookkeeping and Accounting

You might find yourself busy preparing for your business permit and registration renewal, but don’t forget that there is no better time to go over your books of accounts now.

Double check if you are GAAP compliant. If you’re not, now is the time to take care of it. Take the time to discuss your P & L statement and balance sheet with your bookkeeper to ensure that everything is accurate.

Note that your local government unit will also require your Income Statement when filing for business permit renewal come January.

Receipts

Chances are you’ve been collecting a lot of receipts during the entire year, as these are necessary for expense reporting. So, if you haven’t been judiciously gathering and organizing them, now is the time to do so.

Payroll Taxes

It’s important to make sure that your employees are ready for next year. Ensure that you’re filling out all the forms and making payments. Check for accrued bonuses or special gifts that may not be paid until the coming year and gross up fringe benefits for purposes of tax withholding.

Reconcile Transactions

Make sure that you have a decent tax return by checking to see if all the transactions in your register are reconciled. You may need to reissue or void checks as needed.

Deductions

Some entrepreneurs are allowed certain deductions on their taxes. For instance, if you frequently travel for work, you may be eligible for travel expense deductions. Take a look at your expenses to determine which ones you can use for tax deductions.

Audit Compliances

Self-employed individuals, corporations, and partnerships are required to submit audited financial statements. If you haven’t hired an auditor yet, do so now. An auditor will evaluate the validity and reliability of your financial statements, which will help you avoid a tax audit from the BIR.

Income Tax Filing

Now is the time to start planning and preparing for your income tax filing. By consulting with a tax professional, you can identify potential ways to gain tax savings to minimize your taxes. Filing on time will save you from non-compliance penalties.

The penalties are usually equivalent to twenty-five (25%) percent of the amount due. The BIR likewise imposes payment of interest at the rate of twenty (20%) percent or higher, per annum depending on regulations.

A compromise amount is required as well amounting to no less than PHP 10,000.00 but not more than PHP 20,000.00, plus imprisonment for 1-3 years.

New Entrepreneurs:

Go through this checklist to ensure that you are well-prepared for tax season. Doing this early will not only help you avoid penalties, but will also give you more time left to prepare for a business permit and registration renewal. The BIR’s deadline for business registration in the Philippines is on January 31.

If you don’t have the time to handle your tax filing requirements, you can always hire accounting services to do it for you. Tax filing is one of their expertise, which means that you can trust them to prepare your documents correctly and accurately. Get discounts by taking advantage of early bird packages from accounting firms now.

 

Business Renewal Guide 2018

 

 

The Ultimate Guide to Business Permits Renewal [Infographic]

2018 is fast approaching and you know what it means! It’s time for business permits renewals. Be proactive and prepare for the  process the renewing of your business permits ahead of time.

In partnership with Bantay.Ph, we have collated everything we know about the process of business permit renewals and present it to you visually as an infographic to help you out this 2018.

Business Permit and Registration Renewal Business Permits Renewal Step 1

Step 1 – Business owners, from freelancers to corporations, would all have to go through business permit renewal starting at their local government unit or barangay hall. As always, there will be forms to fill up, documents to submit, and additional fees to pay. This varies from one LGU to another – requirements in Makati City may be different from Quezon City – so be sure to ask and ensure you have everything so that you wouldn’t lose your spot in the line. The release date of your new barangay permit shall be stamped on the official receipt.

Business Permits Renewal Step 2

Step 2 – Apart from the barangay permit, you also have to secure a Mayor’s permit. At your municipal hall, go to the Business Permit and Licensing Office to get the application form. Submit the accomplished application form along with the requirements for assessment. Make sure that there are no corrections so that you can breeze through this process and pay the fees at the City Treasurer’s Office. You’ll get a copy of the payment stamped with the releasing date of your Mayor’s permit. The processing time will depend on the volume of transactions, so it’s much better to get this done as soon as possible.

Business Permits Renewal Step 3

Step 3 – For the last stretch, you just need to renew your business registration at your RDO. Keep in mind that the deadline for this is January 31 and penalties for non-compliance range from 2,000 to 3,000.

Download and accomplish the BIR payment form 0605. Go to your Revenue District Office and approach the officer of the day. If there are no corrections upon assessment, you can pay the registration fee at any bank accredited by BIR. Keep in mind that you need to register and pay for each of your store branches.

You can download the full infographic here.

Business Renewal Guide 2018

[Last updated: October 18, 2017]

Insider Tips to Business Permit and Renewal

Deciding to have your own business entails a lot of proceedings such as accomplishing the necessary business permits and licenses for business in the Philippines. Aside from completing the important paperwork, ensuring that your business permit is renewed is also vital in your business operation.

If you’re having difficulties with these documents, here are some insider tips that would help in this particular undertaking to enable you to focus on other business functions.

Business Permit and Renewal

Securing a Business Permit

•  Business permits from the Mayor’s Office should only be secured after registering with the Department of Trade and Industry (DTI) or with the Securities and Exchange Commission (SEC).

•  A Mayor’s Permit or Business Permit is also referred to as the license from the Local Government Unit (LGU). Procedures included in obtaining this permit varies on the ordinances followed by the city. For instance, getting a permit in Makati City is different in Quezon City.

•  When asked for your start-up cost, put only the amount you used, as this is used in determining the amount they’ll charge you for registering your business.

Business Permit Renewal

•  Get a new barangay clearance from the barangay hall before proceeding to the municipal hall.

•  Prepare your old Barangay Clearance from the previous year and pay the necessary fees. Corresponding fees may be similar to the amount you paid for before.

•  Have your gross income from the previous year computed before getting your community tax certificate or Cedula.

•  Ask your accountant to prepare your statement of gross sales, as payment for the Cedula would depend on the data included here.

Other Relevant Tips

•  Acquiring your sanitary permit is only possible after paying all the necessary registration fees. A health examination may also be required and may cost up to PHP 1,000.

•  A fire safety certificate would be given once all your fees have been computed. From this computation, the fire department would schedule an inspection, and their fees would be based on the charges that the municipal hall charges you.

•  Applying for SSS, PAGIBIG, and PhilHealth clearances is only applicable if your business has five or more employees.

•  If you’re using an apartment as your office, an annual building inspection certificate is required.

Business registration is crucial in having a business, and one that should never be overlooked. Do you know other tips in making this process an easy one?

 

Business Renewal Guide 2018

 

Business Permits Renewal Guide for Metro Manila 2018

Most of us are guilty of doing things the last minute, as we tend to procrastinate, especially if the deadline is still months away. This includes the renewal of business permits.

The problem with putting things off and doing them at the final hour is that there will always be something that’s bound to go wrong—and that shouldn’t be the case when it comes to your business. It is important that you comply with deadlines to avoid the hassle.

To have a better understanding, read on to find out everything you need to know about permits and licenses for business in the Philippines.

Renewal of Business Permits

At the onset of the venture, businesses must secure a permit from the barangay and the city hall to which they would operate. Business permits are only valid for a year and must be renewed within the first 20 days of the following year.

Here is a walk-through that will help you acquire the required barangay and mayor’s permits for your business on or before January 20, as failure to process and pay these taxes on time will result into payment for surcharges and penalties.

1) Barangay Permit Renewal

A renewed Barangay Permit, also known as Barangay Clearance, is necessary for acquiring a new mayor’s permit from the city hall. Typically, if you apply for the renewal in the morning, you can get your new Barangay Permit the same day.

Requirements:

• Original copy of the Barangay Permit from the previous year

• Original copy of the Official Receipt from the previous year

Procedure:

1. Go to the barangay hall and get the corresponding renewal application form. Fill out the form and submit it together with the requirements at the Barangay Permit Division.

2. Wait for your form and requirements to be assessed.

3. If there are no corrections or missing requirements, you’ll be instructed to pay the corresponding fees.

4. Take note of the stamped release date on the official receipt to know when you can claim your new Barangay Permit.

Processing Time: 1 day.

2) Mayor’s/Business Permit Renewal

As soon as you have your new Barangay Permit, you’re now ready to process the renewal of your Mayor’s/Business Permit.

Requirements:

• New Barangay Permit

• Original copy of the Mayor’s/Business Permit from the previous year

• Original copy of Proof of payment (official receipt) for last year’s Mayor’s/Business Permit

• Income Statement for the previous year—audited or unaudited.

• Contract of Lease for 2018 (or covering stay during 2018)

• Local Insurance (Paid at the City Hall or other accredited companies)

• Community Tax Certificate (CTC), also known as Cedula acquired from the City Hall.

Procedure:

1. Get the required application form at Business Permits and Licensing Office at the municipal hall to which your business operates. Accomplish said form and submit it together with the requirements for evaluation.

2. Wait for your accomplished form and submitted requirements to be assessed. If there are no corrections or missing documents, the assessor will tell you to proceed to the payment section.

3. Pay for the fees specified by the assessor at the City Treasurer’s Office.

4. As soon as payment is processed, you’ll be given a receiving copy of payment from the City Treasurer’s Office. The receiving copy must be presented when you claim your Mayor’s Permit.

5. Claim your new Mayor’s Permit, as indicated on the date stamped on the official receipt.

Processing Time: 1 to 2 weeks depending on the volume of renewal transactions.

*Requirements of local government units (LGU) vary based on location. Refer to your LGU for specific or additional requirements.

3) Renewal of BIR Certificate of Registration (COR)

Now that you have taken care of renewing the necessary Barangay Clearance and Mayor’s Permit for your business, you can proceed with the renewal of your certificate of registration.

It is very important to renew your annual business registration at the Bureau of Internal Revenue (BIR) not later than January 31 to not incur penalties. Fines range from PHP 5,000 to PHP 20,000.

Take note of the following requirements and processes needed in renewing your business registration.

Requirement:

• Duly accomplished BIR Payment Form 0605. You may download this form from the BIR website.

Procedure:

1. Go to your Revenue District Office (RDO) and have the officer-of-the-day assess your requirement. You may check your designated RDO from the BIR website.

2. Pay the specified annual registration fee (PHP 500) at any bank that is duly accredited by the BIR in your RDO. As mandated by law, the annual registration fee is needed for every separate or distinct establishment or place of business. The Revenue Regulations 11-2008 provides details on this provision:

• Sales outlet or establishment covered by one business/trade name situated in one location or building;

• Every line of business of an individual covered by a separate business name approved by the Department of Trade and Industry even though situated in one and the same location;

• Facility with administrative office;

• Each franchise/Certificate of Public Convenience (CPC) which the transportation operator owns or operates, regardless of the number of units under each franchise/CPC;

• Real properties for lease with administrative office;

• Each “exit/entry” gate, regardless of the number of booths accepting toll fees thereat;

• Unmanned sales outlets/service equipment such as automated vending machines (AVMs), automated ticket dispensing machines, automated teller machines (ATMs), and the like;

• Mobile store/stall/booth/kiosk that does not maintain a fixed place of business; and,

• Other separate or distinct establishments which conduct sales transactions independent of the head office.

Renewing permits and licenses for business in the Philippines is indeed a very meticulous and tedious process. You have to ensure that you comply with each of the requirements and perform the specified steps. Thankfully, business owners can rely on professionals who would take the load of going through all the procedures.

Need help in renewing your business permit this coming January? Sign Up to Full Suite’s Business Renewal Services for 2018 or Call us at 746 0121

Business Renewal Guide 2018

The Ultimate Guide to Philippine Business Permit Renewal

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:

Requirements:

•  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)

Additional Requirements:

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.

Business Renewal Guide 2018

 

How to Renew Business Permits

At the start of  every year, businesses are tasked to comply with the renewal of business permits with the Barangay, City Hall (collectively called Local Government Units or LGUs) and the Bureau of Internal Revenue (BIR). Deadline for renewal of permits with the LGUs is on January 20, while the deadline for the annual registration with the BIR is on January 31. You can expect fees to be paid include barangay permit fee, business tax, mayor’s permit fee, sanitary permit, and fire permit among others. Here’s the steps and business permit renewal requirements.

3 Steps to Renewing Your Business Permits

Step 1: Renewal of Barangay Permit

1. Requirements

•  Previous year’s barangay permit, original

•  Previous year’s official receipt / proof of payment

2. Procedure

•  Submit your accomplished application form together with the requirements at the Barangay Permit Division

•  Wait for the assessment

•  Pay corresponding fees

•  Release of Barangay Permit, securing of Barangay Permit can be done within a day.

Step 2: Renewal of Mayor’s/Business Permit

1. Requirements

•  New Barangay Permit

•  Previous year’s Mayor’s Permit / Business Permit, original

•  Previous year’s official receipt / proof of payment, original

•  Previous year’s Income Statement, audited or unaudited

•  Contract of Lease (2018, or covering stay during 2018)

•  Local Insurance (Paid at City Hall or external companies)

•  Community Tax Certificate (CTC) / Cedula (Paid and acquired at City Hall)

2. Procedure

•  Submission of application form

¤ Submit accomplished application form together with the complete requirements for evaluation. Application form is available at the Business Permits and Licensing Office of City Hall

•  Assessment

¤  Assessment of necessary fees at the Business Permits and Licensing Office

•  Payment

¤ Payment of fees is made at the City Treasurer’s Office

•  Receiving

¤ After processing of payment the City Treasurer’s Office will give you a receiving copy. The receiving copy of payment will be presented upon claiming of Mayor’s Permit

•  Release of Mayor’s Permit

¤ Present the proof of payment at Business Permits and Licensing Office to claim your renewed Mayor’s Permit.

¤ Releasing of renewed Mayor’s Permit will takes 1 to 2 weeks depending on the volume of renewal transactions.

Step 3: Renewal of Registration with the BIR

1. Requirements

¤ Accomplished BIR form 0605

 

2. Procedure

¤ Go to officer-of-the-day in your RDO for assessment

¤ Pay the annual registration fee amounting to P 500.00 at any BIR-accredited bank in your RDO

Complying with the requirements of renewing the business registration with the LGUs and the BIR is a good way to start the year. As the saying goes, “it is better to start the year right so that you’ll end the year right”.

 

Business Renewal Guide 2018