Since writing this article four (4) years ago, we revisited the experience of renewing business permits to guide you through the process in preparation for the upcoming year. You can read all about it here. If you need help processing your business permit renewal, we can do this seamlessly for you. Register here to secure the discounted quote.
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 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.
Let us share with you important steps, facts, and helpful tips to guarantee your yearly renewal of business permit is less stressful and complicated.
How to Renew Business Permits
At the start of every year, business establishments must comply with the legal requirement of renewing business permits with their respective local government units (LGUs) to continue operating.
Procedures for obtaining a permit may vary depending on the city where your business is located, but these are the steps you’ll most likely 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:
• 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 and your employees’ SSS numbers
• PAG-IBIG Clearance
• Latest Payment Receipts
• Declaration/Certification of Gross Sales/Receipts
• Income Tax Returns (ITRs)
• Financial Statements (FS)
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 each city differ, but generally, you will need these documents’ original copies, as well as their photocopies.
Step 3. Pay the Necessary Fees
After you submit your application form and documents at the assessment window, proceed to the cashier and pay the license and regulatory fees.
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 papers, 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.
Come back on the given time and date if your city asks you to return on a different day for your payment.
What Will Happen If You Fail to Renew Your Business Permits?
Penalties are imposed on your business upon failure to renew business permits. Your business will also be prohibited 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 to avoid 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 multiple duplicate copies are needed.
• Be familiar with the process of renewing permits. Check out your city or municipality’s website to learn the steps on applying for renewal of business permits. You can also read this article to give you a better idea about the process.
• Lastly, do NOT transact with fixers or brokers. Get the help of a professional service like Full Suite if you want a stress-free business permit renewal. We can take the burden of preparing the documents, queuing in lines, and filling out forms for you.