Since writing this article five (5) 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 2019 business permit renewal, we can do this seamlessly for you. Register here to secure the discounted quote.

At the start of every year, businesses must 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). The deadline for renewal of permits with the LGUs is on January 20, and the deadline for the annual registration with the BIR is on January 31. You can expect fees to be paid includes barangay permit fee, business tax, mayor’s permit fee, sanitary permit, and fire permit among others. Here are 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 and the requirements at the Barangay Permit Division.

•  Wait for the assessment.

•  Pay corresponding fees.

•  The 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

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

•  Previous year’s Income Statement, audited or unaudited

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

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

2. Procedure

•  Submission of application form

¤ Submit the accomplished application form and the complete requirements for evaluation. The 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 the Business Permits and Licensing Office to claim your renewed Mayor’s Permit.

¤ Releasing of renewed Mayor’s Permit will take 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 the 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 Permits Registration and Renewal

 

 

16 Comments

  • Christine Padua says:

    hello!

    our company was registered in mandaluyong last 2013 and this january, 2014, we will transfer our business address to makati.

    in this case, do we need to file business retirement in mandaluyong prior to our transfer to makati?

    your thoughts please..

    • Ariel Lim says:

      Yes Christine, you have to. You will have to do that at the City Hall and BIR level. Both will go through a series of “assessments” which will tell you if you have any open cases that need to be settled.

      One word of advice, don’t forget to file tax returns in the old address until you get a written notice saying that you are no longer registered in Madaluyong (or something to that affect); otherwise, that would just increase your open cases. Same with the City Hall. It usually takes a couple of months. So i recommend paying Quarterly Income Tax to avoid paying for the whole year. That would allow you to be operating legally because you paid for what is needed.

  • charmaine sanchez says:

    good pm po ask ko lang po kung ,pwede pa po ba mag renew ng business permit sa manila city hall,sana may mag reply saakin dito .. need lang asap ..
    :))

    • Ariel Lim says:

      Yes Charmaine, there is nothing hindering you from renewing. You just have to be aware that penalties will be imposed.

  • james says:

    Sharing my situation:

    started company (sole proprietorship-municipal level) oct 2013.
    since ngsstart palang at nghahagilap palng ng clients at mejo ntagalan p process sa BIR ng docs at invoices, december2013 n fully nabigyan ng permit sa bir, wala p ako naging transaction at kita.

    on my renewal of mayors permit, inabot parin ng Php 7K ang nid ko bayaran para sa mayors permit.

    Ask ko lng po. panu kung di po ako magrenew ng mayors permit anu po mga penalty n pwede harapin or in case late renewal.

    At what if magrenew ako next year pero di nmn ako nkarenew this year?may case po b para dun?

    salamat.

    • Ariel Lim says:

      I think you are asking the wrong question, James. What your concern ought to be how to ensure business continuity while complying with the law – not finding a way out of it.

      But to answer your question, yes you can renew next year. And yes they have a case.

      Let’s use the analogy of a manager and his direct report / subordinate. If the direct doesn’t submit reports to the manager, how would the manager know that work is done or not done?

      Look at it from the government’s perspective. In their eyes, you are not submitting any requirements (renewal, BIR returns, etc). From the government’s perspective, you are delinquent.

      Yes, you know the story – no operations, no clients, no sales. But that’s not what they see. The effect? You lack reports for several months / years. Then when you report to them again, they’ll see you have been delinquent and penalties would ensue.

  • Thor says:

    Sir! I am thankful that there’s a site like this, thank you for taking the time to answer such issues.

    I’ll be direct na lang po. Sole proprietorship that hasn’t renewed business permit in Las Pinas (let’s say 3 years). How much kaya ang penalities+fees involved? Like % po ba ito ng Income Statement?

    Consistent tax payer; even Brangay Clearance paid for yearly. Mayor’s Permit lang yung never na renew, since nasa Manila talaga na lagi.

    With that, planning to move the business address to Manila this month, pwede kayang wag na mag renew sa Las Pinas?

    Thank you!

  • clarefrancis says:

    Hi! hope somebody can answer me.. Our business permit for 2014 was renewed using our old address because we cannot secure occupancy permit on the building and unit on our current office due to the arrears of the building itself. In that case, we cannot secure locational clearance to change the address in our current business permit.
    Question: What is the consequences of continuous renewing our permit using the old address?
    Was there any way to change our address without securing Locational Clearance?

    Please help….

  • Raquel says:

    Hi Sir, I badly need your advice on what to do..
    Our small business(registered as corporation) has been SEC registered May 23,2013 and BIR registered June 04, 2013. Our mayors permit is valid until Dec 2013 only. Location is Taguig.
    We have no operations yet ( no income, no staff) and we were not able to file reports and paid the annual fees Last Jan 20, 2014. Plus, we have moved our location from Taguig to Mandaluyong now( home based temporarily while there is still no operation). My dilemna is where to start to ensure Business Continuity. Can you please guide me where to start and the steps needed so I can work on it one by one? We want to actively do marketing now but office will be homebased. Will this affect our transfer from Taguig to our new Mandaluyong condo? Your feedback will be highly appreciated. Thank you…

    • Lester Allan Alforque says:

      Hi Raquel,

      Thanks for your inquiry.

      Based on the facts as stated, though the business isn’t still in operations since you were registered with the BIR and SEC, the corporation should comply with the both regulating bodies in terms of reportorial requirements – meaning submission of zero returns all taxes that you were complied to file and an accompanying audited FS. In terms of the transfer, should you wish to operate permanently at Mandaluyong, you have to update address registration both for SEC and BIR, but before a transfer is made BIR issues open cases summary for returns that were not filed from the date you were registered with the BIR.

  • […] business permit renewals, we have three steps outlined that will make it easier for you to know the requirements and the process. You can also refer to […]

  • Winnie says:

    Hi po gud eve.ask lang sana aq may dti permit pero d naman nagbusiness ginamit lang for visa purposes.last 2011.wala po bang penalty babayaran?do i need to close nalang po iyon.dahil wala namang balak magbusiness this time.And brgy,mayors permit. Nagregstrr aq last 2011 d rin na close yun.dahil d nga po nagbusiness ginamit lang for visa purposes.paano po kaya penalty ko?now q lang po kc nalaman.sana matulungan nio po ako magkaroon ng idea.baka kc perahan lang ako ng ibang makakausap ko.lam nyo naman po now.meron paring pasay govt natin.thanks in advance sa advise

  • […] 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 […]

  • […] •  3 Steps to Business Permit Renewal […]

  • Jennifer Belizar says:

    Hi! I am a sole proprietor of a school supplies opened last 2014 and we need to transfrer location this Feb 2016 but haven’t find a location yet. My question is, what are the permits I need to accomplished? Thank you

    • fullsuite_poaanq says:

      Depends on a lot of factors like do you have complete papers initially? Are they updated? What city were you registered? Etc.

      Feel free to contact us for more details.

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