Business Permits or Licenses, just like our own personal ID or license, are also required to be renewed. Regardless if your business is a sole proprietor, partnership, or corporation, you need to renew your business license if you want to avoid paying for penalties or worse, to avoid having your business closed.
There are several permits and documents needed in operating a business. But before we discuss the details of renewing them, we should first identify each and distinguish them from each other.
Barangay Clearance or Permit is a business document issued by the government that certifies that a certain business is compliant with the policies and requirements of the local government unit it is under to.
DTI Certification is a business document issued by the Department of Trade and Industry (DTI) that certifies the legitimacy and official registration of your business name. This ensures that no other businesses have the same name as your business.
Business Permit or License, also referred to as Mayor’s Permit is also a government-issued business document. Just like the Barangay Clearance, Business Permit also verifies that a business is compliant with the policies and ordinances of the city it operates in.
Lastly, BIR Certificate of Registration, is a business document issued by the Bureau of Internal Revenue (BIR) that certifies the business’ validity.
These documents are needed to be renewed every year and there are also corresponding fees that should be paid.
I. Barangay Clearance Renewal
Barangay Clearance should be the first document that a business must have. This is because this document is needed when applying for a business license and other government agency transactions. This document can be renewed in your respective Barangay Hall, every 20th of January. Failure to renew may possibly result in penalties or business closure. Renewing this document usually takes only one (1) day.
In renewing for your Barangay Clearance, you must bring the following:
(1) Original and photocopy of previous year’s Barangay Clearance;
(2) Original and photocopy of previous year’s Official Receipt of the Barangay Clearance;
(3) Two (2) copies of the accomplished application form; and
(4) Renewal Fee (varies per barangay)
Below is an example of actual accomplished Barangay Clearance Renewal Form to guide you in filling out your own form.
II. Business Permit Renewal
After successfully accomplishing your Renewed Barangay Clearance, you can now proceed to renewing your Business Permit or License, also known as Mayor’s Permit. This document can be acquired at your respective City Hall, every 20th of January. Failure to renew this may possibly result in penalties or business closure. Renewing this document usually takes one (1) to three (3) weeks.
In renewing for your Business Permit, you must bring the following:
(1) Renewed Barangay Clearance
(2) Original and Photocopy of previous year’s original Business or Mayor’s Permit;
(3) Original and photocopy of previous year’s Official Receipt of the Business or Mayor’s Permit;
(4) Original and photocopy of previous year’s Income Statement (audited or unaudited);
(5) Original and photocopy of Contract of Lease (if renting);
(6) Original and photocopy of Tax Declaration of Property (If Owned);
(7) Public Liability Insurance (if applicable) (either from City Hall or Private Insurance Company);
(8) Community Tax Certificate (CTC) / Cedula (acquired from City Hall);
(9) Two (2) copies of accomplished application form; and
(10) Renewal Fees
Below is an example of an actual accomplished Business Permit Renewal Form to guide you in filling out your own form.
III. BIR Business Registration Renewal
After successfully accomplishing your Renewed Barangay Clearance and Business or Mayor’s Permit, you can now proceed to renewing your BIR Business Registration. This document can be renewed at your local or designated BIR Revenue District Office, every 31st of January. Failure to renew may possibly result in penalties or business closure. Renewing this document usually takes only one (1) day. You can click here to see the list of BIR Revenue District Offices in the Philippines.
In renewing for your BIR Business Registration, you must bring the following:
(1) Accomplished BIR Payment Form 0605; and
(2) Annual Business Registration Fee of Php 500.00*
*Annual Business Registration Fee of Php 500.00 shall be paid to your RDO’s Authorized Agent Bank, and you should bring your BIR Payment Form 0605 when paying.
Below is an example of BIR Payment Form 0605 for your familiarity. You can download and print this form before you go to your local RDO. You don’t have to worry about having to fill this form out by yourself as this form is to be filled out by the personnel in BIR.
IV. DTI Registration Renewal (DTI Certificate)
Aside from the three (3) business documents that was discussed, Department of Trade and Industry (DTI) is also reminding business owners to renew their business registration and names with them to avoid more hassle and penalties due to non-compliance.
Due to the pandemic, DTI has established the Business Name Registration System (BNRS), where business owners can now apply and process online their new and renewal of business registration, payment of registration via GCash, Paymaya, Landbank Online, and Debit/Credit Card, and get the certificate online as well by downloading it when payment has been made. You can click here to go to the Business Name Registration System (BNRS) to start processing your DTI Business Registration Renewal.
In processing your DTI Business Registration Renewal via eBNRS, the steps are the following:
(1) You need to go to the BNRS Site.
(2) Once you’ve visited the site, Terms and Conditions will be first shown where you need to agree on.
(3) After that, you will be directed to another page where you will be required to provide the information about your business.
(4) Once all the information is provided, you may now pay the charges or fees via GCash, Paymaya, Landbank Online, and Debit/Credit Card.
However, aside from the online business registration in DTI, they also have offline registration where you can go to their office and register there by submitting the application form. Below is an example of actual accomplished DTI Business Registration Renewal Form to guide you in filling out your own form if you prefer offline registration.
IV. Income Tax Return
Another important document or report that must be filed by business owners is the Income Tax Return (ITR). This document will be further discussed here.
Now that you know what the important documents are that needs to be renewed regularly, you can now stop worrying about having to pay penalties for failure to file. As long as you remember all this information and be updated with your local government's policies, you and your business will go through a smooth journey.
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