Whether Sole Proprietor, Partnership, or Corporation, all business entities must renew their business permits according to the Philippine Law.
Once issued a Business Permit by his Barangay, Mayor's Office, Department of Trade and Industry (DTI), and Certificate of Registration from Bureau of Internal Revenue (BIR), he is required to renew this business permits regularly to avoid such penalties.
Here is a quick view about the deadlines of renewal and how often should it be renewed.
City or Municipality
Every city or municipality in Metro Manila imposes penalties for failure to renew business permits on time.
Local Government Units can impose:
25% surcharge on remaining unpaid taxes, charges, and fees
2% monthly interest on other fees that remain unpaid, including surcharge, until the entity's payment on the debt are finally settled
In extreme cases where a business owner still continues to operate even the business permit is not renewed, the Local Government Unit has the authority to confiscate his assets, and may order closure of his business not until he pay his remaining penalties and debts.
Bureau of Internal Revenue (BIR)
In case the business entity did not comply with renewal of its Certificate of Registration January 31 deadline, the BIR will charge a fine to the business owner. The penalty ranges from PHP 5,000.00 to PHP 20,000.00. Aside from this penalty, the officers may face imprisonment with the term of six months to a maximum of two years.
The business owner should keep in mind the importance of renewal of licenses as it may not just affect your business operation but also its existence. Operating your business without renewing your business permit is a serious violation that may lead to the mentioned penalties above.
Preparation for renewing your permits may take a long time as you need to renew in different government agencies. To avoid penalties for non-renewal of your business permits, you should plan and prepare ahead of time to be able to comply timely.
If you want to know more about the requirements and processes to renew your business permit and certificate of registration, you can check it here.
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