How to Renew Your Business Permit in the Philippines 2024

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The time of year to obtain the new version of the business permit in the Philippines is every January. Contrary to what many people believe, business permit renewal is not based on fiscal year. The renewal of this document takes place every January of each year, irrespective of the business registration date.

What this means is that if you launched your new business in May 2023, you still have to renew the permit in January 2024, not May 2024. If you need a step-by-step instruction on how to renew business permits online or physically, you have come to the right place. Today, we will describe everything you should know about the procedure of the business permits renewal, including requirements and possible penalties.

Requirements for a Business Permit Renewal in 2024

Here is a list of the things you’ll need when updating your permit:

• Business clearance issued by the barangay’s office — current one for the year.
• BIR registration or Income Tax Return — this is your ITR for income for the previous year (1).
• Mayor’s Business Permit — for the past year. Bring the original document and the copy.
• DTI registration — this does not have to be new. DTI registrations have expiration dates. If yours is not yet expired, you can still use it. If it is expired, you must renew it first. You can update it online, make online payments, and then print the document at home.
• Other documents — these are documents from the previous year, like documents for the engineer’s office, fire department, and health office.

PRO TIP: If you will process your renewal of business permit 2024, make sure you have all the requirements for business permit renewal. If you don’t, you will keep coming back. Bring all the original documents and bring some photocopies also.

The precise list of documents necessary for the permit renewal depends on the location. You can specify it beforehand. Here is the list of the business permit renewal requirements 2024 in Makati (2).

✅ Notarized application Form — three photocopies.

• Declaration of Gross Sales or the receipts for the preceding year.
• Number of Employee
• Capital Investment or Paid-up Capital

✅ Previous Year Mayor’s Business Permit or billing assessment.
✅ Audited Financial Statement and/or Income Tax Return.
✅ Barangay Clearance for Business.
✅ Residence Cert. A and B for Sole Proprietorship, C and C1 in case of Corporation or Partnership.
✅ Public Liability Insurance (Exemption: Sari-Sari Store, Carinderia and Lessor except Bldg.)

Some municipalities will ask you for your ID. If you are not the owner, it makes sense to bring an authorization letter.

How to Renew Business Permit: Step-by-step Process

The first step to renew the document is to obtain a barangay business permit. This piece of paperwork is different from a barangay clearance.
The barangay clearance is a personal clearance. On the other hand, the barangay business permit is for your business entity. However, before you can get a barangay clearance, you must get a cedula.

✔️ Take Note
How to Get a Cedula – Community tax certificate in the Philippines

The barangay business permit clearance is important. Without it, the municipality may not issue you a new business permit at all. To get a barangay business permit, you must go to your barangay office, not the municipal hall.

Below is a complete step by step instruction for business renewal 2024:

• Step 1: Get a cedula — you can obtain this from your local municipal hall. Before you get one, make sure you have your income tax return document from BIR or from your accountant. This document will tell them how much you earned last year and help them decide on how much you will pay. The current cost of cedula is ₱ 1 for every ₱ 1,000.00 earned.
• Step 2: Get a barangay business permit — you will get this from your barangay hall. Keep in mind that you can only get this if you have a cedula. However, some barangay captains are not strict. They will issue you a barangay business permit without a cedula.
• Step 3: Get a business permit renewal 2024 form — you can obtain this from your municipal hall. You need to fill this out. Some cities have it online, so do that and print the form from online.
• Step 4: Submit the form and then pay the fee — do this at the municipal hall. The cost depends on your annual income last year.
• Step 5: Go to the engineer’s office — the engineer will perform the annual inspection. Once you get a clearance, they will issue you a document. They will go to your business address. Make sure you are complying with the standards.
• Step 6: Go to the health office — you must secure a Sanitary Permit or Health Permit for your business. If your business is a restaurant or a food service, you need a Medical Certificate from your health office. If not, they will issue you a health permit right away.
• Step 7: Go to the fire department — the fire department will issue you a permit to operate. If your business is huge, they will inspect your place and then issue you a document if it is safe. If you have a small business, they will issue you a permit right away. You must have a fire extinguisher in your business.

Finally, you will go back to the municipal hall and then submit all these documents. Once you do, they will tell you that they will text your phone number once your Mayor’s Business Permit is ready.

NOTE: Some LGUs have online services for the business permit renewal, while others only let you arrange a physical engagement via an online system. However, most LGUs ask businessmen to appear in their office in person to provide their requirements and get the new versions of their business permits.

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Deadline for Renewal of Business Permit in 2024

The business permit deadline 2024 is as follows:

Type of Permit	Deadline
Barangay Business Permit	January 22
Mayor’s Permit or Business permit	January 22
BIR Annual Registration	January 31

If you are late, you will face penalties. Do not worry, you will not be in jail. You will only pay a higher amount of money. Some Mayors can extend this. To know more, you must follow the Facebook page of your town or city.

Generally speaking, the business permit deadline 2024 is January 2023. However some mayors may extend this deadline. Here are the deadlines for renewal of business permit in 2024 for various cities:

City	Date of deadline
Makati	January 31
Caloocan	January 22
Las Pinas	January 22
Malabon	January 20
Mandaluyong	January 31
Manila	January 20
Marikina	February 28
Navotas	January 20
Pasay	January 20
Pasig	January 20

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Fees are Required to Get a Renewal of a Business Permit 2024

To renew the business permit, a businessman has to pay the following charges:

• Local business tax (LBT)
• Payment for the Mayor’s Permit
• Sanitary inspection fee
• Other fees that may be imposed by the LGU

Check the official renewal fee structure so you could plan your budgets accordingly. Specify the changes in prices expected in the nearest future to model costs. Keep in mind that every district handles permit fees differently. Some LGUs calculate special taxes themselves, others use standard tariffs.

Penalty for late Renewal of Business Permit

Is there a Penalty for Not Renewing or Renewing Late? Yes, there is a penalty for being late. The penalty for late renewal of a business permit is money. You will not go to jail for it except if you are late for the BIR registration.

For BIR penalties, you will pay ₱ 5,000.00, but not more than ₱ 20,000.00 (3). There is also an imprisonment for the period from six months to two years. The truth is that nobody really goes to jail for this. You will only get fined for being late.

For local government units, they will charge you with a 25% surcharge from the actual cost of the renewal. Then, they will also charge you a 2% penalty for every month that you did not pay. In extreme circumstances, they may foreclose your assets and your business (4).

DTI Reminder

New and established businesses must renew their DTI registration (5). As mentioned earlier, your registration in the DTI has an expiration date. If your DTI registration is expired and not renewed, the Mayor of your town or city will not renew our business permit.

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How Long Does It Take to Renew a Business Permit in the Philippines?

It depends. Some towns and cities can take two days. If you do not have the document, it can take weeks. For complicated businesses, it can also take weeks because you need to complete fire inspection and health or sanitary inspection. For online businesses and freelancers, it takes only one day.

There are some cities that have a one-stop window where you will spend only three hours renewing the business permit. Of course, you can only do this if you have all the renewal of business permit 2024 requirements.

Summary

Now that you know how to renew your business permit, the next step is to prepare all the necessary documents and get ready to pay for the whole procedure. Make sure you have all the business renewal requirements. Why is it important to renew the document? It is essential because if you don’t, your penalties will pile up. Besides, you may face seizure of properties and business closure, if the government considers your case too serious.

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