How to Renew Your Business Permits in the Philippines 2023
- You must renew your business permit before January 22, 2023
- You must prepare all your documents from last year when you renew
- You must renew your DTI registration if it is already expired
- You will pay a penalty if you are late in renewing
- You need to renew your business permit to make it easy to apply for a loan
The time of year to renew the business permit in the Philippines is every January. Contrary to what many people believe, business permit renewal in the Philippines is not based on fiscal year. The renewal of business permit happens every January of each year.
What this means is that if you registered your new business in May in 2022, you still have to renew in January 2023, not May 2023. If you need to know the steps on how to renew business permit online or physically, you have come to the right place. Today, we will show you everything you need to know about business renewal of permit, including business renewal requirements and penalties.
How to Get a Barangay Business Permit Clearance in the Philippines
Steps to Renew a Business Permit in the Philippines
The first step to renew your business permit is to secure a barangay business permit. This 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.
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 hall, not the municipal hall.
Below is a complete step by step guide for business renewal 2023:
- Step 1: Get a cedula – you can get 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 least year and decide how much you will pay. The current cost of cedula is ₱1 for every ₱1,000 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 2023 form – you can get 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 – 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 health office – you must secure a sanitary permit or health permit for your business. If your business is a restaurant or food, you need a medical certificate from your health office. If not, they will issue you a health permit right away
- Step 7: Go to 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 from. 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.
How to Get a Cedula – Community tax certificate in the Philippines
Renewal of Business Permit Requirements in the Philippines for 2023
Here is a list of the things you need to be able to renew your business permit.
- Barangay Business Clearance – current one for the year
- BIR Registration or Income Tax Return – this is your ITR for income for the previous year
- Mayor’s/Business Permit – for the previous year; bring the original 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 renew it online, pay online, and then print it 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 2023, make sure you have all the requirements for business permit renewal. If you don’t, you will keep coming back. Bring all the original and bring some photocopies also.
Some municipalities will ask you for ID. If you are not the owner, it makes sense to bring an authorization letter.
Buy Now Pay Later in the Philippines
Is there a Deadline for Philippine Business Permit Renewal?
Yes, there is a deadline. The business permit renewal deadline 2023 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.
What is the Deadline for Renewal of Business Permit in 2023?
Generally speaking, the business permit deadline 2023 is January 2022. However, some mayors may extend this deadline, especially since there is still a pandemic going on.
Deadline of Business Permit Renewal 2023
|CITY||DATE OF DEADLINE|
|Las Pinas||January 22|
Is there a Penalty for not Renewing or Renewing Late?
Yes, there is a penalty for being late. The penalty for late renewal of business permit is money. You will not go to jail for it except if you are late for BIR registration.
For BIR penalties, you will pay 5,000 pesos but not more than 20,000 pesos. There is an imprisonment of not less than six months, but not more than 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 25% surcharge from the actual cost of the renewal. Then, they will also charge you with 2% of penalty for every month that you did not pay. In extreme circumstances, they may foreclose your assets and your business.
New and existing businesses must renew their DTI registration. As mentioned earlier, your registration in the Department of Trade and Industry 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.
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 o sanitary inspection. For online businesses and freelancers, it takes only one day.
There are some cities that have a one-stop-shop 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 2023 requirements.
Where to go to apply for business permit renewal?You must go to your municipal hall to renew your business permit. Just tell them that you want to renew before the deadline for renewal of business permit. They will give you a list of the documents you need to present.
What documents to bring? How much to pay?You must bring all your previous documents last year. On top of that, bring a new barangay business permit. If your DTI is expired, renew that first. The amount you have to pay depends on your declared income last year. The proof of this is your BIR document or document from your accountant.
What happens if it is not renewed?You can go to jail if your BIR permit is not renewed. However, this is rare. If you do not renew your business permit on time, you will pay a fine. In extreme cases if you do not meet the deadline of business permit renewal 2023, they will shut down your business.
Now that you know how to renew business permit, the next step is to prepare your business permit renewal requirements 2023. Why is it important to renew your business? It is important because if you don’t, your penalties will pile up.
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