All you need to know about the renewal of your business permits

October 24, 2017
Accounting Paper Work

It is that time of the year where we plan out our goals and start mapping out the things we need to ensure we start 2018 with the right foot. For all business owners out there in the Philippines, a crucial aspect in line with this is renewing your business permits and licenses with the local government unit (LGU) where you are registered at. This is mandatory in order to continue with normal course of your operations and the regularization of your business. While it varies according to the local government, most permits expire either on the 31st of December and its renewal should be filed on or before January 20.

All companies registered in the Philippines, including Branch and Representative Offices are mandated to renew its business permits. It is stated by the law that every business establishment should restate their licenses annually with their authorized local government unit.

Although some LGU’s vary on requirements and necessitate on additional documents timed with the deadline for renewal of permits, most LGU’s stick with the usual requirements such as:

• Barangay Clearance
Business Permit
• Financial Statement
• Community Tax Certificate
• Lessor’s Permit
• Comprehensive General Liability Insurance

How long does it take?

Processing of business permit renewal can take more than a few days due to substantial number of applicants, and can be utterly tedious. Moreover you should never assume that the requirements for your renewal will be the same as this years, hence you will need to prepare the documents well in advance.

What if I did not make it to the deadline?

As you probably know by now now, in the Philippines deadlines should be taken seriously as LGUs impose penalties on businesses who fail to renew their permits. While these might vary according to the industry and the local government you are registered at, late payment of local business tax will result in a 25% surcharge on the unpaid taxes, fees or charges, plus an additional 2% interest per month which is computed taking into consideration both the unpaid amount but also the surcharge.

Why should you take the risk of making mistakes and failing to renew your business permits? Avoid the long lines of this tedious compliance by contacting triple i consulting. Let us bring you peace of mind in 2018.

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