It is that time of the year when we plan our goals and map out the things we need to ensure we start 2018 on the right foot. For all business owners in the Philippines, a crucial aspect of this is Business Permit Renewal in the PH. Renewing your business permits and licenses with the local government unit (LGU) where you are registered is mandatory to continue normal operations and ensure business regularization. While the process varies by LGU, most permits expire on December 31, and 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, in the Philippines, deadlines should be taken seriously as LGUs impose penalties on businesses that fail to renew their permits. Business Permit Renewal in the PH is crucial to avoid unnecessary fines. While penalties may vary depending on the industry and the local government where your business is registered, late payment of local business tax results in a 25% surcharge on unpaid taxes, fees, or charges, plus an additional 2% interest per month—calculated based on both the unpaid amount and 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.
