The start to 2021 has been different to say the least, and people are still having difficulties getting used to how things will be for the time being. Now that the holiday season is over, it’s time to get back to work and renew your business!
Renewing a business could be a bit confusing, but it’s something that must be done. All businesses, including new ones, should ensure their compliance with government requirements, and this includes business renewals.
There is a penalty for those that fail to renew their business registration. According to an article from Globe myBusiness Academy, “The penalties of operating with expired licenses and permits can cost up to thousands or tens of thousands of pesos,” advises Samuel Francisco, owner of SRF Media Productions. “That would be a huge blow to your business, so it’s best to just avoid being penalized.”
Here are the basic requirements that you need for your business renewal:
- Renewal form
- Latest business permit
- An official receipt from last year’s payment
- Photocopy of business license
- Barangay certificate
- Original barangay clearance
- VAT returns 2020
For new businesses, such as those that started during the lockdown, require fewer documents for registration. Here are the requirements that new businesses need for renewal:
- Original barangay clearance
- Department of Trade and Industry (DTI) or Securities and Exchange Commission (SEC) name registration
- Proof of ownership or lease agreement
As you can see, renewing your business requires several different documents that have their own processes! And because of all the requirements, business owners tend to get confused as to what necessary steps they need to take.
This is how your business can get the requirements needed for your business renewal!
Barangay Clearance
Barangay clearance certifies your business compliance with the requirements of the barangay where your office is located. You can get this certificate in the one-stop business registration center located in your Local Government Unit (LGU). This certification costs P500.
The following are documents needed to claim this certificate:
- Barangay clearance from the previous year
- Proof of payment (receipt) of barangay clearance from the previous year
- Comprehensive General Liability Policy (CGLP) Insurance/local insurance (not required for freelancers)
- Official receipt of CGLP Insurance
Mayor’s or Business Permit
This is also claimed at your one-stop business registration center. Similar to your barangay clearance, the mayor’s permit, also known as business permit, ensures your compliance with all the ordinances of the city where your office is located. This is important because ordinances could differ from one city to another.
For self-employed individuals, they can only claim the permit after registering with the DTI. As for corporations and partnerships, these should first be registered with the SEC. This certification costs P2,000. Before applying for this, make sure to double check the requirements for changes, if any.
The following are documents needed to claim this certificate:
- Financial statements from the previous year
- Mayor’s permit from the previous year
- Comprehensive General Liability Policy (CGLP) Insurance/local insurance (not required for freelancers)
- Official receipt of CGLP Insurance
- Community tax certificate (obtained from your local barangay or on-site at city hall)
- Contract of lease or Land Title of property where business operates
BIR Certificate of Registration
This certification is received when a business is opened. This is used to print official receipts, register books of accounts, pay business-related taxes, and provide a Tax Identification Number to its employees. Businesses can access this online through the e-BIR forms portal or through your registered Revenue District Office (RDO). A BIR Certificate of Registration costs P500 and the only requirement for this would be Form 0605, also known as your Payment Form.
DTI Business Name (BN) Registration Certificate
Without any of the other required business documents, this certificate is invalid. This certificate shows entitlement to use the name of the business and that no other business has the same name. To get this certificate, this can be accessed online through DTI’s Business Registration Name System. Freelancers are the only exception from this as there is no need for them to claim this certification. Fees for this certification may vary from P200 to P2,000, depending on the scope of your business.
If you’re in need of an office address for your business registrations or business renewals, check out our Virtual Office plans! A virtual office plan entitles you to the use of the Acceler8 business address for your company incorporation and renewal. With this, you will be able to run your businesses from the comfort of your own homes. To learn more about our Virtual Office plans, check out our website here or send us an email at connect@acceler8.ph. We’d be more than happy to share more details!