Understanding the Annual Business Renewal Process

Businesses in the Philippines are required to renew their permits and registrations annually to maintain compliance with national and local government regulations. Failure to complete the Annual Business Renewal Process can result in penalties, fines, or even business closure. This guide outlines the necessary steps and deadlines to ensure smooth business renewal.

Step 1: Renew the Mayor’s/Business Permit with the Local Government Unit (LGU)

A. Prepare the Required Documents

• Original and photocopy of the previous year’s Business Permit

• Barangay Clearance

• Latest Audited Financial Statements (if required by the LGU)

• Certificate of Gross Sales or Receipts (for businesses subject to local taxes)

• Lease Contract (if renting business premises)

• Fire Safety Inspection Certificate

• Sanitary Permit

B. Pay the Necessary Fees

• Business taxes (based on gross sales or receipts)

• Mayor’s Permit renewal fees

• Other regulatory fees imposed by the LGU

C. Submission and Approval

• File the application at the Business Permits and Licensing Office (BPLO) of the city or municipality.

• Some LGUs provide an online renewal system for convenience.

• Once approved, receive the new Mayor’s Permit and Business License.

Step 2: Renew Registration with the Bureau of Internal Revenue (BIR)

A. File and Pay the Annual Registration Fee

• Fill out BIR Form 0605 (Payment Form).

• Pay the ₱500.00 Annual Registration Fee at an Authorized Agent Bank (AAB) or via ePayment channels.

• Keep the BIR Payment Confirmation Slip as proof of renewal.

B. Display the Renewed BIR Certificate

• After payment, ensure that the new BIR Certificate of Registration (BIR Form 2303) is displayed at the business premises.

Step 3: Renew Barangay Clearance

A. Submit the Following Documents

• Previous year’s Barangay Clearance

• Updated Mayor’s Permit

• BIR Certificate of Registration

B. Pay the Corresponding Fees

• Fees vary per barangay but typically range between ₱500 to ₱1,500.

C. Receive the Updated Barangay Clearance

• This is a prerequisite for the renewal of the Mayor’s Permit.

Step 4: Renew SSS, PhilHealth, and Pag-IBIG Employer Registration

If the business has employees, it must renew its employer registration with the following agencies:

• Social Security System (SSS) – Update employee contributions and employer records.

• PhilHealth – File the Employer Data Record (ER2 Form) and remit required contributions.

• Pag-IBIG Fund – Update business registration and remit monthly employer-employee contributions.

Step 5: Submit Year-End Reports (If Applicable)

Corporations and partnerships registered with the Securities and Exchange Commission (SEC) must file:

• General Information Sheet (GIS)

• Annual Financial Statement (AFS)

Failure to comply may result in penalties and revocation of business registration.

Important Deadlines for Business Renewal