Business Renewal for Sole Proprietors in the Philippines

It’s that time of the year once again when we have to deal with thick bundles of paper. Yes, I’m talking about our business documents.

I have a sole proprietorship established here in the Philippines. Most of the businesses here (99%+) are micro-small-medium enterprises or MSMEs. And to add to that, most of them are also Sole Proprietors like me.

So I would assume that most of the people reading this post are sole proprietors. I decided to focus on this segment also so as not to make the post long.

What do I need to do every January of the Calendar Year?

DTI Permit

First of, check that your DTI permit is still valid. The Department of Trade and Industry is the government agency that we deal with when we want to create a Sole Proprietorship. The DTI approves the “trade name” that we want to use. In my case, Manila Workshops’ trade name is GPA Events Management Services.

So if it’s already expired, fret not since you can actually renew your DTI certificate from the comfort of your own home. Just go to this site: https://bnrs.dti.gov.ph/renewal and renew your certificate online. I did it last 2018, and I think (I don’t remember) I used GCASH to pay for the fee.

Baranggay and Business PermitLetter of Intent to Renew your Business (3 originally signed copies)

Next, you will need to gather all these documents before going to the Municipal Hall and office of the Baranggay (usually each one is in the same building or at lease close by).

  • DTI Certificate (for sole proprietors)
  • Letter of Intent to Renew your Business (3 originally signed copies)
  • Original and photocopy of previous year’s barangay permit and official receipt
  • Previous year’s Mayor’s Permit/Business Permit and Official Receipt, original and photocopy
  • Community Tax Certificate (CTC) / Cedula from previous year
  • Contract of Lease or Certificate of Occupancy to use Premises (what I do in lieu of this is I photocopy the Real Property Tax Receipts, which are under my name. That’s the one I present)
  • Previous year’s Sanitary Permit to Operate
  • Certification list of employees as of December 2019 signed by President or HRD (if you don’t have employees, create a certification that you don’t have any employees)
  • Quarterly VAT Returns (if you are a VAT entity) or Percentage Tax Returns (if you are non-VAT) for the previous year with BIR Confirmation
  • Quarterly Income Tax Returns (1st, 2nd and 3rd Quarter); these are your 1701Q forms
  • Certificate of Gross Sales for previous year (just add up your gross sales for the entire year)
  • Previous stamped financial statements, audited or unaudited (if applicable); note that for those with Php 3 Million and below gross sales, you don’t need an audited financial statement. BTW, this is for the year before last year.
  • Comprehensive General Liability Policy Insurance (CGLP) / Local Insurance and official receipt from previous year; note that some Municipal Halls don’t require this. The CGLP fees are computed also based on the square meters of your registered address.
  • Authorization Letter (3 originally signed copies) and Special Power of Attorney (3 originally signed copies) — if you are making someone else process it for you

Once you have collated all of these, you can now go to the Municipal Hall. For the fees, it really differs from one City Hall to another.

If you need help processing your Business Permit Renewal at your Municipal Hall, you can get in touch with Taxumo. They offer this service provided you are in Metro Manila, Batangas, Laguna and Cavite. https://www.taxumo.com/blog/get-your-business-permit-renewed-this-coming-new-year-with-taxumo-until-december-30-2019-only/

They can still accommodate a few clients so please don’t mind the deadlines. Oh, Taxumo can also help you with Business Registration just in case you haven’t registered your business yet.

BIR Renewal

So we’re done with two agencies for Business Renewal for Sole Proprietorships. For BIR, it’s actually so easy. I just log in to my Taxumo account, and make sure that I have highlighted the tax types i’m supposed to pay for (check your Certificate of Registration or Form 2303 to be sure) in the settings page.

Go to the Tax Dues tab and click on file now for 0605. Please make sure that it’s for 2020! 🙂 For first time users, you can attend an online onboarding session by clicking on this link: https://calendly.com/consultnow/onboarding

If you need information to be changed in your COR, you will need to go to the RDO to do that using 1905. Else, if nothing needs to be changed, you only need to file this 0605 form via Taxumo. No need to go to the RDO of the BIR.

I love that everything is easy! 🙂 If you have other questions on renewing your business permit and registrations and certificates, leave your questions in the comment section below!

Start the year right! I hope this somehow give you an idea of how to go through Business Renewal for Sole Proprietorships. Fix all of these and don’t wait for the last moment to avoid penalties!

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