Business permit
The Ultimate Guide To Application for New and Renewal of Business Permit
Posted by Iris Perez
onOctober 31, 2024
This is edited for preview. Establishing your own business is a promising activity but is not an easy task. Yet as one to operate legibly, it must initially pass through a series of processes which is known as Application for Business Permit.
Business Permit is one of the several licenses you need to operate your business legally in the Philippines. But before you proceed with the actual processing there are other government agencies and other instrumentalities that you might to consider registering first like DTI (Department of Trade and Industry), Office of the Barangay Captain, and others if specifically needed, as these are required to accomplishing the Business Permit itself.
Business Permit serves as evidence that the establishment is abiding by rules and ordinances of the local government unit in a particular jurisdiction to legally operate. Business Permit in the Philippines is also known as Mayor’s Permit and each LGUs have different procedures depending on the ordinances they impose.
As for the ordinance promulgated in Cebu City, the necessity to comply with the new application of business permit is stated as:
“Any person desiring to engage in any business, trade, occupation or calling shall first apply a form prescribed for the purpose, to the City Mayor, for the corresponding permit. …the business permit is to ensure the payment of the taxes and related fees to the city, as well as to regulate business activities for security, sanitary, safety and propriety purposes.”
As per Section 5 of the Revised Omnibus Tax Ordinance of the City of Cebu
As for the renewal of the business permit, it is stated that:
“All business taxes, fees, or charges imposed under this Ordinance shall accrue on the first day of January of each calendar year as regards persons then liable. Unless otherwise specified, all business taxes are payable at the option of the taxpayer, either, annually, on or before the twentieth of January, or quarterly, on or before the twentieth of January, April, July, and October.”
This is also in consonance with Section 8 of the Revised Omnibus Tax Ordinance of the City of Cebu
Business owners must gather all information for the proper procedure in applying for the necessary permit requirements to avoid delays and to maximize efficiency.
There are 3 (three) Major Phases in processing for business Permit – These are Evaluation and Assessment, Payment, and Verification and Release.
Phase 1: Evaluation and Assessment
Upon applying for a business permit, one must secure a copy of the Business Permit Application Form in Triplicate Copies which consist of:
- Original Copy Business Permit Application Form (BPLO’s Copy)
- Duplicate Copy Business Permit Application Form (OWNER’s Copy)
- Triplicate Copy Business Permit Application Form (CTO’s Copy)
Each copy must be duly notarized and accomplished in long sized bond paper/ 8.5″ x 13″
Phase 2: Payment
Upon presenting and successfully passed the evaluation from the Assessment Division, the next thing to do is to pay the taxes and fees due to the respective cashier.
There are 2 (two) modes of payment depending on your option: One Time Payment and Instalment Payments.
(1) One-time Payment is where you pay in full the amount computed during the assessment phase and doesn’t require to pay future payments. While (2) Instalment Payments is a mode of payment that grants the applicant either Annual payments or four (4) Quarterly payments without any penalties and surcharges. Provided that you signify your intention to pay in installments upon evaluation and assessment phase so that the CTO department can assess your payment schedule.
As for New applicants – you must wait for the joint inspection team to inspect your premises after payment before you proceed to the next phase.
Phase 3: Verification and Release
Upon successfully passing the 1st and 2nd phase, you are now clear to continue through complying the additional requirements such as the following:
- CTC (Community Tax Certificate) of Business and Employees
- Sanitary Permit
- Fire Safety Inspection Certificate
- Occupational Permit
- CCENRO Certificate
- Joint Inspection Report (New); and
- Other requirements as deemed necessary om consonance to the nature of business
If you comply with all the requirements and everything is set, the Verification Division will collect all the requirements and check for any lacking files, if any. Then, it will be forwarded to the releasing division for the encoding of the business permit certification and wait for your name/business name to be called for the release of final papers.
And your business is all set for the year’s operation!
Disclaimer: This is based on the processing of Business Permit as of January this year which was held at SM City Cebu. Mode of processing is subject to change with due notice from the City Government of Cebu.
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Bookkeeping, Accounting, Outsourcing, Permit renewal, Business
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