Local and foreign investors and entrepreneurs that intend to establish companies in the Philippines are required to register their businesses with various government agencies before they are allowed to commence business operations. Registration with the Securities and Exchange Commission (SEC) is the first step in the registration process wherein a Certificate of Registration is issued and the legal existence of the corporation is approved, specified, and recognized.

After registering with the SEC, corporations are required to secure a Mayor’s Permit from the Local Government Unit (LGU) where the business is to be located. The next step to this is the accomplishment of a Certificate of Registration from the Bureau of Internal Revenue (BIR).

The BIR is the national government regulatory agency that regulates finance, taxation, and monetary policy in the Philippines. It collects internal revenue taxes, fees and charges, and enforces all forfeitures, penalties, and fines connected with tax matters for the Philippine government.

The Certificate of Registration issued by BIR (BIR Form 2303) contains an enumeration of the types of taxes that are required to be paid to the government, which includes the following:

       Corporate Income Tax, Percentage Tax, Value-Added Tax, and Withholding Taxes (Compensation, Expanded, Fringe Benefits, etc.)

Registering your business with the BIR gives you the authority to print your official receipts and invoices, formally register the Tax Identification Number (TIN) provided for your company in the Certificate of Registration issued by SEC, and register the books of accounts you are required to annually register with BIR to serve as official record of your business transactions for the fiscal year.

Steps in Registering Your Business with the BIR

1. Accomplish BIR Form 1903 (Application for Registration for Corporations/Partnerships (Taxable/Non-Taxable)) and submit the same together with the required supporting documents to the Revenue District Office (RDO) that has jurisdiction over the registered address of your business establishment. The supporting documents to be attached to the Form 1903 are as follows:

  • SEC Certificate of Registration (Certificate of Incorporation for domestic corporations/License to Do Business in the Philippines for resident foreign corporations)
  • Mayor’s Permit or application for Mayor’s Permit (must be submitted prior to the issuance of the BIR Certificate of Registration)
  • Contract of Lease
  • Other documents to be submitted if applicable:
    • Certificate of Authority (if Barangay Micro Business Enterprises (BMBE) registered entity)
    • Franchise Agreement
    • Proof of Registration/Permit to Operate with BOI, PEZA, SBMA or BCDA

2. Pay the Annual Registration Fee (PHP500.00) at the Authorized Agent Banks (AABs) of the concerned RDO

3. Pay the Documentary Stamp Tax (DST) on Subscription and Lease (BIR Form 2000). The DST on Subscription depends on the amount of your capital while the DST on Lease depends on your monthly rental.

After receipt of the aforementioned requirements, BIR officials will get back to you to inform you when the BIR Certificate of Registration (Form 2303) is going to be available.

After securing a BIR Certificate of Registration, you will be required to do the following:

  • Apply for Sales Invoices/Official Receipts through BIR Form 1906 – Authority to Print Receipts and Invoices. The documentary requirements for obtaining such are as follows:
    • BIR Form 1906 (Authority to Print)
    • BIR Certificate of Registration (Form 2303)
    • Final and clear sample of Principal and Supplementary Commercial Receipts and Invoices
    • BIR Certificate of Registration of Accredited Printer
    • BIR Annual Registration Fee (Form 0605) of Accredited Printer
    • Job order
    • Quarterly report of Accredited Printer
  • Register books of accounts and have them stamped by the RDO where your business is registered. Note that the BIR examiner will usually advise you the types of books and taxes applicable to your business upon the initial taxpayer’s briefing. The documentary requirements you have to submit upon registering your books of accounts are the following:
    • BIR Certificate of Registration (Form 2303)
    • New sets of books of accounts, such as but not limited to: 
      • General Journal
      • General Ledger
      • Cash Receipt  
      • Cash Disbursement
      • Subsidiary Sales Journal
      • Subsidiary Purchase Journal
  • Attend the taxpayer’s initial briefing to be conducted by the RDO for new registrants to inform them of their rights and duties/responsibilities.

A Few Things You Need to Remember

  • An “Ask for Receipt” Notice (ARN) will be issued together with the BIR Certificate of Registration and you must post both documents in your business establishment.
  • Your corporation, as well as its branches, must accomplish and file the application on or before you commence business operations.
  • You are required to pay the Documentary Stamp Tax (DST) on the Articles of Incorporation (AOI) on the 5th of the month following the date of issuance of the AOI (as prescribed under Section 175 of the National Internal Revenue Code of 1997).
  • If the DST is required to be paid within five (5) days after the close of the month, BIR Registration shall be done on or before payment of DST due.
  • Once your BIR Certificate of Registration is issued to you, you are given thirty (30) days to have your official receipts and sales invoices printed.

Before you can start operating your business in the Philippines, you need to secure a Mayor’s Permit or Business Permit from the Local Government Unit (LGU) where your company office is located. LGUs can be cities or municipalities, and the procedures for obtaining a permit may vary depending on the local regulations and ordinances the city or municipality seeks to implement.

Business permits are renewed every year. Renewal period is usually on the first month of the calendar year. Penalties are imposed on businesses that fail to renew their business permits on or before the prescribed period.

List of Requirements for Obtaining a Mayor’s Permit in the Philippines

  • Application Form
  • Certificate of Registration from Securities and Exchange Commission (SEC) for Corporations/Partnerships; Department of Trade and Industry (DTI) for Sole Proprietorships; or Cooperative Development Authority (CDA) for Cooperatives
  • Barangay Business Clearance*
  • Community Tax Certificate (CTC or Cedula)
  • Contract of Lease (if leased)/Transfer Certificate of Title (if owned)
  • Sketch/Pictures of the business location (3 copies)
  • Public Liability Insurance (for Restaurants, Cinemas, Malls, etc./exempted: Sari-sari Stores, Carinderias)
  • Locational/Zoning Clearance*
  • Certificate of Occupancy (Building and Unit)*
  • Building Permit and Electrical Inspection Certificate*
  • Sanitary Permit*
  • Fire Safety Inspection Permit*

*You can view the list of requirements for securing each permit/clearance here.

Steps in Securing a Mayor’s Permit

The step-by-step process for procuring a Mayor’s Permit depends on the local regulations and ordinances of the city/municipality where your business is located. But the general process usually involves the following steps:

1. Secure the initial requirements:

  • Accomplished Application Form
  • SEC/DTI/CDA Certificate of Registration
  • Contract of Lease or Transfer Certificate of Title
  • Sketch/Picture of the business location

2. Secure permits and clearances – each permit can only be obtained when the aforementioned requirements in step 1 are fulfilled. Each permit/clearance is usually obtained from designated offices inside the City/Municipal Hall. The specific permits/clearances are as follows:

  • Barangay Business Clearance
  • Certificate of Occupancy
  • Building Permit and Electrical Inspection Certificate
  • Locational/Zoning Clearance

3. File your Application Form along with the other requirements to the Bureau of Permits (BP)/Business Permit and Licensing Office (BPLO) at the City/Municipal Hall.

4. Procure a Community Tax Certificate/Cedula from the City Treasurer’s Office.

5. An assessor will assess your application fees and you are required to have the assessment (Official Billing Assessment) validated by a BP/BPLO officer.

6. Submit your application requirements, along with the Official Billing Assessment, to the designated office.

7. Pay the necessary payment fees for the permits and licenses to the Cashier’s Office.

8. Obtain a Fire Safety Inspection Permit from the designated Fire Department by presenting your paid application requirements.

9. Obtain a Temporary Sanitary Permit from the designated Sanitary Department by presenting your paid application requirements. Depending on the local health regulations or ordinances of the city/municipality, the actual permit may only be issued after completion of mandatory company office inspections and/or health tests for employees.

10. Submit all requirements, along with the Fire Safety Inspection Permit and Temporary Sanitary Permit, to the designated BP/BPLO office.

11. Release of Mayor’s Permit



January 2, 2021

 January is time for Business Permit renewal in the Philippines, and should be done between January 1st – 20th, 2021.  The law requires, every business establishment to annually renew its registration with the local government unit (LGU) that has jurisdiction over its place of business.


  • Renewal of Barangay Clearance – present the Original copy of 2020 Barangay and Official Receipt of the previous year
  • 2021 Mayor’s Permit / License issued / Billing Assessment
  • Official Receipts of payments – 1st to 4th quarters or annual payment of the year 2020
  • Declaration of Gross Sales / Receipts for the preceding year, number of employees, floor area (in sq. meters) of the office /factory or premises/compound occupied
  • Residence Certificate A and B for single proprietorship, C and C1 in case of Corporation or partnership for the current year (cedula)
  • Income Tax Returns and Financial Statements (FS) for the preceding  calendar year which were filed with the BIR during the current year
  • SSS Clearance
  • Public Liability Insurance
  • Affidavit of No Income / No Operation, if no operations/ no income
  • Authorization Letter authorizing the representative to process all the above.


Business tax is imposed upon the company’s gross sales or receipts.  Rates vary depending on the nature of the business under Section 143 of the Local Government Code of the Philippines.

Gross Sales or Receipts include the total amount of money or its equivalent representing the contract price, compensation or service fee, including the amount charged or materials supplied with the services and deposits or advance payments actually or constructively received  during the taxable quarter for the services performed or to be performed  for another person excluding  discounts if determinable at the time of sales, sales returns, excise tax, and value added taxes (Book II, Section 130 (n) Local Government Code).


Local Government Units typically impose a 25% surcharge on the unpaid amount plus 2% interest per month, on top of the unpaid amount, if filing is not accomplished by January 20th.
Failure to renew your business permit on time, may result in City Hall ordering the closure of your business.

If Gross Sales /Receipts declared in the Company’s 2020 Business Permits are lower than the Actual Gross Sales /Receipts per 2020 Audited Financial Statements the company will be subjected to a penalty of 25% surcharge and 2% interest per month for any computed Tax Deficiency/Delinquency noted during assessment.


Avoid the hassle of long lines and red tape, outsource your business permit renewal to Mamites Accounting and Bookkeeping Services.

Company incorporation in the Philippines starts with the submission of documents to the Securities and Exchange Commission (SEC), the government agency mandated to supervise the corporate sector in the country. It is compulsory for new enterprises to register with SEC first prior to other government agencies because the Certificate of Incorporation that SEC will issue for your business is a requisite of the certificates and permits that you need to secure when registering with other agencies.

You are required to transact with SEC for the company incorporation process. For the business registration process, you will be required to transact with five (5) or more government agencies – the specific number of which varies depending on the nature of your business and the need for additional licenses if you want to engage in a regulated industry.

The other government agencies you need to register your business with are as follows:

  • Bureau of Internal Revenue (BIR) for corporate taxation
  • Local Government Units (LGUs) of the location where you want to establish your business:
    • Barangay Hall
    • Mayor’s Office
    • Business Permit and Licensing Office (BPLO) of the Municipal/City Hall
  • If you want to employ individuals, you should register with the following agencies:
    • Social Security System (SSS)
    • Philippine Health Insurance Corporation (PhilHealth)
    • Home Development Mutual Fund (Pag-IBIG Fund)

Things You Need To Do Before Starting the Incorporation Process

Prepare your Business Name

TIP: Prepare 3-5 alternative company names in case your first choice is unavailable (meaning, it already exists in SEC’s database or has been reserved with the SEC by another company). 

Determine your Permanent Office Address

TIP: If you are pressed with time in having your business duly licensed with all appropriate government agencies or are looking for a cost-effective temporary location to set up your business before investing in a top-tier office address, you may avail the services of a virtual office space provider. You can transfer to a physical office later but you will need to amend your registration documents to update your company address. Amendment of documents will entail costs on document fees.

Steps of the Company Incorporation Process

Step 1: Reservation of Business Name with the Securities and Exchange Commission (SEC)  

-If you will operate a sole proprietorship, you should reserve the name of your business with the Department of Trade and Industry (DTI); if you will operate a cooperative, you should reserve your business name with the Cooperative Development Authority (CDA)

Step 2: Submission of Documents to SEC

-You will be required to submit the following:

  • Articles of Incorporation and By-Laws
  • Treasurer’s Affidavit (signed by the incorporators for notarization)

-After complete submission of requirements, you will be issued by the SEC with a Certificate of Incorporation, a document that legitimizes the existence of your company and enables you to legally engage in business as well as become entitled to certain corporate rights in the Philippines

Step 3: Registration with Local Government Units (LGUs) of the location where you want to establish your business

-You will be required to secure the following:

  • Barangay Clearance from the Barangay Hall
  • Mayor’s Permit form the Mayor’s Office
  • Business Permit from the Business Permit and Licensing Office (BPLO) of the Municipal/City Hall

Step 4: Registration with the Bureau of Internal Revenue (BIR) for corporate taxation

-Requisites for acquiring a BIR Certificate of Registration:

  • 0605 Form (for payment of Annual Registration Fee)
  • DST 2000 Form (for payment of subscription of shares for domestic corporations)
  • DST 2000 Form (for payment of lease for all types of company formation)
    • This requires a notarized copy of the lease contract of your office address

-Along with the BIR Certificate of Registration, you also need to secure the following:

  • Certificate of Registration of Books of Account
  • Cash Register Machine (CRM)Point of Sale (POS) Machine or Authority to Print Receipt/ Invoices (Manual Receipts)

Step 5: Registration with other Government Agencies (for employer registration if employing individuals)

  • Social Security System (SSS) for social security benefits of employees
  • Philippine Health Insurance Corporation (PhilHealth) for health insurance benefits of employees
  • Home Development Mutual Fund (Pag-IBIG Fund) for housing benefits of employees

Local and foreign investors can conduct business in the Philippines by registering any of the following business entities: sole proprietorship, partnership, corporation or cooperative. If you want to register a corporation, you can choose between two options: incorporating a new domestic company or obtaining a license for a foreign company to operate in the Philippines.

Each type of business entity has its own incorporation and registration process, paid-up capital requirements, tax obligations, ownership structure, and startup costs. Additionally, the list of government agencies you should coordinate with will vary depending on the type of business entity you want to register.

Types of Business Entities in the Philippines

Investment Vehicle: Corporation


  • Stock Corporation – a corporation with capital stock divided into shares and authorized to distribute to the holders of such shares, dividends or allotments the profits of the business based on equity of shares
    • Domestic Corporation (organized under Philippine laws)
      • 100% Filipino-owned
      • 60% Filipino-owned and 40% Foreign-owned
      • 40.01% to 100% Foreign-owned (subject to certain provisions under Foreign Investments Act)
    • Foreign Corporation (organized under the laws of the corporation’s country of origin)
      • Branch Office
      • Representative Office
      • Regional Area Headquarters (RHQ)
      • Regional Operating Headquarters (ROHQ)
  • Non-Stock Corporation – a corporation that neither generates profit nor issues shares of stock to its members, and could have any of the following purposes:
    • Charitable;
    • Religious;
    • Educational;
    • Cultural;
    • Civic service; and
    • Other similar purposes, such as chambers or combinations trade, industry or agriculture

Ownership Structure:

  • Domestic corporations are required to be formed by at least five (5) but not more than fifteen (15) incorporators who must have individual subscriptions of at least one (1) share in the company; incorporators are stockholders or members mentioned in the Articles of Incorporation as originally forming and composing the corporation and are signatories thereof
  • For a foreign corporation to be granted a License to Operate in the Philippines as a business entity, it is required to appoint one (1) resident agent who shall accept all summons or legal processes served, arising out of any business or transaction which occurred in the Philippines, to the corporation

Government Agencies Involved in the Registration Process:

  • Securities and Exchange Commission (SEC) (for the creation of juridical entity of the corporation)
  • Bureau of Internal Revenue (BIR) (for corporate taxation)
  • Local Government Units (LGUs) of the location where you want to establish your business
    • Barangay Hall
    • Mayor’s Office
    • Business Permit and Licensing Office (BPLO) of the Municipal/City Hall
  • If employing individuals, a corporation should register with the following agencies:
    • Social Security System (SSS)
    • Philippine Health Insurance Corporation (PhilHealth)
    • Home Development Mutual Fund (Pag-IBIG Fund)

*See table below for companies requiring endorsements from other government agencies

Investment Vehicle: Partnership


  • General Partnership – a business arrangement where two or more people, usually referred to as general partners, agree to share among themselves all assets, profits, and financial and legal liabilities of the business; the general partners can take part in the daily management of the partnership and each has unlimited liability for the actions of the partnership, including the actions of other partners
  • Limited Partnership – a type of partnership where the partners, usually referred to as limited partners, are only held liable to the extent of their investment in the partnership; unlike general partnerships, the limited partners have no management authority or input towards the operations of the company

Ownership Structure:

  • Can be formed by two (2) or more individuals who agree to do business together for profit

Government Agencies Involved in the Registration Process:

  • SEC or Department of Trade and Industry (DTI) (for the creation of juridical entity of the partnership; registration depends on the capital of the corporation, if the capital is PHP 3,000.00 or more, then it should be registered with the SEC; conversely, if the capital does not exceed the aforementioned amount, then it should be registered with the DTI)
  • BIR (for corporate taxation)
  • LGUs of the location where you want to establish the partnership
    • Barangay Hall
    • Mayor’s Office
    • Business Permit and Licensing Office (BPLO) of the Municipal/City Hall
  • If employing individuals, a partnership should register with the following agencies:
    • Social Security System (SSS)
    • Philippine Health Insurance Corporation (PhilHealth)
    • Home Development Mutual Fund (Pag-IBIG Fund)

*See table below for companies requiring endorsements from other government agencies

Investment Vehicle: Sole Proprietorship


  • Filipino-owned Sole Proprietorship
  • Foreign-owned Sole Proprietorship – contrary to common belief, foreign entities can set up sole proprietorships in the Philippines as long as they meet the minimum capital requirement of US$ 200,000.00 and their proposed business activities do not fall under the areas of investment listed in the Foreign Investment Negative List (FINL) as partially or wholly restricted to foreign entities

Ownership Structure:

  • Owned by a single individual who has full control and authority over the business, referred to as the sole proprietor and exclusively owns all assets and profits of the business; he or she is also personally liable for all the debts and losses that the business might incur

Government Agencies Involved in the Registration Process:

  • Bureau of Trade Regulation and Consumer Protection of the DTI (for reservation of business name and creation of juridical entity of the sole proprietorship)
  • BIR (for corporate taxation)
  • LGUs of the location where you want to establish the sole proprietorship
    • Barangay Hall
    • Mayor’s Office 

*See table below for companies requiring endorsements from other government agencies

Investment Vehicle: Cooperative


  • Credit Cooperative – promotes and undertakes savings and lending services to create funds and grant loans for productivity and financial assistance among its members
  • Consumer Cooperative – primary purpose is to procure and distribute commodities to both members and non-members
  • Service Cooperative – engages in service-oriented activities such as medical, dental care, hospitalization, transportation, insurance, housing, labor, electric light and power, communication, and other such activities
  • Producers Cooperative – undertakes joint production, for agricultural or industrial purposes
  • Cooperative Bank – organized for the primary purpose of providing a wide range of financial services to cooperatives and their members
  • Multi-Purpose Cooperative – combines two or more of the business activities listed above

Ownership Structure:

  • Unlike corporations and partnerships, cooperatives have collective, democratic ownership and are run by an electoral system where all members elect officers through a one-member-one-vote principle

Government Agency Involved in the Registration Process:

  • Cooperative Development Authority (CDA) (for the creation of juridical entity of the cooperative)

Regulated Business Sectors in the Philippines

Listed below are business sectors in the Philippines that require endorsement from specialized government agencies: 

Air TransportCivil Aeronautics Board
Banks, Pawnshops or Other Financial Intermediaries with Quasi-Banking FunctionsBangko Sentral ng Pilipinas
Charitable InstitutionsDepartment of Social Welfare and Development
Educational Institutions: (stock and non-stock) 
  • Elementary to High school
Department of Education
  • College and Tertiary Courses
Commission on Higher Education
  • Technical Vocational Courses
Technical Education Skills and Development Authority
Electric Power PlantsDepartment of Energy
Hospitals/Health Maintenance OrganizationsDepartment of Health
InsuranceInsurance Commission
Neighborhood AssociationsHousing and Land Use Regulatory Board
Professional AssociationsProfessional Regulation Commission
Radio, TV, and TelephoneNational Telecommunications Commission
Recruitment for Overseas EmploymentPhilippine Overseas Employment Administration
Security AgencyPhilippine National Police
Volunteer Fire BrigadeBureau of Fire Protection
Water Transport/Shipbuilding/Ship RepairMaritime Industry Authority

Business closure or retirement is an activity that any business owner do not want to happen. It can happen for various reasons. Most of the time, it’s financial like loss or low profits. But whatever the reason is, closing a business in the Philippines formally is a must if you want to ensure you have clean records.

Closing a business in the Philippines is a long and tedious process. The requirements and processes are different per type of company, per city, and per government agency.

Here is a table for your reference. Please note that these are aggregated among all cities. Some may add other items, but what we listed here are definitely required.

Requirements For Business Closure

                           SEC                          DTIBARANGAY     CITY HALL          BIR
  1. Director’s Certificate
  2. Articles of Incorporation
  3. Amended Articles of Incorporation (if any)
  4. Audited Financial Statements (AFS)
  5. Certification by President and Treasurer
  6. BIR Tax Clearance Certificate
  7. Publisher’s Affidavit of Publication
  8. Endorsement / Clearance from Other Departments / Government Agencies (if applicable)
  9. Notarized Secretary’s Certificate
  1. Articles of Partnership
  2. Affidavit of Dissolution
  3. BIR Tax Clearance
  1. Letter Request stating reason for termination
  2. Affidavit of cancellation of the registered BN, stating the reason/s for the cancellation and that the registered owner has no outstanding financial obligation at the time of closure of establishment
  3. Original copy of the BN certificate and the duplicate copy of the application form (affidavit of loss if either the business name certificate and/or the duplicate copy of the application form was lost)
  1. Barangay Clearance, latest (original and copy)
  2. Letter of Request for Retirement
  1. Board Resolution
  2. Articles of Incorporation
  3. Amended articles, if any
  4. Letter request for retirement
  5. Audited Financial Statement & ITR for the three (3) preceding years of the retirement date.
  6. Original Mayor’s Permit and Official Receipts
  7. Monthly and/or Quarterly BIR VAT Returns / ITR for the current year.
  8. Certification of Gross Sales for the current year duly certified by an accountant.
  9. Authorization letter for representatives / liaisons together with ID of both signatory & representative.
  10. Cedula / CTC for three (3) years of the retirement date.
  11. If no operation, submit Affidavit of no operation.
  12. Certification from Barangay stating actual closure of business.
  1. Letter Request stating reason for termination
  2. Original BIR Certificate of Registration
  3. Books of Account / Ask for Receipts Poster
  4. Inventory List of Unused Receipts / Invoices
  5. Unused Receipts / Invoices for Cancellation
  6. Board Resolution / Notice of Dissolution
  7. Latest ITR with Financial Status (for 3 years)
  8. Interim ITR with Financial Statement
  9. Verification Slip (CMS)

Again, it’s worth noting that this only lists the basic requirements. Depending on the circumstances, like foreign-owned corporations, or if you have a PEZA registration, or those less than 3 years of operations, have different requirements.

Setting Expectations and Some Reminders

Before we go through the actual process, I just want to set expectations and list a few reminders. This is important. I cannot stress this enough.

Reminder 1: Behave as if Operational

If you are registered, you can’t simply stop operating. No matter the circumstance — bankruptcy, death, etc. If you stop complying with the government’s requirements (monthly tax returns, SEC annual filing, etc), you will just incur penalties.

I repeat.

In the eyes of the law (government), you are still operating. If you don’t complete the process of business closure and retirement, that means you are still operational. And if you are still operational, and not complying with these things, once the government finds out, you will incur penalties.

Ignorance of the law does not excuse oneself from the law.

Reminder 2Timeline

The entire process can take more than a year. Yup. Depends on the circumstance of your retirement, i.e. did you miss any BIR filings or not? The more “open cases” you have, the longer this will take.

The timeline also differs per business type. A corporation is harder to close than a sole proprietorship. A company with 5 years of operations usually also takes longer than one with less than a year.


Now that we went through the list of requirements and setting some expectations, the next step is the actual processing of the closure of the business.

Process of Business Closure

The actual process of closing a business is often called retiring a business.

The normal process starts out with the LGU, then the BIR, then the SEC or DTI.

Closing a Business at the Barangay Level

Closing your business at the barangay is the first thing you do. It’s also the easiest.

Just complete the requirements listed above, go to the barangay hall where your business is registered, and submit the requirements.

Based on our experience, there is no form to be filled-up. And if they do, you can readily do that since it should be available at the barangay. Once you’re there, they’ll receive the files.

In some cases, you can get the Certificate of Closure the same day. Otherwise, you come back the next day.

When the certificate is ready, you have to pay the fees first prior to it being released.

Closing a Business at City Hall

Once you get the certificate of closure at the barangay, you can head straight to the city hall, if you have all the requirements.

Here, you will definitely need a form signed by the owner. It’s readily available at the city hall of your registered business. Once the form is submitted, you need to have this notarized.

You submit the notarized form with the other requirements. They’ll assess this and let you know if you need to submit something else.

You’ll then be given a stub with some contact information. They’ll often put a date on when to follow-up again. Normally, that’s at least a month’s time from now.

So, once the assessment is complete, you followed-up and the city hall said the certificate of closure is ready, you head back to the city hall and pay the corresponding fees. They’ll release your certificate of closure.

Again, it’s worth noting the first reminder I gave above: to behave as if operational. If your documents were “stuck” longer than expected and carried over the new year, that means you will still need to renew your permits. That also means that all this time, even if you are no longer operational, you continue to file zero tax returns.

Closing a Business at BIR

Now that the Local Government Unit (LGU) is complete, i.e. you already have the certificate of closure at the barangay and the city hall, it’s now time to tackle the retirement at the BIR level.

The process is mostly the same: gather the requirements, fill out a BIR form 1905, and submit them to your RDO.

You’ll be asked to head over to the TIN Issuance group. That’s where they’ll receive the receipts, etc. If they don’t have any other questions, they’ll give you a stamped copy of the BIR form 1905 that will serve as proof that you already cancelled your TIN. That means only at that point do you stop filing tax returns.

Afterwards, you submit the rest of the requirements with the examiner of the RDO. Again, from our experience, they’ll simply glance over to see if you’re missing something. If not, they will tell you to followup with them after 1-2 weeks.

What happens here is that they check within the RDO if you have open cases (or missed returns, etc.) Usually they find something even if you complied with everything.

They’ll tell you, for example, that you missed the 2551M of February. All you need to do is print out the form you filed, together with the confirmation email from the eBIR Forms. If you paid something in the bank, include a copy of the bank payment slip as well.

Once you have all those, just submit everything then wait again.

Afterwards, they’ll turn this over to the National level. Here, they check if you have other open cases in other RDOs. The same thing applies. If they find something, just submit then comply and wait.

If in the event that you did miss filing some returns, file the form online, print the confirmation slip, then pay the penalties at the bank. Photocopy the proof of payment, then submit these to the BIR.

Once the national office give their go signal, they’ll return the documents to the RDO. From there, they’ll release a Certificate of No Liability.

Closing a Business at SEC / DTI

Finally, we’re at the last step. Take all requirements and submit everything to the SEC and DTI.

Since most requirements were already given during the previous steps, most likely, the SEC and the DTI won’t ask for something new. So this will be faster.

Again, this will be a waiting game. It can take 2-4 weeks before you receive the certificate.

We are legitimate accounting and bookkeeping firm as evidence of our business registration with DTI, LGU, and BIR.

Your success is our business!!
We are a registered Accounting and Bookkeeping firm (Cebu-based) offering services such as full scope bookkeeping on retainer basis, Trial Balance, Financial Statements Preparations, BIR Tax Returns Preparation, Accounting & Payroll Management, Interpreting Results, Primary Business Registrations (DTI, SEC, BIR, Mayor’s Permit) Secondary Business Registrations (SSS, PHIC, HDMF), Internal/External Audit, and Revenue & Expenses Analysis.

We handled and managed our clients day-to-day business records and full scope bookkeeping for preparation of financial statements, statutory, and tax compliance.