Summary:
- Business compliance in the Philippines involves SEC, BIR, and LGU filings, plus government contributions.
- Missing deadlines can lead to penalties or suspension.
- Smartual Philippines offers full compliance support—from registration to annual filings and payroll.
Introduction
Running a business in the Philippines is more than just selling products or offering services. Every business owner must also comply with a series of legal, tax, and regulatory requirements from multiple agencies. Unfortunately, many startups and SMEs fall behind on compliance—not due to negligence but because of the system’s complexity.
To help you stay compliant and confident, Smartual Philippines created this ultimate checklist covering everything your business must file, renew, and report. Whether you’re a new entrepreneur, SME owner, or foreign investor, this guide ensures you’ll never miss a single compliance requirement again.
1. Business Registration and Legal Compliance
Every business must start with proper registration. Depending on your structure, you will register with:
- DTI – For sole proprietorships
- SEC – For corporations and partnerships
- CDA – For cooperatives
After registration, you’ll receive a Certificate of Registration, which serves as your legal foundation for operations.
Key Smartual Tip:
Always keep digital and printed copies of your registration certificates. They’re required when opening bank accounts or applying for permits.
2. Local Government Unit (LGU) Business Permits
Every business operating in the Philippines must secure a Barangay Clearance and a Mayor’s Permit (or Business Permit) from the city or municipality where it operates.
Annual Renewal Deadlines:
- Barangay Clearance – Renew every January
- Business Permit – Renew on or before January 20
Required Documents:
- DTI/SEC/CDA registration
- BIR Certificate of Registration
- Lease Contract or Proof of Address
- Location Clearance or Zoning Certificate
Failure to renew can result in surcharges of up to 25% and possible business closure.
3. BIR Registration and Compliance
Once your business is registered with the BIR, you’ll receive:
- BIR Certificate of Registration (Form 2303)
- Authority to Print (ATP) for invoices and receipts
- Books of Accounts (manual, loose-leaf, or computerized)
Regular BIR Filings Include:
- Monthly/Quarterly VAT or Percentage Tax
- Withholding Tax on Compensation and Expanded Tax
- Quarterly and Annual Income Tax
- Alphalist and Annual Information Returns
Annual BIR Deadlines:
- Annual Registration Fee (Form 0605) – Due every January 31
- Annual Income Tax Return (ITR) – Due every April 15
- Final Withholding Taxes (1604C, 1604E) – Due every January 31
Smartual Compliance Support:
We maintain digital books, prepare tax returns, and ensure on-time BIR filings through our cloud-based system.
4. Government Contributions: SSS, PhilHealth, and Pag-IBIG
All registered employers must register and remit contributions for employees to:
- Social Security System (SSS)
- PhilHealth
- Pag-IBIG Fund (HDMF)
Monthly Filing Schedule:
- SSS – Monthly contribution (before the 30th)
- PhilHealth – 11th to 15th of each month
- Pag-IBIG – 10th to 14th of each month
Smartual Payroll Service:
We automate monthly contributions, generate payslips, and upload compliance reports on behalf of clients.
5. Employment and Labor Compliance
Employers in the Philippines must follow Department of Labor and Employment (DOLE) standards covering:
- Employment contracts
- 13th month pay (due by December 24)
- Minimum wage compliance
- Overtime, holiday pay, and leave benefits
- Termination procedures
Mandatory DOLE Reports:
- Establishment Report (Rule 1020) upon hiring first employee
- Annual Report on Wages (Form DOLE 13)
Smartual ensures all employee contracts and payroll comply with labor laws.
6. SEC Filings for Corporations
Corporations must file the following annually with the Securities and Exchange Commission (SEC):
- General Information Sheet (GIS) – Filed within 30 days from the annual stockholders’ meeting
- Audited Financial Statements (AFS) – Filed within 120 days from fiscal year-end
- Notices of Changes – Directors, officers, principal office, or capitalization
Failure to submit these on time results in daily fines and potential SEC suspension.
Smartual Corporate Secretary Services Include:
- Preparation and filing of GIS and AFS
- Maintenance of Stock and Transfer Book
- Drafting of board and shareholder resolutions
7. Data Privacy and Cyber Compliance
Under the Data Privacy Act (DPA), companies handling personal data must:
- Register with the National Privacy Commission (NPC)
- Appoint a Data Protection Officer (DPO)
- Implement proper data protection measures
This applies to businesses in e-commerce, finance, outsourcing, and healthcare.
Smartual Assistance:
We provide DPO registration, compliance audit templates, and privacy policy drafting.
8. Annual Compliance Calendar (Sample)
| Month | Filing / Renewal | Agency |
|---|---|---|
| January | BIR Form 0605 (ARF), Business Permit Renewal | BIR, LGU |
| March | Annual Financial Statements preparation | SEC / BIR |
| April | Annual Income Tax Return | BIR |
| May | General Information Sheet | SEC |
| July | 2nd Quarterly Income Tax | BIR |
| October | 3rd Quarterly Income Tax | BIR |
| December | 13th Month Pay, Year-end Payroll | DOLE / BIR |
Smartual Compliance Tracker
All Smartual clients receive an online compliance dashboard showing all due dates and submitted reports.
9. Penalties for Non-Compliance
| Agency | Violation | Penalty |
| SEC | Late GIS/AFS filing | PHP 1,000–20,000 + daily fines |
| BIR | Late filing of returns | 25% surcharge + 20% interest |
| LGU | Late business permit renewal | 25% surcharge + closure |
| DOLE | Non-compliance with labor standards | Up to PHP 100,000 per employee |
Smartual proactively monitors deadlines and submits filings early to avoid penalties.
10. Smartual’s Full Compliance Package
Smartual Philippines offers an end-to-end compliance solution tailored to startups and SMEs:
- Company Formation (SEC, BIR, LGU)
- Bookkeeping and Tax Compliance
- Payroll and Government Remittances
- Corporate Secretary and SEC Filing
- Annual Renewal Assistance
Everything is managed online with monthly progress reports and audit-ready documentation.
FAQs
Q: How often should I renew my business permit?
Annually, every January. Penalties apply for late renewal.
Q: What is the difference between AFS and GIS?
The AFS reflects financial performance, while the GIS details corporate structure and officers.
Q: Can Smartual handle all compliance remotely?
Yes. Smartual offers 100% remote processing through SEC’s eSECURE, BIR eFPS, and digital submission systems.
Q: What happens if my business misses several filings?
We can backtrack and regularize your compliance to restore good standing.
Conclusion: Stay Compliant, Stay Confident
Compliance isn’t just a legal duty—it’s a business advantage. Staying compliant builds trust with clients, investors, and regulators, while protecting you from costly disruptions.
With Smartual Philippines as your compliance partner, you get peace of mind knowing every requirement—from SEC filings to payroll deductions—is handled accurately and on time.
👉 Schedule your free compliance consultation today and ensure your business stays in good standing year after year.
