Zamboanga City - Retire or Close Business

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Procedure

This procedure explains various ways to Retire or Close Business in Zamboanga City.

Apply In-Person

Here's how you can retire or officially close your business. Note: You must understand that you will be filing applications at several government agencies (Department of Trade and Industry, Bureau of Internal Revenue, Securities and Exchange Commission if applicable, Department of Labor and Employment, etc.) and to your local government unit (barangay / city / municipality).

Department of Trade and Industry (DTI)

1. Prepare all the documents you will need to submit to cancel your business name registration with DTI. You are required to submit a written request. Make sure to mention in your request your name, the name of your business, address, when the business was established, reason(s) why you are cancelling your registration, and date your business stopped/will stop operating.
2. Submit all the required documents to the nearest DTI office.
3. The DTI officer will review your documents and process your request.
4. Once approved, you will be issued a Certificate of Cancellation.

Bureau of Internal Revenue (BIR)

1. Download the Application for Closure of Business/Cancellation of Tax Identification Number (TIN) BIR Tax Form 1905. A link is provided under "Documents to Use" section which you can click to download the form.
2. Prepare the rest of the required documents (see list below). Do ask the help of your accountant (if you one) in preparing the documents needed and completing BIR Form 1905.
3. Submit all the required documents to your assigned Revenue District Office (RDO).
4. The RDO officer will review your documents. BIR will check if you have any unpaid taxes to the Bureau. In case you have, you will be asked to settle it first before they approve your application.
5. The Officer in Charge will let you know when can you come back to the office to collect your Certificate of No Liability.

Local Government Units (LGUs)

1. Start your application by going to your local barangay and submit a letter informing officials that you are retiring your business. Mention in your request your name, the name of your business, address, when the business was established, reason(s) why you are cancelling your registration, and date your business stopped/will stop operating. Once your request is processed and approved you will be issued a Barangay Certificate.
2. Prepare the rest of the required documents (see list below). Do ask the help of your accountant (if you one) in preparing the documents needed specially the VAT Returns or Percentage Tax Returns, and books of accounts.
3. You will need to formally file an application that you are retiring or closing your business in the city or municipality where your business is registered. Procedures on closing a business may vary between LGUs. In some cities, you will be asked to fill out the Application for Business Retirement Form. Forms can be obtained at your LGU's Business License Unit or City Treasury Department. Some LGUs also made the form available for download online through their official website. You may use the link provided under "Office Locations & Contacts" to search for your LGU's contact information and official website.
4. Fill out the application form or write a letter of request to retire or close your business (whichever is required by your LGU).
5. File your application for business retirement / closure at the Business License Unit or City Treasury Department – Examination Division.
6. Submit the completed application form together with all other required documents.
7. The clerk receiving your documents will check if the requirements you have submitted are complete and correct. The clerk will notify you of the date when you can come back to the Business License Unit or City Treasury Department to follow up your application.
8. It will usually takes about 5-7 days, before you can claim your Assessment forms at the Treasurer’s Office.
9. Pay your final billing and certification at the Treasurer’s Office cashier.
10. After payment, the Business License Unit or City Treasury Department clerk will let you know when your Business Retirement Certification will be ready for pick up.

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Required Documents

Department of Trade and Industry

Voluntary Cancellation (by the Sole Proprietor)

• Letter request signed by the owner
• Affidavit of cancellation of the registered Business Name (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
• 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)

Voluntary Cancellation (by the Corporation/Partners)

If dissolved at the Securities and Exchange Commission (SEC):

• Letter request signed by the authorized signatory (Board Resolution for the authorized signatory)
• Certified photocopy of the SEC certificates of dissolution of the corporation/partnership
• Original copy of the business name certificate of registration 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)

If you are only cancelling the BN Registration:

• Corporate Name:
  • Letter request signed by the authorized signatory (Board Resolution for the authorized signatory)
  • Board resolution/partnership agreement for the cancellation of the registered business name stating that the Corporation/Partnership is retiring from business; surrendering the business name certificate for cancellation and that at the time of closure of establishment the business has no outstanding financial obligation, or a certified copy of the Certificate of Dissolution (if applicable)
  • Original copy of the business name 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)
• Adopted Name:
  • Letter request signed by the authorized signatory (Board Resolution for the authorized signatory)
  • Board Resolution/Partnership agreement for the cancellation of the registered business name, stating the reason/s for the cancellation that the corporation/partnership has no outstanding financial obligation at the time of closure in connection with the operation of the said business and if there were creditors copy of notice to them
  • Original copy of the business name 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)

Local Government Units (LGUs)

1. Formal letter of intent to close business addressed to the City Treasurer’s Office, you can obtain a copy from the Business Permits and Licensing Department of your LGU.
2. Original copies of Tax Bill and Official Receipts worth 3 years
3. Original copy of the latest Business Permit
   • If Single Proprietorship, original Affidavit of Closure with exact date of closure.
   • If Partnership, original partnership dissolution with exact effectivity date of closure signed by all partners.
   • If Corporation, original Secretary’s Certificate or Board Resolution on closure or transfer of business with exact date of closure.
4. Valid ID (present original and submit photocopy)
   • If Single Proprietorship, valid ID of the owner
   • If Partnership, valid IDs of all partners
   • If Corporation, valid ID of the President
5. Barangay Certificate with exact effectivity date of closure. The Barangay Clearance and Certificate of Closure can be requested from the Barangay by submitting Letter of Request for Retirement (possibly clickable leading to a sample template of the letter).
6. BIR Certificate of Registration (present original and submit photocopy)
7. Certified Breakdown of Sales, if there are two (2) or more line of businesses / branches and if Audited Financial Statement (AFS) is consolidated
8. Proof of business tax payment / tax bill / permit issued by the other LGU where other operations are situated (present original and submit photocopy)
9. Latest ITR with AFS on or before closure from the last payment of business operation (present original and submit photocopy)
10. VAT Returns or Percentage Tax Returns (present original and submit photocopy)
11. Book of Accounts (to be presented upon evaluation/ actual inspection and examination)

Note: The requirements listed above are the ones mentioned on Quezon City's government website. You may be asked to submit additional documents by your LGU. To know more about which documents you should submit please check your LGU's website (you can use the link provided under "Office Locations & Contacts" section).

Bureau of Internal Revenue (BIR)

1. Completed Application for Closure of Business/Cancellation of Tax Identification Number (TIN) BIR Tax Form 1905
2. Letter of request stating reason for termination of business
3. Original Certificate of Registration
4. Books of Accounts
5. List of ending inventory of goods, supplies, including capital good;
6. Inventory of unused sales invoices/official receipts (SI/OR);
7. Unused sales invoices/official receipts and all other unutilized accounting forms (e.g., vouchers, debit/credit memos, delivery receipts, purchase orders, etc.) including business notices and permits as well as Certificate of Registration shall be subject for destruction to be witnessed by BIR personnel and officials.
8. Board Resolution/Notice of Dissolution (if Corporation/Partnership)

Additional Requirements in Case of Death of Individual Taxpayer:

• Death Certificate
• Payment of Estate Tax, if any

Office Locations & Contacts

DEPARTMENT OF TRADE & INDUSTRY (DTI)

Trade & Industry Building
361 Sen. Gil J. Puyat Ave.,
1200 Makati City, Philippines

Trunk Line: (632) 7791.3100 | (632) 7751.0384

For inquiries:
Monday-Sunday: 8:00 a.m. – 5:00 pm.
(except holidays)
Telephone: 1-DTI (384)
Email: [email protected]
Mobile: 0917.834.3330

DTI Nationwide and Overseas Offices

Bureau of Internal Revenue
BIR National Office Bldg.,
BIR Road, Diliman,
Quezon City, Philippines

Trunkline: 8981-7000 ; 89297676

Customer Assistance Division Locals: 3018 ; 3016 ; 3022 ; 3033

Public Information and Education Division Direct Lines for Tax Queries: 8981-7250; 8981-7251; 8981-7252

Taxpayers may directly contact the Customer Assistance Division (CAD),
formerly BIR Contact Center, for their tax queries and concerns using the following new numbers:
8981-7030; 8981-7003; 8981-7040; 8981-7020; 8981-7046; 8981-7419; 8981-7452; 8981-7478; 8981-7479

Taxpayers may also e-mail their tax queries and concerns at [email protected].

BIR Directory

Local Government Units (LGUs)
Click the link below to search for your LGU's contact details.
Type in the name of your city or municipality.
Contact information and links to your local government's website will appear if it is available.

SEARCH: Local Government Units - Directory

Eligibility

You may file an application to retire or close a business as long as you do not have any unpaid taxes, fees, and penalties to your local government unit and concerned government agencies.

Fees

Explain the fees structure which is required for obtaining the certificate/document.

Validity

Explain the time until which the certificate/document is valid.
e.g. Birth Certificate Valid Forever

Documents to Use

Application for Closure of Business/Cancellation of Tax Identification Number (TIN) BIR Tax Form 1905

Sample Documents

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Processing Time

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Related Videos

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Instructions

Officially retiring or closing your business would require you to formally file an application at several government agencies (Department of Trade and Industry, Bureau of Internal Revenue, Securities and Exchange Commission if applicable, Department of Labor and Employment, etc.) and to your local government unit (barangay / city / municipality).

Required Information

• Taxpayer Identification Number (TIN)
• RDO Code
• Contact number
• Registered name
• Reason why you are cancelling your registration
• Books of accounts details

Need for the Document

• Department of Trade and Industry: You need to apply for the procedure so that DTI can properly cancel your registered business name (BN) and be issued a Certificate of Cancellation.
• Bureau of Internal Revenue (BIR): Obtain a Certificate of No Liability which means your business has no outstanding tax payable to the BIR.
• Local Government Units (LGUs): Be issued a Business Retirement Certification a document that states that your business is officially closed.

Information which might help

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Other uses of the Document/Certificate

Stopping operation does not automatically terminates a business registration. As far as the DTI, BIR, SEC and the Business Permit and Licensing Office of your local city government is concerned your business is still in operation and your business license/permit valid. A license is required to be renewed annually, that's the reason why business owners must officially retire a business in order to avoid any penalties. In BIR's case, it is very important that you properly inform them that you have retired your business and ceased all operation to avoid any future tax liabilities and fines.

External Links

• Department of Trade and Industry (DTI)
• Quezon City Local Government

Others

More information which might help people in Zamboanga City can be listed here.