Closing a business registration with BIR, Japan's Bright Stars of Fukushima

Practicing reading with Amazon Kindle

We opened a new business with virtual office at Eastwood, Libis, QC. The previous one I opened is being closed because the place has been revamped by the lessor, a government agency - Quedancor.

I asked a friend who's into business registration processing to help me with the closing. I am glued to the house with the kids and I needed someone to do this for me. Thankfully, after more than a year already, I am still filing 'No Operation' at BIR because the friend who's supposed to help me has become very busy to the point that she doesn't want to talk to me?! Only God can help me now - as always.


Step 1 - CMS Division
So one free day, I got my kids to visit the BIR office to process the papers. I was asked to go to the CMS division of my BIR RDO to check for open cases under my TIN. System yielded eight (8) open cases. I have to find those returns or else I would have to pay P1,000 for each missing BIR form. I am sure I have filed religiously. However, two of the documents are with the friend-now-unfriend so I opted to pay instead. Luckily, instead of paying for P1,000 for each form, I was advised by another BIR employee to just accomplish the same form and have a late filing which would cost me only P200/form.


Step 2 - Late Filing
So I filled up a set (3 copies) of the forms I need. It was one 1601E and a 2551M. Then, I had the Officer of the day compute for it, and sign it. I was then told to have my late filling forms stamped with the chief assessor so I can pay for it in the bank.


Step 3 - Pay at the Bank
I went to BDO because I know they accept BIR payments. However, the branch I went to only process BIR forms until 12 noon. The cut-off is way past, when I went there. So I paid at the BIR office instead.


Step 4 - Verification
I was then told to bring my papers to the Verification Division. The lady there checked my papers and compared them with their system. Afterwards, she asked me to secure a Verification Slip which is actually a checklist of several offices of BIR that I had to ask signatures for - much like a school clearance form. The document says I need to have officers from the Registration, Document Processing, Collection and Assessment Units sign on my form that I am clear.


Requirements for Closure of Business
However, I was also given a small slip of paper which lists the documents I must present, in order to close my business, in triplicate copies, except for the originals, of course:

1. Letter of Request for Cessation of Registration
2. BIR Form 1905
3. Original Certificate of Registration
4. Inventory List of unused receipts/invoice
5. Physical copy of unused receipts/invoices
6. Income tax returns for the last three years
7. Proof of registered Book of Accounts
8. Proof of payment of Annual Registration Fees
9. Verification Slip - as I discussed above

Honestly, I pray that our BIR and local government may learn from how Singapore and other Asian countries have made doing business easier. Not that I do not want to comply, but I am sure there are smarter ways of doing things.

God bless the Philippines, indeed.

Japan: A Land of Honorable and Compassionate People
The Japanese people has gone a long way from the bayonet killing soldiers of World War II. They have redeemed themselves with heroic stories from the Fukushima tsunami of senior citizens volunteering to clean up the nuclear contamination, and of course, the nine-year old boy who selflessly gave the food offered to him to be distributed to all.

Let's become like these loving and selfless people.