Ready for a new business direction? Let our expert and experienced team assist you with the Change of Line of Business and make the necessary compliances.
We’ll help you turn your business vision into reality as we handle the legal and technical complexities while you boldly step into the next exciting chapter.
Our Change of Line of Business (LOB) Service
With our business compliance and post-registration services, we process various amendments to our clients’ incorporation details with the Securities and Exchange Commission (SEC) and other government regulatory bodies, e.g., BIR, BPLO, and statutory agencies. Our change of line of business service goes through the following stages:
Securities and Exchange Commission
With our in-house team of corporate legal experts, we can help you amend and file the Articles of Incorporation (AOI) and General Information Sheet (GIS) with the SEC. We can also assist you with the additional compliance requirements applicable to your company’s new line of business.
Barangay and City/Municipality (BPLO)
Once the approved documents are released by SEC, we can already proceed with the process of retiring and registering your lines of business with the barangay and city or municipal government (BPLO). We guarantee an organized preparation, immediate filing of documentary requirements, and completion within the target timelines.
Bureau of Internal Revenue (BIR)
Unlike the change of company name or address, changing the line of business does not require printing of new receipts and invoices, rather the replacement of the BIR Certificate of Registration (COR) or BIR Form 2303. Depending on the operational efficiency of your company’s respective RDO, this may be issued within weeks or months.
Statutory Agencies (SSS, PhilHealth, Pag-IBIG)
Although not as critical as with the BIR and BPLO, still filing the necessary amendment with the statutory agencies, i.e., SSS, PhilHealth, and Pag-IBIG Fund, is mandatory. We can file the applications simultaneously across the respective servicing branches of these agencies, and secure the documents in a matter of weeks.
Change of Line of Business (LOB) FAQs
What Is a Line of Business (LOB)?
A line of business (LOB) is a sector of the economy or industry that a company or business services. It defines the company’s product or service as placed in a more specific market segment. For instance, a company that sells car insurance would fall under the “insurance” line of business, while one that manufactures medical devices would be classified as “health care.”
How Is a Line of Business Used in Business Management?
Most large enterprises use LOB as a synonym for corporate division to decide how different departments meet customers’ needs. If a company, for example, is engaged in both manufacturing and sales of certain products, then manufacturing and sales are two important divisions of the business operations.
What Document Sets the Line of Business?
The primary and secondary purposes, as indicated in the approved Articles of Incorporation (AOI), set the line of business and other activities that the corporation can legally engage in. As a general rule, the primary purpose of the corporation determines its classification.
What Lines of Business Are Not Allowed to Be at the Same Time?
The business activities of overseas recruitment and travel agencies cannot be in a single entity pursuant to the implementing rules and regulations of the Labor Code of the Philippines. Additionally, a corporation, both as a sole or religious society and a school, is also not allowed, as the school should be incorporated distinctly from a religious corporation.
Why Should Lines of Business Be Properly Registered and Retired?
Different laws, regulations, and tax rates apply to different lines of business. When changing the line of business, the old line must be properly retired by filing applications with the concerned government regulatory bodies and LGUs for discontinuance of compliance requirements and tax collections.
What Is the Process for Changing the Line of Business?
Like other amendments to the incorporation details, the process starts with the SEC filing and continues to the LGUs and other government regulatory bodies, which include the barangay, the city or municipal government (BPLO), BIR, and statutory agencies. Updated permits, licenses, and registration certificates that reflect the new line or business are issued after the successful amendments.
How Long Does It Take to Process?
The change, retirement, and addition of lines of business filed with all the concerned government regulatory bodies and LGUs may take months, which also depends on factors, such as the complexity of transactions, compliance requirements, and efficiency in the agencies.
Ready to Avail Our Change of Line of Business Service?
Arrange an initial consultation with our business compliance and post registration specialists today! Call us at (02) 8478-5826 (landline) or 0917 892 2337 (mobile) or send an email to info@filepino.com.
