Business licences: the requirements every one of them asks for

It is Chapter 4.1 of Joint Regulation No. 9473, the general provisions of the licences and certifications volume. Its purpose, the text says, is to establish the rules governing, before OGPe, hierarchy I-III autonomous municipalities, Authorised Professionals and Authorised Inspectors, the administrative procedures on final determinations for licences and certifications and any filing needed for or bearing in any way on the operation of a business in Puerto Rico, in order to improve the permit process and promote investment.

It applies to anyone opening or operating a business needing one of the regulation’s licences or certifications. Rule 4.1.4’s requirements are demanded for all of them with two express exceptions: the Sanitary Licence application and the Fire Prevention Certificate application. In addition, no one may engage in any occupation or transaction subject to licence fees unless they obtain and keep the corresponding licence current.

• Applying for the necessary licences and certifications when applying for or renewing the Permiso Único, through the SUI.Verified against the official source
• Displaying the licence in a place visible to the general public at the fixed or itinerant site where the trafficker sells the article it was issued for.Verified against the official source
• Renewing licences and certifications when the Permiso Único is renewed: if renewal is not sought, they lapse.Verified against the official source
• Paying each licence’s fees separately for each article traded and for each premises, shop, business, commercial unit or establishment, even where they are in the same building, shopping centre, plaza or mall.Verified against the official source

• Criminal Record Certificate issued by the Puerto Rico Police, current at the time of filing.
• Recent certificate of no child-support debt issued by ASUME, or an approved payment plan in force at the time of filing.
• CRIM certification of no debt for personal property, or compliance with a CRIM-approved payment plan.
• Certification of income tax returns filed for the five (5) years before the application.
• Certification issued by the Treasury Department of IVU returns filed, and a debt certification issued by Treasury.
• Corporations or partnerships: certification of the president, managing partner or equivalent; and where that person does not reside in Puerto Rico, the information is satisfied by the authorised representative in Puerto Rico.
• Certificate of incorporation issued by the Department of State, for corporations, together with the good-standing certification.
• Evidence of the employer identification or social security number, as applicable.
• Certification of current registration in the Merchants Registry.
• Copy of the municipal patente or evidence of payment, for renewals; for a first application, an annual sales projection in dollars.

1. 1

   Step 1: The Permiso Único is the umbrella

   The regulation says it in one line: the Permiso Único integrates all the licences and certifications needed to open and operate the business. OGPe and hierarchy I-III autonomous municipalities are the entities charged with evaluating and issuing the certifications and licences needed to open and operate the business or activity, and Authorised Professionals may also issue them as part of the Permiso Único, subject to Chapter 2.3’s limitations. There is a sequencing detail that surprises people: these licences and certifications may be issued inside the Permiso Único before the required inspections take place, and the establishment’s inspection is carried out after the Fire Prevention Certification is issued.

2. 2

   Step 2: The twenty-one that go through the SUI

   The regulation lists the licences and certifications filed and evaluated exclusively by OGPe, hierarchy I-III autonomous municipalities and Authorised Professionals through the SUI. They are: the Fire Prevention Certificate; the Sanitary Licence; retail alcoholic beverage traffickers, including Categories A, B and C; limited-time retail alcoholic beverage traffickers; limited-time retail cigarette and alcoholic beverage traffickers; wholesale wine traffickers; beer; alcoholic beverages; wholesale alcoholic beverage, wine or beer traffickers from a motor vehicle; beer manufacturers’ licence; wine manufacturers’ licence; wholesale cigarette trafficker at a fixed site; wholesale cigarette trafficker from a motor vehicle; retail cigarette traffickers at a fixed site and per vending machine; wholesale gasoline licence; retail gasoline licence; motor vehicle and trailer dealer licence; limited-time motor vehicle, parts and accessories dealer licence; vehicle parts and accessories wholesale and retail, including Classes A, B and C; official vehicle inspection station licence; and official inspection station authorised to collect renewal fees and the premium.

3. 3

   Step 3: The eleven documents every one of them asks for

   When applying for a Permiso Único or its renewal, the necessary licences and certifications are applied for, and the application must be completed through the SUI accompanied by the general requirements — except for the Sanitary Licence and the Fire Prevention Certificate. They are: a criminal record certificate from the Puerto Rico Police, current at filing; a recent ASUME certificate of no child-support debt or an approved payment plan in force; a CRIM certification of no debt for personal property or compliance with an approved payment plan; certification of income tax returns filed for the previous five years; Treasury certification of IVU returns filed; a Treasury debt certification; for corporations or partnerships, the president’s or managing partner’s certification — and if they do not reside in Puerto Rico, that of the authorised representative here; a certificate of incorporation from the Department of State with a good-standing certification; evidence of the employer or social security number; certification of current registration in the Merchants Registry; and a copy of the municipal patente or evidence of payment for renewals, or an annual sales projection in dollars for a first application.

4. 4

   Step 4: The licence does not move

   It is a short sentence with big consequences: the licences established in this regulation may not be moved to another premises or building. If you move premises, the licence does not travel with you. And in the same section: any delay in renewing and paying a licence’s fees is subject to fines and penalties from the government entities concerned, as applicable.

5. 5

   Step 5: Validity: the same as the Permiso Único’s

   Licences and certifications have the same term of validity as the Permiso Único, and must be renewed when the Permiso Único is renewed, meeting the volume’s requirements and any additional requirement set for each licence. And if renewal is not sought, the licences and certifications within the Permiso Único lapse. There are no separate renewals: the calendar is the Permiso Único’s.

6. 6

   Step 6: The fees: per article and per premises

   Anyone wanting one of these licences, wholesale or retail, at a fixed site, obtains a licence for that activity and pays each licence’s fees as set by Administrative Order issued by OGPe. That is why we publish no figures: the chapter refers the amount to that Administrative Order and does not reproduce it. What it does fix is how they multiply: licence fees apply separately for each article traded, and for each premises, shop, business, commercial unit or establishment kept, even where they are in the same building, shopping centre, plaza or mall. And no one may engage in any occupation or transaction subject to licence fees unless they obtain and keep the corresponding licence current.

7. 7

   Step 7: Reclassification by sales volume

   The classification, reclassification and costs of eleven licences — retail alcoholic beverages with Categories A, B and C, wholesale wine, beer and alcoholic beverages, beer and wine manufacturers, cigarettes at a fixed site and per vending machine, wholesale and retail gasoline, motor vehicle and trailer dealers, and parts and accessories — are set by Administrative Order, taking into account the article, the manner of sale and annual sales volume. A trafficker licence holder may request reclassification: it is investigated on cost, considering sales made in the twelve months preceding the investigation, and to determine that volume the volume-of-business return filed for the municipal patente for the previous year is used. If reclassification to a different class proceeds, it takes effect at the next renewal. Treasury may also open that investigation on its own initiative and present its determination to OGPe.

8. 8

   Step 8: If a licence is denied

   This is the protection worth knowing before you need it. A person whose licence has been denied may seek review of the determination under Chapter 11.1 on administrative reviews. And while the agency’s final determination on the denied licence is under review, the Permiso Único stays in force, including the other licences approved for the business’s operation. That is: a denied licence does not close the business while review is pending.

9. 9

   Step 9: Change of owner and cancellation

   Where there is a change of name, owner or successor of a licence within a Permiso Único, the applicant must comply with Section 3.7.1.5 on change of owner and transfer of Permisos Únicos, and with Rule 4.1.4’s requirements. And as to cancellation: where the licence holder ceases the operation it was obtained for and does not renew the Permiso Único, the licence is understood cancelled. For manufacturers there is an extra step: before cancellation is authorised, an investigation by Treasury officials determines whether operations have really ceased, that there are no stocks of the products manufactured, and that the requested cancellation is in order.

10. 10

    Step 10: Two consolidations of vehicle licences

    The chapter records two mergers that avoid duplicate filings. The Motor Vehicle Trafficker Licence, formerly issued by Treasury, and the Motor Vehicle and Trailer Dealer Licence, formerly issued by DTOP, were consolidated into the Motor Vehicle and Trailer Dealer Licence issued by OGPe. And the limited-time retail "Motor Vehicle Shows" trafficker licence, formerly Treasury’s, and the limited-time dealer licence, formerly DTOP’s, were consolidated into the limited-time Motor Vehicle, Parts and Accessories Dealer Licence issued by OGPe. In both cases, holders remain bound to comply with the Internal Revenue Code and its regulations and with Ley 22-2000 and its own.

Through the Unified Information System (SUI), before OGPe, a hierarchy I-III autonomous municipality or an Authorised Professional, as applicable, and always together with the Permiso Único application or renewal. Review of a denied licence is sought under Chapter 11.1 of Volume XI. Each licence’s fees are set by OGPe Administrative Order.

• Believing the licence moves with the business to another premises or building.
• Renewing the Permiso Único without renewing the licences, which lapse if not applied for.
• Paying a single fee where there are several articles or several premises, even in the same shopping centre.
• Filing the CRIM certification for real property when the regulation asks for personal property.
• Forgetting the annual sales projection on a first application, when no patente has yet been paid.
• Closing the business when a licence is denied, when the Permiso Único stays in force during review.
• Seeking reclassification expecting it to apply at once: it takes effect at the next renewal.
• Letting renewal and fee payment lapse, which is subject to fines and penalties.

These are the government pages this guide is based on.

• Oficina de Gerencia de Permisos (OGPe)

  OGPe

  docs.pr.gov

• Permit Management Office

  ogpe

  ogpe.pr.gov