How to Get Mayor’s Business Permit in the Philippines

Feb 4, 2011 by at Business, Business Startup, Registration

How to Get Mayor’s Business Permit in the Philippines

How to get a Mayor’s Business Permit or license in the Philippines? A business permit or license from the Local Government Units (LGU) is one of the important requirements for every business or company to operate in the Philippines. LGUs can be cities or municipalities, and procedures for obtaining a permit may vary depending on the ordinances the city or municipality will implement. This means that obtaining a business permit in Makati City may become different from getting it in Manila or Cebu City.

Securing a business permit from the Mayor’s Office can only be done after the registration of your business with the Department of Trade and Industry or DTI (for single proprietorship) and with the Securities and Exchange Commission or SEC (for partnership and corporation). The following are the usual steps and requirements for getting a Mayor’s Business Permit for typical cities in the Philippines.


Requirements for New Business

1. Barangay Clearance
2. DTI Business Name Certificate (Single Proprietor)
3. Certificate of SEC Registration / Articles of Incorporation (for Corporation) / Articles of Partnership  (for Partnership)
4. Public Liability Insurance (for Restaurants, Cinemas, Malls, etc.)
5. Authorization Letter of owner with ID
6. Lease Contract / Tax Declaration
7. SSS (Certification / Clearance)
8. CTC (Community Tax Certificate-CEDULA)


Steps for Securing a Business Permit (for New Business in Manila)

1. Application and submission of requirements
The accomplished business transaction form together with the requirements shall be submitted to the Bureau of Permits (BP). The BP personnel shall encode the business transaction form details and the requirements for processing and computation of business permit fee. The BP personnel shall issue a computer generated Business Identification Number (BIN) slip to the applicant.

2. Assessment of business tax and regulatory fees
The applicant shall proceed to the License Division of the City Treasurer’s Office for computation and assessment of Business Tax and Regulatory Fees. The applicant shall present the issued Business Identification Number to a licensing officer on duty. The latter shall then compute and generate the License and Regulatory Fees Form which shall be given to the applicant.

3. Payment of license and regulatory fees
The applicant shall proceed to the cashier and shall present the issued License and Regulatory Fees (LRF) Form. The cashier shall receive and record the payment of the applicant and shall validate the LRF Form which will serve as the Official Receipt.

4. Release of Business Permit
The applicant shall go back to the Bureau of Permits office. After verifying the Official Receipt, a personnel will generate the Business Permit and it will be released to the applicant upon signing of the BP Director.


Websites of LGUs in the Philippines

If your business is located on the following major cities of the Philippines, you can go to their website and check the current steps and requirements in securing a Mayor’s Business Permit.

1. Bacolod City
2. Baguio City
3. Caloocan City
4. Cebu City
5. Davao City
6. Iloilo City
7. Manila City
8. Makati City
9. Mandaluyong City
10. Muntinlupa City
11. Pasay City
12. Pasig City
13. Puerto Princesa City
14. Quezon City
15. San Juan City
16. Tacloban City

Note: Business permits are renewed every year. Renewal period is usually on the first month (January) of the calendar year depending on the city or municipality ordinance. Penalties are imposed upon business on failure to renew business permit.

Victorino Abrugar is the founder and chief writer of BusinessTips.Ph. Vic is a social media enthusiast who loves to share his knowledge and insights through blogging. He provides business coaching to aspiring small business owners and entrepreneurs to help them reach their business and life's goals. Follow him on Twitter at @viclogic or interact with him on Facebook.

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17 Comments

  1. daryl

    How much will be the penalty if you did not pay the fire clearance last year?

  2. Omar

    Hello!

    What are the requirements for renewing the business permit? Sorry the Pasig site is currently under construction.

    Also, what if I’m going to be relocating my business out of Pasig say February/March, is it ok if I don’t renew my permit in Pasig since I’m going to apply for a new one in the area I’m relocating to?

    Thanks in advance! Great site by the way. Very informative. Glad to have stumbled upon it

    • Vic

      Hi, I can’t answer your question with definite answers since I’m not familiar with the policy of these cities. I think if you’re planning to relocate, the fees should be allocated for the 2 cities based on the duration of your operation. Your former city should also be formally informed that you are transferring your business to another city, so that you will not be double taxed. Hence, a personal visit and inquiry is advisable.

  3. Allan

    Hi, I would like to put up a carwash with a small cafe business. Do I have to apply for permit for this or barangay permit will do?

  4. Hi Allan. I believe yes, you have to. In Pasay City, they have this rule that if your capitalization does not exceed P50,000, barangay clearance is enough. Please confirm with the Business Permits & Licensing Office of the respective city/municipality of location for more details.

  5. Jay

    Hi,

    A friend and I want to start a Photo and Video business, working mostly from my home here in Pasig. Since this kind of work does not really need a “formal” office space, do i still need a barangay permit, mayor’s permit etc… ? Aside from registering the business name, what other requirements do we need to accomplish? Especially if we want to be able to give out official receipts to future clients. thanks and great job in helping out new entrepreneurs. :)

  6. ian

    Yes Jay, you still need to secure a brgy clearance and mayors permit for your business, if not it would be illegal. Regarding the O.R., you have to register your business with BIR, for sure if you do that you have to pay taxes.

  7. Kit Maniquis

    we have a manpower agency wherein we deploy people to our clients located in several cities in the philippines. do we need to secure a business permit from each city even if we don’t actually have an office in those cities?

  8. Andy

    can i ask, if the mayor’s permit can be transferable to another name, after a few months?

  9. bon

    Hi Kit,

    I think that is not necessary..You need to secure a another business permit if you will set up another office/branch of your agency..

  10. Sammy

    Hi,
    I am trying to get a mayors permit here in Agusan Del norte, The Municipality said that it takes a year to apply and will cost of 5000 pesos for the kind business of sari sari store. can you please help me for this, if this is true… How Much is the mayors permit.

  11. allan

    Hi! thanks for the info! i just need to ask if its possible to get a business permit just using my current rented house. and im actually thinking of doing as a Distributor in my local area for a US product.

    Thanks in advance!

  12. vj

    how do they compute the business tax?

  13. Hi Vic,

    Are mayor’s permit required for professionals (accountants) who are working home-based? Thank you.

  14. grace espiritu

    what are the requirements for mayor’s permit in san juan?

  15. Hi, we just move here in Puerto Princessa City, Palawan and we would like to open a business here. Can you give me an idea where to start those paper works like those business permits and where to go….thanks

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