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 Q. Abrugar is a marketing strategist and business consultant from Tacloban City, Philippines. Vic has been in the online marketing industry for more than 7 years, practicing problogging, web development, content marketing, SEO, social media marketing, and consulting.
How much will be the penalty if you did not pay the fire clearance last year?
Hi. It would depend on your City’s or Municipal office.
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
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.
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?
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.
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. 🙂
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.
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?
can i ask, if the mayor’s permit can be transferable to another name, after a few months?
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..
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.
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!
how do they compute the business tax?
Hi Vic,
Are mayor’s permit required for professionals (accountants) who are working home-based? Thank you.
what are the requirements for mayor’s permit in san juan?
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
I closed my shop last October, I went to city hall to close the business permit. they want me to pay 15,000 for the business tax. I closed the shop cause its not profitable then they want me to pay tax. I am paying my tax at BIR.
can I have a copy of your city ordinance regarding business permit for office only at Pasay. Due to complaint of our neighborhood we transfer our operation is at Taguig City. I want to confirm the basis of the computation of tax. Is it true that the basis is 20% of Sales? Thanks.
Hi..my company is moving to bgc this july, currently it is based in makati. Do we need to apply for a business permit now or we can apply once we are in bgc? Tnx
Hi
I just want to ask if PCSO outlets should also get City’s Business Permit. I have the impression that it may be waived since its a government franchise. When I check in PCSO website, local business permit is not a requirement. Thank you
Hi, ask lang po. i am planning to start a small home base business ( footwear). I have friend from america that want to buy my product. What are the required documents i need for exporting? Thank you po
Good pm. I already paid my business tax last January 4, 2016 but I’m not yet renewed my business permit after I pay the tax due to some personal matters. Now that I am ready to process the renewal, may penalty po ba na di ko agad narenew yung business permit and also do I need to have all the certification like sanitary etc. kahit maliit na eatery lang yun sa akin? Di kasi ako ang nagprocess nun business permit last year at yung plate at cert.of registration lang yun binigay. Hope you can help me.
Thanks!
By the way, the business is in Quezon City.
hi good morning, tanong ko lang po sana pwede ba na ung business permit ay hingi nakapangalan sa owner and paano kung nag operate ng business ang company pero fake ang mga permits ano pwedeng mangyari.
Thank you.
Ask ko lang po kung totoo bang depende sa business yung fee na babayaran mo sa barangay? Nakakainis lang kase na P1000 pesos daw tapos biglang sabi bibigyan daw nya ko ng discount. Parang nawalan ako ng tiwala dun sa secretary.
Ask ko din kung pwede bang kumuha ng barangay clearance muna kahit wala ka pang puwesto?
Salamat!
Good day Sir Vic, as a business consultant, do you how to compute the local tax for business permit base on gross sales in Muntinlupa? I hope you could help me.
What is the Business Permit Plate for?
Thanks
Thanks for giving nice information.
Hi,
Am from Antipolo and I wanted to get a Mayor’s permit for my online business, however, I am having a hard time acquiring a business permit / Mayor’s permit because I am only renting a house and the owner is not a legal landlord. So there is no contract or whatsoever.
How can I secure one?
Regards,
Almira
Landco Pacific Corporation delay issue of Title deeds for 12 months or more and we wish to complain, who do you recommend we speak to please?
Hi I want to set up a small business for my wife in Tacloban city , from home both selling online and from a shop on location …. importing from china . what are the permits we would need and how do we go about getting them
hi i want to operate a small business services like cleaning aircon, service repair of appliances for home and offices. i asked if i need to get a business or mayors permit…tnx and more power
Yes, every business, small or big, need to get a business mayor’s permit. You should also register with the DTI (for your trade name) and the BIR for paying national taxes. I recommend you visit DTI Negosyo Center in your area to get some free consultation and also identify if your business will be eligible as a BMBE to get privileges, such as income tax exemption, marketing support, and others. http://www.dti.gov.ph/programs-projects/negosyo-center
Hi tanung ko lang if anu pwde ilagay pag mag babayad ako ng manager cheque salamat city treasurer of pasig po ba ? Salamat po ask ko na din if pwde dun ba i cheque ung bayad sa zoning permit at anu ilalagay salamat ng marami in advance
Hi. We are not familiar with the licensing processes of Pasig City. So it would be wise that you pay visit to their good office to make sure you’re doing it right. You may visit their website to get some information. http://www.pasigcity.gov.ph/
*does a flats rental business do need a mayors business permit?
**what are the requirement for obtaining business permit for “Flat Rental” in Bacoor City, Philippines, because I have a 6 door Flats in a 1 building, I also registered this in BIR which I am paying in regular basis.
Yes, it should have a mayor’s business permit, as you are required to pay local taxes (local business tax, real property tax, etc.) to the City Mayor’s Office aside from the national taxes paid to the BIR. A fire safety inspection will also be conducted by the Bureau of Fire Protection.
We’re not familiar with the requirements of the Bacoor City since we are from Visayas. So I recommend that you pay a visit to the licensing office of Bacoor City to be enlightened with the requirements of registering your business with their office.
Hi, is it mandatory to apply for a building permit, submit all plans of improvement for approval, and get own occupancy permit prior to the application of Mayors Permit here in Makati, even of you are just leasing from a building with complete plans and permits?
Hi. I think it is required to locate your business and also assess if the building you are leasing has been cleared or complied with the Mayor’s Office requirements, real property taxes, and others. Honestly, we are not familiar with Makati City’s business permit processing. Also, every city has their own ordinances, so it would be better if you can visit city office to personally get information from them.
Hi Sir, may i ask po…for new business like rent a car..saan po ako magstart ng application for business permit? I have na po the DTI and also barangay clearance. Do I need to get a mayor’s permit po ba…then business permit…then BIR2303? Hope you could help me…I’m residing po in Manila area
Hello. You can go apply for Mayor’s Permit, then BIR. Mayor’s permit doesn’t usually require BIR registration before you can apply so you can do it first. The BIR may not also require you a business permit (but only an application for registration) to apply for registration so you can immediately process the BIR registration for faster processing and printing of your Official Receipts. In other words, try to do them simultaneously if possible.
Hi.
My business is DTI registered but under the category of barangay.Do I need to apply for mayors permit?
Reply please.thanks.
Hello. Although your business is DTI registered under only the barangay category, you still need to have Mayor’s Permit, as well as BIR registration. Please visit DTI Negosyo Center on how you can apply for BMBE to avail privileges for Barangay Micro Business Enterprise, such as income tax exemption from BIR.
Hi!
Will there be a problem if I don’t apply for a Mayor’s Permit right away after getting a DTI & Barangay Business Permit?
I still need to process a lot of requirements for the Mayor’s Permit & I don’t think that I can apply for a Mayor’s Permit asap.
Hope you can give an advice regarding this matter.
Thank you.
Hello. If your business is already operating, then you have to secure a Mayor’s Permit right away. Aside from Mayor’s Permit, you should also secure a BIR registration since business operation without a permit from the Mayor and a certificate of BIR registration will get you a penalty.
Do I need a clearance from my subdivision when applying for a business permit? If I do, what type of document should I request from my HOA?
Hi Sir Vic,
How long is the allowable period for registration to BIR and Mayor’s permit after the issuance of the DTI Registration. I heard that when not registered immediately, I will have to pay for penalties especially in BIR. Will it be the same process even if I won’t start the operations yet?
Hello Jiejie, according to the BIR’s website, The BIR Forms No. 1901 and 1903, the forms for Application for Registration for Sole Proprietorship and Corporations/ Partnerships, respectively should be filed “on or before the commencement of new business or before payment of any tax due or before filing a return”.
If you are planning to register a proprietorship business, this means you may register your trade name with the DTI already and not register your planned business with the BIR yet as long as it has not yet started anything. I heard some people registering their trade names already just to secure their trade names. However, if you have already started your business (operation, hiring employees, purchasing for your business) it is better to register it already. The BIR may conduct tax mapping, and if they discover that you are already operating without registration, they might impose big penalties on your business.
On the other hand, if your business is a corporation, you have to register with the BIR immediately since the original subscription of stocks is taxable thru documentary stamp tax, thus, required to file and pay to the BIR within (5) days after the close of the month when the document (certificate of stocks) was issued.
I also heard there is a 30 days deadline to register with the BIR after registering with the DTI, but I cannot find a solid reference at this moment. Hence, it’s better to confirm with the BIR RDO in your area just to be safe.
Hi Sir! Our principal office and manufacturing plant are in different municipalities. I know we need to apply separate mayor’s permit for both. Which one of these do I submit in BIR for registration?
and btw do you have an idea if the requirements for Mayor’s permit are the same if our principal office is our residence?
Hi Gail,
I think you should also register each of your branches with the BIR where they are located since you need a separate BIR COR for each branch. I also think that the requirements are the same if your office is your residence. It will only vary depending on your initial capital/sales, the number of employees, the size of your office, and others.