How to Get Business Permit in the Philippines: An Ultimate Guide

Last Updated on 09/12/2020 by FilipiKnow

A business permit, also known as ‘mayor’s permit’, allows individuals or companies to conduct business within the jurisdiction of a municipality. Business permits are secured from the city hall where your business is located. 

Go back to the main article: How to Register a Business in the Philippines: The Ultimate Guide

 

Business Permit Requirements.

  1. Barangay Clearance;
  2. Occupancy Permit – This is issued by the building official as required by the National Building Code1;
  3. DTI Certificate (for sole proprietors and professionals) or SEC Certificate (for partnerships and corporations);
  4. Contract of Lease – if you rent the building where your business operates;
  5. Proof of Ownership – if you own the building; and
  6. Sketch of location – can be in the form of a screenshot from Google Maps.

Note: For sari-sari store owners, DTI and SEC Certificates are not required2.

 

How to Apply for a Business Permit in the Philippines in 5 Steps.

1. Secure all the needed requirements (see the previous section).

2. Fill out and notarized application form.

Application forms differ from one city to another, but the unified form can be found here.

For the complete list of application forms based on your city, please refer to the following table:

AngelesMandaluyong
BatangasManila Front 
Manila Back
BaguioMarikina
Cagayan de OroMuntinlupa
CaloocanOlongapo
Davao CityParañaque
General SantosPasay
IliganPuerto Princesa
Iloilo CityQuezon City
MakatiTaguig
Malabon (Front)
Malabon (Back)

Note: If your city is not on the list, please call your city hall and ask for a copy of the application form. 

3. Submit the application form together with all the requirements to the LGU where your business is located.

4. Pay the Assessment Fee.

The following are the main components of the assessment fee:

  • Mayor’s Permit Fee;
  • Garbage Fee;
  • Sanitary Inspection Fee;
  • Building Inspection Fee;
  • Electrical, Mechanical, and Plumbing Inspection Fee; and
  • Fire Safety Inspection Fee.

Note

  • The amount varies depending on your location and the LGU’s policies; and
  • That there would be additional inspection charges and regulatory tax for businesses that are engaged in delivery, billboards, and combustibles/explosive substances. 

5. Claim Mayor’s Permit on the scheduled date.

Take note that some local government units allow delivery of original business permits to your business/home address so you don’t have to return to the city hall to claim your permit. 

 

Frequently Asked Questions.

1. How much is the cost of application for business permits?

The actual amount differs greatly from city to city but the estimated cost of application is around Php 300 to Php 5,000 depending on your business. 

2. How long does it take to get a business permit in the Philippines?

Based on our research, it may take 1 to 14 days before you can claim your permit. The process is different in each city (e.g., Valenzuela City has this Paspas Permit System that allows the issuance of a provisionary business permit with ten seconds after the payment confirmation while other cities may take up to two weeks).

3. Can I apply for the business permit online?

Based on our research, there are currently no local government units that allow online business permit applications. 

4. When should I renew a business permit in the Philippines?

Renewal of business permit must be done on or before January 20 of every year. 

5. I’m a freelancer/online seller, do I still need to register my business? 

Yes. As long as you are regularly earning from a source that is not under the employer-employee relationship, you should register your business.

6. Aside from the business permit, what else should I secure to start my business correctly?

Please refer to this article for a more in-depth business registration process.

 

References.

  1. National Building Code of the Philippines (1977), Section 301
  2. Joint Memorandum Circular No. 1, Series 2016, Section 6.1.2 (1)

Miguel Antonio Dar II, CPA

Miguel Dar is a CPA and an experienced tax adviser specializing in tax audits. He gives tax advice to different start-ups and clarifies tax concerns of individual taxpayers. This includes helping clients register their businesses, training in tax and bookkeeping for start-up businesses, settling open cases, tax planning for future tax compliance, and responding to tax-related inquiries.

3 thoughts on “How to Get Business Permit in the Philippines: An Ultimate Guide

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