All businesses are required to get a business permit or mayor’s permit from the Local Government Unit (LGU) in the Philippines. This is required as you will be setting up a business in the LGU’s area of governance.
Having a business permit proves that you have a legitimate business recognized by the local government. And of course, this gives confidence for your customers to transact with your business. This is essential especially for small to medium businesses (SMEs). With a business permit, you can transact with large institutions such as banks.
In this article, we’ll guide you on how to get a business permit in the Philippines whether you are a sole proprietorship, partnership, corporation, or cooperative.
The steps are depending on your LGU (especially now with COVID-19 protocols). To make things easier for you, we simplified it for you to get a general idea. Here are the steps:
Keep in mind that business permits are required to be renewed every year. Failure to comply will result in a 25% surcharge on renewal fees and an additional 2% every month.