Financial Blog

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.

List of requirements to get a Business Permit or Mayor’s Permit

• Certificate of Business Name Registration from Department of Trade and Industry (Sole Proprietorships); Articles of Partnership (Partnerships) or Articles for Incorporation (Corporations) from Securities and Exchange Commission; Certificate of Registration (Cooperatives) from the Cooperative Development Authority
• Barangay Business Clearance
• Authorization letter of owner with ID
• Contract of lease (If leased) or Certificate of Title/Tax Declaration (If owned)
• Sketch of the business location
• Occupancy permit
• Community Tax Certificate (CTC or Cedula)
• Public Liability Insurance (for Restaurants, Cinemas, Malls, etc)
• Locational/Zoning Clearance
• Fire Permit
• Sanitary Permit

How to get a Business Permit or Mayor’s Permit in the Philippines

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:

1. Go to the Business Permit and Licensing Office (BPLO) in the city/municipality town hall where your business is located
2. Fill out the application form
3. Submit the application form and the initial requirements
4. An assessor will assess your application for tax and fees
5. Pay the necessary taxes and fees
6. Submit the remaining requirements (should there be any)
7. Claim your business or mayor’s permit

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.