How To Secure A Business Permit (Mayor’s Permit) For Your Business

How To Secure A Business Permit (Mayor’s Permit) For Your Business

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Operating a business legally in the Philippines means you must have a Business Permit (also known as the Mayor’s Permit). This document serves as proof that your business complies with the municipality or city’s ordinances and standards such as sanitary, fire and safety, and other clearances.

Of course, you should also meet these regulatory compliances before actually applying for the permit. You should also note that getting a Business Permit is the last step in registering your business.

To help you breeze through the application, we break down the steps, requirements, and everything in between to secure a business permit in the Philippines.

1. Business Permit Requirements 

Business permits are granted by your Local Government Unit (LGU) and it’s usually done after you’ve secured other necessary documents for business registration. Here are the requirements to accomplish first before getting a business permit in its respective order.

Disclaimer

Some cities or municipalities may require some city-specific requirements that may not be in the list below. Double-check with your LGU or visit your local government’s website to confirm the completion of your requirements.

  • Application Form
    Where to get this?

    You can get this from the office of the Mayor’s Business Bureau, but you can secure this form after completing the rest of the requirements.

  • Certificate of Registration
    Where to get this?

    ~Securities and Exchange Commission (SEC) – Corporations/Partnerships
    ~Department of Trade and Industry (DTI) – Sole Proprietorships
    ~Cooperative Development Authority (CDA) – Cooperatives

  • Barangay Business Clearance*
    This is a validating document that your business is located in the barangay it’s in.
    Where to get this?

    You can get this from the Barangay Hall where your business is located.
  • Community Tax Certificate (CTC or Cedula)
    Where to get this?

    You can get this from the Barangay Hall where your business is located or your City Treasurer’s Office.

  • Contract of Lease or Transfer Certificate
    Where to get this?

    What you need depends on whether you are renting your business space or if you own the location. Your barangay hall may ask for this.
  • Sketch of your business location (three copies)
    Where to get this?

    You can hand draw or print the sketch on white bond paper.
  • Public Liability Insurance
    This is necessary to protect your business against legal liabilities from bodily injury/property damage to third parties in connection to the insured’s business operation. However, Sari-sari stores and Carinderias are exempted from this.
    Where to get this?

    From any Commission-accredited insurance providers.

  • Locational/Zoning Clearance*
    A document stating that you’ve complied with your municipality’s Comprehensive Land Use Plan and Zoning Ordinance.
    Where to get this?

    City Planning and Development Office of the city/municipal hall.

  • Certificate of Occupancy (Building and Unit)*
    Where to get this?

    Your building administrator’s office if you’re renting the space for your business. If you own the building, you can get this from the City Engineering Office.

2. Business Permit Application process

At the moment, business permit applications can only be done in person. However, the government is set to roll out a one-stop-shop business registration in June this year. Until then, the process is as follows:

For Your Information

The specific steps may vary in every municipality (just like the requirements).

    1. Compile all your requirements
    2. Head to your local Business Permit and Licensing Office (BPLO). It’s usually located in your city hall. 
    3. Secure the application form that you can get on-site. In some LGUs, the form can be downloaded through their website.
    4. Submit the fully accomplished application form together with your requirements. The assessor will determine your taxes and fees (this will vary according to your business revenue), and provide you with an Official Billing Statement. 
    5. Bring your Official Billing Statement to the cashier and get your Official Receipt (OR).
    6. Secure your Fire Safety Permit by presenting your OR and other documents to the Department Department. The permit may only be issued after your fire safety inspection, depending on your LGU’s regulations.*
    7. Secure your Temporary Sanitary Permit by presenting your OR and other documents to the designated Sanitary Department. The actual permit may only be issued after the sanitary inspection of your business and health check on employees, depending on your LGU’s regulations.*
    8. Claim your business permit from the BPLO together with your business registration plate/sticker and certificate. 
    9. Display your business registration plate or sticker on your business premises, where it can be seen easily and visibly. 

For Your Information

You are required by law to renew your permit annually, between January 2 and 20 of the calendar year.

3. Why is it important to get a business permit?

Aside from the obvious reason that it’s required by law, you will need it as an official proof of income should you need to apply for various financial services and aids offered by banks and the government. Also, there’s nothing more reassuring than having peace of mind knowing that you’re running your business legally.  

If you want to run your business smoothly and plan to scale it eventually, secure a business permit!

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