How to Apply for a Business Permit in the Philippines

After securing your DTI business name registration and barangay clearance, the next step for proprietors is to apply for a Business permit (or sometimes called Mayor’s permit). You’ll need a business permit in order to proceed to the next step, which is to secure a Tax Identification Number (TIN) for your business with the BIR and be able to legally transact with your customers.

Like the DTI registration and Barangay clearance, the business permit is also a requirement of the Philippine law before one is able to conduct business in the country. You can apply for one in the city or municipality where your business is located, and each local government unit may have different procedures. The following are the fast, quick, and easy general guidelines when applying for a business permit:


  • Lease Contract. If owned, submit a copy of the Transfer Certificate of Title (TCT) or Tax Declaration.
  • Business Name Registration with the Department of Trade and Industry (for sole proprietorship/new applicants).
  • Barangay Clearance
  • Sketch of location
  • Occupancy permit
  • Locational Clearance – you may get this at the Zoning Office of the city hall where your business is located. Ask for an application form and submit all of the above requirements (items 1 to 5). Locational clearance will be released within 3 days but may extend up to 5 days if inspection is deemed necessary.
  • Public Liability Insurance – can be bought from an accredited insurance company
  • Community Tax Certificate (Cedula) – you can get this at the City Treasurer’s Office in the same city hall.
  • Fire Permit
  • Sanitary Permit
  • Other Requirements depending on the type of business:

– National Grains Authority license for dealership of rice, corn, & wheat.
– Bureau of Food and Drug Administration permit for drugstores / bakeries.
– Accreditation by the Department of Trade and Industry (DTI) in cases of auto repair shops, electronics, radio and other electrical equipment services.
– Real Estate Broker’s License issued by the DTI for real estate brokerage firms.
– Pest Control License for Pest Control Services.
– PCSUCIA (National License) for Security Agencies.
– LTO Franchising and Regulatory Board permit for transport services.
– Energy Regulatory Board (ERB) for LPG dealerships.

Procedure for Registration

  • Go to the City Hall / Municipality where the business is located – ask to be directed to the Business Permits and Licensing Office (BPLO).
  • Ask for the business registration form (have it completed and notarized) and submit your completed registration with all the requirements listed above (except for the fire and sanitation permit, which will be done in the next steps).
  • Necessary taxes, fees and charges will then be assessed and recommended by the licensing officer.
  • Submit your completed registration application form and assessment of fees to the receiving window of the BPLO. You’ll then be given an acknowledgment of receipt of application.
  • Go to the treasury office/cashier to pay the necessary fees.
  • Once paid, proceed to the fire department with your receipt for the request and issuance of your fire permit
  • Proceed also to the health department with your receipt for the request and issuance of your health / sanitation permit
  • Depending on the number of days of processing advised by the licensing officer, once due, return to the city hall where you filed your application for the release of your Business / Mayor’s Permit and other required permits and/or licenses.

Now that you have your business name, barangay clearance, and business permit, you can then proceed to the Bureau of Internal Revenue (BIR) to register your business and apply for your business Tax Identification Number (TIN). Click here for the complete list of basic government requirements when starting your own business to serve as your ‘uncomplicated’ guide.

***Above requirements and steps subject to continuous revision by your Local Government Unit (LGU). You may call or visit your LGU to check for updates.

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