Local Government Unit FAQs
Is a Business Permit the same as a Mayor's Permit?
Yes, the two refer to the same thing. This permit is required for a business to operate in the city/municipality where it's located.
Can I get a Business Permit in a city/municipality where I don't reside?
Yes, you can. You should get your Business Permit in the city/municipality where your company is going to be located.
What are the fees I need to pay when applying for a Business Permit?
These are the fees generally included in the application:
- Mayor's Permit Fee: Fixed fee as mandated in the locality
- Business Permit Fee: Computed based on the initial capital of the business (for corporations, based on the value of the paid-up capital)
- Inspection Fee for Fire and Health/Sanitary permits
When do I need to renew my Business Permit?
You need to renew your Business Permit at the start of every year (the deadline is every January 20), even if your business was just newly registered in the past year. For instance, if you got your Business Permit in October 2019, you still have to renew it by January 2020.
What are the requirements for Business Permit renewal?
For Business Permit renewal, you need to provide your updated:
- Barangay Clearance
- Sanitary Permit
- Fire and Safety Permit
- Business plate
- CGL Insurance
- BIR Form 0605 for Annual Registration
- New stamped manual books of account, if applicable
- Certificate of Gross Sales for the past year
Do I need to pay fees again to renew my Business Permit?
Yes. The Business Permit renewal fee will be computed based on your declared sales for the past year. Other permits such as Barangay Clearance, Fire and Safety/Sanitary Permit, and CGL Insurance have fixed rates depending on your city/municipality.
Do I need to renew my Business Permit even if I didn't operate in the past year?
Yes, you still have to do it. You also need to submit an Affidavit of Non-operation for the period when your company was dormant.
What will happen if I fail to renew my Business Permit?
The LGU can order your business to shut down if you don't renew your Business Permit.
Can I still renew my Business Permit after the deadline?
Yes, but you'll incur surcharges if you renew after the deadline. The penalty is equivalent to 25% of the unpaid amount plus 2% monthly interest.
Can I ask a representative to apply for permits on my behalf?
Yes, you just need to provide a signed authorization letter indicating the name of the person transacting on your behalf, your valid ID, and your representative's valid ID.
How do I know if my business needs permits, licenses or clearances from other government agencies before I can get a Business Permit?
If your business is in any of these industries, you have to secure additional permits before you can get a Business Permit:
- Animals and animal products, registration of veterinary drugs, and animal facilities
- Aquatic animals, importation, fishpond lease agreement
- Fertilizer products and registration of pesticide products
- Fiber and fiber products processing and trading
- Film and television production, export and import, booking, etc
- Food, chemicals, health-related business
- Flour processing, grains wholesaling and retailing, milling, warehousing, exporting, importing, indenting, packaging, threshing, corn shelling, mechanical drying
- Meat plant accreditation for meat and meat products, slaughterhouse operations
- Pawnshop and lending investor
- Plants and plant products, nursery accreditation, seed certification, and phytosanitary certificate
- Recruitment or placement agency for foreign employment
- Recruitment or placement agency for local employment
- Schools and educational institutions
- Security agency
- Service and repair shops for: Motor vehicles; automotive and heavy equipment; engine and engineering works, and machine shops; electronics, electrical, air conditioning and refrigeration; office and data processing equipment; medical and industrial equipment; appliances or devices; and private emission centers
- Sugar trading, muscovado converting and trading, processing or manufacturing sugar-based products for export
- Telecom business
- Tourism-related projects
- Tourism-related projects
- Video production, sales, and rental
Where can I get an Occupancy Permit?
You can get an Occupancy Permit from the building administration or the owner of the property where your business is situated. Note that an Occupancy Permit is different from an Occupancy Clearance.
When do I need to secure a Building Permit?
You need to secure a Building Permit if part of your business involves the construction of a new building. You may also need to secure repair/renovation permits if your place of business is in need of repair/renovation, and also depending on the level of repair/renovation work you'll do.
Otherwise, this will be covered by the Occupancy Permit, which is part of the Locational/Zoning Clearance requirements.
When do I need to secure a Health/Sanitary Permit?
In most cities, the Health/Sanitation permit is required for all types of business. Certain localities, however, require this permit for businesses where health services are offered or where sanitation is a primary consideration in operation (ex. restaurants, spas, etc.).
What's a Locational/Zoning Clearance?
A Locational/Zoning Clearance gives you eligibility to open a specific type of business in the location where you want to operate. This is a requirement when applying for a Business Permit.
What documents do I need to prepare when getting a Locational/Zoning Clearance?
Some of the documents you need to apply for a Locational/Zoning Clearance are:
- Locational Clearance Prior to Business Permit Form
- Barangay Clearance
- Photocopy of the DTI Certificate of Registration or SEC-approved Articles of Incorporation
- Transfer Certificate of Title (TCT) or Tax Declaration (if you own the business space); or the TCT, Tax Declaration or Contract of Lease/Authorization/Certification from the property owner (if you're leasing the space)
- Notarized Business Permit Application Form
- Location map
- Occupancy Permit
When do I need an Occupancy Clearance?
You need to get an Occupancy Clearance if your place of business is:
- A building constructed before the effectivity of the Building Code
- A building that has 3 stories or less
- A property without an Occupancy Permit
Note that an Occupancy Clearance is different from an Occupancy Permit.
When do I need a Fire Safety Certificate?
This permit is generally required across all types and places of business, and is usually issued after the release of your Business Permit. To get this permit, you need to have these ready:
- Fire safety requirements (ex. fire hydrant, fire exit plan)
- Building and lot plan
- Locational/Zoning Clearance
What's a Public Liability Insurance? Is it the same as CGL Insurance?
A Public Liability Insurance, also known as Comprehensive General Liability (CGL) Insurance, helps cover some of the risks associated with interacting with customers and the general public.
How can I get a Public Liability/CGL Insurance?
Most insurance companies and banks offer this type of insurance. You may apply for this by visiting or talking to a bank or insurance representative.