After registering with the Department of Trade and Industry (DTI) or the Securities and Exchange Commission (SEC), your journey to legally operating your business in the Philippines leads to the local government units (LGUs), where mandatory business permits—Barangay Business Permit and Mayor’s Permit—are obtained.
The Barangay Business Permit or Clearance is the first step, granting you permission to operate within the barangay or village where your business is located. Once you have this, you can proceed to apply for a Mayor’s Permit, which authorizes your business within the entire city or municipality.
This article provides a complete guide to obtaining a Mayor’s Permit in the Philippines, including the documentary requirements, application process, and answers to frequently asked questions.
What is a Mayor’s Permit?
A Mayor’s Permit, also called a Business Permit or BPLO Permit, is a local government-issued license for companies and business owners. It grants authorization to operate a business within a city or municipal jurisdiction, confirms the payment of local business taxes, and ensures compliance with health, safety, sanitation, and environmental regulations.
What is the Importance of a Mayor’s Permit?
A Mayor’s Permit is a mandatory requirement for ensuring that your business operates legally within the city or municipality. It serves as a form of local government oversight, making sure you comply with local ordinances, tax requirements, and zoning laws, among others. Obtaining a Mayor’s Permit also provides you, as a business owner, with credibility with your customers and other stakeholders. Without this permit, your business may face fines, penalties, or even closure.
Who Requires a Mayor’s Permit?
All business entities, i.e., sole proprietorships and professionals, corporations, partnerships, cooperatives, and associations, are required to obtain a Mayor’s Permit as part of the business registration process.
Where to Get a Mayor’s Permit for Business?
Your application for a Mayor’s Permit should be filed with the Business Permits and Licensing Office (BPLO) of the city or municipality with jurisdiction over the principal address of your business.
BPLOs were created under R.A. 11032, otherwise known as the “Ease of Doing Business and Efficient Government Service Delivery Act” of 2018. They are primarily responsible for the processing of business applications, both new and renewal.
Additionally, most LGUs have adopted a Business One-Stop Shop (BOSS), which is a single location or a single online portal designated for the Business Permit and Licensing System (BLPS) to receive and process applications, receive payments, and issue approved licenses, clearances, permits, or authorizations.
What are the Requirements for a Mayor’s Permit?
To apply for a Mayor’s Permit, the following documentary requirements are typically needed to ensure compliance with local regulations and business standards.
1. Business Permit (or BPLO) Application Form
Each city or municipal government has its own application form, which is typically updated annually. While it may be available online for download and printing, it is important to verify that you are using the most current version before submitting your application.
2. Application Forms for Other Clearances and Permits
These include application forms for various clearances and permits, such as the Zoning Certificate, Locational Clearance, Fire Safety Inspection Certificate (FSIC), Sanitary and Occupational Health Permits, and others. These may be secured from the city or municipal BPLOs or their respective websites.
3. SEC, DTI, or CDA Registration Certificate
Prior to the processing of the business permits, a Certificate of Business Registration must first be obtained from the appropriate authority, i.e., the Securities and Exchange Commission (SEC) for corporations and partnerships, the Department of Trade and Industry (DTI) for sole proprietorships, and the Cooperative Development Authority (CDA) for cooperatives.
4. Barangay Business Permit
As already mentioned, this is a document issued by the local barangay (village) confirming that your business is allowed to operate within its jurisdiction. It is a requirement when applying for a Mayor’s Permit and ensures your business complies with local barangay regulations.
5. Contract of Lease (or its equivalent)
This is a legal agreement between the property owner (lessor) and you (lessee) for renting space for commercial use. If not applicable, proof of property ownership (e.g., TCT and RPT) or consent to use the space for free is required, along with an Affidavit of No Rent and Consent to Use Space signed by the property owner.
6. Certificate of Occupancy
This document is issued by the building official to certify that the building or structure has been completed and is suitable for occupancy or use in accordance with the approved purpose. If no renovations have been made, your lessor’s Certificate of Occupancy normally suffices.
7. Locational Clearance (and Zoning Certificate)
This permit issued by the City or Municipal Planning and Development Office (CPDO) or the Land Use and Zoning Office confirms that your business is allowed in the chosen location based on the Comprehensive Land Use Plan and Zoning and other relevant ordinances.
8. Fire Safety Inspection Certificate (FSIC)
A Fire Safety Inspection Certificate (FSIC) is a document issued to business establishments by the Bureau of Fire Protection (BFP), attesting that their structures and facilities have been duly inspected and are compliant with the fire safety standards under the Fire Code of the Philippines. For the application, you may be required to submit building plans and permits, fire safety equipment and other compliances, and a fire insurance policy.
9. Sanitary Permit to Operate
A Sanitary Permit to Operate, or simply Sanitary Permit, is a mandatory permit issued by the City or Municipal Health and Sanitation Department to certify that your for-registration business establishment complies with the existing minimum sanitation requirements upon evaluation or inspection by a health officer or sanitary engineer in accordance with the Sanitation Code and local ordinances.
10. Comprehensive General Liability Insurance Policy
This type of insurance coverage protects your business from financial losses due to claims of bodily injury, property damage, or other liabilities that occur during business operations. It is required by the LGUs to ensure that your business is financially protected in case of accidents or lawsuits.
11. Community Tax Certificate (CTC or Cedula)
Also known as a residence certificate, this tax document is issued by the local government to individuals or businesses operating within a particular municipality or city. For your business, this serves as proof that you have paid the community tax, which is a local fee required annually.
12. Employees’ Medical Certificates
In most cities and municipalities, the Sanitary Permit can only be obtained after the mandatory inspections. In some cases, the Occupational Health Permit, which normally requires the employee’s medical tests and certificates (usually with city hall-accredited physicians and with HIV seminar, like in Quezon City), is considered a prerequisite for the issuance of the Sanitary Permit to Operate.
13. 3R Photo of Establishment
Most BPLOs will require you to provide a photo of your new office or business facade (or left or right view showing property line and signboard) in 3R or other specified formats. Additionally, you may be asked to provide a screenshot of a Google map showing the location of your business relative to the City or Municipal Hall.
14. Affidavit of Undertaking
This sworn statement confirms the accuracy of the business information you have provided, as may be required by local ordinances. For example, the Makati City government requires an affidavit to verify that your business is not involved in gaming activities or supporting any gaming-related operations.
15. Certificate or Affidavit of No Client (if required)
This document certifies that your business does not have any active clients or customers at a given time. It is often required when applying for certain permits or licenses to confirm that no business transactions are currently ongoing.
16. Other Requirements
You may also be required to attach board resolutions, secretary’s certificates, special powers of attorney (SPAs), authorization letters, and other affidavits, particularly if the application will be processed by a third party or a service provider on your behalf.
How to Get a Mayor’s Permit in the Philippines (Step-By-Step Guide)
Obtaining a Mayor’s Permit involves several steps to ensure that your business complies with various local government regulations. Here’s a simplified overview of how to obtain a Mayor’s Permit:
1. Secure a Barangay Business Permit or Clearance.
To secure a Barangay Business Permit or Clearance, file the application at the Barangay Hall where your business is located or at the Business One-Stop Shop (BOSS). Pay also the fees for the permit itself (i.e., usually based on the total floor or office area, e.g., PHP 11.00 per sqm), business plate, and documentary stamp. The permit is usually released on the same day and valid for the calendar year of its issuance.
2. Obtain a Locational Clearance and Zoning Certificate.
To apply for a Locational Clearance and Zoning Certificate, visit the City or Municipal Planning and Development Office (CPDO) or the Land Use and Zoning Office. Requirements usually vary by location. In Taguig City, for instance, a Zoning Certificate and Locational Clearance are both required if the floor area exceeds 10 square meters; otherwise, only the Zoning Certificate is needed.
Submit the notarized application form, together with the supporting documents, such as a Sketch or Google Map, Contract of Lease, Certificate of Occupancy, and Business Registration. The CPDO will evaluate your application, conduct a zoning inspection, and issue an Order of Payment. Once paid, the clearance will be released.
3. File the Application with the BPLO and Pay the Business Tax.
After obtaining the Barangay Business Permit and Locational Clearance, you can already file the Mayor’s Permit Application with the BPLO for local business tax assessment. The Community Tax Certificate (CTC) may be included with the business tax payment or paid separately. Depending on the LGU, the Mayor’s Permit may be issued immediately after payment or after securing the Fire Safety Inspection Certificate (FSIC), Sanitary Permit, and Occupational Health Permit.
4. Process the Fire Safety and Inspection Certificate (FSIC).
The BFP inspection process typically involves six stages: application, inspection scheduling, inspection day, recommendations, compliance period, and follow-up inspection. After receiving the application and payment, BFP will schedule the site visit. If critical recommendations are made, your business will be given a grace period to comply before a follow-up inspection. In most LGUs, the FSIC release can take 2-3 months due to inspection delays, so regular follow-ups are recommended.
5. Process the Sanitary Permit and Occupational Health Permits.
The requirements for a Sanitary Permit to Operate also vary by LGU and the type of business. For food establishments, an Occupational Health Permit is sometimes mandatory and requires medical tests for your employees. There are also LGUs that require attendance at an HIV awareness seminar. If you have no employees yet, your representative or consultant may simply comply with these requirements.
6. Process Other Permits, as required.
The requirement for the City or Municipal Environment and Natural Resources (CENRO) permit, for example, depends on the LGU and the nature of your business operations.
7. Claim the Mayor’s Permit and Other Registration Documents.
Once the FSIC and Sanitary Permit are obtained, you can already submit them to the BPLO for the issuance of the actual Mayor’s Permit and other registration documents. It is important that you keep all these documents, particularly the business tax assessment, official receipts, certificates, and permits, as they will be used in your other business registrations, i.e., statutory, and for business permit renewal purposes.
What are the Fees to Pay?
The application cost varies depending on factors such as the type of business, location, and size of the premises. Fees typically include:
- Barangay Business Permit or Clearance (including Business Plate and Documentary Stamp) (normally based on the total floor or office area (i.e., in square meters) occupied by the business)
- Local Business Tax (for business startups, it is usually assessed based on the total capitalization, nature of business, and the total floor or office area of the business (per City Revenue Code))
- Mayor’s Permit Fees
- Locational Clearance and/or Zoning Certificate
- Building Inspection Fee
- Fire Safety Inspection Fee (based on BFP-prescribed fee)
- Sanitary Inspection Fee (based on the type of establishment)
- Environmental Protection Fee (based on the type of establishment)
- Garbage Fee (based on the type of establishment)
- Business Plate and Sticker
- Others
Other FAQs on Obtaining a Mayor’s Permit
For your additional information and reference, check out these frequently asked questions and their answers:
1. Can the Application Be Processed Online?
There have been ongoing digitization efforts in the Philippine government, as part of R.A. 11032, or “Ease of Doing Business Act.” While some cities and municipalities have already introduced online systems for certain processes, most still require in-person visits and submissions for Mayor’s Permit applications.
2. Can Someone Process the Mayor’s Permit on Behalf of the Business Owner?
Yes, but additional documents to authorize the representative are required. You might also want to entrust the entire business registration process—from SEC or DTI Registration to Employer Registrations to a reliable service provider, like FilePino.
3. How Long Does It Take to Get a Mayor’s Permit?
Timelines for processing a Mayor’s Permit vary depending on the LGU and the complexity of the application. The entire process, from obtaining the Barangay Business Permit to securing the actual Mayor’s Permit, can take a few weeks to a couple of months. Delays are often caused by required fire safety and sanitary inspections.
4. What is the Validity of a Mayor’s Permit?
The Barangay Business Permit, Mayor’s Permit, and other clearances normally expire on the last day of each calendar year, i.e., 31st of December. Renewals are processed from January 01 to January 20 of the following year, unless extensions apply.
5. What are the Best Cities in Metro Manila for Easy Mayor’s Permit Processing?
Cities like Taguig and Muntinlupa stand out for their minimal documentary requirements and streamlined processes that make securing business permits and renewals relatively quick and simple.
6. Can the Mayor’s Permit Be Transferred If the Business Moves to Another Location?
Yes, you will need to update your Mayor’s Permit if you change locations from one city or municipality to another. This typically involves applying for a new Locational Clearance and submitting other updated documents for the new address.
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