When you want to start a business, you will need to get a business permit (also known as Mayor’s permit), as this is required by the government. Otherwise, you can’t do business anywhere here in the Philippines. In the past, getting a mayor’s permit for your business is a lengthy process that lasts for even months! This means that you have to bear the hassles of going back to the city hall or municipal hall every now and then. Today, the process of getting a mayor’s permit for your business is much easier. Thanks to digital technology you can get some requirements online.
When doing business, you want your enterprise to have proof of legitimacy. The business permit proves that your endeavor is not a fraudulent one or a scam.
So, how do you get a Mayor’s permit? You may want to follow these simple steps to optimize your time.
Steps, Requirements, and Procedures in Getting Your Business (Mayor’s) Permit:
First, we will start with the DTI registration.
The Department of Trade and Industry or DTI registration is a prerequisite in obtaining your Barangay Clearance and Business Permit (Mayor’s Permit). The registration allows you to register your business name.
Step 1: Registering your Business Name with DTI
Please read our guide on how to register a business name online.
Step 2: Obtaining your Barangay Clearance
Now, go to the barangay hall that has jurisdiction over your business address.
- Certificate of Business Name Registration (DTI)
- Contract of Lease (if you are renting)
- Land Title of Tax Declaration (if you are the owner of your business address)
- Homeowner’s Association Certificate (if you want to operate in a village or subdivision)
- Go to the barangay hall which has the authority over your business location.
- Ask for the Business Permit Application Form.
- Fill out the application form and submit it with the needed requirements.
- Wait for the assessment of the barangay, pay the fees and keep the receipt.
The barangay hall usually issues the barangay permit on the same day of application. Otherwise, you can get it the following day.
Step 3: City Hall/Municipal Hall – Processing Your Business Permit (Mayor’s Permit)
Now that you have secured your Certificate of Business Name Registration and Barangay Clearance, you are now one step away from getting your business permit from the city hall or municipal hall.
Here is the list of all the requirements you will need in getting a business permit:
- Business Name Registration with DTI (Department of Trade and Industry)
- Barangay Clearance
- Contract of lease/Land Title or Tax Declaration
- Sketch of Location
- Occupancy Permit
- Locational Clearance
- Public Liability Insurance
- Community Tax Certificate (Cedula)
- Fire Permit
- Sanitary Permit
Also, depending on the nature of your business, other certificates or permits may be required, such as:
- LTO (Land Transportation Office) Franchising and Regulatory Board Permit (for transportation services).
- DTI accreditation (for electrical equipment services and auto repair services)
- Bureau of Food and Drug Administration Permit (for bakeries and drugstores)
- NFA (National Food Authority) License (for dealership of wheat, rice, and corn)
- Real Estate Broker’s License by DTI (for real estate brokerage firms)
- Energy Regulatory Board Permit (ERB) (for LPG dealerships)
- Go to your City Hall or Municipal Hall and proceed to the Business Permits and Licensing Office (BLPO).
- Go to the Engineering Department and get your Certificate of Electrical Inspection.
- Acquire your Health and Sanitation Permit from the Sanitary Office.
- Head to the Bureau of Fire Protection (BFP) and let them inspect your area.
- Get your zoning clearance at the Office of the Municipal Planning and Development Coordinator.
- Return to the Bureau of Fire Protection to obtain your Fire Safety Permit.
- Head to the cashier of Business Permits and Licensing Office (BLPO) to pay all the fees.
After you have paid, you can now claim your Business Permit (Mayor’s Permit) within 3 days.
Step 4: The BIR
Also, you should register your business with the Bureau of Internal Revenue (BIR).
Sole proprietorship businesses have requirements that are different from that of partnerships or corporations.
Sole Proprietorship Requirements:
- BIR Form 1990
- Photocopy of Business Permit/Mayor’s Permit
- NSO Certified Birth Certificate
- Business Name Registration with DTI
New Application of Authority to Print (ATP) Requirements:
- BIR Form 1990
- Job Order
- Final and clear sample of Principal and Supplementary Receipts/Invoices
Procedure for Sole Proprietorship:
- Go to the revenue district office (RDO) which has control over the location of your business and submit all requirements.
- Pay the Annual Registration Fee of P500.00 to an accredited bank of your RDO and pay for your Documentary Stamp Tax (DST). Keep the receipts.
Procedure for New Application of Authority to Print (ATP):
- Submit all requirements for ATP.
- Attend the taxpayer’s initial briefing which is held in the RDO.
- RDO shall then issue Certificate of Registration (Form 2303, “Ask for Receipt” notice, Authority to Print, and Books of Accounts.
You may refer to our complete guide on BIR Business Registration.
Getting a business (Mayor’s) permit may be a hassle, but you will feel fulfilled and rewarded once you have successfully operated your business. With that, you can say that hard work indeed pays off in the end!