To get a Mayor’s Permit in the Philippines, you first register your business as a legal entity, collect a barangay clearance and premises certificates, file a unified application at the Business One-Stop Shop of the city or municipality where you operate, pay the assessed business tax and fees, and then register with the Bureau of Internal Revenue within 30 days. The permit is issued by the local government unit (LGU) where your office or storefront sits, and it must be renewed every year.
Register Your Business Entity First
City hall will not process a Mayor’s Permit application without proof that your business legally exists. What you need depends on how the business is structured.
- If you are a sole proprietor, register your business name through the Department of Trade and Industry’s Business Name Registration System to obtain a Certificate of Business Name Registration.1Business Name Registration System. Business Name Registration System – New Registration
- If you are forming a corporation or partnership, secure a Certificate of Incorporation or Certificate of Recording from the Securities and Exchange Commission.2Securities and Exchange Commission. SEC Company Registration Application
Keep the original certificate. You will attach a copy to your permit application, and the LGU may ask to see the original at the filing window.
Get a Barangay Business Clearance
Visit the Barangay Hall covering the address of your business and apply for a Barangay Business Clearance. Under the Local Government Code, the city or municipality cannot process your permit application without this clearance from the barangay.3The LawPhil Project. Republic Act No. 7160 – The Local Government Code of 1991 Fees and processing times vary by barangay, but this is usually the fastest step in the sequence.
Secure Clearances for Your Premises
Two documents cover the physical location itself.
The Certificate of Occupancy confirms that the building is safe and approved for commercial use under the National Building Code (PD 1096). Occupying a building without one can result in administrative fines of up to ₱10,000. If you are leasing space that already has a Certificate of Occupancy, ask your landlord for a copy.
The Fire Safety Inspection Certificate (FSIC), issued by the Bureau of Fire Protection, certifies that your premises comply with the Fire Code of the Philippines (RA 9514). The FSIC expires alongside your business permit on December 31 each year, so you will need a fresh one at every renewal.
Handle Industry-Specific Licenses
Some businesses need a national regulator’s license before the LGU will act. The most common is the Food and Drug Administration’s License to Operate (LTO), which covers drugstores, pharmacies, food manufacturers, medical device retailers, and other health product establishments.4Food and Drug Administration. Updated Guidelines on the Application for License to Operate of Health Product Establishments Drugstores must operate under a registered pharmacist with proper storage and dispensing controls. Food businesses must comply with the Code of Sanitation (PD 856) and follow hazard analysis and sanitation procedures.
The initial FDA LTO is valid for five years, and renewals last ten. Applications go through the FDA’s online portal and require a pre-licensing inspection before approval.4Food and Drug Administration. Updated Guidelines on the Application for License to Operate of Health Product Establishments If your business is not in a regulated category, skip this step and move on to the application form.
Fill Out the Unified Business Application Form
The Unified Business Application Form is the central document every LGU uses. Most cities post it on their websites, so you can complete it at home before your visit. Be ready to provide:
- The total floor area of your premises in square meters
- The number of employees on your payroll
- Your Tax Identification Number
- Your DTI or SEC registration number
- For new businesses, your total capital investment (paid-up capital plus lease expenses and equipment)
- For existing businesses, gross sales from the previous year
These figures drive the tax computation that determines how much you owe. The form typically carries a declaration signed under penalty of perjury rather than a notarized oath, and supplying false data gives the LGU grounds to revoke the permit and pursue legal action. Fill in every field. Missing information is the most common reason applications get bounced back, and each return trip costs you a day.
File Through the Business One-Stop Shop
Republic Act No. 11032 requires every city and municipality to run a Business One-Stop Shop (BOSS) that consolidates the offices involved in permit processing under one roof or one online portal.5The LawPhil Project. Republic Act No. 11032 – Ease of Doing Business and Efficient Government Service Delivery Act of 2018 You submit your completed application package once, and the BOSS routes it internally to treasury, zoning, fire protection, and health.
Many larger cities operate electronic BOSS portals that let you file, track, and pay online. Smaller municipalities may still route applications manually, but the single-window model means you should only be dealing with one receiving officer. After submission, the application moves through departmental reviews including sanitary inspection, zoning verification against the local land-use plan, and fire safety confirmation.
Pay the Assessed Business Tax and Fees
Once the departmental reviews clear, the LGU issues an assessment. The largest line item is the local business tax, set by the Local Government Code at rates that vary by industry and revenue bracket.3The LawPhil Project. Republic Act No. 7160 – The Local Government Code of 1991 Businesses dealing in essential commodities such as rice, corn, medicine, cooking oil, and school supplies pay half the rates that would otherwise apply to their category.
The assessment sheet also carries the mayor’s permit fee itself, garbage collection charges, sanitary and building inspection fees, and other regulatory charges that vary by LGU. Settle everything at the City or Municipal Treasurer’s Office. The Official Receipt is your proof of payment for the fiscal year, and it is the last piece the office needs before your permit gets printed and signed.
You Can Split the Business Tax Into Quarterly Payments
The Local Government Code lets you divide the local business tax into four equal installments due on January 20, April 20, July 20, and October 20. Only the business tax qualifies. All other fees on the assessment (sanitary, zoning, garbage, and the permit fee itself) must be paid in full at the time of filing.
Register With the BIR Within 30 Days
The Mayor’s Permit is not the finish line. You must register with the Bureau of Internal Revenue within 30 calendar days of the permit’s issuance.6Bureau of Internal Revenue. BIR Citizens Charter – RDO External Service In some cases the 30-day clock starts from the date of your DTI certificate, whichever triggers first.
BIR registration involves obtaining a Certificate of Registration, having your books of accounts stamped, and getting official receipts and invoices printed by an accredited printer. Nobody at city hall will remind you about this deadline. Mark it on your calendar the day you pick up your permit; missing the 30-day window exposes you to penalties and compromise fees from the BIR.
Yearly Validity and Renewal
Every Mayor’s Permit expires on December 31 of the year it was issued, no matter when in the year you first got it. The renewal window opens on January 1 and closes on January 20. Miss it and expect a surcharge of up to 25% on the unpaid tax plus 2% monthly interest until you settle.7Bureau of Local Government Finance. Memorandum Circular No. 01-2020 – Updated Reminders on Local Business Tax and Business Permits Some LGUs pass ordinances extending the window into February, but do not count on this.
What Happens If You Operate Without One
A business running without a valid Mayor’s Permit can be shut down by a cease-and-desist order from the LGU, and for repeat violators or those posing health and safety risks, the mayor has authority to order permanent closure under the general welfare powers of the Local Government Code.3The LawPhil Project. Republic Act No. 7160 – The Local Government Code of 1991 Monetary fines are set by each LGU’s local revenue ordinance but commonly range from ₱1,000 to ₱20,000 depending on business size, with some cities imposing daily accrual penalties for continued operation after notice.
You also face back taxes. The LGU will calculate what you would have owed for every period you operated without a permit and bill you for the full amount plus surcharges. Local ordinances implementing the Local Government Code treat unpermitted operation as a misdemeanor, which can carry imprisonment of up to six months, a fine, or both. Compliance is cheaper than the combined penalties, back taxes, and lost revenue from a forced closure.