5 Things You Need To Know About Business Permits
Obtaining a business permit is one of the big and major steps you must go through to have your business completely registered, especially in the Philippines. Philippine Law requires you to obtain a business and mayor's permit before officially opening and operating a business of your own.
In the Philippines, local government units and municipalities may require different processes and requirements for providing business permits. So first, you have to inquire and research about them so that you will be well-equipped and applying for your business permit will be a breeze.
What Is A Business Permit?
Business permit is a document you need to obtain permission from the local municipality and local government unit (LGU) before you can make your business operate within their territory.
The purpose of a business permit is a key compliance document that entitles and enables a business to operate legally and do business in the area in which the business is registered. It is a foundational document that allows your business to operate within the premises of your city.
The following requirements are often asked for most of the time. These include the following:
DTI or SEC registration certificate
- Barangay Clearance
- Community Tax Certificate
- Lease contract (for the rented property) or tax declaration (for owned properties)
- Building or occupancy permit for newly-constructed buildings or offices
- Special permits and clearances from appropriate government agencies, depending on the nature of your business. These include:
- Fire safety and inspection certificate
- Sanitary permit
- Mechanical permit
- Security permit
- Clearance from the Department of Environment and Natural Resources (DENR)
- Police Clearance
- Certificate of electrical inspection
- Zoning clearance
Another permit that you may need also is the barangay clearance. For your barangay clearance, you may need the following:
- Application Form
- SEC or DTI certificate of registration. Corporations also need to submit their approved articles of incorporation and bylaws.
- Treasurer's Affidavit – this shows that the required paid-in capital has been received by the corporation's treasurer and deposited at the bank.
- Plan/site map of the business's location
- Contract of the lease for the business's office
In addition, you can obtain the community tax certificate, also known as the cedula, from the City or Town Treasurer's Office upon payment of the community or local tax.
You can apply for your business permit at the City or Municipal Hall's Business Permit and Licensing Office. The application process takes within the range of one (1) to two (2) weeks. After the application process, you will get a business plate and sticker, which must be prominently displayed at your company's premises.
The steps are:
- Firstly, fill out, notarize and submit the application form. Submit it with the other requirements and clearances.
- Secondly, the BPLO will assess your application. If all your submissions are in order, BPLO will issue an Order of Payment detailing the total fees you need to pay. Business permit fees vary depending on the local government's fee structure. Another factor will be the business's nature and the rented office's size.
- Pay the fees. Don't forget to get your receipt.
- Claim your business permit with your receipt one (1) to two (2) weeks later.
Angelo Castelda works as a contributor for a news magazine in Asia. He loves to learn and understand diverse cultures and aims to share through his writing his experiences around the world.