{"id":10280,"date":"2026-08-28T07:09:25","date_gmt":"2026-08-28T07:09:25","guid":{"rendered":"https:\/\/scaleocean.com\/ph\/blog\/?p=10280"},"modified":"2026-09-08T03:32:27","modified_gmt":"2026-09-08T03:32:27","slug":"business-permit","status":"publish","type":"post","link":"https:\/\/scaleocean.com\/ph\/blog\/executive-guide\/business-permit","title":{"rendered":"Business Permit Requirements &#038; How to Compute in Philippines"},"content":{"rendered":"<p>Business permit, or also known as a mayor&#8217;s permit, is a <strong>requirement needed in order to legally run a business in the Philippines<\/strong>. It is a document provided by the city or municipality in which your business is registered stating that your business meets all of the local requirements.<\/p>\n<p><strong>For the first-time business owner, the process of applying for a business permit may be confusing<\/strong>. Conditions, costs, taxes and the rules for renewals may vary from one LGU to another, according to the type of business and its location.<\/p>\n<p>Knowing the distinction between the cost of permits, local business taxes and regulatory costs can assist you in budgeting correctly and prevent mistakes. <strong>This guide provides information on business permits in the Philippines<\/strong> that you need to keep your businesses compliant.<\/p>\n<div class=\"box-article-points\" style=\"background: #0d58a2; border-radius: 16px;\">\n<div class=\"heading-article-points\" style=\"display: flex; color: #fff;\"><img loading=\"lazy\" decoding=\"async\" src=\"\/sg\/blog\/wp-content\/uploads\/2025\/03\/icon-key-ta.webp\" alt=\"stars\" width=\"30\" height=\"30\" \/>Key Takeaways<\/div>\n<div class=\"content-article-points\" style=\"background-color: #f6f9ff;\">\n<ul>\n<li><a href=\"#business-permit\"><strong>A business permit is<\/strong><\/a> required for any business activity conducted in the Philippines; the requirements and fees are based on the LGU, business activity and location.<\/li>\n<li><a href=\"#differences-between-permits\"><strong>Mayor\u2019s permit, Barangay Clearance, and local business tax<\/strong><\/a> serve different purposes, even though they may be processed together through the BPLO.<\/li>\n<li><a href=\"#documents-business-permits\"><strong>Business permit documents are<\/strong><\/a> business registration documents, local clearances, address, safety and health certificate and previous permits for renewal.<\/li>\n<li>As businesses grow across locations, <strong>ScaleOcean Atlas<\/strong> can streamline operations, provide visibility, and minimize manual tasks.<\/li>\n<\/ul>\n<p><a class=\"cta-link-button\" href=\"https:\/\/scaleocean.com\/ph\/request-demo\/\" target=\"_blank\" rel=\"noopener\">Book a Consultation!<\/a><\/p>\n<\/div>\n<\/div>\n<h2><strong>1. Understanding Business Permits in the Philippines<\/strong><\/h2>\n<p><span id=\"business-permit\"><\/span>A business permit is a <strong>local authorization issued by the local authorities<\/strong> to an individual or company for operating business within the local city or municipality. It is frequently issued via the LGU&#8217;s Business Permits and Licensing Office (BPLO) and may be issued together with the City or Municipal Treasurer and other government agencies.<\/p>\n<p>Under the <a href=\"https:\/\/www.officialgazette.gov.ph\/1991\/10\/10\/republic-act-no-7160\/\" target=\"_blank\" rel=\"nofollow noopener\"><strong>Local Government Code of 1991<\/strong><\/a><strong> (Republic Act No. 7160)<\/strong>, the LGUs are authorized to impose local taxes, fees or charges on businesses operating in their jurisdiction.<\/p>\n<p>Under Section 151, cities may impose the same taxes, fees and charges as provinces and municipalities, and <strong>may set rates up to 50%<\/strong> higher than the maximums allowed for them; except for professional and amusement taxes. The payment may vary according to:<\/p>\n<ul>\n<li>Business activity or industry.<\/li>\n<li>Location of the business.<\/li>\n<li>Gross sales\/receipts.<\/li>\n<li>Capital investment or paid-up capital, particularly for newly established businesses.<\/li>\n<li>Number of employees.<\/li>\n<li>Required inspections and permits.<\/li>\n<\/ul>\n<p>The distinction is important: a mayor&#8217;s permit is not <strong>the same thing as the local business tax under Section 143<\/strong>. The permit is the local authorization to operate (the one granted by the LGU regulatory and\/or police power) and the business tax is a local tax on qualified business activities on the basis of gross receipts or sales.<\/p>\n<p>Often they are processed and paid as a single package via the BPLO, but they are based on different legal requirements. Specific needs will need to be <strong>confirmed with the BPLO in the city or municipality<\/strong> where the business is located.<\/p>\n<p>For first-time business owners, navigating these local requirements can feel complex. Beside securing local permits, <strong>consulting a <a href=\"https:\/\/scaleocean.com\/ph\/blog\/executive-guide\" target=\"_blank\" rel=\"noopener\">comprehensive executive guide<\/a> can help ensure your business stays fully compliant<\/strong> across all operational workflows.<\/p>\n<h2><strong>2. Mayor\u2019s Permits vs. Barangay Business Permit vs. Local Business Tax<\/strong><\/h2>\n<p><span id=\"differences-between-permits\"><\/span>These terms are often <strong>used interchangeably but they have different uses<\/strong>. The table below is a quick comparison between the mayor&#8217;s permits, Barangay Business Permit and local business tax:<\/p>\n        <div class=\"wpgentab-main-table \">\n                        <style>\n                .btn-table {\n                    display: inline-block;\n                    padding: 6px 12px;\n                    border-radius: 4px;\n                    text-decoration: none;\n                    font-size: 14px;\n                    background: #2563eb;\n                    color: #fff;\n                    border: none;\n                    cursor: pointer;\n                }\n                .btn-table:hover {\n                    opacity: 0.9;\n                }\n            <\/style>\n                            <div  style=\"max-height: 80vh; overflow-y: auto;\">\n                        <table style=\"width: 100%; border-collapse: collapse; margin-bottom: 1rem; width: 100%; border: 1px solid #424242\">\n                <thead style=\"position: sticky; top: 0; z-index: 10;\">\n                    <tr>\n                                                                                <th style=\"padding: 12px; text-align: center; font-weight: bold; font-size: 14px; background-color: #0e1c37; color: #ffffff; border: 1px solid #424242;\">\n                                Requirement                            <\/th>\n                                                                                <th style=\"padding: 12px; text-align: center; font-weight: bold; font-size: 14px; background-color: #0e1c37; color: #ffffff; border: 1px solid #424242;\">\n                                What It Is                            <\/th>\n                                                                                <th style=\"padding: 12px; text-align: center; font-weight: bold; font-size: 14px; background-color: #0e1c37; color: #ffffff; border: 1px solid #424242;\">\n                                Issued\/Collected By                            <\/th>\n                                                                                <th style=\"padding: 12px; text-align: center; font-weight: bold; font-size: 14px; background-color: #0e1c37; color: #ffffff; border: 1px solid #424242;\">\n                                Main Purpose                            <\/th>\n                                            <\/tr>\n                <\/thead>\n                <tbody>\n                                                                                        <tr style=\"padding: 12px; border: 1px solid #424242; color: #475569;  background-color: #f0f1f8;\">\n                                                                                            <td style=\"padding: 12px; border: 1px solid #424242; color: #475569;  background-color: #f0f1f8;\">\n                                    <div class=\"wpgentab-rich-text\"><p><strong>Mayor\u2019s Permit<\/strong><\/p><\/div>                                <\/td>\n                                                                                            <td style=\"padding: 12px; border: 1px solid #424242; color: #475569;  background-color: #f0f1f8;\">\n                                    <div class=\"wpgentab-rich-text\"><p>A local business license or permit to operate a business<\/p><\/div>                                <\/td>\n                                                                                            <td style=\"padding: 12px; border: 1px solid #424242; color: #475569;  background-color: #f0f1f8;\">\n                                    <div class=\"wpgentab-rich-text\"><p>City or municipal government, usually through the BPLO<\/p><\/div>                                <\/td>\n                                                                                            <td style=\"padding: 12px; border: 1px solid #424242; color: #475569;  background-color: #f0f1f8;\">\n                                    <div class=\"wpgentab-rich-text\"><p>Authorizes a business to operate within the LGU<\/p><\/div>                                <\/td>\n                                                    <\/tr>\n                                                                    <tr style=\"padding: 12px; border: 1px solid #424242; color: #475569;  background-color: #f0f1f8;\">\n                                                                                            <td style=\"padding: 12px; border: 1px solid #424242; color: #475569;  background-color: #f0f1f8;\">\n                                    <div class=\"wpgentab-rich-text\"><p><strong>Barangay Clearance<\/strong><\/p><\/div>                                <\/td>\n                                                                                            <td style=\"padding: 12px; border: 1px solid #424242; color: #475569;  background-color: #f0f1f8;\">\n                                    <div class=\"wpgentab-rich-text\"><p>A clearance confirming the business is recognized within the barangay<\/p><\/div>                                <\/td>\n                                                                                            <td style=\"padding: 12px; border: 1px solid #424242; color: #475569;  background-color: #f0f1f8;\">\n                                    <div class=\"wpgentab-rich-text\"><p>Barangay government<\/p><\/div>                                <\/td>\n                                                                                            <td style=\"padding: 12px; border: 1px solid #424242; color: #475569;  background-color: #f0f1f8;\">\n                                    <div class=\"wpgentab-rich-text\"><p>Serves as a prerequisite for securing a local business license or permit<\/p><\/div>                                <\/td>\n                                                    <\/tr>\n                                                                    <tr style=\"padding: 12px; border: 1px solid #424242; color: #475569;  background-color: #f0f1f8;\">\n                                                                                            <td style=\"padding: 12px; border: 1px solid #424242; color: #475569;  background-color: #f0f1f8;\">\n                                    <div class=\"wpgentab-rich-text\"><p><strong>Local Business Tax (LBT)<\/strong><\/p><\/div>                                <\/td>\n                                                                                            <td style=\"padding: 12px; border: 1px solid #424242; color: #475569;  background-color: #f0f1f8;\">\n                                    <div class=\"wpgentab-rich-text\"><p>A local tax imposed on qualified business activities<\/p><\/div>                                <\/td>\n                                                                                            <td style=\"padding: 12px; border: 1px solid #424242; color: #475569;  background-color: #f0f1f8;\">\n                                    <div class=\"wpgentab-rich-text\"><p>City or municipal government<\/p><\/div>                                <\/td>\n                                                                                            <td style=\"padding: 12px; border: 1px solid #424242; color: #475569;  background-color: #f0f1f8;\">\n                                    <div class=\"wpgentab-rich-text\"><p>Generates local revenue from businesses operating within the jurisdiction<\/p><\/div>                                <\/td>\n                                                    <\/tr>\n                                    <\/tbody>\n            <\/table>\n                            <\/div>\n            \n            <style>\n                .wpgentab-main-table tbody tr:hover td {\n                    background-color: #f1f5f9 !important;\n                }\n            <\/style>\n        <\/div>\n        \n<h2><strong>3. The Requirements to Apply for a Business Permit<\/strong><\/h2>\n<p><span id=\"documents-business-permits\"><\/span>The list of requirements is <strong>not fixed for all businesses in the Philippines<\/strong>. Different requirements apply depending on business scope and Local Government Unit (LGU). But there is a set of core documents that must be submitted to get a mayor&#8217;s permit:<\/p>\n<ul>\n<li><strong>Business Registration Documents<\/strong>: DTI business name registration (for sole proprietorships), SEC registration documents (for corporations and partnerships), or CDA registration (for cooperatives).<\/li>\n<li><strong>Local Clearances<\/strong>: Barangay Clearance, Locational or Zoning Clearance, and Community Tax Certificate (Cedula).<\/li>\n<li><strong>Proof of Business Address<\/strong>: Registered Contract of Lease (if renting) or Land Title \/ Tax Declaration (if owned).<\/li>\n<li><strong>Safety and Health Clearances<\/strong>: Fire Safety Inspection Certificate (FSIC), Sanitary Permit, and health cards for applicable staff.<\/li>\n<li><strong>Renewal Requirements<\/strong>: Previous business permit and official payment receipts (for annual renewals).<\/li>\n<\/ul>\n<p><strong>Local guidelines include any additional information<\/strong>, such as the Makati BPLO business permit checklist which requires an official inspection report, public liability insurance, a notarized application form, and other documents.<\/p>\n<h2><strong>4. How Much Do You Have to Pay for a Mayor\u2019s Permit?<\/strong><\/h2>\n<p>When budgeting for your mayor\u2019s permit, it\u2019s important to understand that what many people call the \u201cpermit fee\u201d is actually a bundle of different charges.<strong> That will ensure that you <\/strong>avoid unexpected expenses and have a better idea of what to expect when you plan your startup or renewal.<\/p>\n<ul>\n<li><strong>Local Business Tax (LBT)<\/strong>: It\u2019s based on gross sales\/receipts or capital.<\/li>\n<li><strong>Mayor\u2019s Permit Fee<\/strong>: Fixed amount or small percentage of sales\/capital.<\/li>\n<li><strong>Barangay Clearance Fee<\/strong>: Typically PHP 500-2,000 depending on the barangay and business size.<\/li>\n<li><strong>Regulatory &amp; Inspection Fees<\/strong>, such as:\n<ul>\n<li>Fire Safety Inspection Fee.<\/li>\n<li>Sanitary\/Health Permit Fee.<\/li>\n<li>Garbage\/Cleaning Fee.<\/li>\n<li>Signage\/Advertising Fee.<\/li>\n<li>Zoning\/Locational Clearance Fee.<\/li>\n<li>Fees per employee, vehicles, or equipment (if applicable).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Not all of these fees apply to every business<\/strong>, for example small home-based online shops may only pay barangay clearance, LBT, and a basic permit fee, while a restaurant or factory may need to pay for fire, sanitary, signage, zoning, and other specialized clearances.<\/p>\n<h3>Example of a Business Permit in Makati<\/h3>\n<p>For instance, Makati, as a city, can impose higher rates than municipalities (up to 50% above standard ceilings under RA 7160, Sec. 151). Assume a<strong> retail store in its second year<\/strong> operating\u00a0in Makati with:<\/p>\n<ul>\n<li><strong>Paid-up capital<\/strong>: PHP 1,000,000<\/li>\n<li><strong>Estimated gross sales (first year)<\/strong>: PHP 3,000,000<\/li>\n<\/ul>\n<p>Typical components (illustrative; actual rates must be checked with Makati BPLO):<\/p>\n<ul>\n<li><strong>Local Business Tax<\/strong> (based on gross sales):\n<ul>\n<li>Example rate: 1% on first PHP 400,000; 1.5% on excess<\/li>\n<li>Tax = (1% \u00d7 400,000) + (1.5% \u00d7 2,600,000) = 4,000 + 39,000 = <strong>PHP 43,000<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Mayor\u2019s Permit Fee<\/strong>: e.g., fixed PHP 1,000-5,000 depending on ordinance<\/li>\n<li><strong>Barangay Clearance<\/strong>: ~PHP 1,000-2,000<\/li>\n<li><strong>Fire Safety, Sanitary, Garbage, Signage, etc.<\/strong>: could total another PHP 3,000-10,000+ depending on floor area, signage size, and business type.<\/li>\n<\/ul>\n<p>Total could range roughly <strong>PHP 50,000-70,000+<\/strong> for the year, depending on exact Makati ordinances and additional fees.<\/p>\n<p><span style=\"text-decoration: underline;\"><strong>Note:<\/strong><\/span> The above calculation is provided for illustrative processes only. Please consult with accountants and\/or consultants and refer to regulations that apply to your business.<\/p>\n<h2><strong>5. How to Compute Your Philippine Business Permit<\/strong><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-10286 size-full\" src=\"https:\/\/scaleocean.com\/ph\/blog\/wp-content\/uploads\/2026\/08\/how-to-compute-your-Philippines-business-permit.webp\" alt=\"how to compute Philippine business permit\" width=\"847\" height=\"460\" srcset=\"https:\/\/scaleocean.com\/ph\/blog\/wp-content\/uploads\/2026\/08\/how-to-compute-your-Philippines-business-permit.webp 847w, https:\/\/scaleocean.com\/ph\/blog\/wp-content\/uploads\/2026\/08\/how-to-compute-your-Philippines-business-permit-300x163.webp 300w, https:\/\/scaleocean.com\/ph\/blog\/wp-content\/uploads\/2026\/08\/how-to-compute-your-Philippines-business-permit-768x417.webp 768w, https:\/\/scaleocean.com\/ph\/blog\/wp-content\/uploads\/2026\/08\/how-to-compute-your-Philippines-business-permit-773x420.webp 773w, https:\/\/scaleocean.com\/ph\/blog\/wp-content\/uploads\/2026\/08\/how-to-compute-your-Philippines-business-permit-150x81.webp 150w, https:\/\/scaleocean.com\/ph\/blog\/wp-content\/uploads\/2026\/08\/how-to-compute-your-Philippines-business-permit-696x378.webp 696w\" sizes=\"auto, (max-width: 847px) 100vw, 847px\" \/><\/p>\n<p>The first step in knowing <strong>how to compute business permit tax in the Philippines<\/strong> is to be aware that the computation is not necessarily one national formula. A practical approach is:<\/p>\n<h3>a. Step 1: Identify your LGU<\/h3>\n<p>Determine the city or municipality <strong>where your business establishment is located<\/strong>. Look into its current revenue code, BPLO requirements and fee schedule. The local ordinance is important because it localizes the tax rate that LGUs are authorized to set under national legislations.<\/p>\n<h3>b. Step 2: Determine your business classification<\/h3>\n<p>The local business tax varies <strong>depending on your business activity<\/strong>. For instance, the Local Government Code classifies manufacturers, wholesalers, retailers, contractors, banks and financial institutions, and others as different types of businesses.<\/p>\n<h3>c. Step 3: Determine the applicable tax base<\/h3>\n<p>Local business tax is usually based on <strong>gross sales or receipts of the previous calendar year for many businesses<\/strong>. The Supreme Court has acknowledged that Section 143 of the Local Government Code is based on gross sales\/receipts for various business taxes.<\/p>\n<p><strong>For example<\/strong>:<\/p>\n<div style=\"background-color: #002141; color: #ffffff; width: 100%; padding: 20px 0; box-sizing: border-box; text-align: center;\">\n<p style=\"font-size: 20px; font-weight: bold; color: #ffffff !important; margin: 0; padding: 15px 20px;\" contenteditable=\"true\">Local Business Tax = Applicable Tax Base \u00d7 Applicable Local Tax Rate<\/p>\n<\/div>\n<p>However, some LGUs use <strong>graduated schedules rather than a simple percentage<\/strong>. So, it would be prudent to take the particular schedule as given in your city\/municipality&#8217;s revenue ordinance.<\/p>\n<h3>d. Step 4: Calculate the Mayor\u2019s Permit fee<\/h3>\n<p>The mayor&#8217;s permit fee<strong> will be in addition to the local business tax<\/strong>. Some LGUs charge the business a flat fee, some charge the business permit fees based on business activity, capitalization, employees, floor area, etc. For instance, Makati has different rates for the Mayor&#8217;s Permit for businesses of various categories.<\/p>\n<h3>e. Step 5: Add applicable regulatory fees<\/h3>\n<p><strong>Once the business tax and permit fee have been calculated<\/strong>, other charges like Barangay clearance fee, fire safety inspection fee, sanitary permit or other industry-specific permits may be applied.<\/p>\n<p>In terms of fire safety, the BFP&#8217;s Citizens Charter provides that the applicable Fire Code rules shall apply and for fire safety the fee for all transactions involving business permits shall be <strong>15% of the total fee charged by the LGU or PEZA<\/strong>, not less than \u20b1500.<\/p>\n<h3>f. Step 6: Check whether payment is annual or quarterly<\/h3>\n<p>Under Section 165 of RA 7160, local taxes, fees, and charges generally<strong> cover the calendar year and may be paid in quarterly<\/strong> installments unless otherwise provided.<\/p>\n<p><strong>Section 167 generally sets payment within the first 20 days of January<\/strong> or the relevant subsequent quarter, although the local sanggunian may extend the deadline for a justifiable reason, subject to the law. So, a simplified way to think about the total is:<\/p>\n<div style=\"background-color: #002141; color: #ffffff; width: 100%; padding: 20px 0; box-sizing: border-box; text-align: center;\">\n<p style=\"font-size: 20px; font-weight: bold; color: #ffffff !important; margin: 0; padding: 15px 20px;\" contenteditable=\"true\">Total Business Permit Cost = Local Business Tax + Mayor\u2019s Permit Fee + Barangay Fees + Regulatory Fees + Other Applicable Charges<\/p>\n<\/div>\n<p><strong>Remember that this is a planning formula<\/strong>, not the government formula. You should always follow the current ordinance and assessment provided by your LGU, before proceeding with your actual assessment.<\/p>\n<h2><strong>6. Penalties if You Fail to Apply or Renew Your Mayor\u2019s Permit<\/strong><\/h2>\n<p>Lack of a business permit or failure to renew your business permit <strong>can result in further costs and compliance problems<\/strong>. The local government code provides the following penalties for businesses:<\/p>\n<ul>\n<li><strong>Surcharges on Unpaid Taxes and Fees:<\/strong> Under Section 168 of the Local Government Code, an LGU may impose a surcharge of up to 25% on unpaid local taxes, fees, or charges, depending on the applicable local ordinance.<\/li>\n<li><strong>Interest on Late Payments:<\/strong> Unpaid local taxes, fees, or charges may also be subject to interest of up to 2% per month, including the surcharge, subject to the statutory limit on accumulated interest.<\/li>\n<li><strong>Collection Actions:<\/strong> LGUs may use administrative or judicial remedies to collect delinquent local taxes, fees, and other charges under the Local Government Code.<\/li>\n<li><strong>Operating Without a Valid Permit:<\/strong> Failing to renew your Mayor\u2019s Permit may leave your business operating without the local authorization required by the applicable LGU, potentially resulting in additional compliance issues.<\/li>\n<li><strong>Different Rules Across LGUs:<\/strong> Penalties, fees, and renewal procedures can vary by city or municipality. Businesses should check their LGU&#8217;s current revenue code and BPLO guidelines rather than assuming that every location applies the same rates.<\/li>\n<li><strong>Annual Renewal Deadlines:<\/strong> Under Section 167 of the Local Government Code, the general payment period for annual local taxes, fees, and charges is within the first 20 days of January, unless otherwise provided or extended by the local government.<\/li>\n<li><strong>Makati Renewal Schedule:<\/strong> For businesses in Makati, the city&#8217;s Revenue Code provides for the revalidation of permits and licenses during the first 20 days of January each year.<\/li>\n<\/ul>\n<p>Therefore, staying ahead of renewal deadlines, keeping your local tax, and fees updated can <strong>help prevent unnecessary penalties and interruptions to business operations<\/strong>.<\/p>\n<h2><strong>7. In Conclusion<\/strong><\/h2>\n<p>A business permit, or mayor\u2019s permit, <strong>is essential for legally operating a business<\/strong> in the Philippines. Since requirements and fees vary by LGU, understanding your local rules helps you stay compliant and avoid unexpected costs or delays.<\/p>\n<p>Your total cost depends on your <strong>LGU, business classification, gross sales or receipts, and applicable fees<\/strong>. These may include local business tax, permit fees, barangay clearance, fire safety, sanitary, zoning, and other regulatory charges.<\/p>\n<p><strong>To stay compliant<\/strong>, keep your business documents updated, track gross sales accurately, monitor renewal deadlines, maintain copies of permits, and other supporting records for reference.<\/p>\n<p>As your business grows, manually tracking taxes, permits, fees, and operational records across locations can become challenging. <strong>ScaleOcean Atlas<\/strong> helps centralize business data, improve operational visibility, and reduce manual work as your business expands.<\/p>\n<p>If you&#8217;re in need of a more structured document and accounting management, consider <a href=\"https:\/\/scaleocean.com\/ph\/request-demo\/\" target=\"_blank\" rel=\"noopener\"><strong>scheduling a consultation<\/strong><\/a> with us to discuss how the platform can support your business needs and growth.<\/p>\n<div class=\"faq-content\">\n<h2>FAQ:<\/h2>\n<details>\n<summary>1. How much is the business permit fee in the Philippines?<\/summary>\n<p>A business permit (Mayor&#8217;s Permit) normally carries a fee of between \u20b15,000 to \u20b115,000 for MSMEs. The total amount, however, depends on the LGU, the type of business, size of the location and the initial capitalization or annual gross sales.<\/p>\n<\/details>\n<details>\n<summary>2. Is a business permit the same as BIR?<\/summary>\n<p>No. Obtaining a business permit from your Local Government Unit (LGU) is a permit to do business in your area, while BIR registration registers your business for tax compliance and official invoicing.<\/p>\n<\/details>\n<details>\n<summary>3. Does a small business need a business permit?<\/summary>\n<p>Yes. In the Philippines, even micro and small businesses such as home businesses or online sellers need to get a business permit from their local LGU before they open their businesses.<\/p>\n<\/details>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Business permit, or also known as a mayor&#8217;s permit, is a requirement needed in order to legally run a business in the Philippines. It is a document provided by the city or municipality in which your business is registered stating that your business meets all of the local requirements. For the first-time business owner, the [&hellip;]<\/p>\n","protected":false},"author":25,"featured_media":10285,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"powered_cache_disable_cache":false,"footnotes":""},"categories":[129],"tags":[],"class_list":["post-10280","post","type-post","status-publish","format-standard","has-post-thumbnail","category-executive-guide"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Business Permit: Requirements, Fees &amp; How to Compute in PH<\/title>\n<meta name=\"description\" content=\"A business permit in the Philippines, or mayor\u2019s permit, helps businesses operate legally. 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