Business Permits in the Philippines: Who Needs Them and How to Get One

April 15, 2025 rohitsingh

Setting up a business in a new country can be both exciting and overwhelming. If you’re considering expanding into Southeast Asia, the Philippines offers a dynamic market with a young, English-speaking population and strong economic potential. But before you start operations, there’s a vital requirement you can’t skip—getting your business permits.

In this post, we’ll walk you through the basics of business permits in the Philippines, who needs them, and how to get them. Whether you’re registering a corporation in the Philippines or simply testing the waters with a smaller setup, this guide is for you.

Table of Contents

Why Business Permits Matter

Business permits are not just a formality; they are legal proof that your business is recognized and allowed to operate by the local government. Without them, your business could face penalties, closures, or legal action. So, getting the right permits is essential not only for compliance but also for building credibility and trust with your customers, partners, and the government.

Who Needs a Business Permit in the Philippines?

The short answer: almost everyone.

Whether you’re a local entrepreneur or a foreign investor, you need business permits if you plan to operate legally in the Philippines. This applies to all types of entities:

Sole proprietorships
Partnerships
Domestic corporations
Foreign-owned corporations
Branch offices or representative offices

Even online businesses, remote consulting firms, and those doing business from home are required to obtain permits if they are earning income from Philippine-based operations.

If you’re in the early stages of business setup in the Philippines, it’s important to factor this into your planning.

Business Permit vs. Company Registration

It’s common to confuse business permits with company registration in the Philippines, but they are different steps in the setup process.

Company registration is about forming a legal entity. It includes getting your business name approved, registering with the Securities and Exchange Commission (SEC) or the Department of Trade and Industry (DTI), and securing your company’s Tax Identification Number (TIN).

Business permits, on the other hand, are typically issued by the local government unit (LGU) where your office or physical presence is located. These permits give you the authority to start operating.

In short: First, you handle company registration in the Philippines. Then, you apply for your business permits.

Steps to Get a Business Permit in the Philippines

Let’s go step by step so you know exactly what to expect.

1. Complete Company Registration

Before you can apply for a permit, you need to register your business:

For corporations: Register with the SEC.
For sole proprietors: Register with the DTI.
For all types: Secure a TIN and register with the Bureau of Internal Revenue (BIR).

This process can now be completed more efficiently, thanks to online company registration in the Philippines, which streamlines many of the requirements through a centralized digital platform.

2. Secure Barangay Clearance

The barangay is the smallest government unit in the country. You’ll need to get clearance from the barangay office where your business will operate. This ensures the local community is aware of and has no objection to your operations.

3. Apply for a Mayor’s Permit or Business Permit

Next, you’ll need to apply at your city or municipality’s Business Permits and Licensing Office (BPLO). You’ll be asked for the following:

Certificate of registration from SEC or DTI
Barangay clearance
Lease contract or proof of address
Fire safety inspection certificate
Sanitary permit from the health office
Community tax certificate
Occupancy permit

Some cities may have additional requirements, so it’s a good idea to visit the official website of the LGU or call their BPLO for updates.

4. Register with the Bureau of Internal Revenue (BIR)

Once you get your business permit, you need to go back to the BIR to complete your tax registration. This includes:

Authority to print official receipts
Registration of books of accounts
Application for BIR Certificate of Registration (Form 2303)

This step is crucial as it enables you to issue official receipts and comply with tax obligations.

5. Apply for SSS, PhilHealth, and Pag-IBIG Fund Registration

If you’re hiring employees, you also need to register with the following government agencies:

Social Security System (SSS)
PhilHealth Insurance Corporation
Pag-IBIG Fund

These are mandatory employee benefit programs and part of your responsibility as an employer in the Philippines.

How Long Does It Take?

Getting your business permits can take anywhere from 2 to 4 weeks, depending on how fast you complete each step and how efficient the local government is. Some LGUs offer one-stop shops or online processing during the start of the year, especially in January and February.

If you want to minimize delays, ensure your documents are complete and accurate before submission. Some entrepreneurs opt to work with local consultants or legal firms familiar with registering a corporation in the Philippines to smooth out the process.

The Move Toward Online Registration

Good news: the government is pushing for digital transformation. Online company registration in the Philippines is becoming more accessible, especially through platforms like the SEC’s Company Registration System (CRS) and the DTI’s Business Name Registration System.

While not every step is fully online yet (such as LGU permit issuance), many processes are becoming faster and less bureaucratic thanks to these digital upgrades. It’s now easier than ever to launch your business without setting foot in the country, making it ideal for foreign entrepreneurs exploring global expansion.

Final Thoughts

Getting your business permits in the Philippines might seem like a maze at first, but it’s a necessary step toward becoming a fully operational and legitimate enterprise. The key is to follow the process in sequence—start with company registration, move to local permits, then complete national tax and employment registrations.

Whether you’re launching a startup, expanding your global footprint, or simply testing the Philippine market, taking the time to get your permits right will save you from costly delays or legal complications down the road.

If you’re planning your business setup in the Philippines, don’t hesitate to reach out to professionals who understand the local system. A little guidance can go a long way.

FAQs

1. Can I register my business in the Philippines if I’m not a resident?
Yes, foreign nationals and companies can register a business in the Philippines. However, you’ll need a local address and in some cases, local directors depending on the business type and industry.

2. Is it possible to complete company registration and permit applications online?
Many steps in the company registration process can now be done online, especially through SEC and DTI platforms. However, some LGUs still require in-person visits for business permits.

3. How much does it cost to get a business permit in the Philippines?
The cost varies depending on your business type, location, and size. Expect to pay for barangay clearance, mayor’s permit, fire inspection, sanitation, and other fees. Budget anywhere from PHP 5,000 to PHP 20,000.

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