Mayor’s Permit or the local business permit ensures that you can legally operate your business and it complies with all the ordinances of a particular city or municipality where your business is operating.
Planning to start a business in your locality? Or maybe you already have one but don’t have a permit yet from your locality? Secure your business permit! However, securing a business permit can be a critical task. This simple guide for first-time business owners will help you apply for your mayor’s business permit properly.
What is the Mayor’s Permit?
A Mayor’s Permit or mostly known as Business Permit is a document that certifies that your business is legitimate and has the license to operate in the city or municipality where it is located and registered.
Business permits are issued by the local government unit (LGU) who controls the place of the business to ensure that the businesses pay taxes and comply with the regulations for safety, security, health, and sanitation.
A business can be fined with penalties or even imprisonment of the owner if you run an enterprise without a business permit.
What are the Requirements in Applying for Business Permit?
Preparing for the requirements for your business permit application can take a lot of time and effort because you have to secure other clearances and permits beforehand. Also, every LGU has its own particular set of requirements for business permit applications.
Here are the typical requirements you have to get in the following order:
- Applicable business registration document:
- Certificate of Business Name Registration (for single proprietors)
- Articles of Partnership (for partnerships)
- Articles of Incorporation (for corporations)
- Certificate of Registration (for cooperatives/foundations/associations)
You can get the following at:
- For single proprietors – Department of Trade and Industry (DTI)
- For Partnerships and corporations – Securities and Exchange Commission (SEC)
- For Cooperatives – Cooperative Development Authority (CDA)
- For Foundations and associations – The regulating government agency
2. Barangay Business Clearance – This certifies that your business complies with the requirements of the barangay where your business operates. You can get it at the Barangay hall with jurisdiction over the business location.
3. Contract of Lease (if renting a commercial space) or Transfer Certificate of Title / Tax Declaration (if the property is owned) – You can get this on the owner or building administrator of the leased property (if renting)
4. Sketch and photos of the location – You can get this on the owner or building administrator of the leased property (if renting)
5. Locational Clearance / Zoning Clearance – This is for compliance with the city’s/municipality’s Comprehensive Land Use Plan and Zoning Ordinance. You can get this at the City Planning and Development Office of the city/municipal hall.
6. Occupancy Permit – This is proof that the structure where the business will operate has passed safety and health standards. You can obtain this from the Owner or building administrator of the leased property (if renting) or at the City Engineering Office of the city/municipal hall (if owned).
7. Public Liability Insurance – For protection against legal liabilities as a result of bodily injury/property damage to third parties in connection to the insured’s business operation. You can obtain this at any Insurance Commission-accredited insurance company.
8. Authorization letter/Special Power of Attorney and valid ID (if filed through a representative) – This is to certify that the person is authorized to transact on behalf of the business owner.
9. Community Tax Certificate (cedula) – You can get this from the City/Municipal hall.
Your LGU may set additional requirements, taxes, and fees for business permit applications. You may contact your Mayor’s office or visit your LGUs website to know what else you need to acquire, and how much your fees are.
How to Apply for Business Permit?
The process for new business permit applications varies per LGU. To give you an idea of what to expect in applying, here are the basic steps to remember when you apply for the mayor’s business permit.
STEP 1: Go to the Business Permit and Licensing Office located at the premises of the city/municipal hall having jurisdiction over your business location.
STEP 2: Secure and fill out the application form. The form is available on-site, or you can download it in advance from the LGU’s website.
STEP 3: Submit the fully-accomplished application form and other requirements. The personnel will evaluate your documents. Your application will also undergo an assessment of tax and fees.
- The building fee will be evaluated by the City/Municipal Engineering Office. Give your building and occupancy permit, building location, and building area in square meters.
- The Electrical Department will assess your place for your Certificate of Electrical Inspection.
- Provide a Health and Sanitary permit from the Health and Sanitary Office. You will be required to have your employees to get drug tests and x-rays.
- Secure a Fire Permit from the Bureau of Fire Protection.
- Go to the office of the Municipal Planning and Development Coordinator for zoning clearance.
STEP 4: Pay for the assessed tax and fees to the cashier (once approved). Receive your official receipt. You will be charged for the following fees:
- Your Business
- Mayor’s Permit Fee
- Service Fee
- Sanitary Fee
- Local Fire Inspection Fee
- Business Plate
STEP 5: Claim your business permit. The Business permit may be issued along with a registration plate/sticker or any other certificate. Make sure to display them notably in your store or office.
Things to Remember in Applying for the Mayor’s Business Permit
- Complete other documents first. Other requirements in applying the mayor’s permit take a lot of time to secure, therefore it’s better to get them in advance to save some time that you may allot for your other activities in life.
- Make time in visiting your LGU where your business is located to know more about the required documents needed in applying for the mayor’s permit. Since every LGU has its own specific set of required documents, it’s better to inquire and ask for more information personally to avoid common mistakes. Do not rely on everything that you read on the internet because most of them had based their application on their own municipality.
- The application is done personally. A lot of first-time business owners might be wondering if there is an online service for a business permit application available that could save more time in applying, but sadly, most LGUs process walk-in applications only. In other words, you are required to get and submit your requirements personally or through your authorized representative to the city/municipal hall where your business is located.
You may think that applying for the mayor’s business permit is so complicated due to numerous requirements that you need to comply with, but the process itself is easier than you imagine.
Take note that business is important and should be renewed annually to avoid penalties and suspension of your business license.