Mandatory Permits and Licenses for Establishing a Business in the Philippines

June 11, 2025

Starting a business in the Philippines is a great opportunity due to the country’s growing economy. However, you need the right permits and licenses to comply with regulations and avoid penalties. We’ll explain the legal documents you need, their processing time, and how much is their cost so you can better understand how to start your business.

Step 1: Secure a DTI/SEC Registration Certificate

The first step is to register your business name to establish its legal identity:

For Sole Proprietorships: Register with the Department of Trade and Industry (DTI) via https://www.dti.gov.ph/ or a local office.
- Check name availability online.
- Submit a valid government-issued ID.
- Pay a small fee.
For Partnerships or Corporations: Register with the Securities and Exchange Commission (SEC) through the eSPARC portal (https://esparc.sec.gov.ph/).
- Submit Articles of Partnership or Incorporation and Bylaws.
- Provide IDs for all incorporators or partners.
- Pay fees, varies based on your capital.

Ensure your business name is unique and compliant with DTI/SEC guidelines. For most SMEs, we recommend sole proprietorship or partnership due to their simplicity. For registering a corporation, we strongly recommend seeking assistance from a professional business registration service.

The process typically takes 4 to 7 days. Once approved, you’ll receive your DTI/SEC Registration Certificate.

Step 2: Obtain a Barangay Clearance

Secure a Barangay Business Clearance from the barangay hall where your business operates:

Requirements:
- DTI/SEC registration certificate.
- Valid ID.
- Completed application form.
- A small fee (based on your location)

This clearance confirms compliance with local regulations and is a prerequisite for further permits. Processing time is usually 1-3 days.

Step 3: Apply for a Mayor’s Permit (also called Business Permit)

Obtain a Business Permit from your municipal or city hall to operate legally in the locality:

Business Permit Requirements include:
- DTI/SEC registration certificate.
- Barangay Clearance.
- Lease contract or proof of business address.
- Completed application form.
- Fees (based on your type of business and other factors)
- Additional documents, if required (e.g., fire safety inspection certificate, sanitary permit).

Your permit will typically be issued within 1-2 weeks although, it may take longer due to inspections or errors in the submitted requirements.

Local government units (LGUs) may have specific other requirements depending on their location and your business’s industry. To ensure full compliance with applicable regulations, seek assistance from a professional business regulation service.

Step 4: Certificate of Registration from the BIR

Register with the Bureau of Internal Revenue (BIR) to obtain a Taxpayer Identification Number (TIN) and comply with tax obligations:

Requirements:
- DTI/SEC registration certificate.
- Mayor’s Permit.
- Barangay Clearance.
- Valid ID.
- Completed BIR forms (Form 1901 for sole proprietorships, Form 1903 for corporations).
- Payment for registration and documentary stamps.
- Registration fee plus additional costs for official receipts and books of accounts.

Visit the nearest BIR Revenue District Office (RDO) to receive a Certificate of Registration (COR) and register your books of accounts. Choose a tax regime, such as the 8% flat tax for sole proprietors or regular corporate tax.

You’ll usually receive your certificate within 5-7 days.

Step 5: Secure Industry-Specific Permits and Licenses

Depending on your business type, additional permits may be required. These are just some of the special permits you might need:

- Land Transport Businesses:
  - LTFRB Accreditation (Certificate of Public Convenience): Required for operating public transport vehicles like trucks or buses.
  - LTO Vehicle Registration: Ensures vehicles meet safety and regulatory standards for road use.
  - Driver’s License: Authorizes individuals to operate motor vehicles on public roads, requiring tests for driving skills and road safety knowledge.
- Restaurants:
  - Sanitary Permit: Verifies compliance with food safety and sanitation standards.
  - Health Certificates for Staff: Confirms employees meet health requirements for food handling.
- Construction:
  - Building Permit: Authorizes construction or renovation per local building codes.
  - Occupancy Permit: Certifies a building is safe for use after construction.
  - License to Sell: Permits individuals to legally broker property transactions, requiring education, examination, and state-specific certification.
- Healthcare:
  - DOH License: Grants approval to operate healthcare facilities under national standards.
  - PhilHealth Accreditation: Allows facilities to process PhilHealth claims for patients.
- Retail:
  - Fire Safety Inspection Certificate: Ensures compliance with fire safety regulations.
- Restaurants
  - FDA License: Authorizes food businesses to manufacture, process, or distribute food products under FDA safety standards.
  - Sanitary Permit: Ensures compliance with local health and sanitation regulations for safe food handling and preparation.

The processing time is typically 1 to 2 weeks per legal document. Some permits may take longer depending on the length of inspection.

Every business is unique and may require permits not listed in our guide. The best way to ensure you’re in compliance and avoid hefty penalties is to seek assistance from a professional business registration service.

Step 6: Comply with Labor Requirements

If your business employs individuals (e.g., drivers, staff), register with the Social Security System (SSS), PhilHealth, and Pag-IBIG Fund to provide mandatory benefits:

Requirements:
- Employer registration forms.
- DTI/SEC registration and Mayor’s Permit.
- Employee details (e.g., names, TINs).
- Initial contribution payments.

Final Thoughts

The Philippines’ business landscape is highly regulated, requiring permits from agencies like DTI, SEC, BIR, and LGUs. Navigating these requirements demands meticulous attention to detail and experience in your industry. Every business is unique so the best way to ensure full compliance is to seek assistance from a professional business registration service.

Are You Registering a Business for the First Time? Here’s Where to Find Assistance

Registering a business in the Philippines can be a complex and challenging process. With numerous permits and licenses required by the government, it’s easy to miss a document or forget to renew it. Unfortunately, this can lead to costly fines or even force your operations to shut down.

That’s where Triple i Consulting comes in. Our team of experienced lawyers and accountants provides comprehensive support for your business registration, so you don’t have to stress over the paperwork. Our expertise and network enable us to streamline your registration process, ensuring it’s completed swiftly and correctly.

We’ll handle the permits and renewals so you can focus on what matters most—running your business and achieving financial success.