Permits and Licenses for Business in the Philippines for Expats

September 2, 2024

Office interior with people waiting at the Permits and License Division.

Starting a business in the Philippines requires compliance with various regulatory requirements, including securing the necessary permits and licenses. This ensures that businesses operate legally and adhere to national and local laws. This comprehensive guide will cover the essential business permits and licenses required for most companies in the Philippines, followed by an extensive list of other potentially needed permits and licenses for specialized industries. Additionally, we will discuss the specific considerations for expats operating businesses in the country.

Basic Necessary Business Permits and Licenses

Business Name Registration
- Overview: Business name registration is the first step in legally establishing your business. The Department of Trade and Industry (DTI) handles the registration for sole proprietorships, while corporations, partnerships, and other business structures register with the Securities and Exchange Commission (SEC).
- How to Apply: Sole proprietors register online via the DTI Business Name Registration System (BNRS). Corporations and partnerships register through the SEC Company Registration System (CRS).
- Timeline: The DTI registration can be completed within a day, while SEC registration might take 2-3 weeks, depending on the completeness of the requirements.
- Why It’s Needed: This registration protects your business name legally, ensuring no other entity can use it.
Mayor’s Business Permit
- Overview: The Mayor’s Business Permit, also known as a Business Permit or Mayor’s Permit, is issued by the local government unit (LGU) where the business operates. It certifies that the company complies with local ordinances, including zoning, safety, and health regulations.
- How to Apply: Submit the completed application form along with the DTI or SEC registration, barangay clearance, lease contract or land title, and other requirements to the City or Municipal Hall.
- Timeline: The process typically takes 1-2 weeks.
- Why It’s Needed: This permit is essential for operating a business legally within the jurisdiction of the LGU.
Barangay Clearance
- Overview: The Barangay Clearance is a prerequisite for obtaining the Mayor’s Business Permit. It is issued by the Barangay where the business is located, certifying that the company complies with local rules.
- How to Apply: Visit the Barangay Hall where your business is located, submit the necessary documents, such as the DTI/SEC registration and lease contract, and pay the corresponding fees.
- Timeline: Typically, it takes 1-2 days to secure this clearance.
- Why It’s Needed: It serves as proof that the business is compliant with the regulations at the barangay level.
BIR Registration
- Overview: All businesses in the Philippines must be registered with the Bureau of Internal Revenue (BIR) to secure a Tax Identification Number (TIN) and the authority to print official receipts.
- How to Apply: Submit the required documents, including the DTI/SEC registration, Mayor’s Permit, and lease contract, to the BIR Revenue District Office (RDO) where the business is located.
- Timeline: BIR registration typically takes about 2-3 weeks.
- Why It’s Needed: This registration is crucial for legal compliance with tax laws, including issuing receipts and paying taxes.
SSS, PhilHealth, and Pag-IBIG Fund Registration
- Overview: Employers are required to register with the Social Security System (SSS), PhilHealth, and the Pag-IBIG Fund to provide social security, health insurance, and housing benefits to their employees.
- How to Apply: Each agency must submit the business registration documents, the Mayor’s Permit, and a list of employees. Registration can be done online or at the respective agency’s office.
- Timeline: Registration with each agency typically takes 1-2 weeks.
- Why It’s Needed: These registrations ensure that employees receive the mandated benefits legally required for businesses with employees.
Fire Safety Inspection Certificate
- Overview: The Bureau of Fire Protection (BFP) issues the Fire Safety Inspection Certificate (FSIC) after ensuring that the business complies with fire safety standards.
- How to Apply: Submit the necessary documents, including the building plan and fire safety measures, to the local BFP office.
- Timeline: The inspection and issuance of the FSIC usually take 1-2 weeks.
- Why It’s Needed: This certificate is crucial for ensuring the safety of the business premises and is often a prerequisite for the Mayor’s Permit.
DOLE Registration
- Overview: The Department of Labor and Employment (DOLE) registration is required for businesses with five or more employees. It ensures that the business complies with labor laws and regulations.
- How to Apply: Submit the application form and a list of employees to the nearest DOLE regional office.
- Timeline: Registration is usually completed within 1-2 weeks.
- Why It’s Needed: This registration is necessary to ensure compliance with labor standards and to avoid penalties.

Other Potentially Needed Permits and Licenses

In addition to the basic permits and licenses, certain businesses may need to secure additional permits depending on their industry or operations. Below is a comprehensive list of other potential permits and licenses:

PCAB License
- Overview: Required for contractors in the construction industry.
- Issuing Agency: Philippine Contractors Accreditation Board (PCAB)
- Why It’s Needed: Ensures contractors meet industry standards.
FDA LTO (License to Operate)
- Overview: Required for businesses involved in manufacturing, trading, repacking, importing, exporting, or distributing food, drugs, cosmetics, and medical devices.
- Issuing Agency: Food and Drug Administration (FDA)
- Why It’s Needed: Ensures products meet health and safety standards.
DENR ECC
- Overview: An Environmental Compliance Certificate (ECC) is required for businesses that might have an environmental impact.
- Issuing Agency: Department of Environment and Natural Resources (DENR)
- Why It’s Needed: Ensures compliance with environmental regulations.
BSP License
- Overview: Required for banks, financing companies, pawnshops, money changers, and other financial institutions.
- Issuing Agency: Bangko Sentral ng Pilipinas (BSP)
- Why It’s Needed: Ensures financial institutions operate within legal and regulatory frameworks.
BAI License
- Overview: Required for businesses related to animals.
- Issuing Agency: Bureau of Animal Industry (BAI)
- Why It’s Needed: Ensures the humane and legal treatment of animals in business.
BFAR License
- Overview: Required for businesses involved in fishing and aquatics.
- Issuing Agency: Bureau of Fisheries and Aquatic Resources (BFAR)
- Why It’s Needed: Ensures sustainable and legal fishing practices.
Bureau of Forest Development Permit
- Overview: Required for businesses involved in forest products, such as logging and lumber.
- Issuing Agency: Bureau of Forest Development
- Why It’s Needed: Ensures sustainable forest management.
BPI License
- Overview: Required for businesses related to plants and vegetable crops.
- Issuing Agency: Bureau of Plant Industry (BPI)
- Why It’s Needed: Ensures the health and safety of plant-based products.
CHED/DepEd Accreditation
- Overview: Required for educational institutions.
- Issuing Agency: Commission on Higher Education (CHED) and Department of Education (DepEd)
- Why It’s Needed: Ensures educational institutions meet national standards.
DTI-BPS Certification
- Overview: Producers, manufacturers, or exporters must certify that their products meet established standards.
- Issuing Agency: DTI-Bureau of Product Standards (BPS)
- Why It’s Needed: Ensures product quality and safety.
FIDA License
- Overview: Required for businesses related to fiber production.
- Issuing Agency: Fiber Industry Development Authority (FIDA)
- Why It’s Needed: Ensures quality and regulatory compliance in fiber production.
FMB License
- Overview: Required for businesses related to lumber, logs, and wood products.
- Issuing Agency: Forest Management Bureau (FMB)
- Why It’s Needed: Ensures sustainable management of forest resources.
GTIDO License
- Overview: Required for manufacturers of garments and textiles for export.
- Issuing Agency: Garments and Textile Industry Development Office (GTIDO)
- Why It’s Needed: Ensures compliance with industry standards for exports.
Insurance Commission (IC) License
- Overview: Required for insurance companies and other entities regulated by the IC.
- Issuing Agency: Insurance Commission (IC)
- Why It’s Needed: Ensures financial and operational stability in the insurance sector.
Intellectual Property Office (IPO) Registration
- Overview: Required for trademarking business names, logos, slogans, and other intellectual property.
- Issuing Agency: Intellectual Property Office (IPO)
- Why It’s Needed: Protects intellectual property and provides legal recourse against infringement.
NFA License
- Overview: Required for businesses dealing with rice, corn, and flour.
- Issuing Agency: National Food Authority (NFA)
- Why It’s Needed: Ensures food security and compliance with national policies.
National Subcontractors Exchange (SUBCONEX) Registration
- Overview: Required for businesses interested in subcontracting with export-oriented firms.
- Issuing Agency: National Subcontractors Exchange (SUBCONEX)
- Why It’s Needed: Facilitates partnerships in key export sectors.
NTA License
- Overview: Required for businesses related to tobacco products.
- Issuing Agency: National Tobacco Administration (NTA)
- Why It’s Needed: Regulates the tobacco industry to ensure compliance with health standards.
PCA License
- Overview: Required for businesses involved in grain-rice farming and trading.
- Issuing Agency: Philippine Coconut Authority (PCA)
- Why It’s Needed: Ensures the sustainability and quality of coconut and related products.
TESDA Accreditation
- Overview: Required for institutions involved in technical education and skills development.
- Issuing Agency: Technical Education and Skills Development Authority (TESDA)
- Why It’s Needed: Ensures institutions meet national vocational training standards.

Securing Business Permits and Licenses as an Expat

Expats looking to establish a business in the Philippines must also comply with local laws, including securing the necessary permits and licenses. The process is similar to Filipino nationals, but additional considerations and potential requirements are specific to foreign nationals.

Specific Permits and Licenses for Expats:

Foreign Investment Negative List Compliance
- Overview: Expats must ensure their business is not on the Foreign Investment Negative List, which restricts or limits foreign ownership in specific sectors.
- Why It’s Needed: Compliance with the list is mandatory to avoid legal complications.
Special Investor’s Resident Visa (SIRV)
- Overview: A visa option for expats investing a minimum of USD 75,000 in a business or investment in the Philippines.
- Issuing Agency: Bureau of Immigration
- Why It’s Needed: Provides legal residency status for investors.
Alien Employment Permit (AEP)
- Overview: Required for foreign nationals employed in the Philippines.
- Issuing Agency: Department of Labor and Employment (DOLE)
- Why It’s Needed: Ensures that the employment of foreign nationals does not displace Filipino workers.
9g Work Visa
- Overview: A visa for expats who a Philippine-based company will employ.
- Issuing Agency: Bureau of Immigration
- Why It’s Needed: Legalizes the employment of foreign nationals in the Philippines.

Application Process for Expats:

Expats follow the same general application process as Filipino nationals but must submit additional documentation, such as proof of their visa status and compliance with the Foreign Investment Negative List. To navigate the complex regulatory environment effectively, it is advisable to seek legal assistance or consult with local business experts.

Timelines for Securing Business Permits:

Timelines for securing business permits and licenses in the Philippines can vary depending on the specific permit and the completeness of the submitted documents. However, expats should anticipate potential delays due to the additional documentation required. Generally, the process can range from a few weeks to several months.

Is Assistance Available?

Securing the necessary business permits and licenses is critical in establishing and operating a business in the Philippines. Compliance with these requirements ensures that your business operates legally and protects it from potential fines and legal issues. Understanding and navigating the regulatory landscape is essential for expats, and seeking professional advice is highly recommended.

Triple i Consulting boasts a highly experienced team of experts dedicated to helping businesses navigate the complex process of obtaining the correct licenses and permits tailored to your specific needs. Whether you’re starting a new venture or expanding an existing one, our professionals have the knowledge and expertise to guide you through every step, ensuring compliance with all regulatory requirements. Contact us through any of the methods listed below to schedule an initial consultation with one of our visa experts and take the first step toward securing your business’s success: