Barangay Business Permit Guide Philippines
Step-by-step guide for applying for an LGU/Barangay Business Permit in the Philippines, including typical fees for 2025.
The Barangay Business Permit (often called Barangay Business Clearance) is usually the first local permit you secure before proceeding to City/Municipal Hall for the Mayor's/Business Permit. Below is a practical, step-by-step guide for 2025, based on common LGU practices.
What you’ll learn in this Barangay Business Permit guide
This barangay business permit guide for the Philippines walks you through requirements, steps, and typical fees so you can secure your barangay clearance as the first step in legalizing your business.
After the barangay permit, your next stops are usually the BIR Business Registration Guide and Business Registration and Bank Account Guide. You can also review our DTI (Sole Proprietorship) Guide if you haven’t registered your business name yet.
To budget for barangay, mayor’s permit, and BIR registration fees as part of your startup costs, you can use our Budget Calculator so you have a clear view of required cash before you start.
Prepare Required Documents
Make sure these documents are ready before going to the Barangay Hall:
- Accomplished Barangay Business Clearance Application Form (get this from the Barangay Hall).
- Valid government-issued ID (e.g., Passport, Driver’s License, Voter’s ID).
- Proof of business address (Lease Contract, Certificate of Title, or Deed of Sale).
- DTI Business Name Registration Certificate (for single proprietors).
- Community Tax Certificate (Cedula), which can often be secured at the barangay or city treasurer’s office.
- Location sketch of the business (if required).
Visit Your Barangay Hall
Go to the Barangay Hall where your business is physically located.
- Proceed to the Business Permit/Barangay Clearance or Treasurer’s section.
- Some barangays may have online forms or portals; ask if this option is available.
Submit Documents
Submit your application form and all supporting documents to the designated barangay officer or secretary.
The barangay may schedule an on-site inspection to verify the business location and check for compliance/safety (e.g., congestion, fire safety, neighborhood disturbance).
Pay Required Fees
Assessment of Fees
Wait for the treasurer or authorized officer to compute your fees based on:
- Business type (e.g., retail, services, food, etc.).
- Declared business capital or gross sales.
- Local barangay ordinances.
Payment and Official Receipt
- Proceed to the payment window or treasurer.
- Most barangays accept cash payments.
- Always ask for and keep your official receipt.
Approval and Release
The Punong Barangay (Barangay Captain) or the authorized committee will review and approve your application.
Once approved, the Barangay Business Clearance or Permit will be issued. Under the Ease of Doing Business Act, processing is typically completed within 1 to 3 working days if documents are complete.
➡️ Next Steps After Barangay Clearance
After obtaining your Barangay Business Permit/Clearance, use it as a requirement for:
- Applying for your Mayor's/Business Permit at the City or Municipal Hall (often costs around ₱2,000–₱5,000+, depending on business type and capital).
- Completing your BIR registration (separate fees for BIR registration, books of accounts, and receipts).
💰 Typical Barangay Business Permit Fees (2025)
| Item | Typical Fee (PHP) | Notes |
|---|---|---|
| Barangay Application Fee | ₱100–₱500 | Varies by barangay; set by Sangguniang Barangay. |
| Clearance Fee | ₱200–₱1,000 | Often based on business capital (e.g., around ₱300 for < ₱50,000 capital). |
| Garbage/Environmental Fee | ₱100–₱300 | If applicable, depending on waste volume and location. |
| Fire Inspection Fee | ₱50–₱200 | If applicable; sometimes coordinated with the City/Municipality. |
| Penalty (late application) | Up to 25% of fee | For late or expired permits, depending on local ordinances. |
Important: Barangay permit fees can vary widely based on location, business size, and local ordinances. Urban barangays often charge higher or more itemized fees.
📌 Additional Notes for 2025
The whole Barangay Business Permit process generally takes 1–3 days if all documents are complete.
Permits must typically be renewed annually with similar fees and updated documents.
Indigent vendors or businesses registered under special laws (e.g., BMBE Act) may qualify for reduced fees or exemptions.
This permit is usually the first step before securing a Mayor’s/Business Permit at the city/municipal level, which can cost around ₱2,000–₱5,000+ depending on the business.
For location-specific differences, always check with your local Barangay or City Hall. Some LGUs now offer digital applications or one-stop-shop services for business permits.