How to Get a Barangay Business Permit in the Philippines

Almost every business operating in the Philippines is required to secure a Barangay business permit. This permit serves as your official license to conduct business legally within your local area.

In this guide, we’ll explain what a Barangay business permit is, who needs one, the required documents, and the step-by-step process for applying. You’ll also learn how to renew your permit each year to stay compliant and avoid fines.

To finish, we’ll briefly introduce the Wise Business account as a smart way to manage your startup costs—since, just like obtaining your Barangay business permit, opening a dedicated business account is often a crucial first step in setting up your business.

Table of contents
What is a Barangay business permit? Difference from a BIR certificate of registration Who needs to get a Barangay business permit? Key documents required for your application How to apply for a Barangay business permit How to renew your Barangay business permit Frequently asked questions (FAQs)

What is a Barangay business permit?

A Barangay business permit, also known as a Barangay business clearance, is an official document issued by the local Barangay—the smallest unit of government in the Philippines—that certifies a business is authorized to operate within its jurisdiction.

This permit confirms that the business complies with local zoning ordinances and does not pose any health, safety, environmental, or moral hazards to the community. It is also a mandatory prerequisite for obtaining a city or municipal business permit, commonly known as a mayor’s permit.

Additionally, the Barangay business permit enables the local government to generate revenue through fees, which support community projects, public safety programs, and other essential local services. The permit must be renewed annually.

Difference from a BIR certificate of registration

While both are essential for operating a business legally, they serve different purposes. The Barangay permit is a local-level clearance, whereas the Bureau of Internal Revenue (BIR) Certificate of Registration is a national requirement for tax compliance.

Here’s how they differ:

• Barangay Permit: A local-level clearance to operate within a specific Barangay. It confirms that your business location and activities align with local regulations.
• BIR Certificate of Registration: Issued by the national tax authority, this document lists the national taxes your business must pay, such as income tax and value-added tax (VAT).

Previously, obtaining a Barangay clearance was a prerequisite before registering with the BIR. However, this requirement has been removed under the Ease of Doing Business Act.¹^,²

That said, businesses are still required to obtain local permits and BIR registration to operate legally in the Philippines. In practice, entrepreneurs often process them around the same time as part of getting their business fully registered and compliant.

➡️Learn how to register your business with the BIR here.

Who needs to get a Barangay business permit?

In the Philippines, any individual or entity engaged in a habitual, profit-oriented activity from a fixed location is generally required to secure a Barangay business permit before they can operate legally.

This requirement applies to all kinds of businesses, including:

• Sole proprietorships registered with the DTI
• Partnerships and corporations registered with the SEC
• Cooperatives, associations, and other registered entities
• Barangay Micro Business Enterprises (BMBEs) – which must obtain this permit before applying for BMBE certification³

Even home-based businesses—such as online sellers, freelancers, or consultants who use their residence as a business address—are sometimes required to register with the Barangay, though this may vary by locality. It’s best to check with your Barangay hall to confirm whether you need to apply.

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Key documents required for your application

Your Barangay will ask for some basic documents to confirm your business is legitimate and operating in their area. Here’s what you should get ready:

Core documentary requirements

Before applying for a Barangay business clearance, prepare the following basic documents to ensure a smooth process:

• Completed Barangay Business Clearance Application Form – provided by your Barangay office
• Proof of business identity – such as a DTI certificate for sole proprietors or an SEC certificate for corporations
• Government-issued ID – of the business owner or an authorized representative
• Community Tax Certificate (Cedula) – proof of payment of the annual community tax⁴
• Articles of Incorporation or Partnership Agreement – if applicable

Proof of business location

You must also show evidence that you have the right to occupy the premises where your business operates. Accepted documents include:

• Land title – if you own the property
• Contract of lease – if you are renting the space
• Authorization or consent – for home-based businesses, a signed letter from the homeowners’ association or property owner may be required

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How to apply for a Barangay business permit

Follow these simple steps to apply for your Barangay business clearance:

• Step 1: Gather your documents
  Collect all the required paperwork, including your business registration, proof of business address, and a valid government-issued ID.
• Step 2: Visit your local Barangay hall
  Go to the Barangay hall where your business is located and proceed to the licensing or business permits office.
• Step 3: Submit your application
  Fill out the application form accurately and submit it along with all the required supporting documents.
• Step 4: Pay the required fees
  Settle the assessed fees at the Barangay treasurer’s office and ensure you get an official receipt. (Note: Fees for Barangay business clearances vary depending on the Barangay, business size, and type.)
• Step 5: Follow up on your application
  Processing time may differ depending on your local government unit (LGU). Monitor your application status and follow up with the office if there are any delays.

Set up your business for global growth with Wise Business

Getting your business up and running means handling many important steps — such as securing the necessary permits and licenses. Another key step is opening a business account. This helps keep your business and personal finances separate, making it easier to manage your books, file taxes, and stay compliant.

You’re also likely facing many startup costs — from software subscriptions and online tools to payments for overseas suppliers or clients. With a Wise Business account, you can start running your business globally from day one, allowing you to pay and get paid in multiple currencies without the high fees that traditional banks charge for international transactions.

💡Are bank accounts limited to USD, EUR, or GBP options holding back your business? With a Wise Business multi-currency account, you can access over 10 local account numbers — far more currency options than the handful most banks offer. Plus, Wise makes it easy to hold, send, receive, and exchange 40+ currencies from a single account. With the freedom to send and receive payments in more currencies globally, you can focus on what matters most: growing a local business that knows no borders.

• Obtain account details to receive payments in USD, EUR, GBP, SGD, HKD and more for a one-time fee of 1,400 PHP.
• Zero fees when you get paid via ACH, FAST, InstaPay/PESONet, & other local transfers.
• Send money to pay invoices, suppliers & contractors fast, with less fees
• Always get the mid-market rate with transparent conversion fees starting from 0.57%.
• Pay your bills and ad-hoc overseas expenses using the Wise Business card without hefty foreign transaction fees.
• Seamless integrations with popular accounting software.

➡️Get started with Wise Business today

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How to renew your Barangay business permit

Renewing your Barangay business permit is an annual requirement.

The renewal period typically falls between January 1 and January 20 each year, regardless of when you first obtained your permit.⁵

To begin the renewal process, visit the same Barangay hall where your business was first registered. Inquire about the renewal process and obtain any necessary forms. While requirements may vary slightly by Barangay, the following documents are often needed:

• Renewal application form
• Previous year’s Barangay business permit
• Official receipt of the previous year’s payment
• Updated Community Tax Certificate (Cedula or CTC)
• Valid government-issued ID of the applicant
• Proof of gross receipts or income (for fee computation)
• Other updated documents, if applicable (e.g., updated DTI/SEC registration if the business name or ownership has changed)

Once you’ve gathered all the required documents, return to the Barangay hall to submit your application. After submission, pay the renewal fees and wait for your application to be processed.

Take note that late renewals may incur a surcharge of up to 25%, plus additional monthly interest until the permit is renewed.⁶

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Frequently asked questions (FAQs)

Can I operate a business without a permit?

No. You cannot legally operate a business in the Philippines without a Barangay business permit. Doing so can result in penalties, including fines, legal action, or even the closure of your business.

How long does the application process take?

Under the Ease of Doing Business Act, new applications should be processed within three working days once all requirements have been submitted.⁷ In some cases, Barangay clearance processing can be completed in just a few hours—often on the same day, especially for renewals. However, more complex cases may take longer, sometimes up to several days.

Processing times can vary depending on the efficiency of the Barangay office. You should also factor in the time needed to gather all required documents, complete the forms, and handle any back-and-forth with the Barangay office—particularly if it’s your first time applying.

What if my business information changes?

If your business information changes—such as your business address or activities—you must update your Barangay business permit by reporting the changes to the Barangay office.

Visit your Barangay hall to file the necessary amendments and ensure your permit details remain accurate, helping you avoid penalties or issues during renewal.

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Operate your business legally and with confidence

Completing your Barangay registration is a crucial step toward ensuring your business is compliant and ready for legitimate growth. By following the process outlined in this guide—and the guidance of your Barangay hall—you can confidently operate within your community and build a trustworthy local presence.

Securing the right permits not only protects you from legal issues but also opens the door to more opportunities for success. Once compliance is taken care of, you can focus on what truly matters—growing your business and serving your customers.

As you get set up, it’s also a good idea to look into tools that make running your business easier. If you work with international clients or suppliers, a Wise Business account can help you manage your finances across borders—allowing you to send, receive, and hold multiple currencies without the usual high fees or poor exchange rates.

➡️Get started with Wise Business

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Sources:

1. BIR Removes Mayor’s Permit as a Requirement for Business Registration
2. Checklist of Documentary Requirements - 2025
3. RA 9178 BMBE Handbook.PDF
4. Business Permits – Barangay Bel-Air
5. Business Permit Renewal 2025 | Triple I Consulting
6. How to Avoid Fines for Late Business Permit Renewal
7. Republic Act No. 11032

Sources checked on 9th October