Philippines MSME Requirements: Staying Compliant in 2025
Guide to MSME requirements in the Philippines including registration, compliance deadlines, tax rates, and available government loan programmes.
All businesses in the Philippines, regardless of their size and entity type, need a valid business permit to operate legally, and the permit needs to be renewed every year. The process involves gathering documents, paying fees, and dealing with multiple government offices. Get it wrong or leave it too late, and you’re looking at fines, penalties, and potential business closure.
This guide walks you through everything you need to know about business permit renewal in 2025. We’ll cover deadlines, requirements, fees, and the step-by-step process. Plus, if you’re expanding overseas or dealing with more international payments, we’ll show you how a Wise Business account can help you manage cross-border transactions with less hassle and lower fees.
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In the Philippines, two main permits require annual renewal: your Mayor’s Permit (also called a Business Permit) and your Barangay Permit. Both expire on 31 December each year and must be renewed by 20 January.¹
Here’s some good news: you no longer need to renew your BIR registration certificate each year.
The Bureau of Internal Revenue (BIR) used to charge businesses a PHP 500 Annual Registration Fee every January, but Republic Act No. 11976 (the Ease of Paying Taxes Act) scrapped this requirement in January 2024.²
The certificate you already have stays valid indefinitely - no annual renewal, no annual fee.
| ➡️Check out our guide to getting your Mayor’s Permit here. |
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The standard deadline for business permit renewal across the Philippines is 20 January 2025. However, some cities extend this deadline or offer penalty-free periods. For example, the Makati business permit renewal deadline is 31 January.³ Other extensions include:
Whilst some Local Government Units (LGUs) may extend deadlines without penalties, don’t count on it. Start preparing your documents one to two months before the deadline to avoid the last-minute rush.
Missing the deadline is expensive. Here’s what you’re facing if you renew late:
Financial penalties:¹
Administrative penalties:
Criminal penalties (like jail time) are incredibly rare for first-time late Mayor’s Permit renewals. As long as there was no intent to defraud, and the mistake was genuine, you’ll just be asked to pay the fine and complete the renewal.
The renewal process involves gathering documents, submitting your application, paying fees, and securing additional permits. Many LGUs now offer a ‘one-stop-shop’ approach or online portals to make things easier, but it is advisable to start getting all your information together a few months in advance.
Even with streamlined systems, expect the entire process to take one to two weeks due to high volumes of applicants during January.¹ The actual renewal itself should take just one day if you have all your requirements complete.
Requirements vary by LGU, so check with your local Business Permits and Licensing Office (BPLO) for specifics. Here’s what most cities require:¹
In-person application: Visit the Business Permits and Licensing Office (BPLO) at your City or Municipal Hall with all required documents. An authorised representative can process the renewal on your behalf if they bring written authorisation and valid IDs from you.
Online application: Several cities now offer online renewal through their eBPLS (Electronic Business Permits and Licensing System) platforms. Many use the MyEG platform.⁴
Many LGUs have adopted a Business One-Stop Shop (BOSS) approach to streamline the process and reduce the number of offices you need to visit.
After your documents are approved, the BPLO will assess your fees and issue a Tax Order of Payment (TOP). You can pay annually (full amount by 20 January) or quarterly (20 January, 20 April, 20 July, 20 October).
Payment locations:
Common fees include:¹
Each of these fees will vary depending on your business size and your location. Sanitary inspection fees in San Juan City, for example, start at PHP 60 per unit,⁵ while in Mandaluyong, fees are far more granular, with the fee for a standard business office of less than 100 sqm at PHP 220.⁶
After paying your business permit fees, you’ll need to renew additional permits.
Sanitary Permit: Valid for one year (expires 31 December), the Sanitary Permit must be renewed between 1st and 20th January as part of your business permit renewal. Requirements include your previous Sanitary Permit, latest Pest Control Certificate, Water Potability Certificate (in some cities), and Employee Health Certificates with medical tests. Health certificates must be renewed every six months. Processing typically takes one day if all requirements are complete.
Fire Safety Inspection Certificate (FSIC): Valid for one year (expires 31 December), your FSIC must be renewed at least one month before expiration. The Bureau of Fire Protection (BFP) issues FSICs after conducting a fire safety inspection. You’ll need your FSIC Application Form, latest FSIC, Certificate of Occupancy, latest Business Permit, Fire Insurance Policy (if applicable), Affidavit of Undertaking (no substantial changes), and photos of valid fire extinguishers with sales invoices. Some LGUs now offer online FSIC applications through the Fire Safety Inspection System (FSIS).
Once you’ve paid your business permit fees and secured your sanitary and fire safety permits, you’re done with the renewal process. Your permits are valid until 31 December, and you’ll need to do this all over again next January.
But a lot can happen in a year, and there’s plenty more to think about.
Renewing your business permit is another factor in the overall admin of running a business, but it’s an unavoidable step in keeping your company compliant and dodging penalties. Start early, gather your documents, and use online systems where available to make the process smoother.
Use this guide as a quick reference when renewing your Philippines Business Permit. While doing so, remember to also think about any other parts of your company that need renewing - like how you handle payments. If you’re growing internationally or handling more cross-border payments, consider how a Wise Business account can help you manage multiple currencies, receive international payments like a local, and send money overseas - all with transparent fees and the mid-market exchange rate.
➡️Learn more about Wise Business today!
Sources:
1 - FilePino - Business Permit Renewal
2 - BIR - EOPT
3 - Digido - Business Permit Renewal
4 - MyEG.ph
5 - San Juan City - Sanitary Inspection Fees
6 - Mandaluyong - Sanitary Inspection Fees
Sources checked on 14th November 2025.
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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