Mayor’s Permit Fee in the Philippines: Everything You Need to Know

Starting a business anywhere takes a bit of homework. You can’t just expect things to be up and running overnight. There are rules to know and laws to follow if you don’t want to face any trouble. And the Philippines is no different.

Getting a Mayor’s Permit is one of the first steps to starting a business in the Philippines. This article covers all the requirements, processes, fees, and tips to help you stay compliant.

And while you’re sorting that out, it’s worth checking your options for receiving and sending business payments too. We’ll mention how a Wise Business account makes it easy to send and collect payments from overseas, and hold funds in 40+ currencies, perfect for Philippine businesses growing globally.

What is a Mayor’s Permit?

A Mayor’s Permit, also called a Business Permit, is a local government license that lets you legally run your business in a city or town. You get it through the Business Permit and Licensing Office (BPLO), and it proves your business follows local rules on zoning, taxes, health, and safety.

It’s mandatory for all business types, and if you don’t secure or renew it on time, you could face consequences. Under the Local Government Code of the Philippines, operating without a valid permit or delaying its renewal can lead to surcharges on your business tax ¹.

Note: The Mayor’s Permit fee may vary according to your location, the kind of business you run, and its size

Guide to securing a Mayor’s Permit

Securing a Mayor’s Permit in the Philippines starts once your business is registered with the SEC (for corporations and partnerships) or the DTI (for sole proprietorships). It generally follows these steps:

Step 1: Prepare your documents and clearances ²

• Secure a Barangay Business Clearance from the barangay where your business is located
• Obtain a Locational Clearance / Zoning Certificate from the CPDO to confirm your location is zoned correctly
• Get a Fire Safety Inspection Certificate (FSIC) from the Bureau of Fire Protection
• Apply for a Sanitary Permit from your local health office
• Make sure your SEC or DTI registration is on hand for submission

Step 2: Submit your application to the BPLO ²

Next, submit the documents to the Business Permits and Licensing Office (BPLO) at your City or Municipal Hall. This office is responsible for reviewing applications and processing your permit request.

Step 3: Pay the assessed fees ³

The BPLO will issue a billing assessment that usually includes:

• Local business tax
• Fire and sanitary inspection fees
• The mayor’s business permit fee

Some LGUs issue a temporary or provisional permit after payment, while inspections are pending. Remember, the mayor’s permit fee in the Philippines varies depending on your business size, capitalisation, and location.

Step 4: Comply with business inspections ²

Authorities may inspect your business premises to ensure compliance with safety, health, and zoning standards. The Bureau of Fire Protection and the local health office commonly conduct inspections, sometimes extending the processing time.

Step 5: Approval of Mayor’s Permit

Once inspections are cleared and payments are confirmed, the BPLO will approve your application and release your Mayor’s Permit. Depending on the LGU, this may take a few days to several weeks.

Step 6: Business Permit Renewal

• A Mayor’s Permit is valid for one year and usually must be renewed by January 20.
• Missing the deadline can result in fines of ₱5,000 to ₱20,000 ⁴. The Local Government Code also allows surcharges of up to 25% of unpaid taxes until balances are cleared ⁵.
• Submit your application at the Barangay and City/Municipal Halls.
• Many LGUs now offer one-stop shops, scheduled windows, or online appointments under the Ease of Doing Business Act ⁶.

Be sure to confirm your LGU’s specific process, carefully review all requirements, and submit the paperwork and fees on time.

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Mayor’s Permit – fee and other costs

The cost of a Mayor’s Permit in the Philippines varies by business type, size, and location. Main components include:

• Local business tax: the largest portion, based on capitalisation for new businesses and gross sales for renewals.
• Other fees: include the Barangay Permit, Locational Clearance, Fire and Sanitary Inspections, and sometimes environmental or waste-management charges.
• Penalties: missing the usual January 20 renewal deadline adds a 25% surcharge plus 2% monthly interest until paid.

Here’s a sample table to show how these costs might stack up:

💡Pro tip: Check your specific city or municipality’s revenue code or permit schedule (many LGUs publish theirs online) to see how these charges are broken down and what ranges to expect.

Deductible expenses and common mistakes

Under Philippine tax rules, Mayor’s Permit fees, local business tax (LBT), and related charges are considered deductible business expenses^{3, 7}.

Still, many businesses fall into avoidable traps during the permitting process. The common ones are:

• Under-declaring capital or sales to lower fees. This can lead to reassessment, surcharges, and heavy penalties.
• Not displaying your Mayor’s Permit and clearances at your business location. This may result in citations and fines during inspections.

💡A smart step would be to learn how to compute the Mayor’s Permit fee or outsource this task to a professional.

Run your business without borders

Securing a Mayor’s Permit isn’t just paperwork. It’s the key step in ensuring your business runs legally, ethically, and with credibility. Having the correct permits shields you from legal issues.

As your business expands, the right financial tools matter, too.

A Wise Business account helps you easily manage international payments, reduce unnecessary fees, and gain more control over your growth, locally and globally.

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Sources:

1. Business Permit (Mayor’s Permit) in the Philippines – Requirements and Process
2. Mayor’s Permit (Business Permit) Registration in the Philippines for New Businesses
3. Mayor’s Permit Fees for RTW Retail Business Philippines
4. Republic Act No. 8424
5. BIR REVENUE MEMORANDUM CIRCULAR NO. 46-99, June 18, 1999
6. The Ease of Doing Business Law
7. Local Finance Circular No. 001-2022

Sources checked on: 26/9/2025