How to Get Business Clearance Online in Philippine

For those who are just starting out, obtaining a Philippine business clearance can be confusing. It is often difficult to distinguish between a barangay clearance and a mayor’s permit.

Simply put, a barangay clearance certifies that your business follows the regulations of your local community. In many ways, it’s like getting a good certificate from the local barangay. A mayor’s permit, on the other hand, provides the official license for your business to operate within the city limits. In the early stages of your business, a barangay clearance is a must. When you’re ready to open for business, you’ll need a mayor’s permit, which usually requires barangay approval.

In this blog, we will explore business clearance requirements, fees, and processing.

Compliance with Regulations: Getting a clearance means you have followed all the rules and regulations set by the barangay.

Creating Legitimacy: A barangay clearance is crucial to establishing a legitimate business. In the absence of it, you may be in violation of the law and may face repercussions.

An approval from the local community: This indicates that the community has been informed about your business and does not object to it.

How to get Business Clearance in Philippines?

A business clearance and permit can be obtained at your barangay unit. 

1. Prepare your Community Tax Certificate (Cedula) and pay about $200.
2. The next step is to visit the Business Permit and Licensing Office (BPLO) in your city or municipality.
3. You must complete and submit the application form, which typically includes the following documents:

• Clearance of barangays
• Certificate of business registration (SEC or DTI)
• Contract for renting a business space
• Your business’s location on a site map

4. Your application and fees will be assessed by the BPLO according to the nature and size of your business.
5. Upon approval, pay the fees and claim your Mayor’s Permit (usually within a week).

If your business type requires additional clearances from various government agencies, you will need to obtain the Barangay Clearance and the Mayor’s Permit. 

• Department of Engineering: Make payment for the building.
• Department of Electrical: Get your electrical approval.
• Business Permits and Licensing Office (BPLO): Review any additional requirements and receive the Order of Payment (EDP).
• Department of Treasury: Your cedula will serve as your payment method.
• Health and Sanitary Office: Attend the required seminar and obtain sanitary approval.
• Environmental and Natural Resources Office : Obtain environmental approval.
• Bureau of Fire Protection (BFP): Apply for a fire permit and a Fire Safety Inspection Certificate. Fire extinguishers should be available at your establishment in the required number.
• Local Government: Send us pictures of your establishment.

Also read, how to apply for MTC Clearance in Philippines.

Business Clearance Fee

Depending on the territorial scope of the business, business clearance fees can vary from $200 to $2,000, while barangay clearance fees usually cost around $500, although they can vary by barangay.

Business Clearance Processing Time

It typically takes about one to two weeks for the Business Permit and Licensing Office at the City or Municipal Hall to process a business permit.

Business Clearance Sample

FAQs

Conclusion

Businesses of all sizes can benefit from a well-planned business clearance.
Operating a legitimate business requires a business clearance in the Philippines.
In other words, it means you have met local requirements and have received the approval of your community.It is possible to legally operate your business by following these tips and understanding the difference between a barangay clearance and a mayor’s permit.