Business Registration & Compliance

In the Philippines, a Barangay Business Permit is a document from a local government that lets you legally run your business in a particular area. It proves that your business follows local rules and meets all the requirements for operation, such as sanitation, fire safety, and tax obligations. 

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It also acts as proof of residency and good standing within a community. Issued by the barangay, a minor administrative division in the country, this clearance represents an individual's compliance with local laws and regulations. It plays a significant role in various personal and professional transactions.

A business permit or the Mayor’s certificate is a legal document that serves as a license to operate your business within the jurisdiction of a specific city or municipality (LGU) in the Philippines.

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A business permit is a mandatory requirement before you can start a business with operations in the Philippines. It serves as proof that your company complies with local laws, zoning regulations, and local tax obligations. Furthermore, getting a business permit is essential for all businesses, regardless of whether you have a limited liability company, a One Person Corporation (OPC), a sole proprietorship, or a partnership. 

Under the Local Government Code of the Philippines, operating a business without a business permit or delaying the renewal of your business permit will result in penalties. These include a surcharge on the business tax and the possible closure or seizure of your properties and assets. 

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Here are the general requirements for obtaining a business/Mayor’s permit in the Philippines:

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1. Business Registration Certificate: From the SEC for companies and from the DTI in case of a sole proprietorship or partnership

2. Barangay Clearance: from the local barangay (village) where your business will be located

3. Community Tax Certificate (CTC):  Also known as CEDULA

4. A lease contract or Proof of Ownership: This can be a land title or tax declaration if you own the property

5. Fire Safety Inspection Certificate

6. Sanitary Permit

7. Building Permit and Electrical Inspection Certificate

8. Certificate of Occupancy

BIR registration is a critical step in legitimizing a business, as it allows the company to legally issue official receipts, file taxes, and avail of tax credits or deductions.

BIR registration is one of the main requirements for doing business in the Philippines. Any person who receives an income, whether from business, profession, or compensation, has the legal obligation to register and pay their taxes in the BIR as failure to do so may result in a fine or imprisonment.

Securities and Exchange Commission (SEC) registration grants your corporation legal recognition, establishing its existence and identity in the eyes of the law. Without SEC registration, your corporation cannot legally engage in business activities or enter into contracts.

Completing your DTI business name registration will give you legal rights within your coverage area. This means that once you secure your business through DTI, no other entity can use the same name as yours. Your business is legally recognized by law.

A cedula or community tax certificate (CTC) in the Philippines is a document that is issued to an individual or business entity upon payment of community tax. A cedula can be used as proof of identification when applying for a job, registering a business or filing your income tax returns.