Business Clearance | How to Get Business Clearance Online in Philippine
Obtaining a Philippine business clearance can be confusing, especially for those starting out. The main problem often lies in understanding the difference between a barangay clearance and a mayor’s permit.
A simple solution is that a barangay clearance simply certifies that your business follows your local community’s regulations. It’s like a good certificate from your barangay. On the other hand, a mayor’s permit is the official license to operate your business within the locality. If you’re just getting started, a barangay clearance is the first step. But if you’re ready to open your doors for business, you’ll need a mayor’s permit, which usually requires the barangay clearance as a requirement.
In this blog, we’ll explore requirements, fees and processing of business clearance.
What is Business Clearance?
In the Philippines, a business clearance specifically refers to a document issued by your local barangay, the smallest unit of local government. It signifies that you, as a business owner, have met specific requirements and have the necessary approvals to operate legally.
Importance of a Business Clearance
- Prerequisite for Legitimacy: A business barangay clearance is a crucial document for establishing a legitimate business. Without it, you cannot operate legally and may face consequences.
- Community Approval: The clearance indicates that the local community has been informed about your business and doesn’t object to its operation.
- Compliance with Regulations: Obtaining the clearance shows that you have followed all the rules and regulations set by the barangay for businesses in your area.
Business Clearance Sample
Business Clearance Requirements
The requirements for business permit are:
- Application Form: Provided by your barangay office.
- Proof of Business Registration:
- Department of Trade and Industry (DTI) certificate for single owners or businesses registered with DTI.
- Securities and Exchange Commission (SEC) certificate of incorporation for corporations registered with SEC.
How to get Business Clearance in Philippines?
Begin at your Barangay Unit to obtain a business clearance and permit.
- Prepare your Community Tax Certificate (Cedula) and a fee of around ₱200.
- Next, Go to the Business Permit and Licensing Office (BPLO) at your city or municipal hall.
- Fill out the application form and submit the required documents, which typically include:
- Barangay Clearance
- Business registration certificate (SEC or DTI)
- Rent contract for your business space
- Site map of your business location
- The BPLO will assess your application and fees based on your business nature and size.
- Once approved, pay the fees and claim your Mayor’s Permit (usually within a week or two).
After obtaining the Barangay Clearance and Mayor’s Permit, you may need to secure additional clearances from various government agencies depending on your business type.
- Engineering Department: Pay the building fee.
- Electrical Department: Obtain your electrical approval.
- Business Permit and Licensing Office (BPLO): Verify any further requirements and receive the Order of Payment (EDP).
- Treasury Department: Pay your fees with your cedula.
- Health and Sanitary Office: Attend a required seminar and obtain a sanitary approval.
- City Environment and Natural Resources Office (CENRO): Get an environmental approval.
- Bureau of Fire Protection (BFP): Get a fire permit and Fire Safety Inspection Certificate. Ensure you have the required number of fire extinguishers in your establishment.
- Local Government: Submit pictures of your establishment.
Also read, how to apply for MTC Clearance in Philippines.
Business Clearance Fee
The business clearance fees can range from ₱200 to ₱2,000 depending on the territorial scope of the business and the barangay clearance price usually costs around ₱500, although fees can vary depending on the barangay.
Business Clearance Processing Time
A business permit processing is usually obtained from the Business Permit and Licensing Office at the City or Municipal Hall, and it usually takes about one to two weeks to complete the entire process.
FAQs
Conclusion
A well-planned business clearance can be a powerful tool for businesses of all sizes. In the Philippines, a business clearance is an essential document for operating a legitimate business. It signifies that you’ve fulfilled local requirements and have the community’s approval. By following these tips and the difference between a barangay clearance and a mayor’s permit, you can legally operate your business.
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