Importance of having a business permit in the Philippines

IN the Philippines, obtaining and renewing a business permit is a crucial annual task for businesses to comply with local regulations. This permit, also known as the Mayor’s Permit, serves as a “license to operate” and is required for businesses to legally function in their registered area. Failure to maintain an up-to-date business permit can result in sanctions such as fines, penalties and business closure.

Local government units (LGUs), including barangay (villages) and municipalities, use the business permit to monitor businesses operating within their jurisdiction. The process helps ensure businesses pay their taxes and adhere to safety standards. Documentary requirements for the permit include sanitation, fire safety and environmental certificates. This ensures businesses follow standard and secure practices.