How to Get Barangay Business Clearance in Philippines – Permit Fee & Sample
The Business Clearance Certificate or the Barangay Business Clearance (Barangay Permit) is a legal document companies require in the Philippines to do business. The certificate is proof that the business has complied with all the legal and regulatory requirements. Without it, you will have problems conducting business-related activities and getting different permits and licenses.
Obtaining the Brgy business permit can be confusing for a first-time applicant. Therefore, in this blog, we have covered all the essentials in detail.
Why is a Business Clearance Also Called a Barangay Certificate?
This is the biggest confusion that people have. A Barangay is a local level of the Philippines government. It is small and territorial. A business clearance is given by the barangay where the business will be located.
The certificate is issued and signed by the Barangay Captain of the area. That is why it is also called the Barangay Certificate.
The Barangay clearance is mandatory for getting the Mayor’s clearance permit without which business in the Philippines is not possible.
Who Requires a Business Clearance?
This section covers a list of people who need a barangay clearance for business. These are:
- New Businesses: Any person who wants to start a new business in the Philippines needs to obtain a certificate. This is the first step before you apply for other licenses and certifications.
- Existing Businesses: If a business changes its location, ownership or format, it requires an updated business certificate. Remember to check the business permit fee for updating an existing permit.
- Business Expansion: For expanding business, a permit is required for every location the business expands to.
Barangay Business Clearance Sample
A visual representation of the barangay business permit sample allows you to understand the components.
As you can see, the permit can be cancelled anytime, without prior notice if the business is in violation of any laws.
How Much is the Barangay Business Clearance Fee?
Are you wondering how much is barangay business permit fee is? Generally, it ranges anywhere from ₱200 to ₱2,000. On average, you have to pay around ₱500 for the business clearance permit.
The fee fluctuates depending on the scope of the business. It might also vary depending on the barangay.
Barangay Business Permit Requirements 2025
Following are the barangay business permit requirements.
- The application form that you get from the local barangay office.
- Submit your Tax Identification Number.
- Show proof of your address for rented or owned property both.
- Valid ID e.g. passport, driver’s ID, TIN ID etc.
- If you have a sole proprietorship, get the name registered from DTI (Department of Trade of Industry). For partnerships, cooperatives and corporations, you need to go to the SEC (Securities and Exchange Commission)
- You also need to submit the site map for your business.
- Show the proof of payment for the certificate.
How to Get a Barangay Business Permit
To obtain a business permit from the barangay, one must follow a series of steps.
- First, complete all the required documents.
- Then, visit the Barangay Hall and fill out the necessary form.
- Afterward, submit the completed documents for verification.
- Once submitted, proceed to pay the required fee.
- Following payment, the processing period takes approximately one to three days.
- Finally, after the processing period, the business permit will be issued, completing the application process.
You may also read how to get Police Clearance in Philippines.
Difference between Barangay Business Clearance & the Mayor’s Permit
If you wondering whether a business permit is the same as a mayor’s permit, the answer is yes. However, the barangay business clearance is not the same as a mayor’s permit. A barangay business clearance is the prerequisite for the mayor’s clearance requirements. Without a mayor’s permit, you can’t do business.
The major difference lies in the cope of the business. The Mayor’s permit allows you to operate the business legally on a wider scope lie the entire city of the municipality.
Conclusion
To start and run a business in the Philippines, you need a business clearance. The process of getting one is detailed in this blog. It is a legal document that enhances your business’s credibility along with helping you operate effectively. Having this clearance also ensures compliance with local government regulations, preventing potential legal issues.
