Philippines / Business registration / Mayor's Permit (local business tax)

Mayor's Permit (local business tax)

Every business needs a permit from the city or municipality where it sits. There is no national price list, and any site quoting a single figure for the country is guessing.

There is no national Mayor's Permit fee. Each local government unit sets its own business tax from the Local Government Code, on top of the national and local clearances it requires: the barangay clearance, the fire safety inspection certificate, zoning and, for some activities, a sanitary permit. Two cities can differ by a factor of five for the same business.

What the government charges

Item	Amount
Business tax Based on gross sales or capital, set by city ordinance	LGU schedule
Barangay clearance Must be obtained first	LGU schedule
Fire safety inspection certificate Based on the type and size of the premises	BFP schedule
Zoning and other clearances Depends on the activity	LGU schedule

We quote your LGU assessment once the address and the activity are fixed, using the current ordinance. We do not publish a national average because there is none.

Who needs this

Every business with a physical address in the Philippines, including home-based businesses.
Branch offices, which need a permit in each city where they operate.

Who does not

Purely online businesses with no premises, which may register at the owner's residence instead, subject to the LGU's rule.

How it is done

Barangay clearance firstThe city will not assess you without it. It requires the lease or the title and the ID.
Lease or address proofA notarised lease, plus the lessor's tax declaration in most cities.
Assessment at the city hallThe assessor computes the tax, then you pay at the treasurer and return with the receipt.
InspectionFire safety, and sanitary for food and personal care businesses. The permit is released after the inspection, not on payment.

Deadline and what happens if you miss it

Permits are annual and most LGUs assess renewals in January, with surcharges and interest accruing on a quarterly basis after the local deadline. A business that starts mid-year pays a pro-rated tax plus the full permit fees.

Why files get refused at the counter

A lease in the name of someone other than the registered business, without a deed of assignment.
An address zoned against the activity, which no amount of paperwork fixes.
Applying with an SEC or DTI certificate whose purpose clause does not cover the activity.

Who does what

You

Fix the address and the activity, and sign the lease.

LPP

Price the assessment from the current ordinance for your city before you sign a lease, which is the moment the cost is still avoidable.

Accredited partner

Files and follows the permit and the inspections.

Have this filed without the guesswork

Send the file to us. We confirm the current fee with the agency, prepare the documents, and tell you in writing what is missing before anything is submitted.

Start this case See our fees

Sources

DTI, business registration and permits overview: https://www.dti.gov.ph/dti-business-center/dti-business-registration-permits
BOI, 2026 Cost of Doing Business: https://boi.gov.ph/wp-content/uploads/2026/03/2026-Cost-of-Doing-Business_11March2026.pdf

Last verified against the issuing agency on 2026-10-24. If an agency changes a fee or a deadline after that date, this page is out of date and we correct it before quoting.