If you’re running a business in the Philippines, the Mayor’s Permit (also known as a Business Permit) isn’t just paperwork — it’s your license to operate legally within your local government unit (LGU). And yes, you need to renew it every year.
Here’s why it matters — and what happens if you skip it.
What Is a Mayor’s Permit?
The Mayor’s Permit is a document issued by your city or municipal hall that authorizes your business to operate within its jurisdiction. It ensures that your business has complied with all local regulations, including:
● Zoning laws
● Health and sanitation requirements
● Fire safety standards
● Local tax compliance
It’s usually processed after you secure your Barangay Clearance, and before you renew with other agencies like the BIR or DTI.
Why Does It Need to Be Renewed Every Year?
Just like a driver’s license, the Mayor’s Permit needs to be kept up to date. Here’s why:
1. Legal Compliance
Renewing ensures that your business remains legally operational. Without it, your business could be fined, suspended, or even shut down.
2. Updated Information
Your business details (like address, employee count, or nature of operations) may change year to year. Renewal helps your LGU keep accurate records.
3. Revenue Tracking
Local governments use your gross sales declaration to determine local business taxes. Annual renewal ensures taxes are calculated fairly and properly filed.
4. Safety & Regulation Checks
Renewal often involves inspections (e.g., fire safety, health, zoning). These aren’t just red tape — they protect both your business and the community.
What Happens If You Don’t Renew?
Failure to renew your Mayor’s Permit can lead to:
● Penalties and surcharges
● Business closure orders
● Problems with securing BIR clearance or other permits
● Difficulty in applying for bank loans or contracts
Operating without a valid permit is essentially operating illegally.
Who Needs to Renew?
Every type of business, including:
● Freelancers or professionals with registered businesses
● Sole proprietors
● Partnerships and corporations
Step-by-Step Guide to Renewing Your Mayor’s Permit
1. Get Your Barangay Clearance
Where: Local Barangay Hall
Bring: Last year’s clearance, receipt, and filled-out form
Deadline: January 20
2. Apply for Renewal at the City/Municipal Hall (BPLO)
Where: Business Permits and Licensing Office
Bring:
● New Barangay Clearance,
● Last year’s Mayor’s Permit,
● Income Statement,
● Lease Contract (if renting),
● Insurance,
● Cedula (Community Tax Certificate)
3. Pay Your Fees at the Treasurer’s Office
Includes:
● Local Business Tax (LBT),
● Mayor’s Permit Fee,
● Sanitary, Garbage, Building, and Zoning Fees,
● Other applicable local fees
4. Claim Your Renewed Permit
● Go back to BPLO on the given date,
● Make sure your documents are complete to avoid delays
Don’t Miss These Deadlines!
Barangay & Mayor’s Permit: January 20
BIR Renewal: January 31
Late renewal = 25% surcharge + 2% monthly interest on unpaid fees
Need Help with Renewal?
At Happy Hive Inc., we know that LGU processes can be confusing and time-consuming. That’s why we offer Business Permit Renewal Services — from gathering documents to dealing with inspections and lining up at city hall (so you don’t have to).
Book a FREE consultation today and we’ll help you get your Mayor’s Permit renewed — the stress-free way.