PERMITS, TAX AND LICENSES

Department of Trade & Industry (DTI)

Registering a business name with DTI is the first step to becoming a sole proprietor as it
gives you the sole right to use the business name.

Department of Labor and Employment (DOLE)

All businesses registered in the Philippines hiring 5 or more employees must register with
the Department of Labor and Employment (DOLE). The DOLE protects the rights and welfare of
workers in the Philippines. It is of importance to register with DOLE to avoid labor cases filed
against your company. It is easy to file a labor case with the National Labor Relations Commission
(NLRC), a government body and part of DOLE who investigates, settles and resolves disputes
between employers and employees.

Bureau of Internal Revenue (BIR)

This is the government agency mandated by the law to assess and collect all national
internal revenue taxes, fees, and all charges. All types of business entities are required to be
registered here.
Philippine Health Insurance Corporation (PhilHealth)
This is the government agency which requires all employees to be registered. The
National Health Insurance Program under this aimed at providing health insurance coverage and
ensure affordable health care services for all the citizens of the Philippines.

Social Security System (SSS)

This is the government agency where employers and employees are required to be
registered. Funded through mandatory payroll contribution, this is where citizens who are retired,
currently unemployed or unemployable due to disability are assisted

Pag-IBIG (HDMF) Registration

The Home Development Mutual Fund (HDMF), commonly known in the Philippines as
“Pag-IBIG Fund” is a government agency that caters to the shelter financing of Filipino workers.
This employee benefit includes loans, access to housing programs and savings. Employees with
SSS and GSIS (for government employees) benefits are also mandated to be members of the
Pag-IBIG Fund. Like the SSS and Philhealth, this benefit requires monthly contributions from both
the employer and employee. The monthly contribution is of minimal amount.
Mayor’s Permit
Securing a Mayor’s Permit (also known as a Business Permit) is one of the requirements
for every business or company to operate in the Philippines. Local Government Units (LGUs) can
be cities or municipalities. Each municipality has different procedures depending on the ordinance
of the city or municipality.

Barangay Clearance

Register your business and get a clearance from the Barangay, the smallest and most
basic political unit in the country which has the direct contact with each member of the community.

Building Permit

It is simply in compliance with the proper construction of a house or a building following

the requirements set by law or the National Building Code. This is to make sure all the proper
technical, mechanical, electrical, and structural plans for the construction of the building are met.

Occupancy Permit

An Occupancy Permit is a document issued by Department of Building Official that serves

as a proof that the structure built completed all the building work and suitable for occupation. The
National Building Code and the Local Building Code entails the issuance of occupancy permit
prior to habitation of a structure or dwelling.

Sanitary Permit

Food and Non-food business establishments are required to secure sanitary permit to
make sure they observe the standard of the Sanitary Code of the Philippines. Workers /in said
establishments are also required to secure health cards.

Locational Clearance

A Locational Clearance is an approval document issued by City Planning and

Development Office that serves as your pre-requisite document in issuance of Business Permit
to guarantee the structure’s compliance with the Comprehensive Land Use and Zoning
Ordinance.

Fire Safety Inspection Certificate

It is a prerequisite for a business or occupancy permit. This should be conducted in order

to grant permits and/or licenses by local governments or other government agencies.