Under the Philippine Local Government Code of 1991 (Republic Act No. 7160), local government units exercise the power to regulate businesses operating within their territorial jurisdiction through the imposition of local business taxes, fees, and charges. In Makati City, this authority is exercised by the City Government pursuant to its Revenue Code and relevant city ordinances. The annual renewal of the Business Permit (also known as the Mayor’s Permit) is a mandatory regulatory requirement for all sole proprietorships, partnerships, corporations, cooperatives, and other business entities engaged in trade or commerce within the city’s boundaries. Failure to renew timely constitutes a violation of local tax ordinances and may result in the imposition of surcharges, interest, penalties, and, in extreme cases, closure of the establishment.

The legal framework governing business permit renewal in Makati City is anchored on the Makati City Revenue Code, as amended, together with national laws such as the Department of the Interior and Local Government (DILG) guidelines on business permitting, the Fire Code of the Philippines (Republic Act No. 9514), the Food Safety Act of 2013 (Republic Act No. 10611), and various issuances of the Department of Trade and Industry (DTI), Securities and Exchange Commission (SEC), and Bureau of Internal Revenue (BIR). The Business Permit and Licensing Division (BPLD) of the Makati City Treasurer’s Office serves as the primary implementing office.

1. Deadline for Renewal

Business permits must be renewed on or before January 31 of each year. The first quarter of the year is designated as the official renewal period. Businesses that fail to renew within this period are subject to the following penalties under the Makati City Revenue Code:

A surcharge of 25% of the basic tax due for the first month of delinquency, plus 2% per month of delinquency thereafter until fully paid, but not exceeding 36 months.
Administrative fines ranging from ₱1,000 to ₱5,000 depending on the nature and size of the business.
Possible closure of the business establishment after due notice and hearing.

Extensions may be granted by the City Mayor or the BPLD upon meritorious grounds, usually subject to payment of additional administrative fees.

2. General Documentary Requirements for Renewal

All applicants for renewal, regardless of business classification, must submit the following basic documents (original and two photocopies unless otherwise specified):

Duly accomplished Business Permit Renewal Application Form (BPL Form 01), available at the BPLD or downloadable from the official Makati City website.
Original and photocopy of the previous year’s Mayor’s Permit.
Sworn Statement of Gross Receipts/Sales for the preceding year (using the prescribed form), certified by the owner or authorized representative. This serves as the basis for computing the current year’s business tax.
Latest Barangay Clearance issued by the barangay where the business is located (valid within three months).
Valid Community Tax Certificate (CTC) or Cedula of the owner or authorized signatory.
BIR Certificate of Registration (COR) and the latest Income Tax Return (ITR) or Annual Information Return (BIR Form 1701 for individuals or 1702 for corporations).
DTI Certificate of Registration (for sole proprietorships) or SEC Certificate of Incorporation and latest General Information Sheet (for corporations and partnerships), or CDA Certificate (for cooperatives).
Proof of payment of the previous year’s real property tax on the business premises (if the business owns the property) or a valid lease contract with current rental receipts (if rented).
Photocopy of the latest Official Receipt of payment for the previous year’s business tax and fees.
Two (2) recent 2×2 photographs of the owner or authorized representative.

Additional requirements apply depending on the nature of the business:

For Food Establishments, Restaurants, and Related Businesses:

Sanitary Permit / Health Certificate from the Makati City Health Department.
Latest Food Safety Compliance Certificate.
Certificate of Occupancy or Building Permit (if applicable).

For Manufacturing, Industrial, or High-Risk Establishments:

Fire Safety Inspection Certificate (FSIC) issued by the Bureau of Fire Protection (BFP) – Makati City Fire Station.
Environmental Compliance Certificate (ECC) or Certificate of Non-Coverage (CNC) from the Environmental Management Bureau (EMB) – DENR.
Pollution Control Officer accreditation, where required.

For Service-Oriented Businesses (e.g., medical clinics, spas, beauty salons):

Professional Regulation Commission (PRC) licenses of practitioners.
Special permits from the Department of Labor and Employment (DOLE) if employing foreign nationals.

For Businesses Dealing with Regulated Products (liquor, tobacco, firearms, etc.):

Separate licenses from the Philippine National Police (PNP) – Firearms and Explosives Division or the Liquor Licensing Board.
Mayor’s Permit to Sell Liquor (additional endorsement).

For Corporate Entities and Franchises:

Latest SEC GIS and proof of filing of audited financial statements.
Board Resolution authorizing the renewal (for corporations).

For Home-Based or Online Businesses:

Zoning Clearance confirming residential use is allowed for light commercial activity.
Updated proof of residence.

All documents must be current and valid at the time of filing. Incomplete applications will not be accepted and will require resubmission.

3. Step-by-Step Renewal Procedure

Pre-Assessment: The applicant submits the complete set of documents to the BPLD One-Stop Shop or through the Makati City Online Business Permit System (if available in the current year).
Tax Computation: BPLD personnel compute the business tax based on the gross receipts declared, applying the graduated rates prescribed in the Makati City Revenue Code. Rates vary according to business classification (e.g., retailers, wholesalers, services, manufacturers).
Payment: The applicant pays the computed tax and fees at the City Treasurer’s Office or authorized payment channels (bank, online banking, or e-payment platforms accepted by the city).
Inspection (if required): Certain businesses undergo post-renewal or pre-renewal inspection by the BFP, City Health Office, or City Engineer’s Office.
Issuance: Upon full payment and clearance from all concerned offices, the new Business Permit and the corresponding Official Receipt are issued. The permit must be conspicuously displayed at the principal place of business.

Makati City encourages online renewal through its integrated digital platform to minimize physical queuing. Applicants with complete digital uploads may receive their renewed permit via email or courier.

4. Schedule of Fees and Taxes

Business taxes in Makati are imposed on a percentage-of-gross-receipts basis or on a fixed graduated scale, whichever is applicable under the city’s Revenue Code. Other fees include:

Mayor’s Permit Fee (varies by capital investment or gross receipts).
Garbage Fee.
Fire Inspection Fee.
Sanitary Inspection Fee.
Barangay Share (usually 1% of the business tax).
Other regulatory fees (e.g., signboard permit, plate number for delivery vehicles).

Exact amounts are computed at the time of application and are subject to annual adjustment by the Sangguniang Panlungsod.

5. Special Considerations and Exemptions

New Businesses: First-time applicants follow a slightly different process involving initial registration and payment of higher fees based on capitalization rather than gross receipts.
Branch Offices: Each branch or satellite outlet in Makati requires a separate permit.
Transfer of Ownership or Location: Requires re-application and payment of transfer fees.
Seasonal or Temporary Businesses: May avail of short-term permits.
Micro, Small, and Medium Enterprises (MSMEs): Qualified MSMEs may enjoy reduced fees or staggered payment schemes pursuant to Republic Act No. 9501 (Magna Carta for MSMEs) and local implementing rules.
Senior Citizen-Owned Businesses: Discounts on certain fees may apply upon presentation of valid Senior Citizen ID.

6. Grounds for Denial or Revocation

Renewal may be denied or an existing permit revoked for any of the following:

Non-payment of taxes or fees.
Violation of zoning ordinances.
Failure to comply with fire safety, health, or environmental standards.
Conviction for criminal offenses related to the business.
Submission of falsified documents.
Operation without required national permits.

Decisions of the BPLD may be appealed to the City Mayor, then to the regular courts if necessary.

7. Enforcement and Compliance Monitoring

The Makati City Government, through the BPLD, City Legal Office, and the Public Order and Safety Unit, conducts regular inspections and raids on non-compliant establishments. Businesses found operating without a valid permit are issued a Notice of Violation and may be subjected to padlocking.

Business owners are strongly advised to maintain complete and accurate records of gross receipts, as these form the basis for tax computation and may be audited by city authorities.

This article provides a comprehensive summary of the prevailing requirements as of the latest applicable laws and city ordinances. Requirements may be updated by new issuances of the Sangguniang Panlungsod or national government agencies; therefore, direct verification with the Makati City BPLD is recommended for the most current information.