BUSINESS PERMIT VERIFICATION FOR CONSTRUCTION FIRMS IN QUEZON CITY (PHILIPPINES) A comprehensive legal-practice guide
1 Why “permit verification” matters
In the Philippines a construction company cannot lawfully bid, sign contracts, pull building permits, open an office, or even print official receipts unless (a) it is duly organized under national law and (b) it holds a valid Quezon City Mayor’s/Business Permit for the exact establishment address. The permit is the City’s way of confirming that the enterprise:
- has a lawful personality (SEC-registered corporation or DTI-registered single proprietorship/partnership);
- operates on premises that meet land-use and building-code rules;
- is tax-accounted and BIR-registered; and
- has paid the correct local fees.
Stakeholders—property developers, banks, government procuring entities, even private homeowners—routinely demand proof that a contractor’s permit is authentic, current, and issued for the right project office before awarding work or releasing payments.
2 Primary legal sources
| Instrument | Key points for construction firms |
|---|---|
| Local Government Code of 1991 (RA 7160) | Empowers LGUs to “issue or deny business permits” and collect corresponding fees. |
| QC Revenue Code (Ordinance No. SP-103, s. 2001, as amended) | Sets the documentary requirements, deadlines (renewal every 01–20 January), fee matrix, and penalties. |
| Ease of Doing Business Act (RA 11032) | Requires Quezon City to maintain an “Electronic Business One-Stop Shop” (eBOSS) and to release permits for simple applications within 3 working days. |
| Contractors License Law (RA 4566) & PCAB Rules | No construction firm may obtain a Mayor’s Permit without first holding a PCAB license of the proper category (AAA, AA, A, B, C, D, Trade). |
| National Building Code (PD 1096) & IRR | Building permits cannot be issued unless the contractor on record holds a valid Mayor’s Permit. |
| Revised Corporation Code (RA 11232) | Governs corporate formation and amendments—often the first item the QC Business Permits and Licensing Department (BPLD) checks. |
| DOLE Department Order 13 & OSH Law (RA 11058) | Requires a construction safety and health program approved by DOLE; the Mayor’s Permit application form asks for the DOLE registration number. |
3 Obtaining—and later verifying—a Quezon City Business Permit
Organize the legal entity SEC Certificate of Incorporation / DTI Certificate of Registration
Register with the BIR COR (Form 2303), ATP for official receipts, books of accounts.
Secure Barangay Business Clearance for the project or head-office address.
Zoning Clearance from the City Planning and Development Office (CPDO).
Apply for the PCAB License (for new contractors) or present the unexpired license (for renewals).
Submit to the QC BPLD (now folded into the “Business One-Stop Shop” at City Hall or via the QC e-Services portal):
- Duly accomplished Unified Application Form (UAF).
- Latest Audited Financial Statement stamped “received” by BIR.
- Lease contract or Transfer Certificate of Title plus a notarized Location Sketch.
- Occupancy Permit (if the office is in a building constructed after 2005).
- DOLE Construction Safety & Health Program registration.
- Valid Fire Safety Inspection Certificate (FSIC).
Assessment & payment of the following:
Description Typical basis Business Tax Percentage of prior year gross receipts (minimum ₱ 2,000). Mayor’s Permit Fee Fixed + area-based component (sqm of office). Garbage, Sanitary, and Inspection Fees Fixed per establishment type. Fire Code Fee 10% of all the above, collected by BFP. Release of the Mayor’s Permit (paper copy + QR code).
3.1 How to verify authenticity
| Step | Tool/Office | What to look for |
|---|---|---|
| 1 | QR Code scan on the permit itself | Opens the record in the QC eBOSS database (status should read “ACTIVE – 2025”). |
| 2 | QC BPLD Help Desk (ground floor, Civic Center Building A) | Provide the BPLA reference number; staff will confirm issuance date, taxpayer name, and address. |
| 3 | Official email inquiry (bpld@quezoncity.gov.ph) |
Attach a copy of the permit; response usually within 24 hours. |
| 4 | PCAB online verification (https://pcabgovph.com/search) | Cross-check that the corporate name and address match the Mayor’s Permit. |
| 5 | Barangay Hall of the stated address | They keep a ledger of BARANGAY CLEARANCES and can confirm if it is valid for the same period. |
4 Common red flags during verification
- Mismatch in address between the permit and the project site—only the address on the permit is legally covered.
- Expired PCAB license (PCAB follows a fiscal-year cycle 01 July–30 June).
- Amended corporate name not yet reflected on the permit (requires BPLD annotation).
- Unsigned or photocopied permits—original carries dry seal plus cashier’s machine validation.
- Missing FSIC sticker on the office premises—fire inspectors issue closure orders if absent.
5 Renewal mechanics
- When: 01 – 20 January every year (QC Revenue Code).
- Late filing surcharge: 25 % plus 2 % interest per month on the basic business tax.
- Document updates required: latest ITR/AFS, lease renewal, new OSHC/DOLE certificates, and renewed PCAB license if it lapses within the year.
- “No permit, no business” rule: QC Enforcement Division may issue a Notice of Violation and padlock the office or field site.
6 Penalties for operating without—or with a fake—permit
| Violation | Sanction |
|---|---|
| First offense (no permit) | Closure order within 72 hours + penalty equivalent to 100 % of assessed taxes/fees. |
| Subsequent offense | Criminal charge under Sec. 258, QC Revenue Code (fine up to ₱ 5,000 and/or imprisonment up to 1 year). |
| Counterfeit / tampered permit | Prosecution for Falsification under Art. 172, RPC; QC confiscates equipment on site; PCAB may suspend the license. |
7 Interaction with building-site permits
Remember: Business Permit ≠ Building Permit. Before breaking ground the project owner (not the contractor) must obtain:
- Location Clearance – zonal compliance of the proposed structure.
- Building Permit – Office of the Building Official (OBO), per PD 1096.
- Excavation, Fencing, Crane & Scaffolding Permits – if applicable.
Yet OBO will not release these if the listed contractor lacks an active QC Business Permit and PCAB license.
8 Good-practice tips for practitioners
- Sync corporate amendments with QC promptly; name or seat changes require a permit re-print, not just at renewal.
- Keep electronic PDFs of every permit year; many government bids ask for the “current” and “immediately preceding” Mayor’s Permits.
- Enroll in QC e-Services; your dashboard shows tax assessments, deadlines, and a real-time status bar (“for evaluation”, “for payment”, “released”).
- Audit your branch hierarchy; each field office or equipment yard in Quezon City needs its own Barangay Clearance and business permit even if it has zero sales.
- Track PCAB license expiry (30 June) well in advance—easily overlooked when permit renewal season (January) is months apart.
9 Concluding note
Business-permit verification is more than box-ticking: it is a legal due-diligence step that shields all parties—from owners to subcontractors—from invalid contracts, tax penalties, and potential criminal liability. Because local compliance rules continue to evolve (especially under the Ease of Doing Business framework), counsel should monitor new QC ordinances and PCAB circulars and advise clients to keep digital copies of every official receipt, assessment sheet, and permit page for at least five years.
This article is for general guidance; always confirm the latest ordinances and administrative issuances, and seek tailored legal advice where necessary.