Business Registration in Makati City (2025): Complete Legal Guide to Costs & Requirements
1. Regulatory Framework
| Layer | Governing instrument | Key agency |
|---|---|---|
| National | Local Government Code of 1991 (RA 7160) – empowers LGUs to levy business taxes & fees | Makati City Government (BPLO, Treasurer) |
| National | Ease of Paying Taxes Act (RA 11976, 2024) – streamlined BIR rules; abolished the ₱500 Annual Registration Fee | Bureau of Internal Revenue (BIR) (National Tax Research Center) |
| National | Corporation Code of the Philippines (as amended, RA 11232) | Securities & Exchange Commission (SEC) |
| National | Business Name Law (Act No. 3883, as amended; DAO 18-07-2018) | Dept. of Trade and Industry (DTI) |
| Local | Revised Makati Revenue Code (City Ord. 2004-A-025, as amended 2023-056) | Makati City BPLO & Treasurer (Makati City Government, Makati City Government) |
2. Choose Your Legal Vehicle & Primary Registration
| Structure | Where to register | One-time government fees* |
|---|---|---|
| Sole proprietorship | DTI – BNRS NextGen | ₱200 (barangay), ₱500 (city), ₱1 000 (region) or ₱2 000 (national) + ₱30 DST (BNRS) |
| Partnership / Corporation / OPC | SEC – eSPARC / OneSEC | ₱100 name reservation; Filing = 1/5 of 1 % of authorised capital (min ₱2 000) + 1 % LRF; ₱1 010 by-laws; ₱470 Stock & Transfer Book.(FilePino, KPMG Assets) |
*Add documentary stamp tax on the subscription (₱1 per ₍₁₀₀₎) and bank fees for paid-up capital.
3. Local Registration Flow in Makati
Makati runs an electronic Business One-Stop Shop (eBOSS) that lets you upload documents, get assessments, and pay online (GCash, credit card, LandBank). Walk-in counters remain open at City Hall Building II. (makati-eboss.ph)
Barangay Business Clearance Submit primary-registration certificates, lease/ownership proof, cedula. Typical fee band: ₱200–₱500 (varies by barangay).(Digido)
Locational / Zoning Clearance From the Urban Development Department. Fee depends on land-use zone & floor area (₱2 000 ↑ for standard commercial premises). (Makati City Government)
BPLO Assessment & Mayor’s / Business Permit Core computation comes from the Revenue Code:
Initial Business Tax (new entities): 10 % of 1 % (i.e., 0.10 %) of paid-up capital.(Makati City Government)
Succeeding Years: percentage of gross sales (graduated schedule for each industry – manufacturing, wholesale, retail, contractors, etc.).(Makati City Government)
Regulatory fees (2025 typical ranges):
Fee Typical range / basis Legal basis Mayor’s Permit ₱500 fixed + business‐size multiplier Rev. Code § 4A.01 (Grant Thornton Philippines) Sanitary Permit ₱200 – ₱450 (plus employee health certs) Rev. Code § 5F.01 (Makati City Government) Garbage Charge ₱300 ↑ determined by floor area Rev. Code § 5G.01 (Makati City Government) Signage Fee ₱400 – ₱1 000 Rev. Code § 4A.03 Fire-Safety Inspection Certificate 10 % of all BPLO regulatory fees (automatic add-on) BFP Citizens’ Charter (Bureau of Fire Protection)
Fast-track window: If documents pass e-validation, Makati issues an electronic Mayor’s Permit within 1–2 working days; otherwise allow 5–7 days for on-site inspection. (Makati City Government)
BIR Certificate of Registration (Form 2303) TIN is generated in eSPARC for corporations; sole props file BIR Form 1901.
- ₱500 Annual Registration Fee — abolished for new and existing taxpayers starting 22 Jan 2024.(National Tax Research Center)
- ₱30 Documentary Stamp Tax on the 2303.
- Books-of-Accounts stamping (₱200 ±) or loose-leaf permit; Authority to Print ORs or adopt e-Invoicing.
4. Renewal & Ongoing Compliance
| Obligation | Deadline | Penalties |
|---|---|---|
| Mayor’s/Business Permit renewal & barangay clearance | Jan 1 – 20 annually | 25 % surcharge + 2 % interest / month （Code § 9A.01） |
| BIR business update / 2303 replacement (only if data change) | Within 30 days of change | ₱1 000 compromise per infraction |
| BFP FSIC | Before permit release & every renewal | Same 25 % surcharge on fee |
| Sanitary Permit & employee health certs | Before Jan 20 | ₱1 000 – ₱3 000 per un-certified employee (Makati City Government) |
| Income tax, VAT/PT, SSS, PhilHealth, Pag-IBIG registrations | Per national schedules | Varies |
5. Incentives, Exemptions & Recent Changes
Micro-enterprise relief: Start-ups with capital ≤ ₱500 000 enjoy business-tax exemption for the first two taxable years (City Ord. 2021-014).
Ease-of-Doing-Business upgrades (2024-2025):
- eBOSS now accepts end-to-end applications incl. locational & sanitary clearances.
- Online release of electronic Mayor’s Permit with QR-code.
Real-property-tax reduction 2025: commercial/industrial RPT down to 1.5 % (from 2 %).(BusinessWorld Online)
6. Cost Illustration – 2025 New Consultancy (Service sector, capital ₱1 000 000, 40 m² office in Brgy. Bel-Air)
| Item | Computation | Estimated cost |
|---|---|---|
| DTI BN registration | City scope | ₱530 |
| Barangay business clearance | Fixed | ₱300 |
| Locational clearance | Standard commercial | ₱2 500 |
| Business tax (initial) | 0.10 % × ₱1 000 000 | ₱1 000 |
| Mayor’s permit fee | Fixed | ₱500 |
| Sanitary permit | Small office | ₱300 |
| Garbage fee | 40 m² × ₱8 | ₱320 |
| Signage fee (optional) | 1 × ₱400 | ₱400 |
| BFP FSIC | 10 % of regulatory fees (₱1 520) | ₱152 |
| Subtotal Makati | ₱6 002 | |
| BIR DST (2303) | Fixed | ₱30 |
| Books of accounts stamping | 4 books × ₱50 | ₱200 |
| Total government cash-out (Year 1) | ≈ ₱6 760 |
(Professional fees, notarization and bank opening costs not included.)
7. Practical Tips
- Sequence smartly: Secure barangay & locational clearances before BPLO to avoid repeat trips.
- Use eBOSS: Upload PDFs < 2 MB; filenames must match document titles to pass auto-validation.
- Keep digital copies: Makati now issues electronic permits only; printouts are for display.
- Track gross sales monthly: Under Makati’s graduated tax table you may cross a bracket and owe additional tax on renewal.
- Plan inspections: Sanitary and fire teams may visit within 30 days; fines for denial of entry start at ₱5 000.
- No more ₱500 ARF: Budget saved but remember BIR’s annual registration update online.
8. Registration Checklist (Download-friendly)
- DTI Certificate / SEC Articles & digital Certificate
- Lease contract & lessor’s Mayor’s Permit (if rented)
- Barangay Business Clearance
- Locational / Zoning Clearance
- Public-liability insurance (for customer-facing venues)
- Notarized BPLO application form
- Payment slip & ORs from Treasurer
- BIR Form 1901/1903 + DST payment proof
- Books of accounts & ATP / e-Invoice accreditation
9. Key Take-aways
Expect about ₱6 000 – ₱12 000 in government fees for a typical MSME’s first year in Makati, dominated by city-level assessments. Staying compliant hinges on timely renewals (before 20 January), updating BIR records, and keeping your sanitary & fire clearances current. Makati’s 2025 digital systems and the national EOPT Act have shaved a few queues—and ₱500—off the process, but the documentary discipline remains non-negotiable.
This guide consolidates the most recent primary sources available as of 15 May 2025. Always verify fees on the Makati eBOSS portal or with BPLO before filing, as schedules may change by ordinance or implementing rules.