The Local Government Code of 1991 (Republic Act No. 7160) empowers local government units (LGUs)—comprising barangays, municipalities, cities, and provinces—to issue certificates and permits necessary for residency verification and the conduct of lawful occupations or businesses within their jurisdictions. These documents ensure regulatory compliance, public safety, revenue collection, and orderly community administration. Residency certificates primarily establish domicile, while work-related permits authorize economic activities such as business operations, vending, or specific occupations. Requirements, fees, and procedures vary by LGU, but core processes remain consistent nationwide. This guide details every aspect of application, legal basis, required documents, timelines, costs, special cases, and remedies.

I. Residency Certificates

Residency certificates prove an individual's legal residence in a specific barangay, municipality, or city. They are foundational documents required for employment, education, banking, government transactions, licensing, and judicial proceedings.

A. Barangay Certificate of Residency

This is the primary and most accessible residency document, issued by the Punong Barangay or designated Barangay Secretary.

Legal Basis: Derived from the general powers of barangays under Sections 17 and 391 of RA 7160 to maintain records of residents and issue certifications for local governance.

Purposes:

Job applications and pre-employment requirements
Enrollment in schools and universities
Application for passports, driver's licenses, PhilID, and other national IDs
Bank account opening and loan processing
Application for marriage licenses and other civil registry documents
Voter registration support and legal affidavits

Required Documents (standard across most barangays; additional items may apply locally):

Duly accomplished Barangay Certificate Application Form (available on-site or downloadable from some LGU websites)
At least one valid government-issued photo ID (e.g., Philippine Identification System ID, passport, driver's license, SSS/GSIS ID, or voter’s ID)
Proof of residency:
- Recent utility bills (electricity, water, internet) in the applicant’s or immediate family member’s name
- Lease contract, barangay residence certificate of a family member, or deed of absolute sale/transfer
- Affidavit of Residency, sworn before the Barangay Captain or notary, supported by at least two disinterested barangay residents as witnesses
Barangay Indigency Certificate (if applicable for fee waiver)
For minors: Birth certificate and parent/guardian’s valid ID and residency proof

Application Process:

Proceed to the Barangay Hall during official hours (typically 8:00 AM to 5:00 PM, Monday to Friday; some offer Saturday service).
Obtain and complete the application form.
Submit documents for initial review.
Undergo verification: A barangay tanod or official may visit the declared residence or confirm with neighbors.
Pay the prescribed fee.
Receive the certificate, usually on the same day or within 1–3 working days.

Fees: PHP 20 to PHP 150, depending on the barangay. Indigent residents may receive it free upon presentation of an Indigency Certificate.

Validity: Six (6) months to one (1) year from issuance. Some barangays issue indefinite versions for long-term residents but require re-verification for official use.

Renewal/Amendment: Re-apply with updated proof if address or civil status changes.

B. Municipal or City Certificate of Residency

Larger LGUs issue this through the Office of the Mayor, City/Municipal Administrator, or Treasurer’s Office for purposes requiring higher-level authentication (e.g., certain business registrations or court submissions).

Process: Similar to barangay level but may require the Barangay Certificate as a prerequisite. Processing time is 3–7 days.

Fees: PHP 100 to PHP 300.

C. Community Tax Certificate (Cedula)

Issued by the City or Municipal Treasurer’s Office, the Cedula serves as both a residency and income declaration document.

Types:

Basic Community Tax Certificate (for individuals)
Additional Community Tax Certificate (based on gross income or earnings from business/profession)

Legal Basis: Sections 156–157 of RA 7160 and related local tax ordinances.

Purposes: Mandatory for notarization of documents, business permit applications, bidding on government contracts, and certain court filings.

Requirements:

Valid ID and Barangay Certificate of Residency
Proof of income (latest ITR, payslip, or sworn declaration)
For corporations: SEC/DTI registration and financial statements

Process:

Visit the Treasurer’s Office.
Fill out the Community Tax Declaration form.
Pay the tax (basic: PHP 5.00 minimum; additional: up to PHP 5,000 based on income).
Issued immediately.

Validity: One calendar year (expires December 31).

II. Local Government Work Permits

Local work permits authorize individuals and entities to engage in lawful gainful activities within the LGU. For salaried employees, these are primarily clearances; for self-employed, vendors, professionals, and businesses, they take the form of business or occupational permits. National requirements (e.g., DOLE Alien Employment Permit for foreigners) must be secured first where applicable.

A. Barangay Business Clearance

The foundational local endorsement for any business or occupation.

Purposes: Required before securing the Mayor’s Permit; certifies community acceptance and compliance with local peace and order.

Requirements:

Barangay Certificate of Residency of the owner/operator
Valid government ID
Lease contract or proof of business location
Sketch of business site
For home-based businesses: Neighbor consent or clearance

Process: Submit at Barangay Hall → Site inspection (if needed) → Payment → Issuance (1–3 days).

Fees: PHP 100 to PHP 500.

B. Mayor’s Permit / Business Permit to Operate (Primary Local Work Permit)

This is the core local government work permit for operating a business, practicing a profession, or engaging in commercial activities.

Legal Basis: Sections 152–153 and 447/458 of RA 7160; supplemented by local revenue codes and ordinances on licensing and regulation.

Coverage:

Sole proprietorships, partnerships, corporations
Professionals (doctors, lawyers, engineers, accountants) practicing locally
Ambulant vendors, market stallholders, pedicab/tricycle operators
Home-based online sellers and freelancers operating physically in the locality
Contractors and service providers

Step-by-Step Application Process:

Secure Barangay Business Clearance.
Register with the Department of Trade and Industry (DTI) for sole proprietorships or Securities and Exchange Commission (SEC) for corporations/partnerships.
Obtain other clearances:
- Fire Safety Inspection Certificate (Bureau of Fire Protection)
- Sanitary Permit/Health Certificate (City/Municipal Health Office; includes medical examination for food handlers)
- Building/Zoning Clearance (if structural modifications)
- Environmental Clearance (for certain businesses)
Proceed to the Business Permits and Licensing Office (BPLO) or equivalent at the City/Municipal Hall.
Submit complete documentary requirements and application form.
Undergo assessment of fees based on capital investment, gross receipts, type of business, and location.
Pay business taxes, regulatory fees, and garbage fees.
Receive the Mayor’s Permit, signage permit, and official receipts.

Typical Documents:

DTI/SEC registration
Barangay Business Clearance and Certificate of Residency
Lease contract or title to business premises
Valid IDs of owner and authorized representatives
TIN and latest income tax return
SSS, PhilHealth, and Pag-IBIG employer registration (for businesses with employees)
Special permits (e.g., FDA for food/drugs, NTC for telecommunications)

Fees and Taxes: Highly variable. Minimum fees start at PHP 500 for small businesses; larger enterprises pay thousands based on gross sales and location. Annual renewal is mandatory, usually in the first quarter of the year, with surcharges for late filing (25% penalty plus interest).

Validity: One year; expires on December 31 unless renewed.

C. Occupational Permits and Specialized Work Permits

Certain LGUs issue targeted permits for informal or regulated occupations:

Vendor’s Permit or Ambulant Vendor Permit for street vendors and market sellers.
Driver’s Franchise or Tricycle Operator’s Permit (TOP) for public utility vehicles.
Security Agency or Guard Permit (coordinated with PNP Supervisory Office for Security and Investigation Agencies).
Construction Worker’s Permit or safety passes in some cities.
Home Occupation Permit for small-scale businesses operating from residences.

Process: Application at the BPLO or specific regulatory office, background check, training (where required), and fee payment. Processing: 3–14 days.

III. Special Considerations

For Foreign Nationals:

Secure Alien Employment Permit (AEP) from the Department of Labor and Employment (DOLE) and appropriate visa from the Bureau of Immigration first.
Register residence with the local barangay using passport, visa, and ACR I-Card.
Obtain Barangay Certificate of Residency and Barangay Business Clearance.
Apply for Mayor’s Permit following the standard process, plus submission of AEP, visa, and sometimes a Special Resident Retiree’s Visa (SRRV) or investment-related documents.
Some LGUs require additional local registration or endorsement for foreigners.

For Minors and Students:

Parental consent and guardian’s documents required.
School enrollment certificates may substitute for some proofs.

For Persons with Disabilities and Senior Citizens:

Present PWD or Senior Citizen ID for fee discounts or exemptions under RA 7277 and RA 9994.

Digital and Online Applications: Progressive LGUs maintain online portals for pre-registration, appointment scheduling, and electronic payment of fees, reducing physical visits.

Common Grounds for Denial:

Incomplete documents
Residency not verified
Outstanding taxes or violations of local ordinances
Business activity prohibited in the zone

Remedies:

Administrative appeal to the Mayor or Sanggunian.
Judicial recourse via petition for mandamus or injunction if denial is arbitrary.
Falsification of these documents is punishable under Articles 171–172 of the Revised Penal Code.

Updates and Variations: Applicants must always inquire at the specific barangay and city/municipal offices, as local ordinances may impose additional requirements or fees. Annual renewal of business permits is compulsory to avoid closure orders and accumulated penalties. Compliance with national laws (Labor Code, Tax Code, and special regulatory frameworks) remains mandatory alongside local permits.

This framework ensures that residency and work-related authorizations from local governments are obtained lawfully, promoting transparency, accountability, and orderly economic activity throughout the Philippines.