A practical legal article for investors, customers, landlords, suppliers, and compliance teams

1) Why “permit legitimacy” matters (and what you’re really verifying)

In the Philippines, “legitimacy” is rarely proven by a single document. A lawful, operating business typically needs (a) a legal existence/registration, (b) local authority to operate at a location, and (c) tax registration and invoicing authority, plus (d) industry-specific licenses if the activity is regulated.

So verification is a layered due diligence exercise:

Is the entity real and properly registered? (DTI/SEC/CDA)
Is it allowed by the LGU to operate at a specific address? (barangay clearance + Mayor’s/business permit; zoning/locational clearance)
Is it registered with the BIR and issuing compliant receipts/invoices? (BIR registration, ATP/authority to print or invoicing authority)
Does it have required safety and regulatory clearances? (BFP FSIC, building/occupancy, sanitary, environmental, FDA, etc.)
Are the presented documents authentic and unexpired, and do they match each other?

2) Core concept: Registration vs. Permit vs. License (don’t mix these up)

A. Registration (creates/recognizes the entity)

DTI Business Name Registration – for sole proprietorships (the business name is registered, but the “owner” is the person).
SEC Registration – for corporations, partnerships, and OPCs under the Revised Corporation Code.
CDA Registration – for cooperatives.

What registration tells you: the entity is recognized by the government as organized/doing business under a certain legal form.

B. Local permits (authority to operate in a locality)

Barangay Clearance
Mayor’s Permit / Business Permit (issued by the city/municipality)

What local permits tell you: the LGU allows the business to operate in that city/municipality, often at a specified address, typically for a calendar year.

C. Tax registration (authority to operate as a taxpayer and issue receipts/invoices)

BIR Certificate of Registration (COR) and related registrations
Authority for invoicing/receipts (e.g., authority to print or use invoices/receipts, depending on the taxpayer’s setup)

What tax registration tells you: the business is registered with the BIR, has declared tax types, and is set up to comply.

D. Regulatory licenses (sector-specific)

Examples include FDA licenses for food/drugs/cosmetics/medical devices; DENR environmental permits; DOE/ERC permits for energy; NTC for telecom; BSP for banks; Insurance Commission for insurers; LTO/LTFRB/CAAP/MARINA for transport and logistics; PDEA for controlled chemicals; and many more.

What licenses tell you: the business is authorized to engage in regulated activities.

3) The “usual permit stack” for a typical physical business (baseline checklist)

For many brick-and-mortar businesses, a common set includes:

Proof of registration (DTI/SEC/CDA)
Barangay clearance
Mayor’s/business permit (current year)
Zoning/locational clearance (or equivalent LGU approval that the activity is allowed at that address)
BFP Fire Safety Inspection Certificate (FSIC) (or current fire clearance regime required by the LGU)
Building permit / occupancy permit (especially if a new building, renovated, or newly occupied space)
Sanitary permit / health-related clearances (common for food/hospitality)
BIR registration documents (COR, registered books if applicable, invoicing/receipt authority, and proof of registered business address)

Not every business will have every document (e.g., online service businesses without public premises), but if a business operates at a site open to the public, expect at least LGU + fire safety compliance.

4) Step-by-step verification methods (from fastest to strongest)

Step 1: Inspect the document itself (quick authenticity screening)

When you’re handed a business permit or clearance:

A. Check for completeness

Official name of business/entity
Business address (barangay/city/province)
Nature of business / line of business (PSIC or description)
Permit number, OR number (official receipt), date of issuance
Validity period (many are annual)
Signature and designation of issuing officer
Dry seal/embossing, QR code, barcode, or security features (varies by LGU)

B. Check for internal consistency Common red flags:

DTI name doesn’t match the business name on the Mayor’s permit (for sole props, the owner name should match too).
SEC corporate name differs subtly (extra punctuation, spacing, “Inc.” missing) from invoices/contracts.
Address mismatch across documents (LGU permit says Address A; BIR COR says Address B; warehouse is Address C).
Permit is “for renewal” but the dates don’t align with the current year.
“Photocopy only” with no way to validate, and the business refuses issuer verification.

C. Check validity and coverage

LGU permits are typically location-specific; a permit for one branch does not automatically cover another branch.
Some businesses require separate permits per outlet/branch.

Step 2: Verify the issuer and the record (stronger validation)

The most reliable method is issuer confirmation: confirm that the permit number exists in the issuing authority’s records.

A. For DTI Business Name (sole proprietorship)

Use DTI’s official verification/search service (DTI provides ways to confirm business name registration details).
Alternatively, request the registrant to provide proof and allow you to validate via DTI channels.

B. For SEC-registered entities (corporations/partnerships/OPC)

Use SEC’s official online verification tools where available, or
Request certified true copies / official SEC documents (e.g., certificate of incorporation/registration, articles/bylaws, and current company information).
Confirm company status (active/delinquent/suspended/revoked) if the verification method supports it.

C. For CDA cooperatives

Validate through CDA channels and request official certification/documents if needed.

D. For Mayor’s/Business Permit and Barangay Clearance

Contact the LGU Business Permits and Licensing Office (BPLO) or equivalent office; provide:
- Business name, address, permit number, OR number, issuance date
Many LGUs have QR-based verification or internal systems; if not, request written confirmation.

E. For Fire Safety Inspection Certificate (FSIC)

Verify with the Bureau of Fire Protection (BFP) having jurisdiction over the address (city/municipal fire station).
Ensure the FSIC is for the same address and occupancy type.

F. For BIR registration BIR information is not always publicly searchable in a way that confirms all details. Stronger methods include:

Request a copy of the BIR Certificate of Registration (COR) and check:
- Registered name/TIN (handle carefully)
- Registered business address
- Tax types and registration date
For invoicing legitimacy, request proof of invoicing/receipt authority and sample invoices/receipts.
As a counterparty, you can protect yourself by requiring VAT/withholding documentation and verifying that the seller’s invoicing details match their registration.

Practical note: BIR/TIN data is sensitive. Treat it as confidential and use it only for legitimate compliance purposes.

Step 3: Confirm the place and operations (reality check)

Even authentic documents can be misused (e.g., for a different branch, or expired, or a prior location).

Do a site validation (as appropriate):

Verify that the business actually operates at the listed address.
Check signage, lease, occupancy, and whether the nature of business matches the permitted activity.
For warehouses/factories, check if environmental and safety permits are needed and present.

Step 4: Confirm authority of the person transacting

Fraud often happens through “real company, fake representative.”

Ask for:

Government ID of signatory
Board resolution/Secretary’s Certificate (for corporations) authorizing the signatory
SPA (for sole proprietor if someone else signs)
Verify corporate officers/directors as appropriate through official company records

5) Common permit types and what to check for each

A) DTI Business Name (Sole Proprietorship)

What it is: registration of a business name; the owner is personally liable.

Verify:

Business name and owner name match ID/contracts
Registration is active/not expired (DTI BN registration has a term/renewal)
Scope of business name (territorial scope) matches where it operates/markets

B) SEC Registration (Corporation/Partnership/OPC)

Verify:

Exact registered name (including suffixes like Inc., Corp., OPC)
SEC registration number
Corporate status (active vs. delinquent/suspended)
Current officers, registered address
Authority of signatory (Secretary’s Certificate / board resolution)

C) Barangay Clearance

Verify:

Barangay matches the address
Validity period
Official receipt/reference, signature/position
Not used as a substitute for the Mayor’s permit

D) Mayor’s/Business Permit (BPLO)

Verify:

Correct year and validity
Address matches the operating site
Business activity matches actual operations
Branch/outlet coverage (head office vs. branch)
OR/fees paid correspond to the LGU

E) Zoning/Locational Clearance (LGU)

Verify:

The location is approved for the specific use (e.g., restaurant vs. light industrial)
Conditions/restrictions are complied with

F) BFP Fire Safety Inspection Certificate (FSIC)

Verify:

Address and occupancy classification match
Validity period
Not issued for a different unit/floor/building
Any noted deficiencies are cleared

G) Building/Occupancy Permits (Building Official)

Verify:

Especially critical for new constructions, renovations, or change in use
Ensure occupancy permit exists where required

H) Sanitary/Health Permits (City/Municipal Health Office)

Verify:

Common for food businesses, salons, clinics
Validity and scope

I) Environmental compliance (DENR and related)

Depending on industry, verify the presence of:

Environmental Compliance Certificate (ECC) or Certificate of Non-Coverage (CNC) where applicable
Discharge permits, air permits, hazardous waste registration, etc.

J) FDA (food, drugs, cosmetics, medical devices)

Verify:

LTO (License to Operate) for establishments
Product registration (where applicable)
Correct company name and address in FDA records/documents

6) Industry-specific due diligence examples

If you’re buying goods (supplier verification)

Minimum:

DTI/SEC + Mayor’s permit + BIR COR + sample compliant invoice/receipt Better:
Proof of warehouse address legality + BFP FSIC for facility + authority of signatory For regulated goods:
FDA/other agency licenses

If you’re leasing to a tenant (landlord verification)

Minimum:

SEC/DTI + planned nature of business
Zoning compatibility and required fit-out permits Better:
Require tenant to produce Mayor’s permit once operational
BFP fire compliance and occupancy-related documents

If you’re investing in or partnering with a company

Minimum:

SEC certified documents + status
Authority of signatories, ownership, and governance documents Better:
Litigation checks, tax compliance representations, and warranties
Facility compliance (environmental, labor, safety) based on operations

7) Red flags and common scams in the Philippine setting

“We’re registered, but permits are ‘processing’ for months.” (Some processing time is normal, but long delays can indicate inability to comply.)
Using someone else’s permits (same business name, different owner/entity).
Multiple versions of permits with different numbers/dates.
Permits for a different address (especially common with online sellers using a home address on paper but operating elsewhere).
Refusal to allow issuer verification or to provide authority documents for signatories.
Invoices/receipts that don’t match the registered name, TIN format expectations, or address.

8) What to do if you suspect a permit is fake or misused

A. Pause the transaction and document everything

Keep copies/screenshots of permits, communications, invoices, and IDs presented.
Record dates, names, and representations made.

B. Seek issuer confirmation

Contact BPLO/barangay/BFP/SEC/DTI/CDA as relevant and request confirmation.

C. Contractual and operational safeguards

Require warranties/representations in the contract that permits are genuine and valid.
Add a right to terminate for misrepresentation or regulatory non-compliance.
Use staged payments tied to compliance deliverables.

D. Reporting and enforcement options

Depending on circumstances:

Report suspected falsification to the issuing office (LGU/BFP/SEC/DTI).
For criminal aspects (e.g., falsified documents, estafa), consider reporting to law enforcement with counsel.

9) Privacy and handling of IDs/TINs (data protection hygiene)

Verification often involves personal data (owner IDs, TIN). Follow prudent practices consistent with Philippine data privacy principles:

Collect only what you need (data minimization).
Limit access internally (need-to-know).
Store securely; redact where feasible.
Use data only for legitimate verification/compliance purposes.

10) A practical “gold standard” verification workflow (copy/paste checklist)

Ask for:

DTI/SEC/CDA proof of registration
Mayor’s/business permit (current year, correct branch address)
Barangay clearance (same address)
Zoning/locational clearance (if physical premises)
BFP FSIC (same address/unit)
BIR COR + invoicing/receipt authority + sample invoice/receipt
Authority of signatory (Secretary’s Certificate/board resolution or SPA)

Cross-check:

Exact name, address, nature of business, validity dates
Branch coverage (head office vs. branch)
Signatory authority and IDs

Verify with issuer when risk is high:

LGU BPLO record check
BFP station confirmation
SEC/DTI/CDA official verification or certified documents

11) Frequently asked questions

“If they have a Mayor’s permit, are they automatically legitimate?”

It’s a good sign, but not absolute. You still want to confirm:

Correct entity name (DTI/SEC)
Correct address/branch
Tax registration and invoicing compliance
Sector licenses if regulated

“Can an online business operate without a Mayor’s permit?”

If the business is doing business in a locality (especially with a physical office/warehouse/fulfillment site or public-facing operations), LGU permitting requirements commonly apply. Purely remote work setups can still trigger local requirements depending on facts (location of operations, address used, and LGU rules).

“What’s the difference between a DTI name and an SEC corporation?”

DTI is for sole proprietorship (person owns and is liable). SEC is for juridical entities like corporations/partnerships (separate legal personality, subject to corporate governance rules).

“Is a Barangay clearance enough?”

No. It’s usually a supporting requirement for the Mayor’s permit, not a substitute.

12) Key takeaway

Verifying business permits in the Philippines is about triangulation: match the business’s registration identity, local authority to operate at a specific location, tax registration/invoicing authority, and industry licenses—then confirm authenticity through issuer validation when the transaction value or risk warrants it.

If you want, tell me what kind of business you’re checking (e.g., restaurant, contractor, online seller, warehouse, clinic, importer), and I’ll give you a tailored permit checklist and the highest-risk failure points for that industry.