Yes. In general, a business permit (often called a “Mayor’s Permit” or “Business Permit”) is still required for any person or entity “doing business” or operating an enterprise within a city or municipality in the Philippines. The legal basis is primarily the Local Government Code of 1991 (Republic Act No. 7160), which empowers local government units (LGUs) to regulate businesses through licensing and permitting and to levy local taxes, fees, and charges, subject to statutory limits and due process.

That said, the real-world answer depends on (1) what activity you’re doing, (2) where you’re doing it, and (3) how your LGU defines and enforces “doing business” within its jurisdiction. This article explains the topic in Philippine legal and regulatory context—what the permit is, who needs it, common exceptions and gray areas, related permits, procedures, renewals, and consequences of operating without one.

1) What “Business Permit” Means in Practice

In Philippine practice, “business permit” usually refers to the local authorization to operate issued by the city/municipal government (typically processed by the Business Permits and Licensing Office (BPLO) or equivalent). It is distinct from—but commonly confused with—these other registrations:

DTI Registration (for sole proprietorships)
SEC Registration (for corporations/partnerships)
CDA Registration (for cooperatives)
BIR Registration (authority to print receipts/invoices, registration of books, issuance of COR, etc.)

A business can be properly registered with DTI/SEC and BIR and still be operating illegally at the local level if it has no valid LGU business permit for the place where it operates.

2) Legal Basis: Why LGUs Can Require It

A. Police Power (Regulation)

LGUs have delegated police power to regulate businesses for public welfare, safety, health, and order. Business permits are the mechanism for this regulation—e.g., ensuring compliance with zoning, building/fire safety, sanitation, and other local ordinances.

B. Local Taxing Power (Revenue)

LGUs are also authorized to impose:

Business taxes (for those subject to local business tax under the LGC and local ordinances)
Regulatory fees (permits, inspection fees)
Other local charges allowed by law and ordinance

So the permit system is typically both:

a regulatory gate; and
a collection/assessment point for local business taxes and fees.

3) The Default Rule: If You “Operate” in an LGU, You Need an LGU Permit

A. Who Usually Needs a Business Permit?

Most businesses operating in a city/municipality need a permit, including:

Retail/wholesale stores, restaurants, cafés
Services (salons, repair shops, gyms)
Manufacturers, workshops, small plants
Warehousing, distribution, logistics hubs
Offices (head offices, branches, liaison offices, project offices)
Market stalls/kiosks (often subject to special local rules)
Clinics and similar establishments (plus professional/health-related licenses)

B. “Branch” vs “Head Office”

A business may need:

A permit for the head office location, and
Separate permits for branches, and sometimes
Permits for warehouses or other facilities if treated as separate establishments by ordinance.

LGUs commonly differentiate between:

principal place of business, and
additional place(s) of business.

4) Online, Home-Based, and “No Physical Store” Businesses

This is where people most often ask: “Do I still need a business permit?”

A. Online Sellers and E-Commerce

If you store inventory, pack/ship, or transact from a location inside an LGU (e.g., your home, a rented room, a small warehouse), many LGUs treat you as operating in that locality—so a permit may be required.

Even if sales happen through:

Shopee/Lazada/FB Marketplace/Instagram
a website
messaging apps

…your operations (storage, dispatch, customer service, production) can anchor local permitting.

B. Home-Based Services / Freelancers / Consultants

This is the grayest area. In theory:

If you are not operating an “establishment” and merely rendering professional services, the requirement may shift toward professional tax/occupational tax requirements (e.g., PTR in many LGUs), depending on status and local ordinances.
In practice, many LGUs still require some form of permit/clearance if you maintain a home office, advertise locally, employ people, receive walk-in clients, or have signage.

Practical takeaway: if your activity is continuous and anchored to a locality (home office used for business), expect your LGU to require either:

a business permit, or
an alternative local authorization (sometimes a lighter/“home-based” permit category), plus possible PTR for professionals.

C. Purely Remote Work as an Employee

If you are a pure employee working remotely (no business), you generally do not get a business permit, because you are not “doing business” on your own account.

5) Common Situations People Think Are Exempt (But Often Aren’t)

“Small business lang—sari-sari store lang.”

Size doesn’t automatically exempt you. Many micro businesses still need a permit—though fees/taxes may be smaller and there may be barangay-level processes.

“DTI and BIR lang, ok na.”

DTI/SEC and BIR compliance does not replace the LGU permit.

“I don’t have a store; I just post online.”

If your operations (inventory, packing, production) are located in an LGU, you may still be treated as operating there.

“I’m just testing the market.”

If you are already selling continuously, LGUs can treat it as business activity. Some LGUs may be lenient, but the legal risk remains.

6) Real Exceptions and Edge Cases

There isn’t a single universal “exemption list” nationwide, because permits are largely implemented through local ordinances. But these are the most common defensible categories:

A. Activities That Are Not a “Business” (No Trade/Commercial Activity)

If there is no commercial activity—no offering of goods/services for a fee or profit—there may be no permitting basis.

B. Passive Ownership vs Operating

Owning an asset isn’t the same as operating a business. Example:

You own a condo and lease it out: depending on facts and LGU ordinance, you may face local tax/permit questions, but the “operator” of any on-site commercial activity is key.

C. Single Isolated Transaction

An isolated sale or one-off transaction is less likely to be treated as “operating an establishment,” but repeated transactions look like business.

D. Certain Professionals

Professionals (e.g., licensed practitioners) often face:

PTR/professional tax requirements imposed locally,
plus clinic/establishment permits if they maintain a clinic or facility.

If a professional runs an office/clinic with staff, signage, and walk-in clients, LGUs commonly require a business permit for that establishment, aside from PTR.

E. Nationally Regulated Sectors Still Need Local Permits

Even if you have national licenses (e.g., FDA LTO), you usually still need local permits for the place of operation unless a specific law provides otherwise.

7) Typical Components/Prerequisites of an LGU Business Permit

Exact requirements vary by LGU and business type, but commonly include:

Barangay Clearance (from the barangay where the business is located)
Zoning/Locational Clearance (compliance with land use/zoning)
Occupancy Permit / Building Permit (for certain premises; depends on whether it’s a new building, renovations, change of use)
Fire Safety Inspection Certificate (FSIC) (Bureau of Fire Protection)
Sanitary Permit / Health Certificate (especially for food, hospitality, personal services)
Contract of lease / proof of address / title (to confirm business location)
DTI/SEC/CDA documents and BIR registration details (often requested for validation)
Environmental compliance documents if applicable (e.g., for certain industries, waste generation, emissions)
Other industry-specific clearances (see below)

Many LGUs integrate these into a “one-stop shop” system (physical or electronic), influenced by national ease-of-doing-business policy.

8) Industry-Specific Permits and Licenses (Beyond the Mayor’s Permit)

Depending on what you do, you may also need:

FDA License to Operate (LTO) for certain health products/food/drugs/cosmetics/device businesses
DENR/EMB permits (e.g., hazardous waste generator registration, discharge permits, ECC where required)
DOLE registrations/requirements (workplace compliance, OSH obligations)
SSS / PhilHealth / Pag-IBIG employer registration (if you have employees)
PCAB license for contractors (construction)
LTFRB/LTO-related compliance for transport services
Tourism accreditation (where applicable)
PEZA/BOI incentives registration (does not automatically eliminate local permitting; the interaction depends on the registration and location/regime)

A “business permit” question often hides a bigger compliance map: you may need multiple permits, not just one.

9) Renewals, Timing, and Local Practice

A. Annual Renewal

In many LGUs, business permits are renewed annually, commonly in January (often with early-January deadlines set by ordinance). Late renewal can trigger:

surcharges/penalties
interest
possible closure actions

B. New vs Renewal

New applications typically require more documentation and inspections. Renewals may be simplified, but LGUs can still require updated documents (e.g., new lease contract, updated FSIC, etc.).

C. Transfers, Changes, and Closures

You generally must update the LGU when:

you transfer address
you change business name
you add a line of business
you change ownership structure
you close the business

Failing to formally close can leave you assessed for continuing fees/taxes.

10) Penalties and Risks of Operating Without a Business Permit

Common consequences under local ordinances include:

Notice of violation
Fines and surcharges
Padlocking/closure of the establishment
Confiscation/seizure in certain ordinance frameworks (due process rules apply)
Difficulty obtaining BFP/other clearances later
Exposure when dealing with landlords, platforms, banks, or government transactions that require proof of permit

Even if enforcement is inconsistent, it can become an issue once:

there’s a complaint,
you apply for a loan,
you register with a platform requiring documents,
you get inspected,
you expand and become more visible.

11) How to Determine if You Need One (A Practical Legal Test)

Ask these questions:

Do you sell goods or services for profit or livelihood?
Do you have a business location in a specific LGU (store, office, home office, warehouse, kitchen, workshop)?
Do you regularly transact, store inventory, produce, pack, or dispatch from that location?
Do you receive clients there, employ staff, or display signage/advertising tied to that address?

If the answer is “yes” to #1 and any of #2–#4, the safest legal assumption is: you likely need an LGU business permit or a local authorization category that your LGU treats as the permit equivalent.

12) The Bottom Line in Philippine Context

Business permits are still required as a general rule for businesses operating within a Philippine LGU.
The requirement is rooted in the LGU’s regulatory authority and taxing powers under the Local Government Code and implemented through local ordinances.
Online and home-based businesses are not automatically exempt; local permitting can still apply based on where operations occur.
Permitting is often interconnected with barangay clearance, zoning, fire safety, sanitation, and other sector-specific licenses.
Operating without a permit can lead to penalties and closure, even if enforcement seems lax.

Quick Checklist: What You Typically Need to Prepare (General)

Proof of business registration (DTI/SEC/CDA)
BIR registration details (as required by LGU)
Proof of address / lease contract / title
Barangay clearance
Zoning/locational clearance
Fire safety (FSIC) and any needed inspections
Sanitary/health requirements (if applicable)
Other industry licenses (FDA/DENR/etc., if applicable)

Important note (legal-information limitation)

This is general legal information in Philippine context. Actual requirements, fees, and exemptions depend heavily on your specific LGU’s ordinances and your exact business model. If you tell me (1) your city/municipality, (2) your business activity, and (3) whether you have a physical location or home-based operations, I can map the usual permitting path and common documents for that scenario.