Business Permit Fees for Partnership Registration in the Philippines

(End-to-end guide to what you’ll pay, why you’re paying it, and how to budget.) Not legal advice. Amounts and formulas vary by city/municipality; treat the items below as a complete fee map rather than fixed pesos.

1) Big picture: two layers of fees

When you set up a partnership (general, limited, or professional) you’ll encounter:

National agency fees – primarily at the SEC (to create the partnership) and BIR (to register for taxes), plus any documentary stamp taxes (DST) that may apply to your instruments and leases.
Local government fees – barangay and city/municipal hall for your business permit (a/k/a mayor’s permit), including auxiliary clearances (sanitary, zoning, fire, signboard, etc.).

Key rule: SEC creates the entity, but you cannot legally operate in a locality until you secure the LGU business permit (and BIR registration for invoicing/official receipts).

2) National layer

A. SEC (Securities and Exchange Commission)

What you pay for

Name reservation (per reservation period)
Filing fee on the Articles of Partnership (commonly a percentage of contributed/paid-in capital, subject to a minimum)
Legal research/IT fees (small percentages or fixed add-ons)
Certification/copies (if you need certified true copies for banks or LGUs)
Notarization of the Articles/Partner’s affidavit (paid to the notary)

Budgeting tips

The bigger your stated capital, the higher the SEC filing fee (it’s computed as a percent of that figure).
Professional partnerships (law, accounting, medical, etc.) may need PRC IDs of partners and engagement letters; fees are similar, but documents differ.
If a foreign partner is involved, you might also budget for endorsements or clearances the SEC may require (no extra “permit fee” to be a partnership per se, but compliance can add processing costs).

B. BIR (Bureau of Internal Revenue)

What you pay for

TIN registration for the partnership (non-individual)
Books of accounts stamping (no or minimal fee)
Authority to issue invoices/receipts (process cost; printing itself is paid to your printer)
Documentary Stamp Taxes (DST) that may apply to:
- Your partnership instrument (depending on the nature/wording of the document and the capital/interest conveyed)
- Lease contracts (common—if you rent an office/store, the lease is subject to DST)

Notes on changing rules

Tax administration rules (e.g., annual registration fees, e-invoicing coverage, timelines) evolve. Build a contingency line for BIR-related costs (forms, printer’s fees for invoices/ORs, portal onboarding, etc.).

3) Local government layer (business permit)

You’ll deal first with the Barangay (business clearance), then the City/Municipality (mayor’s permit). Many LGUs run one-stop shops during January renewals; for new businesses you can process anytime.

A. Barangay Business Clearance

Base fee + documentary costs (cedula/community tax certificate may be required)
Often computed on capitalization (for new businesses) and gross sales (for renewals)

B. City/Municipal Business Permit (Mayor’s Permit)

You’ll typically pay multiple line items:

Business Tax
- For new registrants: based on capitalization (your sworn statement of capital or SEC-stated capital).
- For renewals: based on gross receipts from the prior year.
- Rates depend on your business line (wholesale/retail/services/manufacturing) and the LGU’s tax ordinance.
Regulatory/clearance fees (fixed or banded):
- Mayor’s permit fee
- Sanitary/health (plus health cards for food/handling staff)
- Zoning/locational clearance (especially for new or relocated sites)
- Engineering/building/occupancy (if you altered the premises)
- Environmental/garbage fees
- Signboard/advertising fee (if you put up a sign)
- Electrical/mechanical inspection (for equipment, generators, elevators, etc.)
- Other sector-specific fees (e.g., for clinics, food businesses, salons, schools, warehouses)
BFP Fire Safety (separate OR from the Bureau of Fire Protection)
- Fire Safety Inspection Fee (FSIF) (percentage or schedule based on floor area/use)
- Fire Code fees for extinguishers/alarms certifications (as applicable)

Expect several small lines that add up. While the business tax is usually the biggest item, clearance fees and BFP fees are mandatory to release your permit and Business Plate.

4) How LGUs compute the business tax

Capitalization basis (Year 1): LGUs use your sworn statement of capital (or SEC capital) to slot you into a tax bracket; each business line has a rate schedule.
Gross-receipts basis (Renewal): After your first year, you pay on actual gross sales/receipts of the preceding year, supported by audited FS or affidavits the LGU accepts.

Multiple lines of business: If you sell goods and services, the LGU may split your tax base and apply different rates to each.

5) Special costs you might overlook

Occupancy permit (if you fit-out a new space) and related engineering fees
Health certificates for staff (per person)
Drug test/medical (for regulated businesses; varies by LGU)
Signage fabrication (separate from the LGU signboard fee)
Notarizations (barangay affidavit, capitalization statement, lease contract)
**Lease DST and notarial fees
Third-party compliance (architect’s as-built plans, fire exit plans, pest control certificates, water potability tests—industry-specific)
Professional partnership add-ons (e.g., clinic calibration, biohazard waste contracts, for medical/dental practices)

6) Partnerships vs. other entities: do you pay more?

Local business tax & clearances: Same framework as corporations/sole proprietors; what matters is business activity, capital/gross receipts, and premises, not the entity type.
SEC side: Partnerships file Articles of Partnership and pay percent-of-capital filing fees rather than “incorporation” fees.
BIR side: Partnerships are non-individual taxpayers (with pass-through or entity-level income tax treatment depending on type and activity). Fee mechanics are not higher just because you’re a partnership.

7) Typical cost timeline (for budgeting)

Pre-SEC
- Name reservation (minor)
- Drafting & notarization (lawyer/notary if engaged)
SEC filing
- Filing fee (% of capital; minimum applies)
- Add-on SEC charges (small)
- Certified copies (as needed)
Post-SEC – BIR
- TIN registration, books stamping
- Invoices/ORs printing cost (private printer)
- Possible DST (e.g., lease)
Premises prep
- Lease notarization + DST
- Fit-out permits/engineering fees (if any)
- Fire extinguishers, signage costs (private)
Barangay + City/Municipality
- Barangay clearance
- Mayor’s permit package: business tax (capital basis), permit fee, sanitary, zoning, garbage, environmental, BFP FSIF, health cards, signboard fee
After release
- Business Plate / QR sticker (if your LGU issues one)
- Annual renewal every January (or on your LGU’s schedule), now based on gross receipts

8) Foreign partners or restricted activities

If any partner is foreign, confirm your industry is open and whether headcount or capitalization thresholds apply (negative list/special laws). This does not usually change LGU fees, but it can affect SEC requirements and timelines.
Certain sectors (e.g., clinics, schools, food manufacturing) trigger additional national permits (DOH, DA, DepEd/CHED, FDA, DENR), each with its own fees that are separate from the mayor’s permit.

9) Clean processing tips (to avoid repeat fees and penalties)

Lease first, register next. LGUs usually require a lease (or proof of right to use the premises) before issuing permits; missing lease = stalled (and you’ll still pay for document updates later).
Name consistency across SEC, BIR, Barangay, and LGU (punctuation/spaces matter).
Books & ORs before first sale. You can be fined for issuing unregistered receipts.
Fire safety is not optional; pay the BFP line and pass inspection to get the permit released.
Keep the renewal calendar. Renew every January (or per LGU deadlines) to avoid surcharges and closure orders.

10) Sample budgeting matrix (fill with quotes)

Stage	What to list	How it’s computed	Notes
SEC	Name reservation	Per reservation period	Small fixed amount
SEC	Filing fee	% of capital; minimum applies	Higher capital → higher fee
SEC	Certified copies	Per page/document	Order enough for banks/LGU
Notary	Articles/SPAs/Affidavits	Per document	Bundle to save trips
BIR	Invoice/OR printing	Printer’s quote	Plus delivery lead time
BIR	DST (if any)	By instrument	Lease commonly triggers DST
Barangay	Barangay clearance	Capital/gross or fixed	Bring cedula & IDs
City/Municipality	Business tax	Capital (Year 1)	Based on business line
City/Municipality	Permit & clearances	Fixed/banded	Sanitary, zoning, garbage
BFP	FSIF & Fire fees	Schedule/area/use	Separate official receipt
Misc	Signboard, fire gear	Supplier quotes	Don’t forget installation

11) FAQ

Q: Are partnership permit fees cheaper than for corporations? Not materially at the LGU. Computation is by capital or gross receipts and business type, not by being a partnership.

Q: Can we operate with SEC papers while LGU permit is pending? No. You need the mayor’s permit (or an LGU-issued provisional/CTO if offered) and BIR registration to legally trade and issue receipts.

Q: We’re a home-based professional partnership. Do we still need a permit? Yes—most LGUs require a home business permit with zoning clearance and fire inspection tailored for home offices.

Q: Do we pay again next year? Yes—annual renewal (business tax on gross receipts) and revalidation of clearances/FSIC. Budget for it.

12) Takeaways

Think in layers: SEC (create entity) → BIR (tax register) → Barangay + LGU (permit to operate) → BFP (fire safety).
Business tax is your biggest LGU cost; it’s capital-based in Year 1 and gross-based thereafter.
Expect multiple small clearances that are non-negotiable for permit release.
Build a contingency for BIR printing/DST and premises-related compliance.
Fees differ by city—the ordinance is king. Get a quick assessment sheet from your LGU’s Business Permits and Licensing Office (BPLO) once your papers are ready.

Practical next steps

Finalize business name and Articles of Partnership (with clear capital figure).
Secure premises/lease and basic fit-out compliance.
File at SEC, then register at BIR (books + receipts).
Process Barangay and Mayor’s permit with BFP inspection.
Calendar renewals and keep official receipts neatly filed—banks and clients often ask for them.