(Philippine legal context; general information, not legal advice.)

1) Why an “online” travel agency still needs a Mayor’s Permit

In the Philippines, a Mayor’s Permit / Business Permit is the local government’s authorization to operate a business within a city/municipality, regardless of whether the business is brick-and-mortar or internet-based. What matters is that you are doing business and using a business address within the LGU’s jurisdiction (even if that address is your home office).

An online travel agency typically earns from:

service fees, markups, commissions, booking fees,
tour packages, transport arrangements,
hotel/flight booking facilitation,
travel insurance facilitation (sometimes),
visa assistance (where lawful), and related services.

Even if your customers are nationwide (or overseas), the LGU where your principal place of business is located generally requires a Mayor’s Permit.

Key idea: “Online” affects how you market and transact—not whether you must secure local operational authority.

2) Core legal framework (high level)

Your Mayor’s Permit requirements flow from a mix of:

Local Government Code of 1991 (RA 7160) – empowers LGUs to regulate businesses and impose local fees/taxes through ordinances.
Ease of Doing Business / Anti-Red Tape Act as amended (RA 11032) – pushes standardization, streamlining, and processing timelines (though real-world practices still vary by LGU).
National “ancillary” compliance laws that often show up as permit prerequisites:
- Fire Code of the Philippines (RA 9514) (e.g., Fire Safety Inspection Certificate)
- Sanitation and local health ordinances (Sanitary Permit / Health Certificates, depending on LGU and nature of premises)
- Zoning / land use ordinances (Location/Zoning Clearance)
- Building/occupancy rules if you maintain a dedicated office or modify a structure

Plus, as a travel business, you should be aware of:

Tourism Act of 2009 (RA 9593) and DOT regulatory issuances (commonly involving DOT accreditation for tourism enterprises, including travel and tour agencies, depending on applicable rules and your exact services).

3) What exactly is a Mayor’s Permit (and what it is not)

A. What it is

A local operating permit issued by the City/Municipal Mayor (often processed by the Business Permits and Licensing Office—BPLO), typically valid for one calendar year, renewable annually.

B. What it is not

Not your DTI/SEC registration
Not your BIR registration (and not a substitute for invoices/receipts)
Not proof of DOT accreditation (if required/applicable)
Not a guarantee of compliance with consumer protection, data privacy, or e-commerce laws (though LGUs may ask for proof of other registrations)

4) Who needs a Mayor’s Permit for an online travel agency

You will typically need a Mayor’s Permit if you:

accept bookings/arrangements for a fee/commission,
advertise travel services to the public,
maintain a business address in the LGU,
hire staff, keep equipment, or store records at a business premises,
operate as a sole proprietor, partnership, corporation, or cooperative.

Home-based online travel agency

Most LGUs still require:

a declared business address (your residence),
zoning/location clearance allowing home-based business (rules vary),
barangay clearance,
fire safety requirements appropriate to the premises.

Some LGUs classify home-based businesses differently (lower fees, simplified inspection). Others treat them similarly but adjust inspection scope.

5) Typical Mayor’s Permit checklist (what LGUs commonly require)

Exact requirements vary per LGU ordinance, but a practical “Philippine-standard” list looks like this:

A. Business identity & registration documents

Choose your legal form first:

Sole proprietorship: DTI Business Name Registration
Partnership/Corporation: SEC Registration (Certificate of Registration; Articles/By-Laws; General Information Sheet as applicable)
Cooperative: CDA Registration

Common submissions:

DTI/SEC/CDA certificate
Valid government IDs of owner/signatories
Authorization letter/Secretary’s Certificate for representatives
Sketch/map of business location (sometimes with photos)

B. Proof of right to use the business address

Lease contract (and lessor’s documents) or
Transfer Certificate of Title / Tax Declaration (if owner) Some LGUs ask for:
landlord’s consent for business use,
condo/HOA consent (if applicable),
barangay endorsement for home-based operations.

C. Barangay clearance

A Barangay Business Clearance is commonly required before the city/municipality accepts your application.

D. Zoning / location clearance

Often issued by the zoning/CPDO office to confirm the location is allowable for your business activity. This is especially important for:

residential addresses,
condominium units,
mixed-use buildings.

E. Fire Safety Inspection Certificate (FSIC)

Usually from the Bureau of Fire Protection (BFP). Even for office-type businesses, BFP may inspect for basic compliance (extinguishers, exits, electrical safety, etc.), scaled to your risk and premises type.

F. Occupancy / building documents (if applicable)

Common when you have a dedicated office:

Certificate of Occupancy / Occupancy Permit
Building Permit (if newly constructed/renovated) For purely home-based setups with no structural changes, some LGUs don’t require these beyond what already exists for the dwelling—but others may still ask for proof of lawful occupancy.

G. Health / sanitation permits (sometimes required)

For a travel agency that is purely office-based, Sanitary Permit requirements differ widely. Some LGUs still require:

Sanitary Permit (even for office establishments),
Health certificates for employees (less common for small office-only setups, but still possible depending on ordinance).

H. Community Tax Certificate (CTC / “cedula”)

Frequently requested, especially for individuals signing documents.

I. Other local clearances/requirements that may appear

Signage permit (if you will display signs)
Waste/garbage fee (even for offices)
Contract of service for building admin (some condos)
Photos of office setup (for certain LGUs)
If you have employees: basic list of employees (some LGUs ask)

6) Step-by-step process (common workflow)

While naming varies, the sequence often looks like this:

Step 1: Establish your business entity and address

Decide: Sole prop (DTI) vs Corporation/Partnership (SEC).
Fix your principal office address (home office or leased space).

Step 2: Secure Barangay Clearance

Apply at the barangay where your business address is located.
Bring your DTI/SEC documents, IDs, and proof of address.

Step 3: Obtain Zoning/Location Clearance (if required)

Especially critical for residential/home-based.
Ensure the declared activity is consistent with zoning classification.

Step 4: BFP evaluation / FSIC

Apply for inspection/certification.
Prepare basic safety items appropriate to premises (extinguishers, clear electrical setup, unobstructed exits).

Step 5: File Mayor’s Permit application with BPLO

Submit documentary requirements.
Fill up forms declaring your business activity, capitalization, floor area, number of employees, etc.

Step 6: Pay assessed fees and taxes

These are determined by LGU ordinance and your declared details.

Step 7: Receive your Mayor’s Permit and plate/sticker

Display requirements vary (some require posting the permit).

7) Fees and taxes you should expect at the LGU level

LGU charges vary, but often include:

A. Business tax (local)

Often based on:

gross sales/receipts for the preceding year (renewals), or
declared capital investment (new business), or a minimum fixed amount.

B. Regulatory fees

Mayor’s permit fee / business permit fee
Barangay clearance fee
Zoning fee (if applicable)

C. Inspection-related fees

Fire safety fees/charges associated with BFP processes (implementation varies)
Sanitary inspection fee (if required)

D. Miscellaneous

Garbage fee
Signage fee (if you install signage)
Documentary stamp/processing fees (local)

Practical point: For a new online travel agency, your declared capitalization and “type of business” classification heavily influence assessments. Keep your declarations accurate and consistent with your registrations.

8) Special considerations unique to online travel agencies

A. Business classification at the LGU

LGUs may classify you as:

travel agency,
tour operator,
booking/booking office,
“service” business (professional/consultancy-style),
or sometimes “online services.”

Your classification affects:

tax rate brackets,
documentary requirements,
whether DOT-related documents are asked.

B. If you offer tour packages vs. acting as an agent

If you assemble and sell tour packages under your name, you may be treated more like a tour operator with higher consumer-risk expectations (refunds, cancellations, supplier failures).
If you act as an agent that facilitates bookings on behalf of accredited suppliers, your obligations still exist, but your risk profile differs.

LGUs usually won’t deeply analyze this for the Mayor’s Permit, but it matters for:

DOT accreditation expectations,
consumer protection and refund policies,
contract terms and disclosures.

C. DOT accreditation (often relevant; sometimes requested)

Many travel and tourism establishments pursue Department of Tourism accreditation. Some LGUs ask for it or an undertaking to comply, especially in tourism-heavy cities, although the legal requirement depends on current DOT rules and local policy.

Reality check: You may encounter any of these scenarios:

LGU issues Mayor’s Permit without asking for DOT accreditation (common in many places).
LGU requests DOT accreditation or proof of application.
LGU issues permit but flags you for later compliance.

D. Data privacy and online operations

Because you will handle:

passports, birthdates, contact details,
sometimes payment info (even if via third-party gateways),

you should implement baseline compliance with the Data Privacy Act (RA 10173):

privacy notice on your website/social pages,
consent mechanisms,
secure storage and access controls,
retention and disposal rules,
data processing agreements if using third-party tools.

This is not usually a BPLO requirement, but it is a real legal risk area for online agencies.

E. Consumer protection, advertising, and fair dealing

Online marketing makes you more exposed to complaints. Watch:

accurate representations of inclusions/exclusions,
clear refund and rebooking policies,
supplier terms (airlines/hotels) and how you pass them on to consumers.

The Consumer Act (RA 7394) and general civil law principles on obligations and contracts will shape disputes.

F. E-commerce recognition

The E-Commerce Act (RA 8792) supports electronic transactions and electronic documents, but it doesn’t remove the need for physical-world permits. You still need:

local permits,
tax registration,
proper receipts/invoicing.

9) Renewals, deadlines, penalties, and closures

A. Annual renewal

Mayor’s Permits are commonly renewed every January (exact renewal window depends on LGU ordinance). Many LGUs impose:

surcharges/interest for late renewal,
penalties for operating without a valid permit.

B. Inspections and re-evaluation

Renewals may trigger:

updated BFP inspection/FSIC,
updated zoning clearance (especially if you moved),
re-assessment based on actual gross receipts.

C. Closure risk

LGUs can order closure/suspension for:

operating without a valid permit,
misdeclaration (e.g., wrong business type, wrong address, understated gross receipts if required),
failure to comply with safety requirements.

10) Common problem areas (and how to avoid them)

Problem 1: “No office, just online” misunderstanding

Fix: Declare a lawful business address (home office or leased address). Secure permissions if condo/HOA rules require them.

Problem 2: Zoning conflicts for home-based businesses

Fix: Confirm your residential classification allows “home occupation” or similar use. If not, consider a small serviced office or properly zoned space.

Problem 3: Permit classification mismatch

Fix: Keep consistent descriptions across:

DTI/SEC purpose,
BPLO classification,
BIR registration (line of business),
marketing materials.

Problem 4: Overpromising in ads

Fix: Use clear terms, inclusions/exclusions, and avoid “guaranteed visa” or misleading claims.

Problem 5: Weak refund/cancellation policy

Fix: Align your terms with supplier rules and disclose them before payment. Keep written acknowledgments.

11) Practical “starter” compliance pack for an online travel agency

Even beyond the Mayor’s Permit, a well-prepared online agency usually maintains:

A. Business & tax basics

DTI/SEC registration
BIR registration (COR, invoices/receipts, books if required)
Mayor’s Permit and renewals

B. Contracting and disclosures

Terms and Conditions (booking, cancellations, refunds, force majeure)
Privacy Policy and cookie/data notices
Supplier agreements or confirmations (hotels/tour operators/transport providers)
Customer acknowledgment forms (even via email/chat confirmation)

C. Operational controls

documented booking workflow,
complaint handling process,
records retention policy,
secure storage for IDs/passports.

12) FAQ (Philippine reality)

“Can I get a Mayor’s Permit without a physical storefront?”

Usually yes. A registered address is still required, but it can be:

home office,
coworking/serviced office (if allowed),
small leased unit.

“Do I need employees before I can get a permit?”

No. Many permits are issued to single-owner setups.

“Do I need DOT accreditation before I operate?”

Some agencies operate while processing accreditation; others secure accreditation first. Practices vary by locality and the nature of your services. Even where not asked for at permit stage, accreditation can matter for legitimacy and partnerships.

“Can I use my condo unit as an office?”

Possibly, but you must check:

condo corporation rules,
zoning/location clearance rules,
LGU policy on home-based business in condos.

“If I sell airline tickets only, is it different?”

Some LGUs still treat it as travel agency activity. Also, airline distribution often involves separate commercial arrangements (e.g., consolidators, GDS access), which is business-to-business rather than permit-focused—but your local permit remains.

13) Bottom line

To start an online travel agency in the Philippines, your Mayor’s Permit is built around the same pillars as any service business—barangay clearance, location/zoning clearance, fire safety compliance, proof of business registration and address, and payment of local taxes/fees—with added practical importance on consumer protection, data privacy, and (often) DOT accreditation alignment.

If you tell me your planned setup (sole prop vs corporation, home-based vs leased office, and the city/municipality), I can lay out a tailored, LGU-style checklist and a clean sequence of actions you can follow without backtracking.