(A Philippine legal article on how to confirm legitimacy, registrations, permits, and regulatory authority)

I. Introduction: what “license to operate” actually means

In the Philippines, people often say “licensed to operate” as if it were a single government-issued certificate. In practice, legitimacy is usually proven through a stack of registrations, permits, and—where applicable—sector-specific regulatory licenses. What you must verify depends on what the business or “agency” is doing.

A legitimate entity typically needs some combination of:

Entity registration (SEC/DTI/CDA)
Tax registration (BIR)
Local government permits (barangay clearance, mayor’s permit/business permit, sometimes zoning/occupancy)
Employer registrations (SSS, PhilHealth, Pag-IBIG) where it has employees
Special licenses from the correct regulator if the activity is regulated (e.g., recruitment, lending, real estate brokerage, travel and tours, healthcare facilities, security agencies, payment services, and others)

“Verification” is a due diligence process: confirm identity, authority, scope, validity dates, physical presence, and track record.

II. Step 1 — Identify the entity type and correct registering authority

Before verifying anything, determine what kind of “agency” you are dealing with. The Philippines has different registration regimes:

A. Corporation / Partnership (SEC)

If the “agency” is a corporation or partnership, it should be registered with the Securities and Exchange Commission (SEC) and have:

SEC registration number
Articles of Incorporation/Partnership
By-laws (for corporations)
General Information Sheet (GIS) filings (for corporations)

Why this matters: SEC registration confirms juridical personality and basic legitimacy, and it identifies directors/officers and registered address.

B. Sole proprietorship (DTI)

If it’s a single-owner business operating under a business name, it may be a sole proprietorship registered with DTI (business name registration).

Important: DTI business name registration is not the same as a “license.” It primarily protects the business name and evidences registration of the proprietor.

C. Cooperative (CDA)

If it’s a cooperative, it should be registered with the Cooperative Development Authority (CDA).

III. Step 2 — Verify local government authority to do business (LGU permits)

A business generally needs authority from the local government unit where it operates.

A. Barangay clearance

Commonly required as part of business permitting. It indicates the barangay has cleared the business location for permitting purposes.

B. Mayor’s permit / Business permit

This is the main LGU permission to operate within a locality. It usually renews annually and should reflect:

registered business name
business address
owner/entity name
nature of business/activity
permit number and validity period

C. Occupancy/zoning/building-related clearances (as applicable)

Certain operations require zoning clearance, certificate of occupancy, sanitary permits, fire safety inspection certificate (often coordinated with BFP processes), and other clearances depending on the nature of business.

Verification focus: Make sure the permit is for the same address and same line of business the entity is actually operating. A common red flag is presenting an LGU permit for a different line of business than the one being offered to you.

IV. Step 3 — Verify tax registration and invoicing authority (BIR)

A legitimate operating business should have Bureau of Internal Revenue registration.

A. Certificate of Registration (COR)

This reflects the registered business name, tax type, and registered address.

B. Authority to Print (ATP) and official receipts/invoices

Businesses issuing receipts/invoices should have:

properly registered sales invoices/official receipts
relevant authority/registration details

Verification focus: Receipts should carry required information (registered name, address, TIN, and printer’s details as required by regulations). If a business refuses to issue receipts for fees, that is a serious red flag.

V. Step 4 — Verify employer compliance (when relevant)

If the agency has employees, check whether it maintains statutory employer registrations:

SSS employer registration
PhilHealth employer registration
Pag-IBIG Fund employer registration

This is especially relevant if the agency is supplying manpower, contracting services, or recruiting workers.

VI. Step 5 — Determine whether the agency’s activity is regulated (special “license to operate”)

Many “agencies” need specific licenses beyond SEC/DTI/LGU/BIR. This is where most scams hide: they show a business permit but lack the specific regulatory license for the activity they are actually selling.

Below are common regulated categories and what “verification” should cover conceptually.

A. Recruitment / employment agencies (local or overseas)

Agencies engaged in recruitment and placement are regulated and typically require authority from the correct labor regulator. Verification should confirm:

the entity is authorized to recruit (not merely “registered as a business”)
the authority covers the type of recruitment offered (local vs overseas)
the office address and signatories match the regulator’s records
the license is current and not suspended/revoked

High-risk red flags: charging prohibited fees, asking for money up front without proper documentation, no verifiable office, “training” or “processing” fees routed to personal accounts, or recruitment conducted entirely online with no official footprint.

B. Manpower / contracting / subcontracting

If the agency supplies workers to clients, it may fall under contracting/subcontracting regulation and must comply with labor rules, registrations, and reporting. Verification should include:

registration status where required
existence of employment relationships and statutory remittances
legitimate service contracts and operational capacity

C. Lending / financing / “loan agency”

Entities offering lending/financing may need specific registration and compliance depending on structure and activity. Verification should include:

whether the company is authorized to lend
disclosure of interest/charges
compliance with consumer protection and fair lending rules
legitimacy of collection practices

Red flag: “loan approval fee” demanded before any contract or disbursement, or “insurance fee” paid to a personal account.

D. Real estate brokerages / agents

Those brokering real estate transactions are regulated; verification should cover:

whether the broker/agent has the required professional license
whether the firm is properly registered and authorized
whether the person signing documents is authorized

E. Travel and tour agencies

If selling travel packages, tickets, tours, or acting as a travel intermediary:

verify business registrations and consumer-facing documentation
confirm refund policies and supplier relationships
be alert to fake “accreditations” that are not government-issued

F. Security agencies and private security personnel

Security agencies are regulated. Verification should confirm:

agency license and scope
compliance with training and personnel standards
validity period and coverage

G. Healthcare facilities, laboratories, pharmacies, clinics

Health-related entities often need a true license to operate from the health regulator, plus professional licensing for practitioners. Verification should confirm:

facility license validity and address
scope of services authorized
professional licenses of staff

H. Food, cosmetics, and other regulated consumer products

Manufacturers/distributors may need product registration and facility authorizations depending on activity. Verification should confirm:

facility authorization where applicable
product notifications/registrations as required
traceability and labeling compliance

I. Payment services, remittance, money-changing, investment solicitation

Financial services are heavily regulated. Verification should confirm:

authorization to accept public funds or process payments
proper registration and compliance framework
legitimacy of investment claims and disclosures

Red flag: promises of guaranteed returns, pressure tactics, and “SEC registration” used as if it were approval to solicit investments (registration alone is not blanket authority to solicit public investments).

VII. How verification is done in practice: what to ask for and how to evaluate documents

Even without relying on online lookups, you can verify through document examination, cross-consistency checks, and direct confirmations with issuing offices.

A. Request a full “legitimacy packet”

Ask the business/agency to provide clear copies of:

SEC/DTI/CDA registration documents
BIR Certificate of Registration
Mayor’s permit / business permit (current year)
Barangay clearance (if available)
Special regulator license (if the activity requires it)
Valid government IDs of authorized signatories
Board resolution/Secretary’s certificate or SPA authorizing the signatory (for corporations/representation)

B. Perform consistency checks (a powerful low-tech verification method)

Confirm that the following match across documents:

exact business name (including punctuation, “Inc.”, “Corp.”)
registration numbers
office address
nature of business / line of activity
authorized representative names and positions
validity periods

C. Inspect physical presence and operational capacity

Legitimate agencies typically have:

a verifiable office with signage
staff who can explain processes consistently
written policies and contracts
official receipts and clear refund policies (where applicable)

D. Confirm payments are made to the entity, not individuals

A best practice is that fees are paid to:

the company’s bank account under the exact registered name, and/or
via official payment channels with official receipts

Payments to personal e-wallets or private bank accounts are a major red flag, especially for recruitment, lending, or investment-related transactions.

VIII. Sector-specific “license to operate” vs generic business permits

A key legal distinction:

Mayor’s permit = permission by the city/municipality to do business within the locality
SEC/DTI/CDA = existence/registration of the entity or business name
BIR = tax registration
Regulatory license = permission to do the regulated activity

An agency can be “registered” yet still be unauthorized for what it is actually offering. Misrepresenting authority can create civil and criminal liabilities.

IX. Legal remedies and enforcement if the “agency” is not licensed or is misrepresenting itself

A. Contract and civil remedies

If you paid money or entered a contract based on misrepresentation:

rescission/cancellation of contract
refund and damages
claims under fraud or abuse of rights
unjust enrichment recovery

B. Criminal exposure of fake agencies (fact-dependent)

Possible criminal theories depending on conduct:

estafa (swindling) where deceit caused you to part with money
falsification/use of falsified documents if fake permits/licenses were used
other offenses depending on threats, coercion, identity misuse, or cyber means

C. Administrative complaints to the proper regulator

If the activity is regulated, you can complain to the regulator that issues/suspends/revokes licenses. Administrative actions can include:

cease and desist
suspension/revocation
blacklisting
penalties

D. Consumer protection routes

For consumer-facing services, complaints can also be pursued under consumer protection frameworks and local complaint mechanisms, depending on the product/service.

X. Red flags: strong indicators an “agency” may be illegitimate or unlicensed

Refuses to show original permits/licenses, or shows only blurred photos without verifiable details
Permits don’t match address, business name, or line of business
Claims “SEC registered” as proof they can recruit/invest/lend/operate regulated services
Payment demanded to personal accounts or cash without receipts
High-pressure tactics: “limited slots,” “pay now,” “no time to verify”
No written contract, or contract lacks registered company details and signatories
Office is non-existent, purely virtual, or relocates frequently
Uses “accreditations” from private groups as if they were government licenses
Unrealistic promises (guaranteed job, instant visa, guaranteed loan approval, guaranteed investment returns)

XI. Due diligence checklist (document-based)

Before engaging:

Identify the entity type (SEC/DTI/CDA).
Confirm current LGU business permit matches the actual activity and address.
Confirm BIR registration and ability to issue official receipts/invoices.
If regulated activity: require the regulator-issued license and verify scope and validity.
Confirm authorized signatory authority (board resolution/SPA).
Ensure payments go to the entity and demand official receipts.
Keep copies of everything: IDs, permits, contracts, communications, proof of payments.

XII. Special emphasis: “agency” in OFW/recruitment contexts

When the “agency” relates to overseas work, the safest approach is to treat it as high-risk until proven otherwise because of:

frequent scams involving fake job offers, fake processing, fake training fees
severe consequences for victims (money loss, illegal departure risks, immigration problems)

Verification must focus on whether the entity is authorized to recruit and whether the job order/employer relationship is legitimate, not just whether it has a mayor’s permit.

XIII. Conclusion

Verifying an agency’s “license to operate” in the Philippines is a structured process: confirm entity registration, tax registration, local permits, and—most importantly—the correct sector-specific regulatory authority for the service being offered. The most common mistake is accepting SEC/DTI papers and an LGU permit as proof of legality for a regulated business. The most reliable verification uses cross-document consistency checks, proof of authority of signatories, official receipts, and validated regulator-issued licenses for the specific activity.