Why do I need a barangay clearance for my business?

Section 152(c) of the Local Government Code says no city or municipality may issue a license or permit for any business unless a clearance is first obtained from the barangay where the business is located. That is why the barangay clearance comes before the mayor's permit, both when you first register and every time you renew.

Do I need to renew my barangay business clearance every year?

Yes. Because your business permit is renewed every year, the barangay clearance that supports it is also renewed every year, usually in January alongside the business permit renewal.

Do I still have to go to the barangay hall to get it?

Under ARTA-DTI-DILG-DICT Joint Memorandum Circular No. 01, series of 2021, barangay clearances for business permit applications are integrated into and processed by the Business Permits and Licensing Office, so they should not need to be secured separately. Some LGUs still ask applicants to go to the barangay, so check your LGU's checklist.

How much does a barangay business clearance cost?

There is no national fee. Section 152(c) of the Local Government Code lets each barangay council impose a reasonable fee by ordinance, so the amount depends on your barangay and often on the type or size of your business.

How long can the barangay take to issue the clearance?

The Local Government Code requires the barangay to act on a clearance application within seven working days. If it does not, the city or municipality may issue the business permit anyway.

Barangay Business Clearance: What It Is and How to Renew It

Before your city or municipality will issue or renew a business permit, the barangay where you operate has to clear you first. That’s the barangay business clearance, and because the permit is renewed every January, so is the clearance.

For a lot of businesses the process got easier in 2021, when new national rules moved most of it into the city or municipal Business Permits and Licensing Office (BPLO). Here’s what the law says, how the clearance fits into your January renewal, and how to tell whether you still need to visit the barangay hall.

What the law says

Section 152(c) of the Local Government Code sets three rules:

Rule	What it means for you
No business permit without a barangay clearance	The city or municipality can’t issue your permit until your barangay has cleared you
The barangay may charge a reasonable fee	Each barangay sets its own fee by ordinance
The barangay has seven working days to act	If it doesn’t, the city or municipality can issue your permit without the clearance

The clearance belongs to your business address. Move to another barangay and you’ll need a new one from there.

Ask for the business clearance, not a personal one

Barangays issue several kinds of clearances. The one used for job applications or IDs won’t work for a business permit. Ask for the clearance issued for businesses, which some barangays call a barangay business clearance or barangay business permit.

How it works at renewal now

ARTA-DTI-DILG-DICT Joint Memorandum Circular No. 01, series of 2021 says barangay clearances for business permits should be integrated into and processed by the BPLO. In other words, you shouldn’t have to get one separately.

Not every LGU has caught up, so you’ll usually run into one of two setups:

Setup	What you do
Handled by the BPLO or eBOSS	You file one application for your business permit. The barangay clearance is processed behind the scenes, and its fee may show up on your permit assessment.
Separate trip to the barangay	You get the clearance at the barangay hall first, then submit it with your permit renewal.

Your LGU’s renewal checklist or Citizen’s Charter will tell you which one applies. Under the JMC, an LGU can’t require a step or document that isn’t in its Citizen’s Charter.

What the barangay may ask for

If you do need to go to the barangay, expect some of these. Every barangay has its own list.

Last year’s barangay business clearance or business permit
Your DTI, SEC, or CDA registration
Proof of your business address, such as a lease or tax declaration
An application form
The barangay fee

New businesses, and those that affect the neighborhood such as food stalls or repair shops, sometimes get a short site visit.

When to renew it

Get the clearance before or together with your business permit, within the first 20 days of January. If your LGU still uses a separate barangay step, go early in the month so you have the clearance in hand when you file for the permit.

Our business permit renewal guide walks through the rest of the January process, including what late renewal costs.

A note on Barangay Micro Business Enterprises

Under JMC No. 01, series of 2021, Barangay Micro Business Enterprises registered under RA 9178, as amended by RA 10644, don’t need a business permit. BMBE registration goes through Negosyo Centers and has its own renewal cycle. If you hold a BMBE certificate, check when it expires and ask your LGU which local clearances still apply to you.

Easy ways to get it wrong

Bringing a personal clearance. It won’t support a business permit.

Going to the wrong barangay. The clearance comes from where the business operates, which isn’t always where you live.

Paying twice. If your LGU folds the barangay fee into the permit assessment, check the assessment before you pay anything at the barangay.

Leaving it until the week of January 20. A delay at the barangay can make your whole permit renewal late.

Before January

Find out whether your LGU handles the barangay clearance through the BPLO or needs a separate trip.
Make sure your business address and registration details are up to date.
Keep last year’s clearance and permit where you can find them.
Budget for the barangay fee along with your permit fees.

In Tamoogi, the barangay clearance sits inside each business’s January renewal, with its receipt and certificate stored next to the business permit. Getting the clearance itself is still up to you and your barangay.

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This article is general information, not legal advice. Fees, requirements, and processes differ by barangay and LGU. Confirm current requirements with your barangay and your LGU’s Business Permits and Licensing Office.