Buyer's guide · Philippines
Business permit systems in the Philippines, a buyer's guide.
What a Business Permits and Licensing System has to get right for a city or municipality, the questions to ask any vendor, and what decides the price.
In one paragraph
The short answer.
A business permit system in the Philippines is the software a city or municipality uses to receive new and renewal applications for the Mayor's Permit, assess the local business taxes, fees and charges under its revenue code, collect payment, and release the permit. It is run by the Business Permits and Licensing Office, the treasury and the offices that sign off, such as zoning, fire and sanitation. It must follow the Local Government Code (RA 7160) on what may be taxed and when, and the Ease of Doing Business Act (RA 11032) on how many working days each step may take.
By Solomon Lee, Founder and Chief Software Architect, Tekhx. Updated November 8, 2026.
Part 1
What it must do from filing to release
The work is a chain: the owner files, an evaluator checks the requirements, the treasury assesses the tax and fees, the owner pays, and the BPLO releases one integrated permit. Every link has to be on record, with a name and a time.
- A unified application form for new and renewal permits, online and at the counter.
- A requirements checklist per line of business, so an incomplete application is caught on day one.
- Assessment from the city's own revenue code: tax brackets by gross sales, fixed fees and regulatory fees per line.
- A Tax Order of Payment, the official receipt, and installments where the ordinance allows them.
- Reviews by the other offices (zoning, fire, sanitation, environment) in one routing, not separate queues.
- A permit the public can check, for example by a QR code, so a fake one is easy to spot.
Part 2
RA 11032 and the clock
The Ease of Doing Business and Efficient Government Service Delivery Act sets the processing time a government office may take: 3 working days for a simple transaction, 7 for a complex one and 20 for one that is highly technical. It also calls for a one-stop business facility and a Citizen's Charter that states the steps, the fees and the time.
A permit system should start that clock when a complete application is received, show each evaluator how many days are left, and report what is pending and overdue. When the Anti-Red Tape Authority asks why an application took longer, the answer should come from the record, not from memory.
Part 3
RA 7160 and the city's revenue code
The Local Government Code sets which business taxes a city or municipality may levy and the January renewal season, and allows payment in quarterly installments. The actual rates, brackets and penalties are set by each LGU's own revenue ordinance.
That is why the rates must be setup the treasury maintains, not figures written into the program. When the council passes a new ordinance or extends the renewal deadline, the office should be able to add it, date it, and keep the old rates for the permits already assessed.
Part 4
What separates a system from a spreadsheet
A spreadsheet can list businesses and compute a tax. It cannot route one application through five offices, refuse a release while a review is open, stop someone from changing an assessment after payment, or tell the mayor which businesses did not renew this year.
A system also gives the owner a way to file, upload the sworn declaration of gross sales, pay and track the application without a trip to city hall, which is the point of the law.
Part 5
Taxpayer data and the Data Privacy Act
Owners' names, addresses, IDs and declared gross sales are personal and sensitive business information. Under the Data Privacy Act of 2012 (RA 10173), the LGU must control who can see them, keep a trail of who opened and changed them, and be able to report a breach. Each office should see only the records its job needs.
Before you buy
Questions to ask any vendor.
- Can our treasury change the tax brackets, fees and deadlines from our own revenue code, without a programmer?
- Does it count the RA 11032 working days per step and show what is pending and overdue?
- Can an owner apply, upload requirements, pay and track the application online?
- How do zoning, fire, sanitation and the barangay sign off, and can a permit be released while one is still open?
- Which reports does it produce: daily collections, permits issued, businesses not yet renewed, per barangay?
- Is every change to an assessment or a payment recorded with a name and time?
- Do we own the data and the source code, and does it run on our own server if we want?
Cost
What decides the price.
Every business is priced on what it needs. These are the things that move it.
Size of the LGU
The number of registered businesses, barangays and counters decides the data to bring in and the users to set up.
Your revenue code
Every tax schedule, fee and exemption in the ordinance has to be entered and checked against real assessments.
Offices in the routing
Each reviewing office adds its own requirements, sign-offs and reports.
Online filing and payment
An owner portal and online payment channels are more work than a counter-only system.
Old business records
Bringing in past permits and payment history from spreadsheets or an old system is part of the job.
Hosting
On the LGU's own server, or a cloud server looked after by the vendor.
Free tool
Business permit and business tax estimator
Local business tax on last year's gross sales, plus the mayor's permit and fire safety inspection fee.
Tekhx business permit system
LGU, ready to use.
For cities and municipalities: the city's permit website with a tax and fee calculator and a permit QR check, a portal where owners file and renew online, and the evaluator's desk, the bill from the city's own revenue code, the treasury, the integrated permit, reports and accounting.
Questions
Asked and answered.
What is the best business permit system for an LGU in the Philippines?
The best one assesses from the LGU's own revenue code, keeps the RA 11032 processing times visible, lets owners file and pay online, and leaves the data and the system with the LGU. Compare vendors on those points, not on the number of screens.
How much does a business permit system cost?
It depends on the number of businesses and barangays, the offices in the routing, online filing and payment, the old records to bring in and the hosting. A vendor should price it in writing after seeing the LGU's own process in a meeting.
Is an online business permit system required by law?
RA 11032 requires LGUs to streamline business registration, set processing time limits and set up a one-stop business facility, including an electronic one. It does not name a particular software, but meeting its time limits and reporting is hard without one.
How long are business permits processed under RA 11032?
Up to 3 working days for a simple transaction, 7 for a complex one and 20 for a highly technical one, counted from receipt of a complete application, unless a longer period is allowed by law.