How much does a business permit for a corporation cost in the Philippines?

In the Philippines, a business permit, also known as a mayor's permit, is a requirement for all businesses, including corporations, to legally operate within a city or municipality. The cost of obtaining a business permit varies based on several factors such as the type of business, the size of the business, and its location.

Factors Affecting the Cost of a Business Permit

Location: Different cities and municipalities have varying rates for business permits. Larger cities or highly urbanized areas tend to have higher permit fees compared to smaller towns.
Type of Business: The nature of the business significantly influences the cost of the permit. For example, businesses involved in highly regulated industries, such as food or healthcare, may have higher fees due to additional requirements.
Business Size and Capitalization: The size of the business, often measured by its capitalization or annual gross revenue, also affects the permit cost. Larger corporations with higher capital or revenue generally pay higher fees.

Typical Costs and Fees

While the exact cost varies, business permit fees for corporations typically include:

Registration Fee: This is a flat fee charged for the initial registration of the business. It usually ranges from ₱500 to ₱1,000, depending on the locality.
Mayor’s Permit Fee: This is a variable fee based on the business's capitalization or revenue. It typically ranges from 0.1% to 0.2% of the declared capital or revenue.
Other Fees: Additional fees may include sanitary fees, garbage fees, and inspection fees, among others. These can add a few hundred to several thousand pesos to the total cost.

Annual Renewal

Business permits must be renewed annually. The renewal fees are similar to the initial costs, although some cities offer discounts for early renewals.

Conclusion

In summary, the cost of a business permit for a corporation in the Philippines varies based on several factors, including location, type of business, and business size. The overall cost typically includes a registration fee, a mayor’s permit fee based on capitalization or revenue, and other miscellaneous fees. It's important for corporations to factor in these costs when planning their business operations.