Setting Up a Small Carinderia: Legal Permit Requirements

Dear Attorney,

I am planning to open a small carinderia and would like to know the legal requirements for securing a business permit. Specifically, how much should I expect to pay for the necessary permits, and is the process expensive for a small-scale business like mine?

Thank you for your guidance on this matter.

Sincerely,
A Future Small Business Owner

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Insights:

When establishing a small food business like a carinderia in the Philippines, securing the proper permits and licenses is essential to operate legally. Here is a general overview of the required permits and associated costs:

1. Barangay Clearance
   Before applying for a business permit, you must first secure a Barangay Clearance. This document certifies that your business complies with the local barangay’s regulations. The fees for this clearance depend on the barangay but usually range from ₱200 to ₱500.

2. Mayor’s Permit (Business Permit)
   After obtaining a Barangay Clearance, the next step is applying for a Mayor’s Permit at your local city or municipal hall. The cost of this permit varies depending on the type and size of the business, as well as the location. For small businesses like a carinderia, fees can range from ₱500 to ₱3,000. The cost may include charges for sanitation, fire safety, and other regulatory fees.

3. BIR Registration
   Registering your business with the Bureau of Internal Revenue (BIR) is required to obtain a Tax Identification Number (TIN) and issue official receipts. The cost for BIR registration is relatively minimal, often between ₱500 to ₱1,000, depending on your business's gross sales and other variables.

4. Sanitary Permit and Health Certificates
   Since a carinderia involves food preparation and sale, you will need a Sanitary Permit from the city health office. Each staff member will also need a health certificate, ensuring they have undergone necessary health checks. The Sanitary Permit may cost between ₱200 to ₱1,000, and individual health certificates usually cost around ₱100 to ₱300 per person.

5. Fire Safety Inspection Certificate
   As part of the Mayor’s Permit application, your establishment will undergo a fire safety inspection by the Bureau of Fire Protection (BFP). Fees for this inspection depend on your business size but typically range from ₱500 to ₱1,500.

6. Other Permits
   Depending on the location of your carinderia, you may need additional clearances, such as environmental permits or special local ordinances that apply to food establishments.

Is it expensive?
The overall cost to legally set up a small carinderia can range from ₱2,000 to ₱7,000, covering all permits and certificates. This estimate is for a small business and may vary based on the local government unit (LGU) and specific business circumstances.

While the initial cost for permits may seem high for a small venture, it is essential to comply with all legal requirements to avoid penalties or closure in the future. Additionally, renewing these permits annually is required, though renewal fees are generally lower than the initial costs.