A barangay business clearance comes from the barangay where your business is located, and your city or municipality cannot issue your business permit without it. The Local Government Code lets each barangay council set a reasonable fee, so there is no national amount. The barangay must act on your application within seven working days, and many cities now take the application at their one-stop shop.[1,2]
Barangay clearance at a glance
| Question | Answer | Where it comes from |
|---|---|---|
| Who issues it? | The barangay where the business is located | Local Government Code, Sec 152 |
| Is it required for a mayor's permit? | Yes, the city cannot issue a permit without it | Local Government Code, Sec 152 |
| How much? | Set by the barangay (a reasonable fee) | Local Government Code, Sec 152 |
| How long? | Acted on within 7 working days of filing | Local Government Code, Sec 152 |
| If the barangay is late? | The city may issue the permit anyway | Local Government Code, Sec 152 |
| Where to apply? | At the city or municipality, often its one-stop shop | RA 11032, Sec 11 |
Why the city asks for it first
Section 152 of the Local Government Code says no city or municipality may issue any license or permit for a business unless a clearance is first obtained from the barangay where the business is located or conducted. That is why the barangay clearance sits between your DTI certificate and your mayor's permit.[1]
The clearance is about the place, not the owner. It goes to the barangay where the store, stall or office is, even if you live in a different barangay. Example: you live in Barangay Malanday but rent a stall in a public market in Barangay Concepcion Uno. You file with Concepcion Uno.
Barangay Bel-Air in Makati, as one example, describes its clearance as an official document certifying that an individual or business is in good standing.[3]
How much is the barangay clearance fee?
The law does not fix a peso amount. It says the sangguniang barangay may impose a reasonable fee for the clearance. Each barangay sets its own rate by ordinance, so the fee is set by the barangay and can differ from the next barangay over.[1]
Ask for the official receipt when you pay and keep it with the clearance. If someone quotes a fee that is not on a posted schedule, ask to see the barangay ordinance or the citizen's charter that sets it.
The 7-working-day rule
The barangay must act on your application within seven working days from filing. If it does not issue the clearance within that period, the law says the city or municipality may issue your license or permit anyway.[1]
Example: you file at the barangay hall on a Monday. Counting only working days after filing, the seventh is the Wednesday of the following week, if no holiday falls in between. If you still have nothing by then, bring your stamped receiving copy to the city's business permits office and ask them to process your permit.
This only works if you can prove the date you filed. Always ask for a receiving copy or a stamped acknowledgment with the date.
Filing at the city's one-stop shop
The Ease of Doing Business Act (RA 11032) says barangay clearances and permits related to doing business shall be applied for, issued and collected at the city or municipality. In practice, many cities have a barangay desk inside their Business One-Stop Shop, so you can get the clearance and file for the mayor's permit in one visit.[2]
Cities list the clearance among their permit papers. Mandaluyong, for example, asks new applicants for a current-year barangay clearance.[4]
What a barangay may ask you to bring
Requirements are set locally. Barangay Bel-Air's list for a new business is one example: your DTI or SEC registration (with articles of incorporation and GIS if applicable), and either a contract of lease with the lessor's updated barangay clearance or a title or certificate of ownership.[3]
Bel-Air also says its clearance is valid for six months from issuance for most purposes. Other barangays may set a different validity, so check what yours prints on the clearance and whether the city wants a current-year copy.[3]
Before you go to the barangay
- Print your DTI certificate (or SEC certificate for a corporation)
- Bring your lease contract and the lessor's barangay clearance, or proof you own the place
- Bring a valid ID and the exact business address
- Ask whether the barangay desk is at the city hall one-stop shop
- Get a receiving copy with the filing date
- Keep the official receipt for the fee
- Note the validity printed on the clearance
Questions people ask
- Is a barangay clearance the same as a barangay business clearance?
- Not always. A personal barangay clearance is about you as a resident. The business clearance is the one the city needs before it can issue a business permit, and it goes to the barangay where the business operates.
- Can the barangay refuse to act on my application?
- The barangay must act within seven working days. If it does not issue the clearance in that time, the Local Government Code allows the city or municipality to issue your permit anyway.
- Do I need a new clearance every year?
- Cities usually ask for a current one when you renew your mayor's permit. Mandaluyong, for example, lists a current-year barangay clearance among its requirements.
- Do I get the clearance before or after DTI?
- After. Barangays such as Bel-Air ask for your DTI or SEC registration as part of the application, so register the name first.
Sources
Checked 14 November 2026. We link the agency's own page for every requirement. Rules change; confirm with the office before you pay.
- Republic Act No. 7160 (Local Government Code of 1991) · Lawphil Project · 10 October 1991
- Republic Act No. 11032 (Ease of Doing Business and Efficient Government Service Delivery Act of 2018) · Lawphil Project (Arellano Law Foundation) · 28 May 2018
- Clearances - Barangay Bel-Air · Barangay Bel-Air, Makati City
- Business Licensing Requirements - City of Mandaluyong · City Government of Mandaluyong · 30 June 2020