A zoning clearance, also called a locational clearance, is the city or municipal zoning office's confirmation that your type of business is allowed at your address. Under RA 11032 the zoning office sits in the Business One-Stop Shop, and JMC 2021-01 put the locational clearance on the same Unified Application Form as the business permit. Fees are set by each city; San Juan, for example, charges by floor area.[1,2,3]
What the zoning office is checking
Every city divides its land into zones such as residential, commercial and industrial, and its zoning ordinance says which activities are allowed in each. The zoning clearance is the city confirming that your activity fits the zone at your address. It is the reason a junk shop may be refused on a quiet residential street while a sari-sari store on the same street is allowed.
The clearance has different names. San Juan calls it a Locational Clearance for Business Permit and issues it through its Local Zoning Administration Office (LZAO). Other cities may say zoning clearance, zoning certificate or locational clearance.[3]
Two kinds: for a business permit, and for a building
For a business permit. This is the one most micro businesses deal with. RA 11032 requires cities to co-locate the zoning office with the treasury and the business permits office, and JMC 2021-01 made one Unified Application Form cover the business permit and the locational clearance, as reported by The Philippine Star. In most cities you never visit a separate office: the zoning desk at the one-stop shop checks your address when you file.[1,2]
For a building. If you are building or renovating, the locational clearance comes before the building permit. Under JMC 2018-01, the zoning or planning office representative at the one-stop processing center verifies or issues the locational clearance and gives a copy to the Office of the Building Official as a requirement for the building permit. A copy of the locational clearance is also required again for the Certificate of Occupancy.[4]
How much is a zoning clearance?
Each city sets its own fee, so there is no national amount. San Juan publishes its formula for a locational clearance for business: ₱10 times the area (land use fee), plus 25% of the land use fee as a processing fee, plus ₱100 for the locational clearance and ₱200 for the certificate.[3]
Example (San Juan formula, 30 square metres): land use fee ₱10 × 30 = ₱300. Processing fee 25% of ₱300 = ₱75. Add ₱100 and ₱200. Total ₱675.[3]
That formula is San Juan's only. Another city may use a flat fee, a different rate per area, or fold the zoning fee into the business permit assessment. Ask your city's zoning desk or look in its Citizen's Charter.
Home and subdivision addresses
Running a business from a house in a residential area is where zoning questions come up most. Some cities ask for extra proof. The City of Imus, for example, requires a homeowners' association resolution if the business is inside a residential subdivision.[5]
Before you sign a lease or spend on renovation, ask the zoning desk whether your activity is allowed at the address. A 10-minute question at city hall can save you from paying rent on a place where you cannot get a permit. See home-based business.
San Juan locational clearance fee, worked out
| Floor area | Land use (₱10 × area) | Processing (25%) | Clearance + certificate | Total |
|---|---|---|---|---|
| 20 sq m | ₱200 | ₱50 | ₱300 | ₱550 |
| 30 sq m | ₱300 | ₱75 | ₱300 | ₱675 |
| 50 sq m | ₱500 | ₱125 | ₱300 | ₱925 |
| 100 sq m | ₱1,000 | ₱250 | ₱300 | ₱1,550 |
Before you sign the lease
- Ask the city zoning desk if your activity is allowed at the address
- Measure the floor area you will use for the business
- Check if the address is inside a subdivision with an HOA
- Get a copy of the owner's title or tax declaration for the property
- Ask whether the zoning fee is separate or part of the permit assessment
- File the zoning part with your unified business permit application
Questions people ask
- Is a zoning clearance the same as a locational clearance?
- Cities use both names for the clearance from the zoning office. San Juan, for example, calls it a Locational Clearance for Business Permit.
- Do I apply for it separately from the mayor's permit?
- Usually not. Under JMC 2021-01, the Unified Application Form covers both the business permit and the locational clearance, as reported by The Philippine Star.
- Do I need a new zoning clearance every year?
- Cities differ on whether they re-check zoning at each renewal. Ask at the BOSS when you renew in January.
- I am building a small store. Which comes first?
- The locational clearance comes first, because it is a documentary requirement for the building permit under JMC 2018-01.
Sources
Checked 13 November 2026. We link the agency's own page for every requirement. Rules change; confirm with the office before you pay.
- Republic Act No. 11032 (Ease of Doing Business and Efficient Government Service Delivery Act of 2018) · Lawphil Project (Arellano Law Foundation) · 28 May 2018
- LGUs ordered to set up electronic business one-stop shop · The Philippine Star · 14 April 2021
- 04.1 Locational Clearance for Business Permit · City Government of San Juan (Local Zoning Administration Office)
- Joint Memorandum Circular No. 2018-01: Guidelines in Streamlining the Processes for the Issuance of Building Permits and Certificates of Occupancy · DILG, DPWH, DICT and DTI (text on Supreme Court E-Library) · 10 January 2018
- City Government of Imus OBPLO - Checklist of Requirements for New Business Permit · City Government of Imus · 31 July 2025