Under Book II, Article Four, Sec 152, Paragraph C of the Local Government Code, no city or municipality may issue any license or permit for any business or activity unless a clearance is first obtained from the barangay where such business or activity is located or conducted. Thus every year businesses flock in their barangay halls for Barangay Clearance which is a pre-requisite for Business Permit.
Let’s get down to the requirements and steps.
1. Previous year’s Barangay Clearance
– Original or photocopy it doesn’t matter. They will just use it as reference point and it will show also that you are renewing and not a first time applicant. It will also speed up the process since all the details of your company are already there. Just hand it to them and they will return it to you once you’re done with the process.
2. Previous year’s Official Receipt of the Barangay Clearance
– Same as above. Also, it can serve as your guide and proof for any fraudulent or miscalculated fees. If you have paid a correct amount last year, there’s no reason you’ll be paying a different amount this year assuming there are no changes in your business.
3. Previous year’s Comprehensive General Liability Policy Insurance
– Same reasons as above. Various insurance providers will be present there. You may want to avail the same provider you had last year. In which case, you can give them your old policy and they will just copy it and issue you a new one.
4. Previous year’s Comprehensive General Liability Policy Insurance Official Receipt.
– Same as number 2 and 3 above.
5. Cash or check
– As for checks, you can only know the amount to write after the assessment from the insurance company and the assessment from the barangay clearance issuer.
1. Insurance Assessment And Payment
– Go to your insurance provider of choice. They will have desks or booths lined up there in the barangay hall or in some other designated place for clearance processing. Assessment and payment are done here.
2. Barangay Clearance Assessment
– Submit your requirements and you will be given a Renewal Form which you should fill up. After which, proceed to the cashier for payment.
– Submit your assessed application and pay the corresponding amount. Proceed to receiving.
– Submit your paid application. Proceed to Business Plate issuance.
5. Business Plate Payment and Issuance.
– A separate payment will be asked for business plates. After this, proceed to waiting area and wait for your business name to be called.
– Receive you new Barangay Clearance with the receipts of your payments attached.
1. Be early. First week to second week of January should be the right time to avoid long queues and waiting times.
2. Unless you have a very big company, payments are not that big. Bring some cash so you can just pay there without having to go back for the check.
3. The payment is based on a per square meter of your business floor area. The current amount is 11.00 PHP per square meter. If you have multiple companies sharing the same floor area, you can divide the payment among them.
4. If your company is a leasee of such floor area, bring also your contract of lease just in case there are questions and clarifications.
5. During the releasing, check very carefully if the details in the clearance are all correct before you leave. If you have corrections, return the paper and they will correct and reprint it.
That’s all there is to it.
Just remember, not all barangays have the same process. You or your representative can call them first and ask questions before going in person.