LGU Permits: The Foundation of Business Compliance

October 14, 2025
By Jeffrey Torres
LGU Permits: The Foundation of Business Compliance

National-level permits from agencies like DENR and DOH are critical, but all compliance starts at the local level. Your Local Government Unit (LGU)—your city or municipality—has its own set of permits that are the foundation for legally operating any business or constructing any building.

The Must-Have LGU Permits

The most common LGU permits include:

  • Business Permit (or Mayor's Permit): This is the primary license to operate a business within the LGU's jurisdiction. It is renewed annually and requires clearances from various local offices.
  • Building Permit: Required before any construction, renovation, or demolition can begin. This ensures your plans comply with the National Building Code.
  • Occupancy Permit: Issued after construction is complete and the building has been inspected and deemed safe for use.
  • Zoning Clearance: Confirms that your business activity is allowed in its specific location according to the LGU's zoning ordinance.

An Interconnected Web

LGU permit applications are often interconnected. For example, you cannot get a Building Permit without a Zoning Clearance, and you cannot get an Occupancy Permit without a Building Permit. Furthermore, many national permits require a Business Permit as a prerequisite. This makes navigating LGU bureaucracy a critical first step in any project. A liaison specializing in LGU relations can make this process significantly faster and smoother.