How To Apply for Barangay Clearance in the Philippines

When you decide to start a business, your decision will surely have an impact to the community, the government and the environment as a whole. It also influences clients, employees, the suppliers and even your competitors. There are certain points though that the impact is almost negligible as we always see statistics from a politician or the overall economic growth of a certain place.

Since small to medium enterprises generate new employment for the community, there are even more ways that these businesses can make an impact. For one, it transforms the community of its identity. In addition to this, these profit-generating merchandises can contribute in the formation of a relationship among you and your customers, especially in the Philippines where close family ties is always practiced.

But before you start your own physical business, just like any other legal transactions, documents and requirements are necessary and must be fully accomplished before any selling takes place. The very basic requirement needed when anybody wants to enjoy the fruits of having a business is the barangay clearance.

Things that Require You to Apply for a Barangay Clearance

Barangay business permit is one of the requirements needed when registering your own business. This is also an important document when you needed to renew your Mayor’s permit. Just like in employment, the barangay permit serves as a green light or approval that you do not have any bad reputation in your own backyard.

Some of the reasons why a barangay permit is being applied because of the following:

• When cleared from your own barangay and a clearance is handed to you, you can definitely apply for a job.
• Banks are very careful these days that is why before opening a bank account, present your barangay permit.
• Common financial transactions like certificate of residency, applying for a loan, or financing require a barangay clearance.
• One also needs a barangay permit to get or renew a Driver’s License
• Getting your Police Clearance which is also needed to get an NBI Clearance need a clearance from your own barangay.

From all the reasons mentioned above, a barangay clearance is also required when opening a business establishment. This is where this clearance is needed. Focusing on business requires many documents to certify that you are residing in that said barangay. There are also many different legal transactions that a barangay clearance is needed but the main target here is starting a business.

Requirements for Applying a Barangay Clearance

Although a barangay permit is a legal requirement itself, one also needs to have some requirements to get a clearance from the barangay. These are:

• Latest Community Tax Certificate – Locally known as cedula, this is strictly for identification purposes. This is a document prepared and issued in the barangay itself. You can also get this piece of document from the municipal city hall.
• DTI Business Name Registration – This is one of the most important services of the Department of Trade and Industry which aims to keep up in registering every business establishment in the country.
• Barangay Business Permit Fee – This is the payment for the barangay business permit you need to get.
  

Procedures in Applying for a Barangay Clearance

As a standard procedure, you need to prepare the documents mentioned like the latest Community Tax Certificate and the DTI Business Name Registration. Payment for every barangay permit being applied for is approximately 500 pesos. The fee is not that same throughout the country as it can vary from place to place.

After all the requirements are all in one envelope, you can proceed to the local barangay hall or barangay office where you reside. You can look from among the three persons inside that office. The usual person that you can find is the Barangay Captain or Barangay Chairman. Being the most important and sought-after person in your barangay, he is the signatory in the clearance you are applying for.

When the Barangay Captain is not in the hall, the OD or the Officer-of-the-Day is on duty. The Secretary of the Barangay can be the third person that you can find in a barangay office. You need to fill out the entire form and it is important not to leave any space unfilled because this may become a reason of delay.

Pay the necessary fees to proceed for the processing of your document. Processing of the clearance will only take a few minutes. When the clearance is finished, make it a point that all the information is true and complete. There are times when you will be asked of some questions as a means of verification.

After all has been said and done, the barangay permit will be signed to end the process. There are times when the Barangay Captain is out of town and the designated member of his Council will sign for him. There are also times when they use rubber stamp for his signature.

Lastly, you have to compare all the info from your DTI Business Name and the CTC number. Make sure that all these documents sync with each other. Attach the official receipt on your Barangay Business Clearance because there are Municipal Offices that look for that barangay clearance receipt.

Can You Apply for a Barangay Clearance Online?

Getting a Barangay Business Permit is just the initial step for your business dreams. In business, paperwork is really daunting. People nowadays are getting impatient when it comes to long lines of document processing. Because of the technology being applied to most transactions, legal documents being applied online are still limited.

One of them is the application of the Barangay Permit. As discussed, applying for a Barangay Permit needs to be personal. The applicant needs to go to his Barangay Hall where he resides to get one for his business. Because of the interview to be made by the designated person assigned for your permit, online application is a big NO when it comes to Barangay Permit application.

These days, people get instant access to hundreds of business templates, forms and even contracts. But a document like Barangay Business Permit requires attendance in person. So if you want to have your business started and earn as immediate as possible, make appointments personally.