20/10/2026
READ | DILG urges LGUs to establish dedicated business permit offices, permanent licensing positions
The Department of the Interior and Local Government (DILG) is urging cities and municipalities nationwide to establish dedicated Business Permits and Licensing Offices (BPLOs) and permanent licensing positions to simplify business transactions, attract investments, and strengthen local economies.
Under DILG Memorandum Circular No. 2026-055, the Department emphasized the need to institutionalize business permitting and licensing services, recognizing the business sector's vital contribution to local revenue generation and economic development.
As of June 2026, 1,174 cities and municipalities, or 75.53%, have established BPLOs. However, only 360, or 23.47%, have created plantilla positions for Business Permit and Licensing Officers, underscoring the need to strengthen LGUs' capacity to deliver efficient and reliable services.
A dedicated BPLO serves as a centralized office for business permit issuance, establishment inspections, payment processing, and local revenue collection, helping businesses navigate government requirements more efficiently.
The DILG encouraged LGUs to institutionalize these offices and create permanent positions for qualified personnel to ensure continuity, accountability, and effective implementation of business permitting and licensing functions.
Under Republic Act No. 7160, or the Local Government Code of 1991, city and municipal governments may establish BPLOs and corresponding plantilla positions through ordinances passed by their respective sanggunians, subject to available funds and Department of Budget and Management (DBM) and Civil Service Commission (CSC) regulations.
The initiative also reinforces Republic Act No. 11032, or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, and advances President Ferdinand R. Marcos Jr.'s agenda of streamlining government transactions and promoting local economic growth.
The DILG stressed that strengthening local business permitting systems is essential to creating a business-friendly environment where entrepreneurs can operate more efficiently, investments can flourish, and more economic opportunities can reach Filipino communities.
