Short answer
A barangay business permit, usually called a barangay clearance, is the certification issued by the barangay where a business operates. Under the Local Government Code, a city or municipality cannot issue a business permit without one, which makes the barangay the first stop in local registration rather than an optional formality.
Also called: Barangay clearance, Barangay business clearance
The clearance feeds the mayor’s permit, the city or municipal business licence that authorises operation at a given address. Both are renewed annually, and because the requirements are set locally, the documents asked for and the fees charged differ from one city to the next even inside the same province.
Home-based and fully remote operations are the common source of confusion. A registered address is still an address, and local government units differ in how they treat a business run from a residence or a co-working desk. The workable approach is to ask the specific barangay and city hall what they require for your setup rather than generalising from another municipality’s process.
Related terms
DTI Business Name Registration
DTI business name registration is the Philippine process by which a sole proprietor registers a trade name with the Department of Trade and Industry.
SEC Registration (Philippines)
SEC registration is the process of incorporating with the Philippine Securities and Exchange Commission.
Reading definitions because you are scoping a project? Skip ahead and just ask.