DILG pushes permanent business permit offices in LGUs

The Department of the Interior and Local Government (DILG) has urged cities and municipalities nationwide to establish dedicated Business Permits and Licensing Offices (BPLOs) and permanent licensing positions to streamline transactions and attract investments.

Under Memorandum Circular No. 2026-055, the DILG called on local government units (LGUs) to institutionalize business permitting services to improve efficiency, accountability and continuity.

As of June 2026, 1,174 cities and municipalities, or 75.53 percent, had established BPLOs. However, only 360, or 23.47 percent, had created permanent plantilla positions for business permit and licensing officers.

The figures highlight a gap in staffing and institutional support despite the widespread establishment of dedicated permitting offices.

BPLOs serve as centralized offices for processing business permits, conducting establishment inspections, facilitating payments and coordinating local revenue collection.

The DILG said creating permanent licensing positions would help ensure consistent service delivery and strengthen local governments' capacity to implement business regulations.

Under Republic Act No. 7160, or the Local Government Code, cities and municipalities may establish BPLOs and permanent positions through local ordinances, subject to funding availability and applicable government regulations.

The initiative also supports Republic Act No. 11032, or the Ease of Doing Business and Efficient Government Service Delivery Act.

The department said improving local permitting systems would reduce administrative burdens on entrepreneurs, encourage investment and strengthen local economic activity.