Opening a barbershop in the Philippines can be an excellent business opportunity. The men's grooming market is growing steadily, and more Filipinos are looking for quality services and a professional experience in modern barbershops.
In this complete guide, we explain step by step everything you need to know to open your barbershop in the Philippines: from legal requirements and necessary permits (DTI, BIR, Barangay, Mayor's permit), to initial investment in PHP, strategic location, equipment, and management tools that will help you succeed from day one.
8 Steps to Open Your Barbershop in the Philippines
Research and Business Plan
Before opening your barbershop in the Philippines, it's essential to conduct thorough market research and create a solid business plan. Many barbershops we see struggle with unclear pricing and target market—this step helps you avoid that.
Key elements to research:
- Competition analysis: Identify how many barbershops are in your area, what services they offer, their prices (typically ₱150–₱500 PHP for a haircut in Manila), and what differentiates them. Use Google Maps and Facebook to analyze local competition.
- Target audience: Define your ideal client: age, budget, and preferences. In the Philippines, barbershops often serve students, professionals, and families—tailor your offer to your location.
- Average market prices: Research what other barbershops charge. Prices vary by city: Manila and Cebu tend to be higher; provincial areas may be lower. Typical range: ₱150–₱400 for a basic cut, ₱300–₱600 for cut + beard.
- Service demand: Evaluate if there's sufficient demand. Consider population density, nearby schools or offices, and foot traffic in areas like Makati, BGC, Quezon City, Cebu City, or Davao.
- Peak hours: Identify when clients are most available. One common issue in the Philippines is not matching operating hours to when people actually come—observe local patterns.
Legal Requirements and Permits in the Philippines
To legally operate a barbershop in the Philippines, you need to comply with the following. Requirements may vary slightly by city or municipality (LGU). One common issue in the Philippines is opening before completing all permits—this can lead to fines or closure.
DTI Business Name Registration
Register your business name with the Department of Trade and Industry (DTI). This is required for sole proprietorships. If you form a corporation or partnership, you register with the SEC instead.
Where: DTI office or online via BNRS (Business Name Registration System)
Estimated time: Same day to a few days
Cost: Around ₱200–₱1,000 PHP depending on scope
DTI BNRS →BIR Registration (Bureau of Internal Revenue)
Register for tax purposes: get your TIN (Tax Identification Number), register your business, and obtain Certificate of Registration (COR). You may need to register for VAT if annual revenue exceeds the threshold (e.g. ₱3M PHP).
Where: BIR Revenue District Office (RDO) covering your business address
Estimated time: 1–2 weeks
Cost: Registration fees and annual registration (e.g. ₱500 PHP)
BIR →Barangay Clearance
Obtain a Barangay Clearance from the barangay where your business is located. This is usually required before you can apply for the Mayor's permit.
Where: Barangay Hall
Estimated time: 1 day to 1 week
Cost: Typically ₱100–₱500 PHP
Mayor's Permit (Business Permit)
Apply for a Business Permit from the Local Government Unit (LGU)—city or municipality. This is the main license to operate. Fees are often based on location, size, and type of business.
Where: City/Municipal Hall or one-stop business center
Estimated time: 1–2 weeks (renewed annually)
Cost: Varies by LGU; can range from ₱1,000 to ₱10,000+ PHP per year
SSS, PhilHealth, and Pag-IBIG (if you hire employees)
If you employ staff, you must register as an employer with SSS (Social Security System), PhilHealth, and Pag-IBIG Fund, and remit contributions. Many barbershops we see struggle with late or missing remittances—set up a simple schedule from day one.
Cost: Employer + employee contributions as per current rates
Sanitary Permit / Health Compliance
Some LGUs require a sanitary permit or health clearance for barbershops. Check with your LGU. Maintain clean, hygienic tools and premises in any case.
Estimated Initial Investment
The initial investment to open a barbershop in the Philippines can vary significantly. Here's an approximate breakdown in Philippine Pesos (PHP):
Note: A small barbershop with basic equipment can start around ₱150,000–₱300,000 PHP. A larger or more premium setup in Manila or Cebu may require ₱500,000–₱800,000 PHP or more. In our experience working with barbershops, keeping 3–6 months of operating expenses as working capital reduces stress in the first year.
Strategic Location
Location is one of the most important factors for success. Look for areas with good foot traffic, visibility, and access. In the Philippines, being near schools, offices, or transport terminals often helps.
Key cities and areas:
Metro Manila
Makati, BGC, Quezon City, Manila—high rent but high traffic. Good for premium or mid-range barbershops.
Cebu City
Growing market; IT Park, Ayala, and downtown areas attract professionals and students.
Davao City
Stable market with lower costs than Manila; good for first-time owners.
Other cities
Iloilo, Bacolod, Cagayan de Oro, and provincial capitals offer lower rent and loyal local clientele.
Equipment and Furniture
Quality equipment is essential for providing excellent service. Invest in professional chairs, mirrors, clippers, scissors, and good lighting. Add a management system like BarberíaClub to manage appointments and clients from day one.
Note: For a small barbershop with 2–3 chairs, equipment can cost roughly ₱50,000–₱250,000 PHP depending on quality and brand.
Staff Hiring
Hire barbers with good skills and a professional attitude. Define clear schedules, commission or salary, and policies. Register employees with SSS, PhilHealth, and Pag-IBIG. A good team creates a memorable experience and brings clients back.
Management System and Technology
A good management system helps you organize appointments, manage clients, and send reminders. Many barbershops we see struggle with no-shows and double bookings—software like BarberíaClub solves this and offers online booking that Filipino clients increasingly expect.
Marketing and Promotion
Effective marketing is crucial to attract clients. In the Philippines, Facebook and Instagram are widely used—post your work, location, and prices. Get your barbershop on Google Maps and encourage reviews. Offer opening promotions and rely on word of mouth by delivering excellent service.
- Google Business Profile: Register and keep your address, hours, and photos updated
- Facebook Page: Post regularly; consider Facebook Ads for your area
- Instagram: Share before/after photos and short reels
- Encourage happy clients to leave reviews and refer friends
Tips and Best Practices for Success
Frequently Asked Questions
Do I need a license to open a barbershop in the Philippines?
You need DTI (or SEC) registration, BIR registration, Barangay clearance, and a Mayor's permit (business permit) from your LGU. If you hire employees, you must register with SSS, PhilHealth, and Pag-IBIG. Some LGUs also require a sanitary or health permit.
How much does it cost to open a barbershop in the Philippines?
The initial investment can range from ₱150,000 to ₱800,000 PHP depending on size, location, and equipment. A small barbershop can start around ₱150,000–₱300,000 PHP; a larger or premium setup in Manila or Cebu may require ₱500,000–₱800,000 PHP or more.
What is the first step to open a barbershop in the Philippines?
Register your business name with DTI (for sole proprietorship) or form a company with SEC. Then proceed to BIR, Barangay clearance, and Mayor's permit. Doing market research and a simple business plan first will help you choose location and pricing.