ILOILO City – Nano businesses and homegrown entrepreneurs in Iloilo City are set to benefit from a new city ordinance that significantly lowers the cost of starting and operating micro-scale enterprises, particularly those run by low-income families and first-time business owners.
The Sangguniang Panlungsod has approved the Nano Enterprise Support Ordinance of Iloilo City granting substantial discounts on regulatory and administrative fees for nano enterprises — businesses considered the smallest yet most widespread contributors to the city’s local economy.
The new measure defines nano enterprise as a business or economic activity with a declared start-up capital of ₱250,000 or less.
These include sari-sari stores, carinderias, and emerging digital startups that often operate with very limited capital.
Authored by Councilor Jose Maria Miguel Treñas, the measure is designed to remove financial barriers that discourage small entrepreneurs from registering their businesses and fully participating in the formal economy.
“This ordinance eases the burden on nano enterprises by lowering fees and business taxes, giving them breathing room to stabilize, grow, and operate legally,” Treñas said. “Our goal is to help them move from survival to sustainability.”
Mayor Raisa S. Treñas endorsed the ordinance alongside another key measure — the proposed Iloilo City Food Truck and Mobile Food Kiosk Regulation Ordinance of 2025.
Together, these initiatives seek to widen livelihood opportunities, foster a vibrant and inclusive business environment, and uphold public safety and quality standards as emerging and fast-growing sectors continue to expand in the city.
Under the newly-approved ordinance, qualified nano enterprises will receive a 75 percent discount on regulatory fees and business tax in their first year of registration, followed by 50 percent in the second year and 25 percent in the third year. Ambulant vendors are excluded from the coverage.
Councilor Jose Maria “Nene” Dela Llana, vice chair of the Committee on Ways and Means, emphasized that the measure responds directly to the realities faced by extremely small businesses that struggle with compliance due to limited capital.
“These nano enterprises form the backbone of the city’s grassroots economy,” Dela Llana said. “They provide daily income for families, yet many remain unregistered because costs are simply too high.”
During committee hearings, the City Treasurer’s Office and the Local Economic Development and Investment Promotion (LEDIP) Office acknowledged that while the ordinance may reduce revenue collection in the short term, it will generate stronger long-term gains through increased business formalization, wider tax participation, better regulatory compliance, and improved economic mobility for low-income residents.
To qualify for the incentives, an enterprise must meet the following conditions:
* The enterprise must be newly established and must not have been previously registered;
* The applicant must submit a notarized declaration of capital investment upon application;
* The enterprise must have a declared start-up capital of ₱250,000 or less, excluding the value of land. The Joint Inspection Team (JIT) shall determine the start-up capital based on submitted documents and actual site inspection; and
* The enterprise must not have previously availed of this discount or any similar incentive granted by the Iloilo City Government.
The ordinance supports Iloilo City’s broader push for inclusive growth, ease of doing business, and sustainable local development, ensuring that even the smallest enterprises have a fair chance to thrive in a growing urban economy./PN
