Business Licenses

To apply for a business license or for additional information please contact HdL.

HdL Companies now provides all business licensing needs for the business community in the City of Morgan Hill. HdL services are available through the phone, online, and by mail.

To offset the financial impact of new development or a new business on public infrastructure, new projects may be subject to impact fees. Impact fees are calculated and due at building permit issuance. The Morgan Hill Business Portal offers a free Development Impact Fee Estimate calculation.

Alternatively, the City of Morgan Hill's Engineering Land Development Division can create an estimate for your project for a $350 fee. Fees are updated twice yearly. Final impact fees may vary from the estimate. For more information, contact Engineering Land Development at 408-778-6480.

Online:HdLGov Website
Mail:City of Morgan Hill
c/o HdL Support Center
8839 N. Cedar Ave. #212
Fresno, CA 93720

Lookup a Business License

Who Needs to Apply for a Business License?

All persons or companies conducting business within the city limits of Morgan Hill are required to obtain a City Business License. Business types include:

  • Retailers
  • Wholesalers
  • Manufacturers
  • Service providers
  • Professionals
  • Contractors
  • Non-profit organizations
  • Self-employed or consultants (home businesses)
  • Residential landlords renting 3 or more units
  • Mobile Vendors, Peddlers, and Solicitors
When Should an Application Be Submitted?
An application must be submitted and fees must be paid prior to commencement of business operations.

Where Can I Obtain a Business License Application?
Applications (PDF) may be completed online or forms are available at City Hall, located at 17575 Peak Avenue, Morgan Hill, California. 

How are Fees Calculated?
A variety of classifications and rates are set forth in the Business License Ordinance. A brief rate schedule (PDF) of the most common classifications is available from the Development Services Center. One-time fees charged for processing your business license application include an application review fee and a zoning permit fee.

What is SB1186?
On September 19, 2012, Governor Brown signed into law SB-1186 (PDF), which imposes a $4.00 State fee on every applicant for a local business license or renewal.

SB205 Stormwater Discharge Compliance
Senate Bill 205 (SB205), signed by Governor Gavin Newson in 2019, requires a person or entity applying for a new or renewed business license to demonstrate enrollment with the National Pollutant Discharge Elimination System (NPDES) permit program, if such a permit is required. SB 205 applies to all applications for initial business licenses and business license renewals submitted on and after January 1, 2020.

SB 205 does not affect all businesses. Only those businesses with primary Standard Industrial Classification (SIC) codes that are identified by the State Water Board as requiring enrollment in the Industrial General Permit (IGP) are affected.

When Do I Renew My License?
Business Licenses are valid July through June, and therefore must be renewed annually. The city mails courtesy renewal notices, and Municipal Code 5.04 states that the city is not required to send notification to any person/business who is liable for the fee.

Is Non-Compliance Penalized?
Failure to comply with the ordinance is an infraction. Any person who fails to pay the fees prior to business commencement or 30 days after the renewal date is liable for penalties (10% after 30 days, an additional 15% after 60 days).

Where is My License Valid?
Your Business License is valid only within the city limits of Morgan Hill - while doing business from your commercial / professional location, your residence, or when you are providing services to a resident or business within the city limits.

Your business license is not a permit to operate and does not authorize you to operate a business that is otherwise prohibited by law or ordinance.

Secondhand Smoke Ordinance For Outdoor Areas
The City Council has adopted Ordinance 2024 regulating secondhand smoke in outdoor settings. See Municode for additional information.