Short answer. Yes. RA 7610 orders establishments that promote or facilitate child prostitution, sexual abuse, trafficking, or indecent shows to be immediately closed and their license to operate cancelled. The DSWD posts an "off limits" sign outside for at least one year, and the owner or manager can still be prosecuted.
What the law says
All establishments and enterprises which promote or facilitate child prostitution and other sexual abuse, child trafficking, obscene publications and indecent shows, and other acts of abuse shall be immediately closed and their authority or license to operate cancelled
RA 7610, Section 11 — Sanctions On Establishments. Read the full provision →
Immediate closure and a cancelled license
The sanction strikes the business itself, not only the individuals behind it. The law provides that "all establishments and enterprises which promote or facilitate child prostitution and other sexual abuse, child trafficking, obscene publications and indecent shows, and other acts of abuse shall be immediately closed and their authority or license to operate cancelled." Two consequences follow at once: the place is shut, and its legal permission to do business is revoked. This is aimed at the commercial cover that child exploitation often hides behind — a bar, a lodging house, a studio — so that the enterprise cannot simply carry on.
The "off limits" sign
The closure is meant to be visible and lasting. The law directs the Department of Social Welfare and Development to display a sign reading "off limits" conspicuously outside the premises, for a period the Department sets that must be not less than one year. To keep the mark from being quietly erased, the unauthorized removal of that sign is itself punishable by prision correccional. The sign does two things: it warns the public, and it prevents the operator from reopening under the pretence that nothing happened.
The owner is prosecuted too
Shutting the business does not settle the criminal side. The closure is expressly without prejudice to the owner or manager being prosecuted under this Act, and under the Revised Penal Code or other special laws. So the establishment loses its license while the people who ran it face a separate criminal case. The two consequences are designed to run together: the enterprise is dismantled as a going concern, and the individuals responsible are answerable in their own right. One is not a substitute for the other.
When a business is "deemed" to promote abuse
The law does not require elaborate proof of intent behind the enterprise. An establishment is deemed to promote or facilitate these acts if the acts constituting them occur on its premises. It goes further for certain enterprises — a sauna, travel agency, or recruitment agency that promotes such acts as part of a tour for foreign tourists, exhibits children in a lewd show, provides child masseurs whose services include lascivious conduct, or solicits children, is deemed to have committed the offence. The reach is deliberately broad. This is general information about the sanction, not advice on a specific business.