Published — June 7, 2018
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
Related Topic: How to Register Your Corporation With the SEC
With a desire to promote and establish effective practices aimed at efficient turnaround of the delivery of government services and the prevention of graft and corruption in the bureaucratic processes of starting a business, the State has passed R.A. No. 11032, or the Ease of Doing Business and Efficient Government Service Delivery Act. This law serves as an amendment to the existing Anti-Red Tape Act, which endeavors to maintain honesty and responsibility among public officials and employees, and to promote transparency in each agency with regard to the manner of transacting with the public. Notably, the Ease of Doing Business Act includes programs for the adoption of simplified requirements and procedures that will reduce, if not eliminate, red tape and expedite business transactions in the government.
The Department of Trade and Industry (“DTI”) referred to the law as a “gamechanger”, as businesses can now expect streamlined processes and reduced processing times from all government agencies, including government-owned and controlled corporations. This development is very important considering how involved the government is in dealing, if not regulating, businesses in the Philippines.
The streamlined process is definitely worthy of note for entrepreneurs, especially regarding concerns on issuance of local business licenses, clearances, permits, certifications and/or authorizations. Here, we will be discussing how the law, if effectively implemented, makes it relatively easier to do business in the Philippines.
Establishment of standard deadlines
All applications or requests submitted shall be acted upon by the assigned officer or employee within the prescribed processing time, which shall not be longer than the following:
- For simple transactions = 3 working days
- For complex transactions = 7 working days
- For highly technical applications = 20 working days, or as determined by the government agency concerned, whichever is shorter.
Use of a unified business application form
A single or unified business application form shall now be used in processing new applications for business permits and business renewals, which consolidates all the information of the applicant or requesting party by various local government departments, such as, but not limited to, the local taxes and clearances, building clearance, sanitary permit, zoning clearance, and other specific local government requirements including the fire clearance from the Bureau of Fire Protection (“BFP”).
The unified form shall be made available online using technology-neutral platforms such as, but not limited to, the central business portal or the concerned city or municipality’s website and various channels for dissemination. Hard copies of the unified forms shall likewise be made available at all times in designated areas of the concerned government office or agency [See: Sec. 11(a)].
Institution of one-stop shops
A one-stop business facilitation service, which shall be knows as the Business One Stop Shop (“BOSS”) shall be established for the local government’s business permitting and licensing system, which will receive and process submissions of applications for license, clearance, permit, certification or authorization. There shall be a queuing mechanism in the BOSS to better manage the flow of applications in receiving and processing the same. Local governments shall implement a single location of the offices of the treasury, business permits and licensing office, zoning office, including the BFP, and other relevant local government offices that are engaged in starting a business or dealing with construction permits [See: Sec. 11(b)].
Process automation
Local government units are mandated to automate their business permitting and licensing system, or to set up an electronic BOSS within a period of 3 years upon the law’s effectivity, making the business registration processes more efficient. Those with electronic BOSS shall develop electronic versions of licenses, clearances, permits, certifications or authorizations with the same level of authority, which may be printed by businesses in the convenience of their offices.
The Department of Information and Communications Technology (“DICT”) shall make available to local government units the software for the computerization of the business permit and licensing system [See: Sec. 11(c)].
Simultaneous issuances
To lessen the transaction requirements, other local clearances such as, but not limited to, sanitary permits, environmental and agricultural clearances shall be issued together with the business permit [See: Sec. 11(d)].
The “zero-contact policy”
This is perhaps the most important development. In the government’s attempt to curb corruption, the zero-contact policy was prescribed, where, except during the preliminary assessment of the request and evaluation of sufficiency of submitted requirements, no government officer or employee shall have any contact in any manner with the transacting party concerning his application or request. Once the DICT has completed a web-based software enabled business registration system that is acceptable to the public, all transactions shall be coursed through such system. All government agencies, including local government units, are mandated to adopt the “zero-contact policy” [See: Sec. 7].
With the enactment of the law promoting ease of doing business, we can expect that more businesses will be established, creating not only more business opportunities for entrepreneurs, but also more employment opportunities for the common Juan, which can lead to a more prosperous Philippines. With fingers crossed for a strict and faithful implementation, it is not difficult to see why the law was regarded as a “gamechanger”. After all, our country’s economy is largely driven by wealth, not only of our government, but also of its citizens. Certainly, having more and successful businesses is a key factor.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding business organizations and registration, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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