Published — January 15, 2021
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.
Aside from knowing the “Ease of Doing Business”, read: INSPECTION OF FOOD BUSINESS OPERATORS
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There are regulatory requirements that a business must comply with to engage or operate a business
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Ease of Doing Business (EODB) Law aims to make it easier for businesses to start operating in the country
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The most important measure that ease of doing business law introduces is the automation of the business registration process
May an application for business be automatically approved?
Republic at No. 11032, otherwise known as the “Ease of Doing Business and Efficient Government Service Delivery Act of 2018” seeks to increase efficiency by reducing processing time, eliminating red tape and curbing corrupt bureaucratic practices.
The law applies to all government offices and agencies including Local Government Units (LGUs), government-owned or controlled corporations and other government instrumentalities, whether located in the Philippines or abroad, that provide services covering business and nonbusiness related transactions.
What is business related transactions?
The law says:
Business related transactions refer to a set of regulatory requirements that a business entity must comply with to engage, operate or continue to operate a business, such as, but not limited to, collection or preparation of a number of documents, submission to national and local government authorities, approval of application submitted, and receipt of formal certificate or certificates, permits, licenses which include primary and secondary, clearances and such similar authorization or documents which confer eligibility to operate or continue to operate as a legitimate business.
It cannot be denied that in processing or complying with the regulatory requirements, applicants or business entities are sometimes exposed to procedure or system that is ineffective or detrimental in achieving its intended objectives, and, as a result, produces slow or undesirable social outcomes.
To combat the above-mentioned ineffective procedures is what the EODB Law seeks to do. Thus, it is important for all business entities and applicants to know that all of their applications and requests transactions shall be acted upon by the government or its officers with the following time frames:
- Three (3) working days for simple transactions
- Seven (7) working days for complex transactions
- Twenty (20) working days for applications and requests involving activities which pose danger to public health, public safety, public morals and highly technical transactions.
What are simple transactions and complex transactions?
The law says:
Simple transactions are applications or requests submitted by applicants or requesting parties of a government office or agency which only require ministerial (e.g. all they have to do is to sign, or approve, or issue a document) actions on the part f the public officer or employee, or that which present only inconsequential issues for the resolution by an officer or employee of said government.
Complex transactions are applications or requests submitted by applicants or requesting parties of a government office which necessitate evaluation in the resolution of complicated issues by an officer or employee of said government office, such transactions for pecuniary gain or any other advantage or consideration.
What if government fails to act on the request/s of business entities or applicants?
The law says:
If the government office or agency fails to approve, disapprove an original application or request for issuance of license, clearance, permit, certification or authorization within the prescribed processing time, said application or request shall be deemed approved.
The automatic approval or automatic extension of License, Clearance, Permit, Certification or Authorization is on the condition that all required documents have been submitted and all required fees and charges have been paid. The acknowledgment receipt together with the official receipt for payment of all required fees issued to the applicant or requesting party shall be enough proof or has the same force and effect of a license, clearance, permit, certification or authorization.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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