Ease of Doing Business V.2

• Ease of Doing Business Act


  Republic Act No. 11032 otherwise known as the Ease of Doing Business and Efficient Government Delivery Act of 2018
• Purpose of the Act

  To provide a program for the adoption of simplified requirements and procedures that will reduce red tape and expedite business and nonbusiness related transactions in government
• Coverage


  • All government offices and agencies including LGUs, GOCCs, and other government instrumentalities, whether located in the Philippines or abroad, that provide services covering business and nonbusiness related transactions
• Zero-Contact Policy


  Public officials and employees shall limit interactions with an applicant or requesting party to the preliminary assessment and evaluation of sufficiency of submitted requirements of an application or request, unless such interaction is strictly necessary for the processing of the request or application
• The DICT shall, within one (1) year from the effectivity of these Rules, create a web-based software enabled business registration system that is acceptable to the public. All transactions shall thereafter be coursed through such business registration system
• Exceptions to Zero-Contact Policy

  • Payment of application and other fees
  • For complex and/or highly technical transactions
• Citizen's Charter


  An official document that communicates, in simple terms, the service standards or pledge of an agency/service office of the frontline services being provided to its citizens. It describes the step-by-step procedure for availing a particular service, the person responsible for each step, the documents needed to be submitted and the fees to be paid, if any
• Purpose of Citizen's Charter

  Basis for establishing accountability for recognizing good performance to grant rewards and incentives
• Where the Citizen's Charter shall be displayed

  • Information billboards such as touchscreen interactive information kiosks, electronic billboards, posters, tarpaulins, standees, or any other readable materials that could be easily understood by the public, posted at the main entrance of offices or at the most conspicuous place, in the respective websites, and in the form of published materials written either in English, Filipino, or in the local dialect
• Content of Citizen's Charter

  • A comprehensive and uniform checklist of requirements for each type of application or request
  • The procedure to obtain a particular service
  • The person/s responsible for each step
  • The maximum time to conclude the process
  • The document/s to be presented by the applicant or requesting party
  • The amount of fees and where the payment shall be given
  • The procedure for filing complaints in relation to the application or request
• Acceptance of Applications or Request

  1. Accept written applications, requests, &/or documents

  2. Perform a preliminary assessment of the application

  3. Assign a unique identification number to an application

  4. Issue an acknowledgement receipt containing the seal of the agency, the name of responsible officer or employee, his/her unit or designation, date and time of receipt of such application
• Actions of Offices


  1. All applications or requests submitted shall be acted upon by the assigned officer or employee within the prescribed processing time stated in the Citizen's Charter

  2. 3 - simple transactions

  3. 7 - complex transactions

  4. 20 or determined by the government agency concerned, whichever is shorter - highly technical application or for applications or requests involving activities which pose danger to public health, public safety, public morals, public policy

  5. May be extended only once for the same number of days

  6. Notify the applicant in writing of the reason for extension and the final date of release of the government services requested

  7. Shall be signed by the applicant to serve as proof of notice
• Actions of Offices (continued)

  1. If the application or request for license, clearance permit, certification or authorization shall require the approval of the local Sangguniang Bayan, Sangguniang Panlungsod, or the Sangguniang Panlalawigan, 45 working days can be extended for another 20 working days

  2. If denied, reason for denial and remedial measures shall be cited by the concerned Sanggunian
• Actions of Offices (continued)

  No application or request shall be returned to the applicant or requesting party without appropriate action. Send formal notice stating the reason for the disapproval
• Denial of Application or Request for Access to Government Service


  Shall be fully explained in writing, name of person making the denial, grounds upon which such denial is based
• Limitation of Signatories


  Maximum of 3 signatures representing officers directly supervising the office or agency concerned
• Electronic Versions of Licenses, Clearances, Permits, Certifications or Authorizations

  When applicable, develop electronic versions of licenses, clearances, permits, certifications or authorizations with the same level of authority as that of the signed hard copy, which may be printed by the applicants or requesting parties in the convenience of their offices
• Adoption of Working Schedules to Serve Applicants or Requesting Parties

  Adopt appropriate working schedules
• Identification Card


  Visibly worn during office hours
• Establishment of Public Assistance/Complaints Desk

  Establish public assistance/complaints desk
• Automatic Approval or Automatic Extension of License, Clearance, Permit, Certification or Authorization

  1. Application or request shall be deemed approved if a government office or agency fails to approve or disapprove original application or request for issuance within the prescribed processing time, provided that all required documents have been submitted and all required fees and charges have been paid

  2. Application or request shall be extended if a government office or agency fails to act on an application or request for renewal, within the prescribed processing time
• Automatic extension or renewal is not applicable to licenses, clearances, permits, certifications, or authorizations that have already expired at the time of the submission of application or request
• Streamlined Procedures for the Issuance of Local Business Licenses, Clearances, Permits, Certifications or Authorizations

  1. Single or Unified Business Application Form shall be used in processing new applications for business permits and business renewals which consolidates all the information of the applicant or requesting party needed by various local government departments

  2. Hard copies shall likewise be made available at all times in designated areas of the concerned office and/or agency
• Business One Stop Shop (BOSS)


  1. Shall be established within the cities/municipalities' Negosyo Center to serve as the city/municipality's business permitting and licensing system to receive and process manual and/or electronic submission of application for license, clearance, permit or authorization

  2. There shall be a queuing mechanism in the BOSS

  3. LGUs shall implement collocation of the offices of the treasury, business permits and licensing office, zoning office, including the BFP, and other relevant city/municipality offices/departments, among others, engaged in starting a business, dealing with construction permits
• Electronic BOSS


  1. Within a period of three (3) years upon the effectivity of the Act, all cities and municipalities are mandated to automate their business permitting and licensing system or set up an electronic business one stop shop for more efficient business registration processes

  2. Cities/municipalities with electronic BOSS shall develop electronic versions of licenses, clearances, permits, certifications or authorizations with the same level of authority and containing the electronic signature of the authorized officer/s and seal of the agency or LGU, which may be printed by businesses in the convenience of their offices

  3. The DICT, DTI, and DILG shall issue a joint operational guideline on the provision of technical assistance in the planning and implementation of the e-business permit licensing system
• Issuance of Other Permits/Clearances Together with the Business Permit

  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, subject to post-audit by the concerned LGU
• Validity Period of Business Permits

  Business permits shall be valid for a period of one (1) year. The city or municipality may have the option to renew business permits within the first month of the year or on the anniversary date of the issuance of the business permit
• Expiration of Validity Period

  1. Upon the expiration of the one (1) year validity period, applicants for renewal not included in the negative list provided by any regulatory office or agency shall be allowed to renew their business permit upon payment of applicable fees as may be imposed by the city or municipal government

  2. The regulatory offices or agencies shall submit their respective negative lists to the LGUs on a regular basis as may be required, but no later than the first of December every year
• Barangay Clearances and Permits

  1. Barangay clearances and permits related to doing business shall be applied, issued, and collected at the city/municipality by the prescribed processing time of the Act, provided that the share in the collections shall be remitted to the respective barangays

  2. The remittance of the barangay's share in the collections shall be made not later than seven (7) working days following the end of the month when the collection was made
• LGU as Collecting Agent

  1. LGUs may be designated to assess "the ordinary" fire safety inspection fees (FSIF), provided that the BFP is able to check the accuracy of the computation and to certify the tax order of payment

  2. BFP may allow the designation of city or municipality as collecting agents for the FSIF provided that the remittance of the said fee to the BFP shall be made not later than two (2) days after the transaction is made

  3. The LGU and the BFP, thru the local fire marshal, may enter into a Memorandum of Agreement giving authority to local government officers for collection and automatic remittance of applicable fees
• Fire Safety Evaluation Clearance (FSEC)


  The clearance is issued upon determination that the design, plans and specification buildings, structures or facilities to be constructed/modified/renovated/altered are in accordance with the provisions of the Fire Code of the Philippines and its IRR
• Fire Safety Inspection Certificate (FSIC)


  Certificate representing that the required fire safety construction are in place, and fire protective and/or warning system are properly installed in accordance with the approved plans and specifications
• Issuance of Clearances under the Fire Code of the Philippines

  1. FSEC & FSIC - Shall in no case be longer than seven (7) working days, nonextendible

  2. Certification of Fire incident for Fire Insurance purposes shall in no case be issued longer than twenty (20) working days, and may be extended only once for another twenty (20) working days
• FSIC for Renewal of Business Permit

  1. The BFP shall, within three (3) working days from application for renewal of business permit, present the FSIC to the city/municipality, either thru the copy of the FSIC or the negative list

  2. The business entity shall inform the BFP and submit the necessary documentary requirements if renovations, modifications or any form of alterations are made to the original building structure at least thirty (30) working days before the expiration of the business permit

  3. If the BFP fails to furnish the city/municipality with an FSIC or to inform through the negative list within the abovementioned time of three (3) working days, the business entity shall be deemed to have a temporary valid FSIC and, therefore, shall serve as the basis for the automatic renewal of the business permit
• Responsibility of Heads of Offices and Agencies

  1. Shall be held accountable to the public in rendering fast, efficient, convenient, and reliable service

  2. All transactions and processes are deemed to have been made with the permission or clearance from the highest authority having jurisdiction over the government office or agency concerned

  3. Failure by the heads of offices and agencies to comply with the provisions of the Act and these Rules shall render them liable to being charged in accordance with existing laws or rules before the appropriate forum

  4. All heads of agencies shall implement a zero backlog program within twelve (12) months from the effectivity of the IRR
• Violations under the Act

  • Refusal to accept application or request with complete requirements being submitted by an applicant or requesting party without due cause
  • Imposition of additional requirements other than those listed in the Citizen's Charter
  • Imposition of additional costs not reflected in the Citizen's Charter
  • Failure to give the applicant or requesting party a written notice on the disapproval of an application or request
  • Failure to render government services within the prescribed processing time on any application and/or request without due cause
  • Failure to attend to applicants or requesting parties who are within the premises of the office or agency concerned prior to the end of official working hours and during lunch break
  • Failure or refusal to issue official receipts
  • Fixing and/or collusion with fixers in consideration of economic and/or other gain or advantage