Ease of Doing Business and Anti-Red Tape Act

RA 11032 is titled the “Ease of Doing Business and Efficient Government Service Delivery Act of 2018.” Its policy is to promote integrity and accountability, efficient turnaround of government service delivery, and prevention of graft and corruption by adopting simplified requirements/procedures that reduce red tape and expedite business and nonbusiness transactions.

It applies to 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.

It refers to regulatory requirements a business entity must comply with to engage, operate, or continue operating a business, including document collection/submission to national and local authorities, approvals, and receipt of formal certificates/permits/licenses and similar authorizations.

Processing time is the time consumed from receipt of a complete application with complete requirements and payment until issuance of approval/disapproval documents. Simple transactions require only ministerial actions or inconsequential issues; complex transactions necessitate evaluation of complicated issues by an officer/employee, as determined by the concerned office.

Agencies must regularly undertake cost compliance analysis, time-and-motion studies, evaluate and improve transaction systems/procedures, and reengineer them if necessary to reduce red tape and processing time, with coordination by the Anti-Red Tape Authority and regulatory impact assessment for proposed regulations.

It must include: (1) a comprehensive uniform checklist of requirements per application type; (2) the procedure to obtain the service; (3) the person responsible for each step; (4) maximum time to conclude the process; (5) documents to be presented if necessary; (6) applicable fees; and (7) the procedure for filing complaints.

Except during preliminary assessment and evaluation of sufficiency of submitted requirements, no government officer/employee shall have any contact in any manner with applicants regarding the application/request. After DICT completes an acceptable web-based software-enabled business registration system, transactions should be coursed through such system.

Receiving officers/employees must accept written applications and documents; perform a preliminary assessment only to detect deficiencies limited to those in the Citizen’s Charter; immediately inform applicants of deficiencies; assign a unique identification number; and issue an acknowledgment receipt with required details (seal, responsible officer, unit/designation, date/time).

For simple transactions: not longer than three (3) working days. For complex transactions: not longer than seven (7) working days from receipt of complete application.

If the agency fails to approve/disapprove an original application for a license/clearance/permit/certification/authorization within the prescribed time (and complete requirements and fees were submitted), the application is deemed approved. For renewal applications subject to renewal within the prescribed processing time, the license/certification/authorization is deemed automatically extended.

For applications/requests requiring local Sanggunian approval, the Sanggunian is given 45 working days to act, extendable for another 20 working days. If denied, the Sanggunian must cite reasons for denial and remedial measures.

The officer/employee must send formal written notice of disapproval within the prescribed processing time, stating reasons for disapproval. Denials must be fully explained in writing, identifying the person making the denial and the grounds.

LGUs must use a single unified business application form; establish a Business One Stop Shop (BOSS) within the Negosyo Center with queuing mechanisms and colocation of key offices (treasury, business permits, zoning, BFP, etc.); automate or establish an electronic BOSS within 3 years; issue other local clearances together with the business permit; and validate business permits for one (1) year (renewal options as provided).

Issuance of FSEC and FSIC must not exceed seven (7) working days. For renewal, BFP must provide FSIC or negative/positive list within 3 working days; if not, the business is deemed to have a temporary valid FSIC as basis for automatic renewal. Certification of fire incidents for fire insurance has a maximum of 20 working days, extendable once for another 20.

CBP is a central system to receive applications and capture data involving business-related transactions (including LGU-issued permits/licenses). DICT is primarily responsible for establishing, operating, and maintaining the CBP, with rules on establishment/operation and electronic signatures issued in consultation with NPC, NGAs, and LGUs.

Within one year, DICT establishes and maintains a PBD that provides NGAs and LGUs access to data on registered business entities to verify validity/existence and other information. Documents already submitted to an agency with PBD access should no longer be required by other agencies with access, since information can be cross-checked/retrieved in the PBD.

Examples include: refusal to accept applications with complete requirements without due cause; imposing additional requirements or additional costs not reflected in the Citizen’s Charter; failure to give written notice of disapproval; failure to render services within prescribed processing time without due cause; failure to attend applicants within office premises during working hours/lunch break/after hours; refusal to issue official receipts; and fixing/collusion with fixers.

First offense: administrative liability with six (6) months suspension. Second offense: administrative liability plus criminal liability of dismissal, perpetual disqualification, forfeiture of retirement benefits, and imprisonment of one (1) year to six (6) years with fine from P500,000 to P2,000,000. Fixing/collusion with fixers triggers the stricter penalties described (Section 22(b)).