Title
Guidelines for Streamlining Business Permits
Law
Dti Joint Memorandum Circular No. 01, S. 2010
Decision Date
Aug 6, 2010
The Joint DILG-DTI Memorandum Circular No. 01-10 establishes guidelines for streamlining business permits and licenses in the Philippines, aiming to reduce bureaucratic red tape and improve the country's growth potential by providing efficient services and addressing policy issues that discourage investors.

Questions (DTI JOINT MEMORANDUM CIRCULAR NO. 01, S. 2010)

The Circular enforces the provisions of Republic Act No. 9485 (Anti-Red Tape Act of 2007) and its Implementing Rules and Regulations, using ARTA as the legal basis for re-engineering business permit and licensing systems (BPLS) at the local level.

It (1) disseminates service standards in processing business permits and licenses; (2) provides guidelines for streamlining BPLS in LGUs consistent with ARTA standards; and (3) clarifies the roles and responsibilities of DILG, DTI, and LGUs.

A Unified Form is a single common document issued by an LGU that contains information and approvals needed to complete business registration, facilitating information exchange among LGUs and national agencies. It is required to reduce steps and processing time.

(1) Secure an application form; (2) file/submit the accomplished form with documentary requirements; (3) one-time assessment of taxes/fees/charges; (4) one-time payment; (5) secure the Mayor’s Permit upon submission of the Official Receipt as proof of payment.

Inspections usually undertaken for compliance during the construction stage should not be conducted again as part of business registration requirements. Instead, compliance checks are to be undertaken within the year after issuance of the business permit.

A JIT is a composite team of authorized LGU agencies (as identified in the Circular) created via an Executive Order or Ordinance to conduct joint inspections of business enterprises, replacing individual/isolated inspections.

It includes the Business Permit and Licensing Officer (BPLO), City/Municipal Engineer, City/Municipal Health Officer (or representative), City/Municipal Planning Officer or designated Zoning Officer, City/Municipal Environment and Natural Resources Officer (or representative), City/Municipal Treasurer, and City/Municipal Fire Marshal.

Processing of new business permits must not take more than 10 days for release of the permit, though LGUs are enjoined to strive for 5 days or less.

Processing of business renewals must not take more than 5 days for release of the permit, though LGUs are enjoined to strive for 1 day or less.

LGUs must follow the prescribed number of signatories required up to five days following ARTA, but are enjoined to require only two (2) signatories: the Mayor and the Treasurer or the BPLO; alternative deputized signatories may be used to avoid delays.

The BFP must enter into a Memorandum of Agreement with cities and municipalities, as necessary, to implement streamlined procedures for assessing and paying fire code fees so LGUs can implement the standardized steps.

It refers to the time spent by an applicant from submission/application to receipt of the business permit, consisting of transaction time, waiting time, and travel time within the LGU’s provided site for business registration.

BOSS is an arrangement where a single common site/location is designated for all concerned agencies in the BPLS system to receive and process applications for business registration through a streamlined system.

DILG and DTI coordinate and upscale the reforms nationwide. The Local Government Academy (LGA) under DILG acts as overall coordinator for the nationwide streamlining program for LGUs.

It describes (1) a regional BPLS Coordination Committee led/organized by DILG regional offices with DTI regional offices; and (2) a BPLS Oversight Committee co-chaired by DILG and DTI for overall policy direction in the nationwide upscaling.

They must provide enabling environment including legal framework, budget and logistical support, manpower, establishment of one-stop-shops, organization/activities of JITs, and conduct of information/education/communication (IEC) campaigns.

Priority LGUs are cities and municipalities included in the government program for nationwide streamlining of BPLS, monitored closely and assisted with capacity building among others; they are identified based on critical mass and investment potential in priority sectors.

The Circular states that it enforces all provisions of RA 9485 and its IRR. This means LGUs are bound to implement the ARTA-related service standards in business permits and licenses through BPLS streamlining.

It states that if any clause/sentence/provision is invalid or unconstitutional, the remaining parts are not affected.

It takes effect immediately.


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