Ease of Doing Business and Anti-Red Tape Act

Legal basis, amendment target, and predecessor frameworks

Republic Act No. 11032 amends Republic Act No. 9485 (the “Anti-Red Tape Act of 2007”) for purposes of promoting ease of doing business and efficient government service delivery.
The Act amends and renumbers provisions of Republic Act No. 9485, including insertion of new sections and deletion/renumbering of existing sections.
The Act amends Republic Act No. 10644 (the “Go Negosyo Act”) by mandating the Business One Stop Shop (BOSS) within the Negosyo Center setup.
The Act amends Republic Act No. 7160 (the “Local Government Code of 1991”) specifically Article IV, Section 152(c), as to barangay clearances and permits collected at the city/municipality level with remittance of shares to barangays.
The Act amends Republic Act No. 9514 (the “Revised Fire Code of the Philippines of 2008”) provisions on Fire Safety Evaluation Clearance (FSEC), Fire Safety Inspection Certificate (FSIC), and related fire incident certification for insurance.

Policy and declared government commitments

Section 2 declares State policy to promote integrity, accountability, proper management of public affairs and public property, and to establish effective practices for efficient turnaround of government service delivery and prevention of graft and corruption.
Section 2 requires the State to maintain honesty and responsibility among public officials and employees and to adopt transparency measures in each agency’s dealings with the public.
Section 2 mandates simplified requirements and procedures to reduce red tape and expedite business and nonbusiness related transactions in government.

Coverage, scope, and statutory definitions

Section 3 applies the Act to all government offices and agencies, including LGUs, government-owned or -controlled corporations, and other government instrumentalities, whether located in the Philippines or abroad, that provide services for business and nonbusiness related transactions.
Section 4(a) defines Action as the written approval or disapproval by a government office or agency on an application or request.
Section 4(b) defines Business One Stop Shop (BOSS) as a single common site or location, or a single online website/portal designated for an LGU’s Business Permit and Licensing System (BPLS) to receive and process applications, receive payments, and issue licenses, clearances, permits, or authorizations.
Section 4(c) defines Business-related transactions as regulatory requirements a business entity must comply with to engage, operate, or continue operating a business, including documentary submission, approvals/disposition, and receipt of certificates, permits, licenses (primary and secondary), clearances, and similar authorizations conferring eligibility to operate or continue to operate.
Section 4(d) defines Complex transactions as applications/requests requiring evaluation in resolving complicated issues by an officer or employee of the concerned office.
Section 4(e) defines Fixer as any individual, whether or not officially involved, who has access to people working in a government office and facilitates speedy completion for pecuniary gain or any other advantage/consideration, and whether or not in collusion.
Section 4(f) defines Government service as the process/transaction between applicants and government offices/agencies involving privileges, rights, rewards, licenses, clearances, permits, authorizations, and modifications/renewals/extensions acted upon in the ordinary course of business.
Section 4(g) defines Highly technical application as an application requiring technical knowledge, specialized skills, and/or training in processing and/or evaluation.
Section 4(h) defines Nonbusiness transactions as all government transactions not falling under Section 4(c).
Section 4(i) defines Officer or employee as a person employed in a government office/agency required to perform specific duties related to processing an application/request.
Section 4(j) defines Processing time as the time consumed by an LGU or NGA from receipt of an application/request with complete requirements/documents and payment of fees to issuance of the approving/disapproving certification or similar documents.
Section 4(k) defines Red tape as any regulation/rule/administrative procedure or system ineffective or detrimental to intended objectives producing slow, suboptimal, undesirable social outcomes.
Section 4(l) defines Regulation as any legal instrument implementing government policy intervention, including licensing, imposing information obligations, compliance to standards, and payment of any form of fee/levy/charge or statutory/regulatory requirement necessary to carry out activity.
Section 4(m) defines Simple transactions as applications/requests requiring only ministerial actions or presenting inconsequential issues for resolution by an officer/employee.

Administrative reforms and service delivery standards

Section 5 mandates all offices/agencies providing government services to 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.
Section 5 creates a coordination function for the Anti-Red Tape Authority to review existing laws, executive issuances, and local ordinances and recommend repeal of outdated/redundant regulations that add undue regulatory burden.
Section 5 requires regulatory impact assessment for proposed regulations under Section 8 to ensure the regulation does not add undue regulatory burden and cost, and allows pilot implementation when necessary.
Section 5 directs, upon effectivity, LGUs and NGAs to initiate review of existing policies and operations and commence reengineering while awaiting approval of the Act’s implementing rules and regulations (IRR).
Section 6 requires each covered agency to set up a Citizen’s Charter containing updated service standards, presented on information billboards at office entrances or conspicuous places, on websites, and in published materials in English, Filipino, or local dialect.
Section 6 requires the Citizen’s Charter to include: (a) a comprehensive and uniform checklist of requirements for each type of application/request; (b) the procedure to obtain the service; (c) the person/official responsible for each step; (d) the maximum time to conclude the process; (e) documents the applicant must present when necessary; (f) fees when necessary; and (g) a procedure for filing complaints.
Section 7 imposes a Zero-Contract Policy: except during preliminary assessment and evaluation of sufficiency of submitted requirements, no government officer/employee shall have contact with applicants/requesting parties unless strictly necessary; once a DICT web-based software-enabled business registration system acceptable to the public is completed as mandated under Section 26, all transactions must be coursed through such system; all agencies and LGUs must adopt a zero-contact policy.
Section 8 makes the head of the office or agency primarily responsible for implementation and holding accountability to the public for fast, efficient, convenient, and reliable service, and deems transactions/processes made with permission/clearance from the highest authority having jurisdiction.
Section 9(a) mandates acceptance of written applications/requests/documents, requires preliminary assessment of submitted requirements, and requires immediate notification of deficiencies limited to those enumerated in the Citizen’s Charter.
Section 9(a) requires assignment of a unique identification number for each application/request and issuance of an acknowledgement receipt containing the agency seal, responsible officer/employee name and designation/unit, and the date/time of receipt.
Section 9(b) provides mandatory processing times measured from receipt of the request and/or complete application:
- For simple transactions, processing must not be longer than three (3) working days.
- For complex transactions, processing must not be longer than seven (7) working days.
- For activities posing danger to public health, public safety, public morals, public policy, and for highly technical applications, processing must not be longer than twenty (20) working days or as determined by the agency, whichever is shorter.
- The maximum processing time may be extended only once, for the same number of days indicated in the Citizen’s Charter; the office must notify the applicant in writing of reasons and the final release date prior to processing-time lapse, and the written notification must be signed by the applicant as proof of notice.
- If local legislative approval is required (Sangguniang Bayan, Sangguniang Panlungsod, or Sangguniang Panlalawigan), the concerned Sangguniang must act within forty-five (45) working days, extendable for another twenty (20) working days; if denied, the Sangguniang must cite the reason and remedial measures.
- Where delay is due to force majeure or natural/man-made disasters resulting in document/system failure, processing times are suspended and appropriate adjustments are made.
Section 9(b) prohibits returning applications/requests without appropriate action; disapprovals must be formally noticed within prescribed processing time with reasons, and a finding by a competent authority of a violation of any other law by the applicant/requesting party constitutes valid ground for disapproval (without prejudice to other grounds under the Act or other laws).
Section 9(c) requires that any denial of application/request for access to government service be fully explained in writing with the name of the person making the denial and the grounds; denial is deemed made with permission/clearance from the highest authority having jurisdiction.
Section 9(d) limits signatories in any document to a maximum of three (3) signatures representing officers directly supervising the office/agency; alternate signatories must be designated if an authorized signatory is on official business or leave; electronic signatures or pre-signed documents with adequate security and control may be used.
Section 9(e) requires agencies to develop electronic versions of licenses/clearances/permits/certifications/authorizations with the same level of authority as hard copies when applicable, allowing printing by applicants in their offices.
Section 9(f) requires adoption of working schedules so applicants within premises before end of official working hours are served even during lunch break and after regular working hours.
Section 9(g) requires an official identification card for employees transacting with the public, visibly worn during office hours.
Section 9(h) mandates establishment of a public assistance/complaints desk in each office/agency.

Automatic approval and automatic renewal

Section 10 provides that if a government office fails to approve or disapprove an original application/request for a license/clearance/permit/certification/authorization within prescribed processing time, the application/request is deemed approved, provided all required documents are submitted and all required fees/charges are paid.
Section 10 states that the acknowledgement receipt together with the official receipt for payment serves as enough proof and has the same force and effect as the license/clearance/permit/certification/authorization under the automatic approval mechanism.
Section 10 provides that if a government office fails to act on renewal applications/requests for a license/clearance/permit/certification/authorization within prescribed processing time, the authorization is automatically extended.
Section 10 requires the Authority, in coordination with CSC, DTI, SEC, DILG, and other agencies forming the IRR, to provide a listing of simple, complex, highly technical applications and activities posing danger to public health/safety/morals/policy.

Streamlined business licensing and BOSS operations

Section 11 mandates LGUs to implement revised guidelines for issuance of local business licenses, clearances, permits, certifications, or authorizations:
- Single unified business application form for new applications and renewals consolidating applicant information and data from various LGU departments, including local taxes and clearances, building clearance, sanitary permit, zoning clearance, other LGU requirements, and fire clearance from the Bureau of Fire Protection (BFP); unified form must be available online using technology-neutral platforms and must always be available in hard copy in designated areas.
- One-stop business facilitation service (BOSS) within Negosyo Center for manual/electronic submissions and issuance-related processing of applications for licenses/clearances/permits/certifications/authorizations; BOSS must have a queuing mechanism to manage application flow among receiving/processing LGU departments.
- Colocation of offices for treasury, business permits and licensing, zoning, including the BPP, and other relevant offices/departments for starting a business and dealing with construction permits.
- Automated business permitting/licensing by cities/municipalities within three (3) years from effectivity; LGUs with electronic BOSS must develop electronic versions of business documents with the same authority level.
- DICT must make available to LGUs software for computerization of the business permit and licensing system, while DICT/DTI/DILG provide technical assistance in planning and implementation.
- Other local clearances (including sanitary permits, environmental and agricultural clearances) must be issued together with the business permit to lessen transaction requirements.
- Business permits are valid for one (1) year; renewals may be optioned within the first month of the year or on the anniversary date of issuance.
- Barangay clearances and permits related to doing business must be applied, issued, and collected at the city/municipality in accordance with prescribed processing time, with shares remitted to barangays.

Fire safety clearance time limits and prohibitions

Section 12 requires streamlined issuance standards for FSEC, FSIC, and certification of fire incidents for fire insurance:
- Issuance of FSEC and FSIC must not exceed seven (7) working days.
- For new business permit applications, an FSIC already issued during the occupancy permit stage is sufficient basis for issuance of the FSIC requirement for the business permit.
- For renewals, BFP must present the FSIC to the city/municipality within three (3) working days from application, either by providing the FSIC copy or via negative/positive list.
- If renovations/modifications/alterations occur, the business entity must inform the BFP and submit documentary requirements thirty (30) working days before business permit expiration.
- If BFP fails to furnish FSIC or inform the city/municipality through negative/positive list within three (3) working days, the business entity is deemed to have a temporary valid FSIC, serving as basis for automatic renewal of the business permit.
- Certification of fire incidents for insurance purposes must not exceed twenty (20) working days and may be extended only once for another twenty (20) working days.
- BFP officials/employees may not sell, offer to sell, or recommend specific brands of fire extinguishers and other fire safety equipment to applicants/requesting parties/business entities; any violation is punishable by imprisonment of one (1) year to six (6) years and a penalty of not less than PHP 500,000.00 and not more than PHP 2,000,000.00.
- BFP must colocate with BOSS or in an appropriate designated area within city/municipal premises to assess and collect fire safety inspection fees.
- BFP may enter into agreements allowing cities/municipalities to be deputized as assessors and/or collecting agents for fire safety inspection fees.
- BFP must develop and adopt an online/electronic mechanism for assessing fees, collecting/accepting payments, and sharing/exchanging relevant data on business permit processing.

Central business portal and national business database

Section 13 assigns DICT primary responsibility to establish, operate, and maintain a Central Business Portal (CBP) (or similar technology) to eliminate red tape, avert graft/corruption, sustain ease of doing business, and promote transparency.
Section 13 provides that the CBP serves as a central system to receive applications and capture application data involving business-related transactions, including primary and secondary licenses and LGU-issued business clearances/permits/certifications/authorizations.
Section 13 allows the CBP to provide links to online registration/application systems established by NGAs.
Section 13 requires DICT, after consultation with the National Privacy Commission (NPC), NGAs, and LGUs, to issue rules and guidelines on (a) CBP establishment/operation/maintenance and (b) use of electronic signatures.
Section 13 mandates DICT to implement an Interconnectivity Infrastructure Development Program for interconnectivity between/among NGAs and LGUs.
Section 13 requires DICT, in coordination with other concerned NGAs and LGUs, to conduct information dissemination campaigns for public awareness and effective utilization of the CBP.
Section 14 requires DICT, within one (1) year from effectivity, to establish, manage, and maintain a Philippine Business Databank (PBD) providing NGAs/LGUs access to data and information for verifying validity/existence and other relevant business entity information.
Section 14 requires concerned NGAs and LGUs either to link their databases with the system or periodically submit updates relevant to registered information.
Section 14 provides that documents already submitted by an applicant to an agency with PBD access must not be required again by other NGAs/LGUs with the same access, and that information must be crosschecked and retrieved in the PBD.
Section 14 bars city/municipal business process and licensing offices from requiring the same documents already provided to local government departments for other business-related licenses/clearances/permits/certifications/authorizations, including tax clearance, occupancy permit, and barangay clearance.

Interconnectivity infrastructure and strict service periods

Section 15 requires development of a fast and reliable interconnectivity infrastructure to expedite processing of licenses, clearances, permits, certifications, or authorizations.
Section 15 imposes processing and approval time limits for telecommunications/broadcast towers/facilities/equipment/service:
- Seven (7) working days for those issued by the barangay.
- Seven (7) working days for those issued by LGUs.
- Seven (7) working days for those issued by NGAs.
Section 15 provides that if the granting authority fails to approve or disapprove within prescribed processing time, the application is deemed approved, with a proviso that when the appropriate local legislative body is necessary, a non-extendible period of twenty (20) working days is prescribed.
Section 15 requires homeowners associations to act on applications referred to members within ten (10) working days pursuant to Section 10(k) of Republic Act No. 9901.
Section 15 provides that homeowners associations are granted a nonextendible period of thirty (30) working days to give consent or disapproval.
Section 15 requires, in case of disapproval, that the granting authority notify the applicant within the prescribed period of the reasons for disapproval and the remedial measures.
Section 15 requires the Authority, within three (3) months upon approval of the IRR of this section, in coordination with DICT, to review and recommend repeal of outdated/redundant/unnecessary licenses/clearances/permits/certifications/authorizations required by NGAs, LGUs, and private entities.

Accountability, complaint mechanisms, and oversight bodies

Section 16 mandates the Civil Service Commission (CSC) to maintain an Anti-Red Tape Unit in its central and all regional offices, utilize Report Card Survey findings toward integrated human resource systems and programs, and receive/review/hear/decide complaints on erring officials/employees and noncompliance with the Act.
Section 17 creates the Anti-Red Tape Authority attached to the Office of the President, and requires its organization within six (6) months after effectivity.
Section 17 assigns the Authority powers and functions including: implementing/overseeing national anti-red tape policy; implementing reform initiatives to improve Philippines ranking; monitoring/evaluating compliance and issuing notice of warning; investigating motu proprio or upon complaint (referral to appropriate agency or filing cases); assisting complainants in filing with CSC/Ombudsman/appropriate courts; recommending regulatory management improvements; reviewing proposed major regulations using regulatory impact assessments subject to proportionality rules in IRR; conducting regulatory management training; preparing regulatory management manuals; providing technical assistance/advisory opinions; ensuring dissemination and public access via the Philippine Business Regulations Information System; enlisting assistance of CSC, DTI, and other agencies; and performing necessary acts to attain objectives.
Section 18 provides the Authority is headed by a Director General appointed by the President upon effectivity, coterminous with the President’s tenure, with benefits equivalent to Secretary rank.
Section 18 requires three (3) Deputy Directors General for legal, operations, and administration/finance, all career officials, with benefits equivalent to Undersecretary rank, appointed by the President.
Section 18 allows, where no regional/field offices exist, deputization of DTI regional personnel to perform Authority powers/functions.
Section 19 creates the Ease of Doing Business and Anti-Red Tape Advisory Council, chaired by the Secretary of the DTI and with the Authority’s Director General as Vice-Chairperson, with DICT, DILG, and DOF Secretaries as members, plus two (2) private sector representatives.
Section 19 provides private sector representatives are appointed by the President for a term of three (3) years and may be reappointed only once, from nominees submitted by reputable business groups/associations.
Section 19 empowers the Council to plan/draft and propose national policy; recommend regulatory management improvements; design systems enhancing service delivery and ease of doing business; authorize working groups/task forces; propose legislative amendments/modifications; periodically review competitiveness performance/issues; provide technical assistance/advisory opinions; recommend transparency/efficiency measures; and perform other functions directed by the President as necessary for successful implementation.
Section 19 provides the Authority serves as Secretariat to the Council, headed by its Deputy Director General for operations.
Section 19 renames and reorganizes the National Competitiveness Council (NCC) created under Executive Order No. 44, Series of 2011 as the Council, and repeals specified presidential issuances: Executive Order No. 571, Executive Order No. 4-1, and Administrative Order No. 38 accordingly.

Report card surveys, citizen feedback, and anti-fixer recognition

Section 20 mandates Report Card Survey for offices/agencies providing government services, initiated by the Authority in coordination with CSC and the Philippine Statistics Authority (PSA).
Section 20 requires the survey to obtain feedback on adherence to Citizen’s Charter and the Act, and on agency performance.
Section 20 requires the survey to obtain information/estimates of hidden costs to access services, including bribes and payments to fixers.
Section 20 provides the results serve as the basis for awards/recognition/incentives for excellent service delivery across agencies.
Section 20 requires establishment of a feedback mechanism in all covered agencies and incorporation of results in their annual report.

Violations, penalties, and administrative/criminal liabilities

Section 21 makes persons liable who perform or cause performance of acts including: refusal to accept applications/requests with complete requirements without due cause; imposition of additional requirements beyond the Citizen’s Charter; imposition of 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/refusal to attend applicants within premises prior to end of working hours and during lunch break; failure/refusal to issue official receipts; and fixing/collusion with fixers in consideration of economic or other gain/advantage.
Section 22(a) provides that for a first offense, the penalty is administrative liability with six (6) months suspension; for fixing/collusion with fixers under Section 21(h), the Act applies the penalty under Section 22(b) instead.
Section 22(b) provides that for a second offense, the penalty is administrative liability and criminal liability of dismissal from the service, perpetual disqualification from holding public office, forfeiture of retirement benefits, and imprisonment of one (1) year to six (6) years with a fine of not less than PHP 500,000.00 but not more than PHP 2,000,000.00.
Section 22(b) provides that criminal liability is incurred through commission of bribery or extortion, or when the violation was done deliberately and maliciously to solicit favor in cash or kind; in such cases, the Revised Penal Code and other special laws apply.
Section 23 provides that a finding of administrative liability under the Act does not bar filing of criminal, civil, or other related charges under existing laws arising from the same act or omission.
Section 24 provides that administrative jurisdiction over violations is vested in the CSC or the Office of the Ombudsman, as determined by appropriate laws and issuances.

Witness discharge immunity and evidentiary effect

Section 25 provides that a public official/employee or any person charged who voluntarily gives information and/or testifies is exempt from prosecution in the cases where such information and testimony are given.
Section 25 allows discharge to be granted and directed by the investigating body or court upon application/petition of the respondent/accused-informant and before termination of the investigation.
Section 25 requires the following conditions for the discharge:
- Absolute necessity for the testimony of the respondent/accused-informant.
- No other direct evidence available except the testimony.
- Testimony can be substantially corroborated on material points.
- The respondent/accused-informant has not been previously convicted of a crime involving moral turpitude.
- The respondent/accused-informant does not appear to be the most guilty.
Section 25 provides that evidence supporting the discharge automatically forms part of investigation records.
Section 25 provides that if the investigating body/court denies the motion/request for discharge as witness, the respondent’s sworn statement is inadmissible as evidence.

Transition, modernization deadlines, and implementation rules

Section 26 requires DICT, in coordination with concerned agencies, within three (3) years after effectivity, to automate business-related transactions by