Legal basis and enforcing authority
- The circular enforces the provisions of Republic Act No. 9485.
- Section 7 makes the circular enforce all provisions of Republic Act No. 9485 and its Implementing Rules and Regulations.
- The circular governs streamlining of the Business Permits and Licensing System (BPLS) in cities and municipalities in line with Republic Act No. 9485.
- Republic Act No. 9485 is identified as the Anti-Red Tape Act of 2007 (ARTA), which sets benchmarks for processing business transactions.
Policy direction and intent
- The government seeks to improve competitiveness by reducing the cost of doing business and addressing policy issues that discourage investors.
- Government instrumentalities and local government units must provide efficient delivery of services by reducing bureaucratic red tape and preventing graft and corruption and providing penalties therefor under Republic Act No. 9485.
- The circular aims to implement ARTA benchmarks by applying them to BPLS nationwide.
- DILG and DTI coordinate nationwide streamlining of BPLS through capacity building and coordination with other agencies involved in BPLS operations.
Core definitions for BPLS
- “Action” is the written acknowledgement of receipt, approval, or disapproval by a government agency on an application or request.
- “Business One-Stop-Shop (BOSS)” is a single common site or location designated for all concerned agencies to receive and process applications for business registration through a streamlined system.
- “Business Permit” is a document secured from the city or municipal business permits and licensing office for the business to legally operate locally.
- “Business Registration” is a set of regulatory requirements for setting up a business entity, including documentation preparation, notarization and/or verification, submission to national and local government authorities, approval of the application, and receipt of certificates, licenses, permits, and similar authorizations confirming eligibility to operate.
- “Frontline Service” is the transaction between clients and government offices for privileges, rights, permits, rewards, licenses, concessions, or modifications, renewals, or extensions of enumerated applications/requests acted upon in the ordinary course of business.
- “Joint Inspection Team (JIT)” is a composite team whose members come from various LGU agencies authorized by an Executive Order or Ordinance to conduct joint inspections of business enterprises instead of individual inspections.
- “Priority LGUs” are cities and municipalities included in the government program for nationwide BPLS streamlining and monitored while being provided assistance, including capacity building.
- “Signatories” are the final approving authority or authorities whose signatures are affixed to a business permit or mayor’s permit to make it legal and binding.
- “Steps” are the actions undertaken by applicants and/or government agencies as part of applying for and/or processing business permits and licenses.
- “Processing Time” is the time spent by an applicant from receipt of an application until receipt of the business permit by the LGU, consisting of transaction time, waiting time, and travel time within the LGU-provided site.
- “Unified Form” is a single common document issued by an LGU to a business applicant containing the information and approvals needed to complete registration and facilitating information exchange among LGUs and national government agencies.
Mandatory BPLS reform standards
- All cities and municipalities must follow BPLS reform standards in processing business permits and licenses.
- Unified Form: Cities and municipalities must use a single unified form for new applications for business permits and business renewals (Annex 1).
- The unified form consolidates information needed by various local and national agencies and reduces steps and application time.
- Standard Steps: Applicants for business registration must follow five (5) steps for new business permits and renewals:
- Securing an application form from the city or municipality.
- Filing/submission of the accomplished application form with attached documentary requirements.
- One-time assessment of taxes, fees, and charges.
- One-time payment of taxes, fees, and charges.
- Securing the Mayor’s Permit upon submission of Official Receipt as proof of payment of taxes, fees, and charges imposed by the LGU.
- Annexes 2 and 3 illustrate the standard steps for securing the Mayor’s Permit for new applications and renewals.
- Inspection rules for compliance: Inspections usually undertaken during the construction stage for zoning, environment ordinances, building and fire safety, health and sanitation regulations must not be conducted again as part of business registration requirements; compliance inspections must be undertaken within the year after issuance of the business permit.
- Joint inspection teams: Cities and municipalities must organize JITs composed of:
- the Business Permit and Licensing Officer,
- the City/Municipal Engineer,
- the City/Municipal Health Officer or representative,
- the City/Municipal Planning Officer or designated Zoning Officer,
- the City/Municipal Environment and Natural Resources Officer or representative,
- the City/Municipal Treasurer, and
- the City/Municipal Fire Marshal,
to conduct joint inspections of business enterprises as required by law.
- Fire code fee streamlining: The Bureau of Fire Protection must enter into a Memorandum of Agreement with cities and municipalities, as necessary, to implement streamlined procedures for assessing and paying fire code fees to enable LGUs to implement the above steps.
Processing timelines and signatory limits
- New permits (complex transaction): Processing of new business permits classified as complex transactions must not take more than 10 days for release of the permit.
- LGUs must strive for 5 days or less for new business permit processing to match the average processing days in streamlined BPLS LGUs.
- Renewals (simple transaction): Processing of business renewals classified as simple transactions must not take more than 5 days for release of the permit.
- LGUs must strive for one day or less for renewal processing to match the average processing time in streamlined BPLS LGUs.
- Signatories: Cities and municipalities must follow the prescribed number of signatories required in processing new business applications and business renewals to five days following ARTA.
- LGUs must require only two (2) signatories, namely, the Mayor and the Treasurer or the BPLO.
- To avoid delay, alternative signatories (including the Municipal or City Administrator or the BPLO) must be properly deputized by the Mayor.
Implementation system and priority LGUs
- Cities and municipalities must implement the BPLS standards under the reform standards section.
- Government identifies priority cities and municipalities whose implementation will be closely monitored because they:
- constitute the critical mass of establishments, and
- have good potential for generating investments in four priority sectors: business process outsourcing, tourism, mining, and agribusiness.
- Annex 4 contains the list of priority LGUs.
- Training workshops and coaching sessions for priority LGUs must be organized for October–December 2010.
- An operations manual must be issued to guide LGUs in re-engineering their BPLS to conform to the BPLS standards.
- Non-priority LGUs must undertake BPLS streamlining by enrolling in training programs provided by the Local Government Academy (LGA) and other private sector providers.
Roles of DILG and DTI and LGU duties
- LGUs, represented by the Local Chief Executive/Mayor, must coordinate with DILG and DTI for implementation of BPLS standards.
- LGUs must:
- organize Technical Working Groups (TWGs) to oversee streamlined BPLS implementation,
- ensure LGU representatives participate in BPLS reform activities initiated by DILG and DTI at the LGU level, and
- prepare and implement the requisite orders, ordinances, and directives relative to BPLS reform.
- LGUs must provide enabling environment for BPLS reforms, including legal framework, budget, logistical support, manpower, creation of one-stop-shops, organization and activities of JITs, and conduct of information, education, and communication campaigns (IEC).
- DILG with DTI must coordinate nationwide upscaling of BPLS reforms with other agencies and among regional/local operations officers and bureaus/attached agencies.
- LGA under DILG must act as the overall coordinator for the nationwide BPLS streamlining program for LGUs.
- DILG regional offices must organize a regional BPLS Coordination Committee with regional DTI offices to oversee local implementation, with membership from concerned government agencies, local chambers, civil society organizations, and other stakeholders.
- DILG with DTI must organize and co-chair a BPLS Oversight Committee to provide overall policy direction for nationwide upscaling.
- DILG, as Co-Convener of the Working Group on Decentralization and Local Government under the Philippine Development Forum (PDF), must promote the BPLS project and enjoin the development community to support it.
- DTI with DILG must provide policy direction for nationwide implementation and ensure BPLS streamlining requirements are among DTI regional and provincial offices, and must set up a monitoring system tracking LGU progress.
- DTI must co-chair the BPLS Oversight Committee to provide overall policy direction.
- DTI, with DILG, must identify priority LGUs included in the BPLS program and annually evaluate the list based on sector priorities and other necessary criteria.
- Consistent with public-private sector partnership (PPP) framework, DTI must enjoin private sector participation and support in BPLS streamlining at national and local levels.
- DTI, as Co-Convener of the Working Group on Growth and Investment Climate under PDF, must promote the BPLS project and take responsibility in enjoining the development community to support it.
Separability, repealing, and effectivity
- Separability: If any clause, sentence, or provision is invalid or unconstitutional, the remaining parts must not be affected.
- Repealing: All orders, rules, and regulations inconsistent or contrary to the circular must be repealed or modified accordingly.
- Effectivity: The circular takes effect immediately.