Title
Benefits and Programs for PH Startup Ecosystem
Law
Republic Act No. 11337
Decision Date
Apr 26, 2019
The Innovative Startup Act fosters inclusive growth in the Philippines by providing incentives and removing constraints to encourage the establishment and operation of innovative new businesses, supported by key government agencies.

Declaration of Policy

  • Foster inclusive growth via an innovative economy.
  • Streamline government and non-government initiatives domestically and internationally.
  • Create jobs, enhance production and innovation.
  • Encourage establishment and operation of innovative businesses.
  • Strengthen ecosystem including government and non-government institutions.

Definitions

  • Host agency: Government or academic institutions providing benefits to startups/startup enablers.
  • Innovation: Creation and dissemination of new or improved products, processes, or services.
  • Innovative product: New or significantly improved goods or services.
  • Innovative process: New or significantly improved production or delivery methods.
  • Innovative business model: New organizational methods in business practices or relations.
  • Research and development: Systematic study towards new knowledge or application.
  • Startup: Person or entity developing innovative products, processes, or business models.
  • Startup enabler: Entity registered providing critical support to startups.

Philippine Startup Development Program

  • Established to implement programs, benefits, and incentives for startups and enablers.
  • Led by DOST, DICT, and DTI.
  • Includes partnership with NGOs.
  • Agencies set key metrics, promulgate registration and assessment rules.

Program Objectives

  • Support R&D for startups and enablers.
  • Promote access to development programs and international exchange.
  • Enhance participation in local/international startup events.
  • Facilitate collaboration between stakeholders.
  • Develop policies to remove restrictions and promote ease of doing business.

General Roles and Responsibilities of Host Agencies

  • Formulate policies and guidelines.
  • Assess benefits and incentives.
  • Promote access to benefits and incentives.
  • Ensure prompt provision of benefits.

Program Benefits and Incentives - General

  • Subsidies for registration, permits, business operation costs.
  • Endorsement for expedited government processing.
  • Subsidies for use of facilities, office space, and equipment.
  • Grants-in-aid for R&D, training, and expansion.
  • DTI to coordinate with agencies to facilitate processes.

Benefits for Participation in Startup Events

  • Endorsement for expedited travel documents.
  • Subsidies for travel fees, baggage, airfare, and per diem.

Philippine Startup Ecozones

  • Creation and promotion of Startup Ecozones by PEZA with other agencies.
  • Benefits in line with the Special Economic Zones Act.
  • IPAs authorized to extend benefits subject to their guidelines.
  • Assistance for registration and compliance provided.

Startup Investment Development Plan

  • DTI coordinates with DICT, DOST, BOI for strategies to promote startup investment.
  • Facilitation of benefits to investors.
  • Training for personnel assisting startups and enablers for benefits access.

Startup Grant Fund

  • Established under DOST, DICT, and DTI.
  • Provides grants-in-aid for selected startups and enablers.
  • Annual budget appropriations required.

Startup Venture Fund

  • Created under DTI and administered with the National Development Company.
  • Matches investments for startups.
  • Rules and budget appropriations required.

Startup Visas

  • DFA to create visas for foreign startup owners, employees, and investors.
  • Requires host agency endorsement.
  • Initial 5-year validity, renewable for 3 years.
  • Interim multiple-entry visas valid 6 months to 1 year issued for free.
  • Exemption from Alien Employment Permit.
  • Implementation rules by DFA, BI, DOLE.
  • Visa applications processed at Philippine Embassies/Consulates.

APEC Business Travel Card

  • Eligible Filipino executives from qualified startups may apply.
  • Rules to be promulgated by DFA.

Startup Philippines Website

  • DICT to develop and maintain as primary information source.
  • Features: startup database, online application and registration, statistical data.
  • Integration of existing government startup program websites.
  • Facilitation of online applications for government-issued documents.

Education Programs

  • DepEd, CHED, TESDA to integrate entrepreneurship and innovation in curricula.
  • Incentives to academic institutions funding research.

Creation of Positions

  • DBM to assess and create necessary positions in host agencies for program implementation.

Appropriations

  • Initial funding from DOST, DICT, DTI budgets.
  • Subsequent funding included in annual General Appropriations Act.

Implementing Rules and Regulations

  • To be promulgated by DOST, DICT, and DTI with other agencies within 60 days from effectivity.

Separability Clause

  • Unconstitutional provisions do not affect other parts of the Act.

Repealing Clause

  • Laws and regulations contrary to this Act are repealed or amended accordingly.

Effectivity

  • Takes effect 15 days after complete publication in the Official Gazette and a newspaper of general circulation.

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