Permits, licensing process for businesses cut to 2 days

The processing time for new-business registrations was reduced to 2 days after a new Joint Memorandum Circular (JMC) was signed by concerned government agencies on Tuesday.

The Department of Trade and Industry (DTI),  Department of Interior and Local Government (DILG), Department of Information and Communication Technology (DICT), and the National Competitiveness Council (NCC) signed the JMC requiring all cities and municipalities in the country to streamline business permits and licensing system (BPLS) using revised standards.

The streamlined licensing system will cut processing time to 2 days for new business registrations and 1 day for renewals. Also, the number of steps for registration was set at a maximum of 3 steps for both new applicants and renewals.

All LGUs were also directed to use a unified form, both in print and electronic form, with only 2 signatories - the mayor and treasurer/business permits and licensing head, with alternate approving signatories - required for business permits.

GOOD NEWS! Mas PINASIMPLE at PINABILIS na patakaran sa pag-proseso ng business permits at licensing. #iamDTIph pic.twitter.com/PFg2SCx316

— DTI Philippines (@DtiPhilippines) August 30, 2016

"We hope that LGUs will welcome and appreciate this move by the Duterte administration to encourage business across the country as domestic and foreign investment decisions are made based on the extent of ease of doing business down to local levels," Peter Perfecto, Makati Business Club executive director, told GMA News Online.

Aside from the streamlining, the circular also recommended that LGUs automate and computerize business transactions to hasten frontline services.

In a statement, the NCC said that the automation of government transactions will bring substantial improvement in terms of speed and efficiency of services rendered, and will make it possible for LGUs to achieve one-day business registrations.

"Also, it will significantly eliminate corruption in the bureaucracy, as it will reduce personal or face-to-face interaction," it added.

Prior to the issuance of the new JMC, a similar instruction was issued by DTI and DILG in 2010 in which the processing time set at 5-10 days, the maximum number of procedures at 5, a unified application form, and only 2 signatories.

According to DILG-Local Government Academy, a total of 1,419 or 93 percent of 1,516 LGUs, excluding the Autonomous Region in Muslim Mindanao, were reported to have completed the 2010 streamlining program as of June.

The Philippines currently ranks 103rd in the Ease of Doing Business Report published by World Bank-International Finance Corp.

The country performed poorly in the “Starting a Business” indicator, where it slipped eight places to 165th places from 157th in the previous year.

"In doing business, we compete with our ASEAN (Association of Southeast Asian Nations) neighbors that have largely simplified doing business in their countries. We should aim to do no less," Perfecto said. — DVM, GMA News