Ease of Doing Business Act

AGENA MARIE SAN PABLO, CPA

 Governing Law
Republic Act (RA) No. 11032 titled:
“An Act Promoting Ease of Doing Business and Efficient Delivery
of Government Services, Amending for the Purpose Republic Act
No. 9485, Otherwise Known as the Anti-Red Tape Act of 2007,
and for Other Purposes”
 Declaration of Policy
To promote integrity, accountability, proper management
of public affairs and public property as well as to establish
effective practices, aimed at efficient turnaround of the
delivery of government services and the prevention of
graft and corruption in government. (Sec. 2)
 Declaration of Policy
The State shall maintain honesty and responsibility
among its public officials and employees, and shall take
appropriate measures to promote transparency in each
agency with regard to the manner of transacting with the
public, which shall encompass a program for the
adoption of simplified requirements and procedures that
will reduce red tape and expedite business and
nonbusiness related transactions in government. (Sec. 2)
 Declaration of Policy
The provisions of the law shall be construed and interpreted in
light of the policy declared by the law. Any doubt in the
interpretation of the provisions of the law shall be resolved in a
manner consistent with the policy of the State to promote
integrity, accountability, and proper management of public
affairs and property. Doubt will be resolved in a manner that will
establish effective practices, aimed at efficient turnaround of the
delivery of government services and the prevention of graft and
corruption. (Rule 1, Sec. 3, JMC 2019-01)
 Definition of Terms
Business One Stop Shop (BOSS) – a single common site or
location, or a single online website or portal designated for the
Business Permit and Licensing System (BPLS) of an LGU to
receive and process applications, receive payments, and issue
approved licenses, clearances, permits, or authorizations.
 Definition of Terms
Business-related transactions – a set of regulatory requirements
that a business entity must comply with to engage, operate or
continue to operate a business, such as, but not limited to,
collection or preparation of a number of documents, submission
to national and local government authorities, approval of
application submitted, and receipt of a formal certificate or
certificates, permits, licenses which include primary and
secondary, clearances and such similar authorization or
documents which confer eligibility to operate or continue to
operate as a legitimate business.
 Definition of Terms
Complex transactions – applications or requests submitted by
applicants or requesting parties of a government office which
necessitate evaluation in the resolution of complicated issues by
an officer or employee of said government office, such
transactions to be determined by the office concerned.
 Definition of Terms
Fixer – any individual whether or not officially involved in the
operation of a government office or agency who has access to
people working therein, and whether or not in collusion with
them, facilitates speedy completion of transactions for pecuniary
gain or any other advantage or consideration.
 Definition of Terms
Government service – the process or transaction between
applicants or requesting parties and government offices or
agencies involving applications for any privilege, right, reward,
license, clearance, permit or authorization, concession, or for
any modification, renewal or extension of the enumerated
applications or requests which are acted upon in the ordinary
course of business of the agency or office concerned.
 Definition of Terms
Highly technical application – an application which requires the
use of technical knowledge, specialized skills and/or training in
the processing and/or evaluation thereof.

Officer or employee – a person employed in a government office

or agency required to perform specific duties and responsibilities
related to the application or request submitted by an applicant
or requesting party for processing.
 Definition of Terms
Processing time – the time consumed by an LGU or national
government agency (NGA) from the receipt of an application or
request with complete requirements, accompanying documents
and payment of fees to the issuance of certification or such
similar documents approving or disapproving an application or
request.
 Definition of Terms
Red tape – any regulation, rule, or administrative procedure or
system that is ineffective or detrimental in achieving its intended
objectives and, as a result, produces slow, suboptimal, and
undesirable social outcomes.
 Definition of Terms
Regulation – any legal instrument that gives effect to a
government policy intervention and includes licensing, imposing
information obligation, compliance to standards or payment of
any form of fee, levy, charge or any other statutory and
regulatory requirements necessary to carry out activity.
 Definition of Terms
Simple transactions – applications or requests submitted by
applicants or requesting parties of a government office or
agency which only require ministerial actions on the part of the
public officer or employee, or that which present only
inconsequential issues for the resolution by an officer or
employee of said government. (Sec. 4)
 Coverage and Scope
The Law shall apply to all government offices and agencies
including local government units (LGUs), government-owned or
controlled corporations, and other government instrumentalities,
whether located in the Philippines or abroad, that provide
services covering business and nonbusiness related transactions.
(Sec. 3)
 Reengineering of systems and procedures
All covered offices are mandated to regularly undertake cost
compliance analysis, time and motion studies, undergo
evaluation and improvement of their transaction systems and
procedures and reengineer the same if deemed necessary to
reduce bureaucratic red tape and processing time. (Sec. 5)
 Duties of the Agencies covered
Each office or agency shall designate a unit to perform the
functions mentioned in Section 5. The unit shall be charged with
conducting regulatory impact assessment of their proposed
regulations to establish that these do not add undue regulatory
burden and cost to their respective agencies as well as applicants
or requesting parties. (Rule 3, Sec. 1, JMC 2019-01)
 Duties of the Agencies covered
Agencies shall submit to the Anti-Red Tape Authority a
comprehensive list of their respective government services,
which shall include:
1. Steps. For each government service, departments/agencies
shall report in detail the steps necessary to complete the
service/process, including flowchart indicating the front
end/back end.
2. Transaction Costs. Costs incurred by an applicant in the course
of availing of a government service.
 Duties of the Agencies covered
3. Substantial Compliance Costs. Incremental costs, other than
administrative costs, incurred by a transacting public in the
course of complying with the regulation.
4. Number of Signatures. Departments/agencies shall declare
t h e n u m b e r o f s i g n at u re s re q u i re d to co m p l ete e a c h
service/process. The number of signatories in any document
shall be limited to a maximum of three (3) signatures which shall
represent officers directly supervising the office or agency
concerned.
 Duties of the Agencies covered
5.Number of Documents. For each service,
departments/agencies shall indicate the total number of
documents necessary to complete the transaction title. (Rule 3,
Sec. 2, JMC 2019-01)
 Review of Services/Processes
Agencies shall initiate review of their services/processes through
any of the following:
1. Reduction in the number of signatures to not more than 3;
2. Simplification of application forms or documentary
requirements;
3. Automation or computerization of the processes or service;
4. Reduction in processing time; and
5. Reduction of Costs.
 Review of Services/Processes
There shall also be a review of the location of the offices
providing these government services and the feasibility of
establishing one-stop shops. (Rule 3, Sec. 3, JMC 2019-01)
 Citizen’s Charter
It is an official document that communicates, in simplest terms,
the service standards or pledge of an agency/service office of
the frontline services being provided to its citizens. It describes
the step-by-step procedure for availing a particular service, the
person responsible for each step, the documents needed to be
submitted and the fees to be paid, if any.
Dual Purpose:
1. Basis of establishing accountability; and
2. For recognizing good performance to grant rewards and
incentives. (Rule 4, Sec. 2, JMC 2019-01)
 Citizen’s Charter
Contents:
All government agencies including departments, bureaus, offices,
instrumentalities, or government-owned and/or controlled
corporations, or LGUs shall set up their respective most current
and updated service standards to be known as the Citizen’s
Charter in the form of information billboards which shall be
posted at the main entrance of offices or at the most
conspicuous place, in their respective websites and in the form
of published materials written either in English, Filipino, or in the
local dialect, that detail:
 Citizen’s Charter
(a) A comprehensive and uniform checklist of requirements for
each type of application or request;
(b) The procedure to obtain a particular service;
(c) The person/s responsible for each step;
(d) The maximum time to conclude the process;
(e) The document/s to be presented by the applicant or
requesting party, if necessary;
(f) The amount of fees, if necessary; and
(g) The procedure for filing complaints. (Sec. 6)
 The 3-7-20 Rule
Administrative and criminal liability shall arise only upon failure,
without due cause, to render government service within the
prescribed processing time of 3 days for simple transactions, 7
days for complex transactions, and 20 working days for highly
technical transactions or for applications or requests involving
activities which pose danger to public health, public safety,
public morals, public policy.
(Rule 4, Sec. 1, JMC 2019-01)
 Accessing Government Services
a. Acceptance of Applications or Requests
1. All officers or employees shall accept written applications,
requests, and/or documents being submitted by applicants or
requesting parties of the offices or agencies.
2. The receiving officer or employee shall perform a preliminary
assessment of the application or request submitted with its
supporting documents to ensure a more expeditious action on the
application or request. The receiving officer or employee shall
immediately inform the applicant or requesting party of any
deficiency in the accompanying requirements, which shall be limited
to those enumerated in the Citizen’s Charter.
 Accessing Government Services
3. The receiving officer or employee shall assign a unique
identification number to an application or request, which shall be the
identifying number for all subsequent transactions between the
government and the applicant or requesting party regarding such
specific application or request.
4. The receiving officer or employee shall issue an acknowledgement
receipt containing the seal of the agency, the name of the
responsible officer or employee, his/her unit and designation, and
the date and time of receipt of such application or request.
(Sec. 9a)
 Accessing Government Services
b. Action of Offices
All applications or requests submitted shall be acted upon by the assigned
officer or employee within the prescribed processing time stated in the
Citizen’s Charter which shall not be longer than three (3) working days in
the case of simple transactions and seven (7) working days in the case of
complex transactions from the date the request and/or complete
application or request was received. For applications or requests involving
activities which pose danger to public health, public safety, public morals,
public policy, and highly technical applications, the prescribed processing
time shall in no case be longer than twenty (20) working days or as
determined by the government agency or instrumentality concerned,
whichever is shorter.
 Accessing Government Services
b. Action of Offices
1. All applications or requests submitted shall be acted upon by the
assigned officer or employee within the prescribed processing time stated
in the Citizen’s Charter which shall not be longer than three (3) working
days in the case of simple transactions and seven (7) working days in the
case of complex transactions from the date the request and/or complete
application or request was received. For applications or requests involving
activities which pose danger to public health, public safety, public morals,
public policy, and highly technical applications, the prescribed processing
time shall in no case be longer than twenty (20) working days or as
determined by the government agency or instrumentality concerned,
whichever is shorter.
 Accessing Government Services
The maximum time prescribed above may be extended only
once for the same number of days, which shall be indicated in
the Citizen’s Charter. Prior to the lapse of the processing time,
the office or agency concerned shall notify the applicant or
requesting party in writing of the reason for the extension and
final date of release of the government service/s requested.
Such written notification shall be signed by the applicant or
requesting party to serve as proof of notice.
 Accessing Government Services
If the application or request for license, clearance, permit,
certification, or authorization shall require the approval of the
local Sangguniang Bayan, Sangguniang Panlungsod, or the
Sangguniang Panlalawigan as the case may be, the Sanggunian
concerned shall be given a period of forty-five (45) working days
to act on the application or request, which can be extended for
another twenty (20) working days. If the local Sanggunian
concerned has denied the application or request, the reason for
the denial, as well as the remedial measures that may be taken
by the applicant, shall be cited by the concerned Sanggunian.
 Accessing Government Services
2. No application or request shall be returned to the applicant or
requesting party without appropriate action. In case an
application or request is disapproved, the officer or employee
who rendered the decision shall send a formal notice to the
applicant or requesting party within the prescribed processing
time, stating therein the reason for the disapproval. A finding by
a competent authority of a violation of any or other laws by the
applicant or requesting party shall constitute a valid ground for
the disapproval of the application or request, without prejudice
to other grounds provided in this Act or other pertinent laws.
 Accessing Government Services
c. Denial of Application or Request for Access to Government
Service
Any denial of application or request for access to government
service shall be fully explained in writing, stating the name of the
person making the denial and the grounds upon which such
denial is based. Any denial of application or request is deemed
to have been made with the permission or clearance from the
highest authority having jurisdiction over the government office
or agency concerned.
 Automatic Approval
The existence of the following conditions shall warrant the
automatic approval of an original application or request:
1. If a government office or agency fails to approve or disapprove
an original application or request for issuance of license,
clearance, permit, certification or authorization within the
prescribed processing time;
2. All required documents have been submitted; and
3. All required fees and charges have been paid.
 Automatic Approval
The acknowledgment receipt together with the official receipt
for payment of all required fees issued to the applicant or
requesting party shall be enough proof or has the same force
and effect of a license, clearance, permit, certification or
authorization under this automatic approval mechanism. (Sec.
10)
 Streamlined procedures for the issuance of
permits and licenses
LGUs are mandated to implement the following revised guidelines in the
issuance of business licenses, clearances, permits, certifications or
authorizations:
(a) A single or unified business application form shall be used in
processing new applications for business permits and business renewals
which consolidates all the information of the applicant or requesting party
by various local government departments, such as, but not limited to, the
local taxes and clearances, building clearance, sanitary permit, zoning
clearance, and other specific LGU requirements, as the case may be,
including the fire clearance from the Bureau of Fire Protection (BFP).
 Streamlined procedures for the issuance of
permits and licenses
The unified form shall be made available online using technology-neutral
platforms such as, but not limited to, the central business portal or the
city/municipality’s website and various channels for dissemination. Hard
copies of the unified forms shall likewise be made available at all times in
designated areas of the concerned office and/or agency.
 Streamlined procedures for the issuance of
permits and licenses
(b) A one-stop business facilitation service, hereinafter referred
to as the business one stop shop (BOSS), for the
city/municipality’s business permitting and licensing system to
receive and process manual and/or electronic submission of
application for license, clearance, permit, certification or
authorization shall be established within the
cities/municipalities’ Negosyo Center as provided for under
Republic Act No. 10644, otherwise known as the "Go Negosyo
Act."
 Streamlined procedures for the issuance of
permits and licenses
There shall be a queuing mechanism in the BOSS to better
manage the flow of applications among the LGUs’ departments
receiving and processing applications. LGUs shall implement
collocation of the offices of the treasury, business permits and
licensing office, zoning office, including the city/municipality BFP,
and other relevant offices/departments, among others, engaged
in starting a business, dealing with construction permits.
 Streamlined procedures for the issuance of
permits and licenses
(c) Cities/Municipalities are mandated to automate their
business permitting and licensing system or set up an electronic
BOSS within a period of three (3) years upon the effectivity of
this Act for a more efficient business registration process.
Cities/Municipalities with electronic BOSS shall develop
electronic versions of licenses, clearances, permits, certifications
or authorizations with the same level of authority, which may be
printed by businesses in the convenience of their offices.
 Streamlined procedures for the issuance of
permits and licenses
The DICT shall make available to LGUs the software for the
computerization of the business permit and licensing system.
The DICT, DTI, and DILG shall provide technical assistance in the
planning and implementation of a computerized or software-
enabled business permitting and licensing system.
 Streamlined procedures for the issuance of
permits and licenses
(d) To lessen the transaction requirements, other local
clearances such as, but not limited to, sanitary permits,
environmental and agricultural clearances shall be issued
together with the business permit.
(e) Business permits shall be valid for a period of one (1) year.
The city/municipality may have the option to renew business
permits within the first month of the year or on the anniversary
date of the issuance of the business permit.
 Streamlined procedures for the issuance of
permits and licenses
(f) Barangay clearances and permits related to doing business
shall be applied, issued, and collected at the city/municipality in
accordance with the prescribed processing time of this Act:
Provided, That the share in the collections shall be remitted to
the respective barangays. (Sec. 11)
 Automatic Renewal
If a government office or agency fails to act on an application or
request for renewal of a license, clearance, permit, certification
or authorization subject for renewal within the prescribed
processing time, said license, clearance, permit, certification or
authorization shall automatically be extended. (Rule 8, Sec. 2,
JMC 2019-01)
This automatic renewal provision shall not apply to licenses,
clearances, permits, certifications, or authorizations that have
already expired at the time of submission of application or
request. (supra)
 Violations
Any person who performs or causes the performance of the
following acts shall be liable:
(a) Refusal to accept application or request with complete
requirements being submitted by an applicant or requesting
party without due cause;
(b) Imposition of additional requirements other than those listed
in the Citizen’s Charter;
(c) Imposition of additional costs not reflected in the Citizen’s
Charter;
 Violations
(d) Failure to give the applicant or requesting party a written
notice on the disapproval of an application or request;
(e) Failure to render government services within the prescribed
processing time on any application or request without due cause;
(f) Failure to attend to applicants or requesting parties who are
within the premises of the office or agency concerned prior to the
end of official working hours and during lunch break;
(g) Failure or refusal to issue official receipts; and
(h) Fixing and/or collusion with fixers in consideration of
economic and/or other gain or advantage.(Sec. 13)
 Penalties
First Offense: Administrative liability with six (6) months
suspension: Provided, however, That in the case of fixing and/or
collusion with fixers, the penalty and liability under the second
offense shall apply.
Second Offense: Administrative liability and criminal liability of
dismissal from the service, perpetual disqualification from
holding public office and forfeiture of retirement benefits and
imprisonment of one (1) year to six (6) years with a fine of not
less than Five hundred thousand pesos (P500,000.00), but not
more than Two million pesos (P2,000,000.00).
 Penalties
Criminal liability shall also be incurred through the commission
of bribery, extortion, or when the violation was done
deliberately and maliciously to solicit favor in cash or in kind. In
such cases, the pertinent provisions of the Revised Penal Code
and other special laws shall apply. (Sec. 13)
 Penalties
Note: Civil and Criminal Liability, Not Barred. – The finding of
administrative liability under this Act shall not be a bar to the
filing of criminal, civil or other related charges under existing
l aws ar i s i n g f ro m t h e s a m e a c t o r o m i s s i o n a s h e re i n
enumerated. (Sec. 14)
 Jurisdiction
The administrative jurisdiction on any violation of the provisions
of this Act shall be vested in either the CSC, or the Office of the
Ombudsman as determined by appropriate laws and issuances.
(Sec. 15)
 Immunity
Any public official or employee or any person having been
charged with another offense under this Act and who voluntarily
gives information pertaining to an investigation or who willingly
testifies therefore, shall be exempt from prosecution in the
case/s where his/her information and testimony are given. The
discharge may be granted and directed by the investigating body
or court upon the application or petition of any of the
respondent/accused-informant and before the termination of
the investigation: Provided, That:
 Immunity
(a) There is absolute necessity for the testimony of the
respondent/accused-informant whose discharge is requested;
(b) There is no other direct evidence available for the proper
prosecution of the offense committed, except the testimony of said
respondent/accused-informant;
(c) The testimony of said respondent can be substantially corroborated
in its material points;
(d) The respondent/accused-informant has not been previously
convicted of a crime involving moral turpitude; and
(e) Said respondent/accused-informant does not appear to be the
most guilty. (Sec. 16)