Ease of Doing Business and Efficient
Service Delivery Act of 2018
11032 (also referred to as Ease of Doing Business or EODB Law) is part of the
continuing effort of the PH government to eliminate red tape and improve the
environment for doing business in the PH. You may recall that Item Number 3 in the
President’s 10-point Socioeconomic Agenda is to “Increase competitiveness and the
ease of doing business.” The particular focus
of the law is on the accountability and integrity of government service,
specifically, ensuring greater efficiency in the delivery of services and
preventing graft and corruption.
Rules and Regulations (IRR) of the EODB Act were signed on 17 July 2019 by the
Chairperson of the Civil Service Commission, the Director-General of the
Anti-Red Tape Authority and the Secretary of Trade and Industry.
be pleased to note that the basics such as number of steps, signatories and
documents to complete procedures will be addressed, as well as compliance and
transaction costs. For instance,
prescribed processing times will be 3 days for simple transactions, 7 days for
more complex transactions and 20 days for highly technical transactions. Failure of agencies to meet such timelines
will mean automatic approval of the transaction. Automation and electronic versions of
licenses, permits, certifications and authorizations will be adopted to the
extent possible, under the coordination of the Department of Information and
Communications Technology (DICT).
Equally important is the directive to make clear and transparent all of
approach in reengineering government services will be adopted to ensure uniform
service standards and harmonization of existing and applicable laws and
consistent legal interpretations across all agencies. The end objective is seamless end-to-end
processing in the delivery of government services.
and evaluation of the compliance of all government agencies shall be the
responsibility of the Anti-Red Tape Authority (ARTA), which is under the Office
of the President.
The Ease of Doing
Business and Anti-Red Tape Council is established to set policy directions and
programs to continuously advance competitiveness and ease of doing business
initiatives. It is chaired by the DTI
Secretary and has as its members the ARTA Director General, Secretaries of
DICT, DILG, DOF and 2 private sector representatives.
Innovative Startup Act of 2019
by President Duterte in April 2019, Republic Act 11337 (or the Innovative
Startup Act) forms part of the government’s policy to foster inclusive growth
through innovative economy by streamlining government and nongovernment
initiatives, to create new jobs and opportunities, improve production, and
advance innovation and trade.
The law creates
the Philippine Startup Development Program (PSDP), which shall be composed of
programs, benefits, and incentives for startups and startup enablers. The
Department of Science and Technology (DOST), Department of Information and
Communications Technology (DICT), and the Department of Trade and Industry
(DTI) are the lead agencies tasked specifically to promulgate the rules and
regulations for the efficient registration and assessment of startup enablers
to be registered under the PSDP.
provisions include the creation of Philippine Startup Ecozones or Special
Economic Zones in order to spur the growth and development of startups and
startup enablers. The DTI has also been tasked to spearhead initiatives to
develop short, medium, and long-term strategies in order to spur investment in
startups. Finally, the law introduces the concept of a Startup Visa which shall
be issued by the Department of Foreign Affairs (DFA) to foreign owners,
employees, and investors of startups. These shall have an initial 5-year
validity, and its bearers shall be exempt from securing an Alien Employment Permit
from the Department of Labor and Employment (DOLE), subject to the implementing
rules to be promulgated by the DFA. DOLE, and Bureau of Immigration.