The government announced Tuesday the reduction in processing time for new business registration from five days to 1 ½ days to encourage more foreign and local investors.
Trade Secretary Ramon Lopez signed a revised joint memorandum circular enjoining all local government units and relevant government agencies to streamline business permits and licensing system using revised standards.
“Starting today, we are also engaging the local government units to further streamline the processes to 1 ½ days for compliance a month from now,” Lopez said during the signing of the circular at the Board of Investments in Makati City.
Lopez said under the circular, the processing time for new business registration would be cut from five days to 1 ½ days for new business registration and one day for renewals.
The circular set the maximum number of procedures for registration at three steps for both new applicants and renewals, with only two signatories from eight signatories previously.
The circular also encouraged LGUs to automate and computerize business transactions to hasten frontline services.
The revised joint memorandum circular was the result of the combined efforts of the Trade Department, Information and Communications Technology Department, Local Government Department and the National Competitiveness Council.
The Trade Department issued a similar instruction to LGUs in 2010 to facilitate business registration by streamlining transaction.
Under the new circular, the Information and Communications Technology Department will roll out a common automated platform that will be available first to the Trade Department and the Interior and Local Government Department and soon to all LGUs.
The common platform is currently at a pilot stage in a municipality in Greater Manila Area.
About 75 percent of LGUs started to streamline their licensing processes. There are about 1,654 LGUs in the Philippines.
National Competitiveness Council co-chairman Bill Luz said the streamlined processes would greatly impact on the Philippines’ ranking in global competitiveness.
The country ranked poorly in the “Starting a Business” indicator, where it slipped eight places to 165th in 2015 from 157th in the 2014.
The Philippines placed 103rd in the Ease of Doing Business report published by the World Bank – International Finance Corp. in 2015.