PH gov’t simplifies doing business process

infographic

(first published in the Philippine Online Chronicles, April 20 2015)

The Department of Finance, together with various government agencies recently released an infographic and videographic containing a simplified process of starting a business in 8 steps and 8 days from the existing set-up requiring 15 steps and 35 days.  This is consonance with the Ease in Doing Business initiative in the country. The website of competitive.org.ph also provided a video containing the simplified process and net effects of the reforms.

Reforms include merging several steps together to create single-window applications generated by more interconnected IT systems of concerned agencies.  Outdated procedures will also be removed while they introduce the enhanced one-stop-shop procedures in local government units. These were the results of partnership with government agencies such as the Securities and Exchange Commission (SEC), BIR, SSS, Pag-IBIG, PhilHealth, and the local government unit of Quezon City.

Integration of new corporations, partnerships, and non-stock corporations at the Securities and Exchange Commission will be reduced from 15 steps and 35 days to 8 steps and 8 days. The initial roll-out of the reforms will start this month  in Manila and roll-outs will continue in succeeding months across all SEC offices and a full on-line system will be made available next year.

In addition, payroll-related payments to PAG-IBIG and PhilHealth will be made available online for companies with more than 10 employees. It is noted that payments for SSS contributions have been moved online since last year for companies with more than 10 employees. Also, the Land Bank of the Philippines and the Development Bank of the Philippines will give enterprises access to their online facilities and won’t require minimum average daily balance for these transactions.

A press conference held last April 14, 2015 and participated by the Department of Finance (DOF), Department of Trade and Industry (DTI), the National Competitiveness Council (NCC), the Department of Interior and Local Government (DILG) along with other 9 institutions announced the above reforms– a product of continuing work under the NCC’s Gameplan 3.0,  which aims to streamline and simplify government processes related to the conduct of business in the Philippines.

The said  reforms were the result of a series of memoranda of agreement and understanding between and among  the Department of Finance, Department of Trade and Industry, Department of the Interior and Local Government, Securities and Exchange Commission, Bureau of Internal Revenue, Social Security System, Philippine Health Insurance Corporation (PhilHealth), Home Development Mutual Fund (Pag-IBIG), Land Bank of the Philippines, Development Bank of the Philippines, National Competitiveness Council, and the Quezon City government.

More information regarding the initiative as well as legal documents in support of these new policies may be found in all partner agency websites in the Ease of Doing Business initiative in the country.