Understanding the Ease of Doing Business Law of 2018: Implications to Companies in the Philippines
When you have a business idea, it’s easy to get excited about the opportunity. However, establishing business needs to be legally fulfilled and reviewed. You see, the lack of legal understanding is one of the many reasons why most entrepreneurs abandon their business propositions. The good thing is, the government of the Philippines promulgated the Ease of Doing Business Law of 2018, otherwise known as the Republic Act 11032.
How can the Republic Act 11032 make it easier for entrepreneurs to conduct business in the Philippines? And, what does this law entail? Let’s read more about this law below.
What is the Republic Act 11032?
Legally identified as the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, this law seeks to enforce competitiveness and eliminate red-tape instances for investors and entrepreneurs wanting to establish their business in the Philippines.
The Six Reforms of the Ease of Doing Business Law of 2018
Aside from the benefits of having the promulgation of the Ease of Doing Business Law of 2018, there are features that entrepreneurs must be aware of. Here’s a quick rundown of the features that aid entrepreneurs and business owners to comprehensively start their operations.
1. Easier and Expedited Processing of Permits and Licenses
Seeing that this law was promulgated to cut the red-tape occurrences, the process of registrations and business renewals will now be unified, consistent, and quick. Moreover, the law indicates that every local government unit (LGU) should establish a one-stop-shop for seamless processing of business renewal and registrations.
The one-stop-shop includes the following offices:
- Zoning Office
- Business and Licensing Office
- Treasury Office
2. Automated and Online Business Registration Process
One way of eliminating graft and corruption for renewals and registrations is to submit paper works through online platforms and by sending digital documents. Moreover, the licenses and permits can now be printed at ease, even at homes for quicker access.
3. Standardized Times for Government Transactions
One of the government’s way of guaranteeing quick accomplishment and efficient reviews is to standardize deadlines for transactions regarding the establishment and renewal of business permits.
- Simple transactions – completed within three business days.
- Complex transactions – completed within seven business days.
- Highly-technical transactions – processed within 20 business days.
4. Anti-corruption Policy
While full online systems are underway, all government units must adapt to a zero-contact policy between employees and business applicants. Once an organization files their documents in, they are only given a case number so that their reviews can be processed anonymously.
This system will encourage accountability and comprehensive service delivery from government employees and agencies processing business applications.
5. The Use of Citizen’s Charter
Citizen’s charter is established as part of the Ease of Doing Business Law 2018. The purpose of the citizen’s charter is to promote accountability and transparency from the respective LGUs and National Government Agencies (NGAs). People will have access to information crucial for their business applications and renewals, which include the following:
- Checklist of all requirements for every request or application
- Procedures (steps) to obtain a service
- Person/s responsible for a particular procedure
- The timeline expected/needed to accomplish a request
- The fees one has to pay
- Procedure for filing complaints, if any
6. Accountability of Agencies/Government Units and Heads of Offices
The Ease of Doing Business Law of 2018 enforces government units, agencies, and heads of offices to do their tasks comprehensively as the law covers administrative and criminal liability for employees who fail to act accordingly. These are the most common violations which you can file for criminal liability.
- Refusal to accept or to process application
- The imposition of fees and requirements not listed in the Citizen’s Charter
- Presence of Fixers
- Missed deadlines by employees
3E Accounting Can Help You and Your Business
If you need help with Philippine company formation, 3E Accounting can help you with its professional consultancy services. The only thing you need to do is message us or book a call with us to know more.
