Ease of Doing Business Act

(RA 11032)
in relation to
Anti-Red Tape Act of 2007
(RA 9485)

Purpose of the law

Anti-Red Tape Act (ARTA)

Enacted on June 2, 2007, the law aims:

t o eliminate red tape and to simplify frontline service
procedures;
formulate service standards to observe in every
transaction; and
make known these standards to the client.

This law was an amended by the Ease of Doing Business Act.

On the other hand, on May 28, 2018, RA 11032

or the Ease of Doing Business (EDB) Act was
passed, the law aims
t o encourage competitiveness and improve the overall
business environment;
t o attract entrepreneurs to start a businesses in the
Philippines; and
t o eliminate unnecessary requirements and processes that
tend to delay the establishment or expansion of businesses
in the pipeline.
 What is meant by the term?

The Ease of Doing Business (EoDB) index is a

ranking system established by the World Bank
Group. In the EODB index, 'higher rankings' (a
lower numerical value) indicate better, usually
simpler, regulations for businesses and stronger
protections of property rights.

Salient Features of the Law

Reduced Processing Time
The time to process your transactions should not go beyond the
prescribed number of days:

Three (3) working days for simple transactions

Seven (7) working days for complex transactions
Twenty (20) working days for activities which pose danger to
public health, public morals, public safety, public policy, and
highly technical transactions

Effect if not followed: If an agency fails to approve or disapprove

a business application within the given timeframe, the
application is considered approved.

Reduced Processing Time

For applications or requests for license, clearance, permit,
certification or authorization requiring the approval of the
local Sangguniang Bayan, Sangguniang Panlungsod,
Sangguniang Panlalawigan, 45 working days which can be
extended for another 20 days.
The Citizen's Charter may provide for a different processing
time if it will not be longer than what is prescribed by the EDB
Act.
 Salient Features of the Law

Simplified Steps for Securing Documentation

Requirements / Streamlined Procedures
The issuance of local business licenses, clearances, permits, or
authorizations will be faster and more efficient:

A single or unified business application form, which involves

using a single form to obtain business permits and renewals.
This means there would be fewer signatories who would
green-light your business applications. In the past, business owners
had to fill up multiple application forms with different government agencies.
Issuance of barangay clearances and permits at the city's municipal
office instead of the barangay/village.

Simplified Steps for Securing Documentation

Requirements / Streamlined Procedures
Automating LGUs' system of issuance of business permits and
licenses.
Establishment of a Business One-Stop Shop (BOSS) - a single

facility designated by the city or municipality which will house

LGU offices related to zoning, business permit and licenses,
and treasury as well as the Bureau of Fire Protection. It is a
one-stop business facilitation office for the city or
municipality's business permitting and licensing services as
well as to receive and process manual and/or electronic
submissions.

Establishment of the Citizen's Charter

All agencies should come up with a Citizen's Charter, which is a useful
reference, a comprehensive and uniform checklist of requirements
for the public regarding policies and procedures of government
offices handling business-related transactions.
The Citizen's Charter includes the following information:
Checklist of requirements for a particular application or request
Name/s of person/s responsible for the transaction
Amount of fees to be paid
Standard operating procedure (SOP) in obtaining a particular
service
Maximum time it takes to complete the process
-

Procedure for filing complaints H C O n m E n TAn v a m r n A D E i T D u r ArDD

 Salient Features of the Law

Zero Contact Policy

Under this policy, no government employee or officer should
have any form of contact with anyone who is applying or
requesting to the agency. This provision in the EODB Law
underscores the government's drive against corruption in its
ranks.
The only exceptions are (a) during the preliminary assessment of
the request and (b) during the evaluation of the sufficiency of
documents submitted.

Acceptance of Applications or Requests

All officers or employees are required to accept written
applications, requests and documents or both, submitted by
applicants or requesting parties. The receiving officer or
employee shall then perform a preliminary assessment on the
application or the request submitted and immediately inform
the applicant or requesting party of the deficiency in the
requirements submitted. The deficiency shall be limited to
those enumerated in the Citizen's Charter.

Denial of Application or Request

The law now requires that the denial of the application be
explained in writing stating the name of the person
who denied the same and the grounds upon which
denial is based.
 Salient Features of the Law

Electronic Versions
Covered agencies and offices are required to develop
electronic versions of licenses, clearances, permits,
certifications, or authorizations. These electronic
versions shall have the same level of authority as
hard copies and may be printed by the applicants or
requesting parties.

Automatic Approval or Automatic Renewal

Provided that the applicant or the requesting party has: (a)
submitted complete documentary requirements and
(b) paid all the required fees and charges, the failure
of the government agency or office to approve or
disapprove the original application or request within
the prescribed processing time shall be deemed an
approval of the concerned office or agency.
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 thee
anniversary date of the issuance of the business permit.

Setting up of a Central Business Portal (CBP)

The Department of Information and Communications
Technology (DICT) is tasked to oversee online business
applications through the establishment of a central business
portal. The portal will link the systems of government offices
on the national and local levels to make it easy for
entrepreneurs and investors to register their business.
Covered agencies and offices must create an online Central
Business Portal (CBP) that will capture application data for
business-related transactions and providelinks to the online
registration systems established by various National
GOvernment Agencies (NGA).
 Salient Features of the Law

Setting Up of a Philippine Business Databank (PBD)

The Act requires the Department of Information and
Communications Technology (DICT) to establish, manage, and
maintain a PBD that shall provide NGA's and LGU's access to data
and information of registered business entities.
The Philippine Business Databank will contain information about
the validity, status, or existence of all registered business entities.
This means that if you are applying for business renewal, you wil
no longer have to submit the same documentation requirements
from your original application since all information about your
business is stored in the databank.

Creation of the Anti-Red Tape Authority (ARTA)

Under the EODB Law, there will be a dedicated body whoo
will enforce anti-red tape policies among government
employees and officials. Through the ARTA, the
government hopes to raise the country's ranking in
competitiveness and ease of doing business.

The Director General of the ARTA will also be part of the

EODB/Anti-Red Tape Advisory Council, which will serve as
the ARTA's policy and advisory body.

An Anti-Red Tape Authority (ARTA) is established to:

(a) monitor and evaluate compliance of agencies and issuea
notice of warning to erring or non-complying employees or
officials; (b) initiate investigation motu proprio or upon receipt
of complaint, refer the same to appropriate agency or file
cases for violations; (c) assist complainants in filing necessary
cases with CSC, Ombudsman, and other appropriate courts;
(d) recommend policies; and (e) provide technical assistance
and advisory opinions in the review of proposed national or
local legislation.
 Salient Features of the Law

Interconnectivity Infrastructure Development

Through this provision, the government intends to fast-
track the processing and approval of all business
transactions related to telecommunication technologies,
equipment, and services

Covered Agencies and Offices

The law covers Local Government Units (LGU's),
Government Owned and Controlled Corporations
(GOCC's), and other government offices whether in the
Philippines or abroad that provide services covering
business and non-business-related transactions as
defined by RA 11032.

Advisory Council
The EDB Act also establishes an Advisory Council which shall
formulate policies and programs that will aid the Anti-Red
Tape Authority to perform its functions and enhance the
country's competitiveness as well as improve the ease of
doing business.
 Salient Features of the Law

Violations
Any person who performs or causes to perform the following has
committed a violation of the Act: (a) Refusal to accept an
application or request with complete requirements without due
cause; (b) Imposition of additional requirements or fees other
than those required in the Citizen's Charter; (c) Failure to give the
applicant or requesting party a written notice of disapproval; (d)
Failure to render government service within prescribed processing
time; (e) Failure to attend to applicants or requesting parties who
are within their premises prior to end of official working hours and
during lunch break; (f) Failure or refusal to issue official receipts;
and (g) Fixing and/or collusion with fixers.

Penalties -Violations of the Act shall be dealt with as follows:

First Offense - an administrative liability with 6 months suspension will be

imposed, provided that in case of fixing and/or collusion fixers, penalty

and liability for the second offense shall apply.
Second Offense administrative and criminal liability for dismissal from
the service, perpetual disqualification from holding public office, forfeiture
of retirement benefits and imprisonment of 1 to 6 years with a fine of not
less than P500,000 to not more than P2,000,000.
Criminal liability will also be incurred by those who commit bribery,
extortion, or when violation was done deliberately and maliciously to
solicit favor in cash or kind.
Administrative jurisdiction is vested in the Civil Service Commission (CSC)
or Office of the Ombudsman, as determined by appropriate laws.