EASE OF DOING BUSINESS ACT AND EFFICIENT DELIVERY OF GOVERNMENT SERVICES

RA 11032

State Policy: To promote integrity, accountability, proper management of public affairs and public
property, as well as to establish effective practices, aimed at efficient turnaround of the delivery of
government services and the prevention of graft and corruption in government.
Towards this end, the State shall maintain honesty and responsibility among its public officials and
employees, and shall take appropriate measures to promote transparency, in each agency with regard to
the manner of transacting with the public, which shall encompass a program for the adoption of
simplified requirements and procedures that will reduce red tape and expedite business and nonbusiness
related transactions in government.
Coverage: apply to all government offices and agencies including local government units (LGUS),
government-owned or controlled corporations and other government instrumentalities, whether located
in the Philippines or abroad, that provide services covering business and nonbusiness related
transactions.
Business-related transactions - a set of regulatory requirements that a business entity must comply
with to engage, operate or continue to operate a business, such as, but not limited to, collection or
preparation of a number of documents, submission to national and local government authorities,
approval of application submitted, and receipt of a formal certificate or certificates, permits, licenses
which include primary and secondary, clearances and such similar authorization or documents which
confer eligibility to operate or continue to operate as a legitimate business.
Non-business related transactions- all other government transactions not falling under the definition of
"business-related transactions”.

REENGINEERING OF SYSTEMS AND PROCEDURES

Streamlining of Government Services
All offices and agencies which provide government services are hereby mandated to regularly undertake
cost compliance analysis, time and motion studies, undergo evaluation and improvement of their
transaction systems and procedures and reengineer the same if deemed necessary to reduce bureaucratic
red tape and processing time.
Cost compliance analysis-analysis of the costs that are incurred by businesses or other parties at whom
regulation may be targeted in undertaking actions necessary to comply with the regulatory requirements,
as well as the costs to the government of regulatory administration and enforcement.
Time and motion studies-a tool to track the progress of customer interface, processing, queuing and
waiting times, and linked processes that are within and beyond the control of the service office. It is an
essential step in the process mapping of services for the formulation and/or updating of the Citizen's
Charter.
The time and motion study has three stages:
I. Planning stage- During the stage, service offices must prepare a list of services to be subjected for
time and motion studies, the employee/s who will conduct the study, number of clients to be
observed as subject of the study, and a time and motion checklist.
II. Implementation stage-During this stage, employee/s assigned to conduct the time and motion
studies shall observe a transacting client from the first step up to the last step of his/her transaction
taking note of the time when each step started and ended as well as the waiting time.
III. Evaluation stage- During this stage, the following must be conducted: processing of data such as
variance (committed processing time in the Citizen's Charter less the actual processing time and
waiting time), total waiting time, total actual processing time, step/s added or omitted, and
documentary requirements added or omitted.
Whole-of-Government Approach in Reengineering
Whole-of-Government Approach refers to the ability of government agencies to work together to
provide ease of access and use by the citizens. Implementing the whole-of- government approach
implies a more integrated approach to public service delivery, policy making, interoperability of
government processes, strengthening vertical and horizontal linkages and coordination among agencies,
and clustering of basic services into government, and designating points of service in accordance with
the life cycle of citizens and
CITIZEN'S CHARTER
-an official document that communicates, in simple terms, the service standards or pledge of an
agency/service office of the frontline services being provided to its citizens. It describes the step-by-step
procedure for availing a particular service, the person responsible for each step, the documents needed to
be submitted and the fees to be paid, if any.
The Citizen's Charter of each agency has a dual purpose-it shall be the basis for establishing
accountability and for recognizing good performance to grant rewards and incentives.
Contents of Citizen's Charter
a. A comprehensive and uniform checklist of requirements for each type of application or request;
b. The procedure to obtain a particular service;
c. The person/s responsible for each step;
d. The maximum time to conclude the process;
e. The document/s to be presented by the applicant or requesting party, if necessary;
f. The amount of fees, if necessary; and
g. The procedure for filing complaints.
ACCESSING GOVERNMENT SERVICES
The following shall adopted by all government offices and agencies:
(a) Acceptance of Applications or Requests. -
1) All officers or employees shall accept written applications, requests, and/or documents being
submitted by applicants or requesting parties of the offices or agencies.
(2) The receiving officer or employee shall perform a preliminary assessment of the application or
request submitted with its supporting documents to ensure a more expeditious action on the
application or request. The receiving officer or employee shall immediately inform the applicant or
requesting party of any deficiency in the accompanying requirements, which shall be limited to those
enumerated in the Citizen's Charter.
(3) The receiving officer or employee shall assign a unique identification number to an application
or request, which shall be the identifying number for all subsequent transactions between the
government and the applicant or requesting party regarding such specific application or request.
(4) The receiving officer or employee shall issue an acknowledgement receipt containing the seal of
the agency, the name of the responsible officer or employee, his/her unit and designation, and the
date and time of receipt of such application or request.
Standardized Deadlines for Government Transactions
The processing timeline for business transactions are reduced to the following:
 Simple Transactions- applications or requests submitted by applicants or requesting parties of a
government office or agency which only require ministerial actions on the part of the public officer or
employee, or that which present only inconsequential issues for the resolution by an officer or
employee of said government:
-not longer than 3 working days from the date the request and/or complete application or request
was received.
• Complex Transactions-applications or requests submitted by applicants or requesting parties of a
government office which necessitate evaluation in the resolution of complicated issues by an officer or
employee of said government office, such transactions to be determined by the office concerned:
-not longer than 7 working days from the date the request and/or complete application or request
was received
 Highly Technical Transactions- an application which requires the use of technical knowledge,
specialized skills and/or training in the processing and/or evaluation thereof AND for applications or
requests involving activities which pose danger to public health, public safety, public morals, public
policy, and highly technical application)
-shall in no case be longer than 20 working days or as determined by the government agency or
instrumentality concerned, whichever is shorter
Q: Can these periods be extended?
A: Yes, the maximum time prescribed above may be extended only once for the same number of days,
which shall be indicated in the Citizen's Charter. Prior to the lapse of the processing time, the office
or agency concerned shall notify the applicant or requesting party in writing of the reason for the
extension and final date of release of the government service/s requested. Such written notification shall
be signed by the applicant or requesting party to serve as proof of notice.
• In case of highly technical transactions that involve activities such as, but not limited to,
research, field trials, scientific methodology, inter-government transactions:
-the government agency or office may apply the multi- stage system subject to the approval of the Anti-
Red Tape Authority provided that the total processing time shall not exceed forty(40) days
 If the application or request for license, clearance permit, certification or authorization shall require
the approval of the local Sangguniang Bayan, Sangguniang Panlungsod, or the Sangguniang
Panlalawigan as the case may be, the Sanggunian
- 45 working days which can be extended for another 20 working days.

Automatic approval/renewal
Applications will be AUTOMATICALLY APPROVED if the agency fails to process transactions
within the specified timeframe, subject to the following conditions:
1. If a government office or agency fails to approve or to approve or disapprove an original
application or request for the issuance of license, permit, certification or authorization within the
prescribed processing time;
2. When all the required documents are submitted; and
3. When all the required fees and charges have been paid.
The acknowledgment receipt together with the official receipt for payment of all required fees issued to
the applicant or requesting party shall be enough proof or has the same force and effect of a license,
clearance, permit, certification or authorization under this automatic approval mechanism.
If a government office or agency fails to act on an application or request for renewal of a license,
clearance, permit, certification or authorization subject for renewal within the prescribed processing
time, said license, clearance, permit, certification or authorization shall AUTOMATICALLY BE
EXTENDED.

Denial of application/request
Any denial of application or request for access to government service shall be fully explained in writing,
stating the name of the person making the denial and the grounds upon which such denial is based. Any
denial of application or request is deemed to have been made with the permission or clearance from the
highest authority having jurisdiction over the government office or agency concerned.
Streamlined Procedures for the Issuance of Local Business Licenses, Clearances, Permits,
Certifications or Authorizations
The LGUs are mandated to implement the following revised guidelines in the issuance of business
licenses, clearances, permits, certifications or authorizations:
a. A single or unified business application form shall be used in processing new applications
for business permits and business renewals which consolidates all the information of the
applicant or requesting party by various local government departments, such as, but not limited
to, the local taxes and clearances, building clearance, sanitary permit, zoning clearance, and other
specific LGU requirements, as the case may be, including the fire clearance from the Bureau of
Fire Protection (BFP). The unified form shall be made available online using technology-neutral
platforms such as, but not limited to, the central business portal or the city/municipality's website
and various channels for dissemination. Hard copies of the unified forms shall likewise be made
available at all times in designated areas of the concerned office and/or agency.
b. one-stop business facilitation service, hereinafter referred to as the business one stop shop,
(BOSS) for the city/municipality's business permitting and licensing system to receive and
process manual and/or electronic submission of application for license, clearance, permit,
certification or authorization shall be established within the cities/municipalities' Negosyo Center
as provided for under Republic Act No. 10644, otherwise known as the "Go Negosyo Act."
There shall be a queuing mechanism in the BOSS to better manage the flow of applications
among the LGUs' departments receiving and processing applications. LGUs shall implement
collocation of the offices of the treasury, business permits and licensing office, zoning office,
including the BFP, and other relevant city/municipality offices/departments, among others,
engaged in starting a business, dealing with construction permits.
c. Cities/Municipalities are mandated to automate their business permitting and licensing
system or set up an electronic BOSS within a period of three (3) years upon the effectivity of
this Act for a more efficient business registration processes. Cities/Municipalities with electronic
BOSS shall develop electronic versions of licenses, clearances, permits, certifications or
authorizations with the same level of authority, which may be printed by businesses in the
convenience of their offices. The DICT shall make available to LGUs the software for the
computerization of the business permit and licensing system. The DICT, DTI, and DILG, shall
provide technical assistance in the planning and implementation of a computerized or software-
enabled business permitting and licensing system.
d. To lessen the transaction requirements, other local clearances such as, but not limited to,
sanitary permits, environmental and agricultural clearances shall be issued together with the
business permit.
e. 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 the anniversary date
of the issuance of the business permit.
 f. Barangay clearances and permits related to doing business shall be applied, issued, and
collected at the city/municipality in accordance with the prescribed processing time of this Act:
Provided, That the share in the collections shall be remitted to the respective barangays.
Anti-Corruption Policy- Except for the preliminary assessment of the business application and
submitted requirements, there will be a zero-contract policy between business applicants and
government employees. Applicants will be identified by case number and deal with government offices
anonymously.
Anti-Red Tape Authority
The Anti-Red Tape Authority (ARTA) is responsible for enforcing the Ease of Doing Business Act in
the Philippines. It is tasked to enforce anti-red tape policies among government officials and employees.
VIOLATIONS, JURISDICTIONS, PENALTIES, AND IMMUNITY
Violations
a. Refusal to accept application or request with complete requirements being submitted by an
applicant or requesting party without due cause;
b. Imposition of additional requirements other than those listed in the Citizen's Charter;
c. Imposition of additional costs not reflected in the Citizen's Charter;
d. Failure to give the applicant or requesting party a written notice on the disapproval of an
application or request;
e. Failure to render government services within the prescribed processing time on any application
or request without due cause;
f. Failure to attend to applicants or requesting parties who are within the premises of the office or
agency concerned prior to the end of official working hours and during lunch break;
g. Failure or refusal to issue official receipts; and
h. Fixing and/or collusion with fixers in consideration of economic and/or other gain or
advantage.
Penalties
(a) First Offense: Administrative liability with six (6) months suspension: Provided, however, That in
the case of fixing and/or collusion with fixers under Section 21(h), the penalty and liability below shall
apply.
Fixer is any individual or a group of individuals, whether or not officially involved in the operation of a
government office or agency, who has/have access to people working therein, and whether or not
collusion with them, facilitates speedy completion of transactions for pecuniary gain or any other
advantage or consideration.
(b) Second Offense: Administrative liability and criminal liability of dismissal from the service,
perpetual disqualification from holding public office and forfeiture of retirement benefits and
imprisonment of one (1) year to six (6) years with a fine of not less than Five hundred thousand pesos
(P500,000.00), but not more than Two million pesos (P2,000,000.00).
Criminal liability shall also be incurred through the commission of bribery, extortion, or when the
violation was done deliberately and maliciously to solicit favor in cash or in kind. In such cases, the
pertinent provisions of the Revised Penal Code and other special laws shall apply.
The finding of administrative liability shall not be a bar to the filing of criminal, civil or other related
charges under existing laws arising from the same act or omission as herein enumerated.
Administrative Jurisdiction
The administrative jurisdiction on any violation of the provisions of this Act shall be vested in either the
CSC, or the Office of the Ombudsman as determined by appropriate laws and issuances.
Immunity, Discharge of Co-Respondent/Accused to be a Witness
Any public official or employee or any person having been charged with another offense under this Act
and who voluntarily gives information pertaining to an investigation or who willingly testifies therefore,
shall be exempt from prosecution in the case/s where his/her information and testimony are given. The
discharge may be granted and directed by the investigating body or court upon the application or petition
of any of the respondent/accused- informant and before the termination of the investigation: Provided,
That:
(a) There is absolute necessity for the testimony of the respondent/accused-informant whose
discharge is requested;
(b) There is no other direct evidence available for the proper prosecution of the offense
committed, except the testimony of said respondent/accused-informant;
(c) The testimony of said respondent can be substantially corroborated in its material points;
(d) The respondent/accused-informant has not been previously convicted of a crime involving
moral turpitude; and
Evidence adduced in support of the discharge shall automatically form part of the records of the
investigation. Should the investigating body or court deny the motion or request for discharge as a
witness, his/her sworn statement shall be inadmissible as evidence.
(e) Said respondent/accused-informant does not appear to be the most guilty.