The National Competitiveness Council-Philippines (NCCP) Ease of Doing Business Taskforce recently sent out information materials intended to assist organizations who are constantly transacting with government agencies, especially in securing business and construction permits, getting electricity connection and registering property for their clients prior to the operationalization of their business.
For Quezon City, a Reform Task Team was created composed of the Bureau of Internal Revenue (Client Support Service), Home Development Mutual Fund (Pag-IBIG Fund-Fund Management Group), Local Government of Quezon City (Business Permits and Licensing Office), PhilHealth Insurance Corp. (Formal Sector), Securities and Exchange Commission (Company Registration and Monitoring Department), and Social Security System (NCR Operations Group).
Starting a business, which includes all procedures, time, cost, and paid-in minimum capital required for an entrepreneur to
start up or incorporate and formally operate a business will now take 16 days instead of 28 days and will involve 10 steps instead of 16 steps. This reform milestone has been made possible by (1) colocating agencies in one office; (2) setting up online SEC registration and payment, plus computerized transactions for faster, easier registration and (3) removing unnecessary or duplicate steps.
The Reform Task Team has targeted shorter transaction steps and fewer days for completion of transaction. Below is a comparison of the old process versus the new process for doing business in Quezon City:
OLD PROCESS
- Securities and Exchange Commission
Verify and reserve company name (one day, P100); Deposit paid-in minimum capital in a bank (one day); Notarize articles of incorporation and treasurer’s affidavit (one day, P500); Register company, get preregistered TIN, SSS, PhilHealth, Pag-IBIG numbers (two days).
- Quezon City Government
Get barangay clearance (one day, P500); Apply for business permit and get assessment of fees (one day); Pay annual community tax certificate, business tax and fees (six days, P500).
- Bureau of Internal Revenue
Buy special books of account (one day, P400); Apply and pay for certificate of registration and get TIN (one day); Get authority to print receipts and invoices (one day); Print receipts and invoices (seven days, P3,500); Have books of accounts and printer’s certificate of delivery stamped (one day).
- Social Security Agencies
Register new employees with Social Security System (one day); Register new employees with PhilHealth (one day); Register new
employees with Pag-IBIG (one day).
NEW PROCESS
- Securities and Exchange Commission
Online verification of company name; submit SEC registration and documentary requirements (one day); Notarize articles of incorporation and treasurer’s affidavit (one day); Pay and claim certificate of SEC registration (one day).
- Quezon City Government
Submit documents required for business-permit application at one-stop shop (one day); Pay taxes, fees and charges; claim business permit (one day).
- Bureau of Internal Revenue
Submit application and documents; pay taxes, fees and charges (one day); Print receipts and invoices (seven days, P3,500)
- Social Security Agencies
Register new employees with Social Security System (one day); Register new employees with PhilHealth (one day); Register new employees with Pag-IBIG (one day).
Similar reform milestones has been proposed by the Reform Task Force for getting electricity, which includes all procedures, cost and time required for a business to get a permanent electricity connection and supply for a warehouse. This would now involve three steps instead of four steps, and 28 days instead of 37 days. This would be made possible by the introduction of an online application system for electricity connection and the setting up of a new back-end distribution system for operation and maintenance to ensure more
reliable service.
Securing a construction permit has been streamlined from 23 steps to eight steps, and from 122 days to 36 days, made possible by the setting up of a one-stop shop with extensive backroom operations and strengthening coordination among national and local government agencies and the private sector.
Likewise, registering property will now take 20 days, instead of 35 days, made possible through computerized transactions, records management and retrieval; multiple locations to receive requests anywhere in the country; and electronic printing of documents.
It is hoped that these government initiatives can be operationalized soon as foreign companies here are relocating to our neighbors in Asia, where the cost of business is lower and starting a business is faster.
If Asia is the dragon, the Philippines cannot be its tail!