LAGUNA PROVINCE, Philippines – Effective April 15, entrepreneurs only need to go through 6 steps and take 8 days to start a business in the country from the previous 16 steps and 34 days – a reform expected to improve the standing of the Philippines in the “Ease of Doing Business” competitiveness rankings measured annually by the World Bank (WB) and the International Finance Corporation (IFC).
Also, the number of payments for social service contributions for Philippine Health Insurance Corporation (PhilHealth), Home Development Mutual Fund (Pag-IBIG Fund), and Social Security System (SSS), has been reduced from 36 to 13.
The 10 government agencies that have signed an understanding on April 14 to implement the simplified process of starting a business in the country are the Department of Finance (DOF), Department of Trade and Industry (DTI), Department of Interior and Local Government (DILG), Local Government of Quezon City (QC-LGU), Bureau of Internal Revenue (BIR), Securities and Exchange Commission (SEC), Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), Home Development Mutual Fund (Pag-IBIG Fund), and the National Competitiveness Council (NCC).
The reform is a result of the continuing progress under the National Competitiveness Council’s (NCC) Gameplan 3.0 which streamlines government processes across 10 transactions in the conduct of business particularly in establishing new corporations, partnerships, and non-stock corporations.
The 10 transactions related to the “Ease of Doing Business” and monitored by IFC are: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency.
The package of reforms includes merging several steps together to create single-window applications; removal of outdated procedures; introduction of enhanced one-stop-shop procedures in local government units; and coordination and partnership across numerous government agencies.
DTI Secretary Gregory L. Domingo and Chairman of the NCC said that the reforms will make business registration faster, simpler, more efficient, and more transparent, and that DTI is committed to sustaining the momentum to achieve improved competitiveness and encourage inclusive growth.
The move is expected to dramatically improve the country’s competitiveness rankings.
According to Guillermo M. Luz, NCC Co-Chairman, the reforms will be initially implemented in Metro Manila and will be adopted gradually by cities and municipalities in the countryside.
The changes are hoped to be reflected in the World Bank’s Ease of Doing Business report that will come out in September or October this year.
The Philippines ranked 95th out of 189 countries in the Ease of Doing Business Report 2015 released in October 2014, up 13 places from the previous list.
It also rose by 7 notches in the IFC’s Global Competitiveness Index 2014-2015 to 52nd out of 144 economies, from 59th out of 148 previously.
DTI: Reforms underway for a simpler, faster business start- up
