REVIEWER IN REGULATORY FRAMEWORK AND LEGAL ISSUES IN BUSINESS

CHAPTER 8
EASE OF DOING BUSINESS AND EFFICIENT
GOVERNMENT SERVICE DELIVERY ACT OF 2018
(REPUBLIC ACT NO. 11032)

o Ease of Doing Business and Efficient » Any doubt in the interpretation of these rules
Government Service Delivery Act of 2018 and regulations shall be resolved in a manner
(Republic Act No. 11032) – it is an act consistent with the policy of the state to
promoting ease of doing business and efficient promote integrity, accountability, and proper
delivery of government services. management of public affairs and public
o The Anti-Red Tape Act of 2007 (Republic Act property. Doubt will be resolved in a manner
94850) – it is an act to improve efficiency in the that will establish effective practices, aimed at
efficient turnaround of the delivery of
delivery of government service to the public by
reducing bureaucratic red tape, preventing graft government services and the prevention of
graft and corruption in government.
and corruption, and providing penalties
therefore.
SECTION 4. DEFINITION OF TERMS

All the terms in R.A. No. 9485, otherwise known as

GENERAL PROVISIONS
the “Anti-Red Tape Act of 2007”, not amended or
SECTION 2. DECLARATION OF POLICY altered by the Ease of Doing Business and Efficient
Government Service Delivery Act of 2018, shall
These rules and regulations are promulgated
retain their respective meanings in these rules and
consistent with and in furtherance of the state policy
regulations. In addition, the term:
to promote integrity and accountability in
government service, to foster proper management of o Applicant or Requesting Party – with reference
public affairs and public property, to establish to the Citizen's Charter, are those who availed
effective practices aimed at the efficient turnaround and will avail of the services provided by the
in the delivery of government services, and the concerned agency.
prevention of graft and corruption in government.
o Applications or Requests – these are formal
To maintain honesty and responsibility among public requests to an authority for access to government
officials and employees, these rules and regulations service.
hereby adopt, institutionalize and support the
o Authority – it is the Anti-Red Tape Authority
promotion of transparency in the transactions of the
created under Section 17 of R.A. No. 11032.
government with the public, encompassing a program
for the adoption of simplified requirements and o Authorization – it means a permission
procedures aimed at the reduction of red tape and to embodied in a document granted by an agency to
expedite business and non-business-related a natural or juridical person who has submitted
transactions in government. an application for government service in order to
implement or sanction specific acts or to engage
in a particular line of business.
SECTION 3. CONSTRUCTION AND » It can take the form of a permit, a clearance, a
INTERPRETATION license, a certificate of registration,
accreditation, compliance, or exemption, or any
These rules and regulations shall be construed and
similar document.
interpreted in light of the declaration of policy found
in Section 2 of Republic Act No. 11032.
o Barangay Clearance – it refers to any and all continue to operate, or to cease operation as a
documents issued by the barangay with or legitimate business.
without corresponding fees as defined in their
o Certificate – it is a document in which a fact is
ordinances relative to or in relation to the
formally attested.
issuance of business permit and building permit
by the city or municipality or any other permit as o Certificate of Fire Incidents for Fire Insurance
may be required. – it is a document issued by the Bureau of Fire
Protection (BFP) to a fire victim in lieu of the
o Bureau – it is an any principal subdivision of the
Final Investigation Report (FIR) for purposes
department performing a single major function
of insurance claims and for other lawful
or closely related functions.
applications.
o Business One Stop Shop (BOSS) – it is a single
o Citizen or Client – a persons or entities whose
common site or location, or a single online
interests and values are addressed by a particular
website or portal designated for the Business
government service and, therefore, includes not
Permit and Licensing System (BPLS) of a Local
only the citizens of the Republic of the
Government Unit (LGU) to receive and process
Philippines, but also all the stakeholders,
applications, receive payments, and issue
including but not limited to, users, beneficiaries,
approved licenses, clearances, permits, or
other government offices and agencies, and the
authorizations.
transacting public.
o Business Permit – it is a document that must be
o Citizen's Charter – it is an official document, a
secured from the city or municipal government,
service standard, or a pledge, that communicates,
usually through its Business Permits and
in simple terms, information on the services
Licensing Office (BPLO), for a business to legally
provided by the government to its citizens
operate in the locality.
pursuant to Section 6 of R.A. 11032.
o Business Registration – it refers to a set of » It describes in detail the comprehensive and
regulatory requirements that an entrepreneur uniform checklist of requirements for each type
must comply with, to start operating a business of application or request, procedure to obtain a
entity in a city or municipality, including but not particular service, person/s responsible for
limited, to the collection or preparation of a each step, maximum time to conclude the
number of documentation, submission to process, document/s to be presented by the
government authorities, approval of application applicant or requesting party, if necessary,
submitted, and receipt of a formal certificate or amount of fees, if necessary, and procedure for
certificates, licenses, permits, and similar filling complaints.
documents which confirm the eligibility to
operate as a legitimate business entity in the city o Clearance – it is a formal authorization to pursue
or municipality. some lawful purpose.

o Business-Related Transactions – it is a set of o Complete Requirements – these are all the

regulatory requirements that a business entity necessary or appropriate documents that are
must comply with to engage, operate or continue required to be submitted together with an
to operate a business, such as, but not limited to, application form by the applicant or requesting
collection or preparation of a number of party, which fully satisfy the formal and
documents, submission to national and LGU’s substantive requirements of the relevant law.
approval of application submitted, and receipt of » For processes that involve several stages with
a formal certificate or certificates, permits, different requirements per stage, it is complete
licenses which include primary and secondary, when the applicant or requesting party has
clearances and such similar authorization or fully satisfied or submitted all the requirements
documents which confer eligibility to operate,
 necessary for each stage, as enumerated in the o Fixer – it refers to any individual or a group of
Citizen's Charter of the agency. individuals, whether or not officially involved in
the operation of a government office or agency,
o Complex Transactions – it is the applications or
who has/have access to people working therein,
requests submitted by applicants or requesting
and whether or not in collusion with them,
parties of a government office which necessitate
facilitates speedy completion of transactions for
evaluation in the resolution of complicated issues
pecuniary gain or any other advantage or
by an officer or employee of said government
consideration.
office, such transactions to be determined by the
office concerned. Pecuniary gain or any other advantage or
consideration shall include, but not be limited to
o Compliance Cost Analysis – it is the analysis of the following:
the costs that are incurred by businesses or other
parties at whom regulation may be targeted in 1. Receiving gifts or anything of monetary
undertaking actions necessary to comply with value as payment for the services rendered.
the regulatory requirements, as well as the costs 2. Gaining advantage in employment or
to the government of regulatory administration promotions.
and enforcement.
3. Asking for sexual favors in exchange for any
o Concession or request.
Concession Contract/Agreement – it is a
4. Securing a loan from the applicant or
contract between the government and a private
requesting party.
individual or entity that gives the latter the right
to engage in certain activities within the o Fixing – it refers to the act that involves undue
jurisdiction of the government, subject to certain facilitation of transactions for pecuniary gain or
conditions. any other advantage or consideration.
o Council – it is the Ease of Doing Business and o Formal Complaint – it is a sworn written
Anti-Red Tape Advisory Council pursuant to statement charging a public officer or employee,
Section 19 of R.A. 11032. and/or any private person found to be colluding
with a public officer or employee, with a violation
o Electronic Signature – it is any distinctive mark,
of this act.
characteristic and/or sound in electronic form,
representing the identity of the person and o Government Owned or
attached to or logically associated with the Controlled Corporation (GOCC) – it is any
electronic data message or electronic document, agency organized as a stock or non-stock
or any methodology or procedures employed or corporation, vested with functions relating to
adopted by a person and executed or adopted by public needs whether governmental or
such person with the intention of authenticating proprietary in nature, and owned by the
or approving an electronic data message or government of the Republic of the Philippines
electronic document. directly or through its instrumentalities either
wholly or, where applicable as in the case of stock
o Employee – it refers to a person who works for
corporations, to the extent of at least a majority
an agency and occupies a position in either the
of its outstanding capital stock, provided.
first or second level whose functions are not
managerial in nature. » However, that the term “GOCC” shall also
include:
o Final Complaint – it is issued by the authority
once all investigations and processes have been 1. Government Financial Institutions (GFI)
completed and there is a finding by the authority 2. Government Instrumentalities with
that the formal complaint merits the filing of Corporate Powers (GICP) or Government
proper case/s. Corporate Entities (GCE).
o Government Service – it is the process or approval, registration, charter, membership,
transaction between applicants or requesting statutory exemption or other form of
parties and government offices or agencies permission, or regulation of the exercise of a
involving applications for any privilege, right, right or privilege.
reward, license, clearance, permit or
o Local Business Tax – it means an enforced
authorization, concession, or for any
monetary contribution, levied by the law-making
modification, renewal or extension of the
body on persons and property subject to its
enumerated applications or requests, which are
jurisdiction for the precise purpose of supporting
acted upon in the ordinary course of business of
governmental needs which shall be paid by
the agency or office concerned.
business entities within the first twenty (20)
» This includes frontline services enrolled in the days of January or of each subsequent quarter;
existing Citizen's Charter (whether or not
related to business), corresponding back end or o Local Government Units (LGU’s) – these are
support services and regulatory functions political subdivisions established by or in
related to permitting, licensing and issuance of accordance with the constitution composed of
a privilege, right, reward, clearance, provinces, cities, municipalities, barangays, and
authorization or concession. autonomous regions as provided by law.

o Highly Technical Application or Transaction – o Major Regulations – these are regulations that
it is a transaction which requires the use of have substantial, widespread impact on the
technical knowledge, specialized skills and/or economy and/or affect a large number of
training in the processing and/or evaluation businesses or communities.
thereof. o Ministerial – it is an act or duty which an officer
o Initial Complaint – it is any initial statement, in or tribunal performs in a given state of facts, in a
any form, including but not limited to verbal, prescribed manner, in obedience to the mandate
written or electronic means, received by the of a legal authority, without regard to or the
authority from the general public alleging that a exercise of his own judgment upon the propriety
public officer or employee, and/or any private or impropriety of the act done.
person found to be colluding with a public officer » A duty is ministerial only when the discharge of
or employee, for any violation related to this act. the same requires neither the exercise of
official discretion or judgment.
o Instrumentality – it is any agency of the national
government, not integrated within the o National Government Agency (NGA) – it refers
department framework vested with special to a unit of the national government.
functions or jurisdiction by law, endowed with o Non-Business-Transactions – all other
some if not all corporate powers, administering government transactions not falling under Rule
special funds, and enjoying operational 1, Section 4 (O) of these rules and regulations.
autonomy, usually through a charter.
o Office – it is any major functional unit of a
» This term includes:
department or bureau including regional offices.
1. Regulatory Agencies
» It may also refer to any position held or
2. Chartered Institutions occupied by individual persons, whose
3. GOCC functions are defined by law or regulation.
o License – it is a privilege evidenced by a o Officer – it refers to a person whose duties, not
certificate or document to perform certain acts or being of a clerical or manual nature, involves the
a series of acts that would otherwise be unlawful. exercise of discretion in the performance of the
» This includes the whole or any part of any functions of the government.
agency permit, certificate, passport, clearance,
 » It includes any government employee, agent, or o Secondary License – it is a privilege evidenced
body having authority to do an act or perform a by a certificate or document issued by a licensing
particular function in the exercise of authority permitting an applicant or requesting
governmental power. party to engage, operate or continue with the
operation of a business with ancillary, incidental
o Permit – it is a permission evidenced by a
or additional purpose.
certificate issued by the concerned government
agency or instrumentality. o Simple Transactions – it is the applications or
requests submitted by applicants or requesting
o Prescribed Processing Time – it is the period
parties of a government office or agency which
prescribed by the government agency stated in
only require ministerial actions on the part of the
their Citizen's Charter which shall not exceed
public officer or employee, or that which present
the maximum period of the three (3), seven (7),
only inconsequential issues for the resolution by
and twenty (20) working days to complete a
an officer or employee of said government office.
process, as defined by Rule 1, Section 4, PAR.
(YY) hereinafter indicated, based on the o Stage – it is a specific and distinct step in a
classification of transactions, unless otherwise defined work process which involves the
indicated in special laws or these rules. application of special or highly technical skills,
» It shall also include the period when a compliance with procedural requirements under
transaction has been extended for justifiable special laws, or compliance with obligations
reasons. pursuant to international obligations.

o Primary License – it is a privilege evidenced by o Technology-Neutral Platform – it means the

a certificate or document issued by a licensing platform should not impose preferences for or
authority permitting an applicant or requesting against specific kinds of technology.
party to engage, operate, or start a business.
o Privilege – it is a special right or advantage
COVERAGE
granted only to a particular person or group of
people. SECTION 1. COVERAGE AND SCOPE
» It is a particular and peculiar benefit or The provisions of the act and these rules and
advantage enjoyed by a person, company, or regulations shall apply to all government offices and
class, beyond the common advantages of other agencies in the Executive Department including
citizens. LGUS, GOCC and other government instrumentalities,
o Processing Time – it is the time consumed by all located in the Philippines or abroad, that provide
government offices and agencies covered under services covering business related and non-business-
Section 3 of this act from the acceptance of an transactions as defined in these rules.
application or request with complete The act and these rules and regulations shall cover
requirements, accompanying change. business related and non-business-transactions
» It shall also be used to measure management referring to permitting, licensing, and the issuance of
support in institutionalizing agency service any privilege, right, reward, clearance, authorization,
delivery reforms. or concession, including frontline services enrolled in
the existing Citizen's Charter, whether or not related
o Rewards and Incentives – it is a sum of money
to business, corresponding back end or support
or other forms of recognition conferred to
services, and regulatory functions related to
agencies, officers, and/or employees for
permitting, licensing, and the issuance of a privilege,
exemplary performance and/or initiatives.
right, reward, clearance, authorization or concession.
o Right – it is a moral or legal entitlement to have
or to obtain something or to act in a certain way. The initial list of all the permits, licenses, and
issuances pertaining to any privilege, right, reward,
clearance, authorization, or concession that shall be 1. STEPS
covered by the act and these rules shall be issued in » For each government service, departments or
accordance with Section 10 of the act. The list may be agencies shall report in detail the steps
reviewed and updated as may be necessary. necessary to complete the service or process,
including a flowchart indicating the front end
or back end.
SECTION 2. INTERNATIONAL LAWS AND 2. TRANSACTION COSTS
AGREEMENTS » These are the costs incurred by an applicant or
the act and these rules and regulations shall respect requesting party in the course of availing of a
and observe international laws, rules and regulations government service. These costs are
as well as the treaties, international, or executive categorized as follows:
agreements to which the government of the A. PRIMARY TRANSACTION COSTS OR FEES
Philippines is a signatory. » These are fees declared in the agency's
Citizen's Charter to be paid to the agency
by an applicant or requesting party for
REENGINRERING OF SYSTEMS AND PROCEDURES availing a government service.

SECTION 1. STREAMLINING OF » Examples of these fees are application fees,

GOVERNMENT SERVICES registration fees, etc.
B. OTHER TRANSACTION COSTS
All agencies which provide government services shall
» These are the other fees to be paid by an
undertake compliance cost analysis, conduct time and
applicant or requesting party to obtain
motion studies, undergo evaluation and improvement
supporting information from another
of all their government services, and reengineer the
agency in order to secure a necessary
same, if deemed necessary, to reduce bureaucratic red
primary information.
tape and processing time, and to promote efficiency
and simplicity of processes. C. SUBSTANTIAL COMPLIANCE COSTS
» These are the incremental costs, other than
Each office or agency shall designate a unit to perform
administrative costs, incurred by a
the above-mentioned functions, as well as other roles
transacting public in the course of
stated in the act. The unit shall be charged with
complying with a regulation.
conducting regulatory impact assessment of their
proposed regulations to establish that these do not » These costs may include implementation
add undue regulatory burden and cost to their costs, direct labor costs, overhead costs,
respective agencies as well as applicants or requesting equipment costs, material costs, and
parties. external service costs.
D. NUMBER OF SIGNATURES
Departments or agencies shall declare the
SECTION 2. COVERAGE AND PROCEDURES number of signatures required to complete
each service or process. However, the
The streamlining and process improvement of the
number of signatories in any document shall
government services shall cover Government to
be limited to a maximum of three (3)
Citizens (G2C), Government to Businesses (G2B),
signatures which shall represent officers
and Government to Government (G2G)
directly supervising the office or agency
transactions as cited in the agency's Citizen's
concerned.
Charter. Agencies shall submit a comprehensive list of
their respective government services to the Authority, E. NUMBER OF DOCUMENTS
which shall include: » For each government service, departments
or agencies shall indicate the total number
 of documents necessary to complete the The whole of government approach entails the review
transaction cycle. The number of and harmonization of existing and applicable laws,
documents shall refer to the documents regulations, issuances, and policies to make legal
required from the applicant or requesting interpretations consistent across agencies.
party, the type of documents, and the
» Inter-agency reviews shall be adopted for
number of copies for each document to be
horizontal integration or end to end processing in
used or required to complete or deliver the
the delivery of government services.
government service to the applicant or
requesting party. The reengineering process shall include an
interagency review of key permitting and licensing
F. Government agencies must initiate a review
for each of their government services or laws, rules, and issuances, with the end in view of
eliminating undue regulatory burden from the
processes through any or all of the following:
transacting public.
o Reduction in the number of signatures to
not more than three (3). The authority, in coordination with National
o Simplification of application forms or Economic Development Authority (NEDA),
documentary requirements. Department of Budget and Management (DBM),
and Civil Service Commission (CSC), shall be
o Automation or computerization of the authorized to issue further guidelines in
processes or services. implementing the whole of government approach in
o Reduction in the processing time. reengineering and streamlining government services.

o Reduction in costs.

There shall also be a review of the location of the SECTION 4. REGULATORY MANAGEMENT SYSTEM
offices providing these government services and the
Pursuant to the act, the authority shall develop and
feasibility of establishing one stop shops.
establish a Regulatory Management System (RMS)
to improve regulatory management towards the
improvement of regulatory quality.
SECTION 3. ADOPTION OF WHOLE OF
GOVERNMENT APPROACH IN » The RMS shall be comprised of, but not limited to,
REENGINEERING GOVERNMENT SERVICES a regulatory management framework,
institutional arrangements, a regulatory policy
Pursuant to the functions of the authority in Section cycle, and enforcement and compliance
17 (A) (B) and (F) of the act: strategies.
o To implement and oversee a national policy on The authority, by itself or in partnership with other
Anti-Red Tape and Ease of Doing Business. institutions, shall provide and conduct training
o To implement various Ease of Doing Business programs that offer tools needed to promote, good
and Anti-Red Tape reform initiatives aimed at regulatory governance and to raise awareness on new
improving the ranking of the Philippines in world disciplines and promote a new culture among
competitiveness surveys. regulators and regulates.

o To recommend policies, processes and systems to The authority, in consultation with appropriate
improve regulatory management to increase the agencies, shall prepare regulatory management
productivity, efficiency, and effectiveness of manuals for all government agencies and/or
business permitting and licensing agencies, the instrumentalities and LGUs. The manuals issued by
authority shall adopt the whole of government the authority shall include the proportionality rules
approach in the streamlining of government and threshold parameters.
services.
SECTION 5. REGULATORY IMPACT ASSESSMENT regulation and all the necessary
(RIA) documentations used in conducting the
research for the proposed and existing
Pursuant to the mandate of the authority under this
regulation.
act, and to ensure the compliance with the obligations
set forth, the authority requires all agencies to conduct 2. RIA REQUIREMENT
a Regulatory Impact Assessment (RIA) for the » All government agencies covered under
purpose of reviewing, simplifying, modifying, Section 3 of the act shall conduct a RIA. The
modernizing regulations, laws, issuances, and agencies shall conduct consultations to ensure
ordinances to reduce regulatory burden and cost. the quality of a regulation. The regulatory
agency shall properly disseminate the result of
» All agencies shall conduct a RIA for all its the RIA on a particular regulation as a feedback
proposed major regulations subject to
and feedforward mechanism.
proportionality rules.
3. SUBMISSION OF RIS TO THE AUTHORITY
» It shall likewise apply to existing regulations or
» RIS submitted by any agency shall be reviewed
regulatory changes that are outdated, redundant,
by the authority.
and adds undue regulatory burden to the
transacting public. » Meetings shall be organized, as deemed
necessary by the authority, for the purpose of
Each agency shall conduct a RIA and draft the reviewing the results of the RIA.
Regulatory Impact Statement (RIS).
4. APPROVAL OF RIS BY THE AUTHORITY
» The RIS is a document prepared by a regulatory » The authority shall approve or disapprove the
body before a new regulation is introduced, or an RIS, based on the results of the review.
existing regulation is modified or repealed.
5. PROVIDE RIA TO CONGRESS
» The RIS assists in decision making by presenting
» The authority, if it deems necessary, may
the RIA in a clear, concise, and structured
forward the RIA and the results of its review to
framework.
congress, for appropriate action.
The authority shall review the quality of a RIA in order
to avoid the overlapping of regulations across
agencies and to reduce regulatory burden and cost. SECTION 7. REVIEW, IMPACT ANALYSIS, AND
REPEAL OF REGULATIONS
When necessary, a proposed regulation may undergo
pilot implementation to assess regulatory impact Within six (6) months from the effectivity of the rules,
subject to the clearance of heads of agencies. all offices, agencies, and LGU’s covered by Section 3
of the act, shall review and harmonize their existing
regulations relative to business related and non-
SECTION 6. NOTIFICATION AND business-transactions and repeal unnecessary and
REGULATIONS REVIEW PROCESS redundant policies to lessen regulatory burdens,
subject to the corresponding guidelines issued by the
1. COMPULSORY NOTIFICATION authority.
» All government agencies covered under
Section 3 of the act shall notify the authority of In addition, LGU’s, in coordination with the
every formulation, modification, and repeal of Department of the Interior and Local Government
regulations. (DILG), shall scrutinize and classify existing
ordinances according to prescribed dates of
» The submission of an intent to formulate,
inspection for regulation purposes and those related
modify, or repeal a regulation to the authority
to the issuance of business permits and licenses. The
by a regulatory agency shall include the
classification is intended to synchronize the periods
rationale for the proposed and existing
for payment of local business taxes and for payments tarpaulins, standees, or any other readable materials
related to the issuance of business permits. that could be easily understood by the public, posted
at the main entrance of offices or at the most
The authority, motu proprio or upon receipt of a
conspicuous place, in the respective websites, and in
complaint that a regulation is outdated, redundant, or
the form of published materials written either in
adds undue regulatory burden to the transacting
English, Filipino, or in the local dialect, that detail:
public, may exercise its power of review in accordance
with the act and recommend the repeal of the 1. A COMPREHENSIVE AND UNIFORM
reviewed law, executive issuance, and/or local CHECKLIST OF REQUIREMENTS FOR EACH
ordinance, if warranted. TYPE OF APPLICATION OR REQUEST
A. The checklist of requirements must be
complete, exhaustive, and specific.
CITIZEN'S CHARTER B. In the case of LGU’s the checklist for similar
transactions shall contain a uniform set of
SECTION 1. CITIZEN'S CHARTER
documentary requirements, based on
o Citizen's Charter – it is an official document that guidelines to be issued by the DILG in
communicates, in simple terms, the service coordination with the authority.
standards or pledge of an agency or service office
2. THE PROCEDURE TO OBTAIN A PARTICULAR
of the frontline services being provided to its
SERVICE
citizens.
» For each government service, agencies shall
» It describes the step-by-step procedure for indicate in the Citizen's Charter the steps
availing a particular service, the person necessary to complete the process.
responsible for each step, the documents
» Agencies shall further submit to the authority a
needed to be submitted and the fees to be paid,
step-by-step process, including the duration of
if any.
the action per step.
The Citizen's Charter of each agency has a dual
3. THE PERSON/S RESPONSIBLE FOR EACH STEP
purpose:
» The agency shall make available to the public
o It shall be the basis for establishing the list of assigned personnel who will be
accountability and for recognizing good responsible for each step. If the Citizen's
performance to grant rewards and incentives. Charter is in the form of an interactive or an
electronic billboard, the names of the personnel
Administrative and criminal liability shall arise only and/or their official designation shall be
upon failure, without due cause, to render government identified.
service within the prescribed processing time of three
(3) days for simple transactions, seven (7) days for 4. THE MAXIMUM TIME TO CONCLUDE THE
complex transactions, and twenty (20) working days PROCESS
for highly technical transactions or for applications or » The maximum time to conclude the process
requests involving activities which pose danger to shall be expressed in working days, hours, or
public health, public safety, public morals, public minutes.
policy, as stated in Section 9 of this act. 5. THE DOCUMENT/S TO BE PRESENTED BY THE
APPLICANT OR REQUESTING PARTY
» Agencies shall indicate where each
SECTION 2. FORM AND CONTENT OF THE documentary requirement can be requested. If
CITIZEN'S CHARTER the documentary requirement is not internal to
the agency, agencies shall indicate the type of
The Citizen's Charter shall be in information
copy (Ex.: Certified True Copy, Original or
billboards such as touchscreen interactive
Photocopy) and the number of copies needed.
information kiosks, electronic billboards, posters,
6. THE AMOUNT OF FEES AND WHERE THE limited to those enumerated in the Citizen's
PAYMENT SHALL BE GIVEN Charter.
7. THE PROCEDURE FOR FILING COMPLAINTS IN » In informing the applicant or requesting party
RELATION TO THE APPLICATION OR of the deficiency, the receiving officer or
REQUEST employee shall already identify or enumerate
» The names and contact numbers of heads of all the missing requirements to make it easier
offices involved in the processing of the for the requesting party to complete their
application or request and the contact application or request.
information of the Presidential Complaints The government office or agency shall not process
Center, Complaints Action Center of the deficient or incomplete applications or requests, and
Authority, Contact Center ng Bayan (CCB), shall only process an application or request if it is
and the feedback facility of the CSC, where complete.
applicants or requesting parties can provide
feedback on quality of government service, » In case the application or request is deficient,
shall be included. the processing time as provided under the act
and these rules shall only commence once the
applicant or requesting party has rectified the
ACCESSING GOVERNMENT SERVICES deficiency.

SECTION 1. ACCESSING GOVERNMENT SERVICES For processes that involve several stages with
corresponding prescribed requirements, the
In order to provide an effective delivery of processing time for each stage commences on the date
government services, government officers and or time that the applicant has satisfactorily completed
employees are expected to adopt and implement the the requirements for the previous stage and has
provisions of these rules and other rules that may be submitted all the requirements for the subsequent
issued in the future which aim to further improve the stage being applied for.
systems and processes of government agencies. These
include accepting, processing, approving, or denying 3. The receiving officer or employee shall assign a
of applications or requests. unique identification number to an application or
request, which shall serve as the identifying
number for all subsequent transactions between
the government and the applicant or requesting
SECTION 2. ACCEPTANCE OF APPLICATIONS
AND REQUESTS party regarding the subject application or
request.
1. All responsible officers or employees shall accept
4. The receiving officer or employee shall issue to
written applications, requests, and/or
the applicant an acknowledgement receipt
documents being submitted by applicants or
signifying acceptance of a complete application
requesting parties of the offices or agencies,
or request, containing the unique identification
subject to the succeeding provisions hereof.
number stamped therein as reference for all
2. The receiving officer or employee shall subsequent transactions, the seal of the agency,
preliminarily assess the completeness of the the name of the responsible officer or employee,
application or request and its supporting his or her unit and designation, and the date and
documents vis-à-vis the checklist of time of receipt of such request or application.
requirements of the agency to ensure a more
For online application or request, the agency shall
expeditious action on the application or request.
provide a response containing the unique
» They shall immediately inform the applicant or identification number as reference for all subsequent
requesting party of any deficiency in the transactions, the seal of the agency, the name of the
accompanying requirements, which shall be responsible officer or employee, his or her unit and
designation, and the date and time of receipt of such » The government officer or employee who
request or application. used such means of communication must be
able to show proof of such action.
3. In case of highly technical transactions that
SECTION 3. ACTION OF OFFICES involve activities such as, but not limited to,
1. All applications or requests for government research, field trials, scientific methodology,
service submitted shall be acted upon by the inter-government actions, the government
assigned officer or employee within the agency or office may apply the multi-stage system
prescribed processing time stated in the subject to the approval of the authority.
Citizen's Charter which shall not be longer than » Provided that the total processing time for all
three (3) working days in the case of simple concerned agencies or offices shall not exceed
transactions and seven (7) working days in the forty (40) days.
case of complex transactions from the date the
Government agencies and offices, with an approved
request or complete application or request was
multi-stage system by the authority, that receive an
received.
application or transaction requiring permits from
For applications or requests involving activities which other government agencies or offices, shall process
pose danger to public health, public safety, public such application without awaiting the action of the
morals, public policy, and highly technical latter agency. The agency or office shall act on the
transactions, the prescribed processing time shall in presumption that the relevant permit from other
no case be longer than twenty (20) working days or government agencies had already been issued.
as determined by the government agency or
The presumption of prior approval shall be disputable
instrumentality concerned, whichever is shorter.
and subject to post-audit confirmation. In case of
2. The maximum time prescribed in Section 9 (B1) failure during post-audit, the issued permit or license
of the act may be extended only once for the same shall be revoked.
number of days, which shall be indicated in the
4. If the application or request for license, clearance,
Citizen's Charter.
permit, certification or authorization shall
A. Prior to the lapse of the processing time, the require the approval of the local Sangguniang
office or agency concerned shall notify the Bayan, Sangguniang Panlungsod, or the
applicant or requesting party in writing of the Sangguniang Panlalawigan, as the case may be,
reason for the extension and final date of the Sanggunian concerned shall be given a
release of the government service/s requested. period of forty-five (45) working days to act on
» Such written notification shall be signed by the application or request, which can be extended
the applicant to serve as proof of notice. for another twenty (20) working days. If the
» The signature of the applicants or requesting local Sanggunian concerned has denied the
parties may be in the form of electronic application or request, the reason for the denial,
signatures or scanned signatures. as well as the remedial measures that may be
taken by the applicant shall be cited by the
B. In the event that securing a written notification concerned Sanggunian.
and acknowledgment from the applicant is not
feasible, the government officer or employee 5. In cases where the cause of delay is due to force
must exhaust all means of communication majeure or natural or man-made disasters,
available including, but not limited to, which result to damage or destruction of
electronic mail and/or SMS (Short Message documents, and/or system failure of the
Service) to ensure that the applicant or the computerized or automatic processing, the
requesting party is properly notified. prescribed processing times mandated in this act
 shall be suspended and appropriate adjustments implementation of the streamlined procedures
shall be made. for the issuance of business licenses, barangay
» The responsible government official or clearances, permits, or authorizations.
employee shall notify the applicant or
requesting party in writing and through other
means of communication of the suspension of SECTION 2. SINGLE OR
the processing time without any delay. UNIFIED BUSINESS APPLICATION FORM
» In addition, in case of system failure of o Single or Unified Business Application Form –
computerized or automatic processing, the it is a single common document used by a
head of agency shall certify to such fact, which business owner in applying for business permit
shall be posted in a conspicuous place and in the city or municipality, that contains the
manner within the premises of the information and approvals needed to complete
government agency or office. the registration process and facilitates exchange
of information among city or municipality and
6. No application or request shall be returned to the
NGAS.
applicant or requesting party without
appropriate action. The appropriate action is o This single or unified business application form
either to approve or disapprove or deny the shall be used in processing new applications for
application or request for access to government business permits and business renewals which
service. consolidates all the information of the applicant
A. In case an application or request is or requesting party needed by various local
disapproved, the officer or employee who government departments, such as, but not
rendered the decision shall send such notice limited to, the local taxes and clearances, building
under these rules to the applicant or requesting clearance, sanitary permit, zoning clearance, and
party within the prescribed processing time, other specific LGU’s requirements, as the case
stating therein the reason for the disapproval. may be, including the fire safety inspection
certificate from the Bureau of Fire Protection
B. A finding by a competent authority of a
(BFP).
violation of any or other laws by the applicant
or requesting party shall constitute a valid o The authority, in coordination with concerned
ground for its disapproval, without prejudice to agencies, shall develop the single or unified
other grounds provided in this act or other business application form and this shall be made
pertinent-laws. available online using technology-neutral
platforms such as, but not limited to, the Central
Business Portal or the city or municipality's
STREAMLINED PROCEDURES FOR THE ISSUANCE website and various channels for dissemination.
OF LOCAL BUSINESS LICENSES, CLEARANCES, » The single or unified business application form
PERMITS, CERTIFICATIONS OR AUTHORIZATIONS shall be in “fillable format”, which can be filled
up electronically and/or printed for submission.
SECTION 1. ISSUANCE OF A JOINT
MEMORANDUM CIRCULAR o Hard copies of the unified forms shall be made
available at all times in designated areas of the
Within three (3) months from the effectivity of these
concerned office and/or agency, in all Negosyo
rules, the authority, together with the DILG, DICT,
Centers and in the offices of LGU’s.
and DTI shall issue a Joint Memorandum Circular
(JMC) to further implement Section 11 of the act. o The authority, in coordination with the
concerned agencies, shall be responsible for
» Thereafter, the LGUs through their local
regularly updating and maintaining the unified
Sanggunian shall issue the appropriate order or
business application form.
ordinance to adopt the JMS, for proper
 o The DICT shall issue the guidelines on the » The JMC shall also include a standard queuing
process flow of filing applications or requests system, which shall be applied by all LGU’s.
through the Central Business Portal, and its
6. LGU’s shall implement colocation of the
acceptance, processing and feedback mechanism
treasurer's office, assessor's office, business
by concerned agencies.
permits and licensing office, zoning office,
including the BFP, and other relevant city or
municipality offices or departments, among
SECTION 3. ESTABLISHMENT OF A BUSINESS ONE others, engaged in starting a business, dealing
STOP SHOP (BOSS) – NEGOSYO CENTER with construction permits, and such other
1. A one stop business facilitation service, pertinent services as may be offered to the public.
hereinafter referred to as the BOSS shall be
established within the cities or municipalities'
Negosyo Center as provided for under R.A. No. SECTION 4. ELECTRONIC BOSS
10644, otherwise known as the “Go Negosyo
1. Within a period of three (3) years upon the
Act”.
effectivity of the act, all cities and municipalities
2. Negosyo Centers are convergence points for the are mandated to automate their business
NGAS, LGU’s, and the private sector to promote permitting and licensing system or set up an
Ease of Doing Business, and ensure access to electronic BOSS for more efficient business
services for Micro, Small, and Medium registration processes.
Enterprises (MSMEs) within their jurisdiction.
2. Cities or municipalities with electronic BOSS
3. In case there is no Negosyo Center in the city or shall develop electronic versions of licenses,
municipality, Section 3 of R.A. 10644 and its IRR clearances, permits, certifications or
(DTI Department Administrative Order No. authorizations with the same level of authority
14-5, Series of 2014) specifically Section 5, and containing the electronic signature of the
Rule 3 mandates that in applicable area, the authorized officer/s and seal of the agency or
existing SME Centers and National Economic LGU’s, which may be printed by businesses in the
Research and Business Assistance Center convenience of their offices.
(NERBAC), administered by the DTI in
3. The DICT, DTI, and DILG shall issue a joint
provinces, cities and municipalities, if any, may
operational guideline on the provision of
be converted to Negosyo Center.
technical assistance in the planning and
» Existing regional NERBACS or SME Centers may implementation of the business permit licensing
be utilized as Negosyo Center for the provinces system.
and cities where they are physically located.
4. Provincial governments are encouraged to assist
In the absence of regional NERBACS or SME Centers, 5th and 6th class municipalities in the
a BOSS shall be established by the concerned LGU’s implementation of this section.
within a designated area in its city or municipality hall.

4. The BOSS shall serve as the city or municipality's

business permitting and licensing system to SECTION 5. NEW BUSINESS REGISTRATION AND
receive and process manual and/or electronic APPLICATIONS FOR RENEWAL
submission of application for license, clearance, The requirements for the business registration and
permit or authorization. renewal, in addition to the application form, shall be
5. There shall be a queuing mechanism in the BOSS enumerated in the JMC and shall be uniform to all
to better manage the flow of applications among LGU’s.
the LGU’s departments receiving and processing
applications.
SECTION 6. ISSUANCE OF OTHER PERMITS OR SECTION 2. PENALTY FOR THE FIRST OFFENSE
CLEARANCES TOGETHER WITH THE BUSINESS
Administrative liability with six (6) months
PERMIT
suspension.
To lessen the transaction requirements, other local
» Provided, however, that in the case of fixing
clearances such as, but not limited to, sanitary
and/or collusion with fixers under Section 21
permits, environmental and agricultural clearances
(H), the penalty and liability under Section 22
shall be issued together with the business permit,
(B) of the act shall apply.
subject to post-audit by the concerned LGU’s.

SECTION 3. PENALTY FOR THE SECOND OFFENSE

SECTION 7. VALIDITY PERIOD OF
BUSINESS PERMITS Administrative liability and criminal liability of
dismissal from the service, perpetual disqualification
Business permits shall be valid for a period of one (1)
from holding public office and forfeiture of retirement
year.
benefits and imprisonment of one (1) year to six (6)
years with a fine of not less than five hundred
thousand pesos (₱500,000) but not more than two
VIOLATIONS, JURISDICTION, PENALTIES,
million pesos (₱ 2,000,000).
AND IMMUNITY
Dismissal from service shall include accessory
SECTION 1. VIOLATIONS UNDER THE ACT
penalties such as, but not limited to, perpetual
The following shall constitute violations of the act and disqualification from holding public office and
these rules and regulations: forfeiture of retirement benefits, except terminal leave
benefits and personal contributions to retirement
1. Refusal to accept application or request with
benefits systems such as the Government Service
complete requirements being submitted by an
Insurance System (GSIS), Retirement and Benefits
applicant or requesting party without due cause.
Administration Service (RBAS), or other equivalent
2. Imposition of additional requirements other than retirement benefits system.
those listed in the Citizen's Charter.
Criminal liability shall also be incurred through the
3. Imposition of additional costs not reflected in the commission of bribery, extortion, or when the
Citizen's Charter. violation was done deliberately and maliciously to
solicit favor in cash or in kind.
4. Failure to give the applicant or requesting party a
written notice on the disapproval of an » In such cases, the pertinent provisions of the
application or request. Revised Penal Code and other special laws shall
5. Failure to render government services within the apply.
prescribed processing time on any application
and/or request without due cause.
SECTION 4. CUMULATIVE NATURE OF OFFENSES
6. Failure to attend to applicants or requesting
parties who are within the premises of the office The cumulative reckoning of offenses shall be based on
or agency concerned prior to the end of official the nature of the prohibited act or omission, such that:
working hours and during lunch break.
1. If the same prohibited act or omission is
7. Failure or refusal to issue official receipts. committed more than once, the first act or
omission shall constitute the first offense, the
8. Fixing and/or collusion with fixers in
second act or omission shall be deemed the
consideration of economic and/or other gain or
second offense, and so forth.
advantage.
 2. If different prohibited acts and omissions are
committed more than once, all such acts and
omissions shall be considered first offense.

SECTION 5. PENALTY FOR FIXING

In case of fixing and/or collusion with fixers under

Section 21 (H) of the act, the penalty provided for the
second offense shall be imposed.

SECTION 6. ADMINISTRATIVE LIABILITY IN

RELATION TO OTHER CHARGES

The finding of administrative liability under the act

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 enumerated in Section 21 of the
act.

» Moreover, discharge from administrative liability

shall not be a bar to civil or criminal prosecution,
and the dismissal of the administrative complaint
will not necessarily result in the dismissal of the
civil or criminal complaint filed.

In such cases, the pertinent provisions of the Revised

Penal Code and other pertinent laws, rules or
regulations, shall apply.