Rep.Rene L. Relampagos has underscored the importance in fast tracking the procedure in applying to open business in the country in order for small and medium enterprises (SMEs) to flourish and generate jobs for millions of Filipinos.
“Securing business permits in the Philippines is so cumbersome, time-consuming and expensive. To help create a business-friendly environment for SMEs and potential entrepreneurs, we need to streamline and simplify processes in permitting and licensing. With this, we can make business registration methods expedient, convenient and efficient, reducing bureaucratic red tape,” Cong. Relampagos stressed.
House Bill No. 2171 or the “Fast Business Permit Act”, co-authored by Cong. Relampagos, seeks to promote the ease of doing business in the country by mandating automatic approval of business permit applications after thirty (30) days inaction and extending its validity period for a period of one (1) year from the date of issuance instead of the current practice of setting the expiration at the end of the fiscal year when it was filed.
The World Bank in its 2016 Report on Doing Business ranked the Philippines only in 103rdplace (out of 185 economies) for Ease of Doing Business. One of the reasons for this is the difficulty of in obtaining business permits and licenses to set up businesses as well as the short validity period which becomes burdensome for the business community to be renewing frequently.
Said measure aims to increase participation in and promote the growth of business by providing for the automatic approval and release of business permits upon the lapse of thirty days inaction, provided that all necessary documents have been submitted.
“Local government units have to shorten the process of obtaining permits, shrink the number of requirements and signatories, and price them in a way mandated by law to encourage investments, stimulate enterprise activity, spur economic growth and create job opportunities for many Filipinos,” Cong. Relampagos concluded.