Guidelines for Processing Business Permits, Related Clearances and Licenses in All Cities and Municipalities

April 13, 2021

ARTA-DTI-DILG-DICT JOINT MEMORANDUM CIRCULAR NO. 01, S. 2021

GUIDELINES FOR PROCESSING BUSINESS PERMITS, RELATED CLEARANCES AND LICENSES IN ALL CITIES AND MUNICIPALITIES

1. BACKGROUND

1.1 Republic Act No. 11032 ("RA 11032"), otherwise known as the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, was signed into law on 18 May 2018, strengthening the former Republic Act No. 9485 or the Anti-Red Tape Act of 2007. To this end, it specifically mandated local government units ("LGUs") and the Bureau of Fire Protection ("BFP") to streamline their respective procedures and authorized the Anti-Red Tape Authority ("ARTA") to recommend policies, processes and systems to improve regulatory management to increase the productivity, efficiency and effectiveness of business permitting and licensing agencies, and provide technical assistance and advisory opinions in the review of existing procedures to ensure timely delivery of services to the public.

1.2 Section 1 of Rule IX of the Implementing Rules and Regulations ("IRR") of RA 11032 directs ARTA together with the Department of the Interior and Local Government ("DILG"), the Department of Information and Communication Technology ("DICT") and the Department of Trade and Industry ("DTI") to issue a Joint Memorandum Circular ("JMC") to further implement the streamlining requirement for LGUs under Section 11 of RA 11032. Thus, there is a need to issue a new JMC to align the previous JMCs on business permits and licenses with RA 11032. HTcADC

2. PURPOSE

This JMC is issued to achieve the following objectives:

2.1 To guide LGUs and other related agencies in improving the business climate, and in complying with the requirements of RA 11032 and its IRR, in relation to the issuance of business permits and related clearances, licenses and authorizations.

2.2 To promote efficiency in business registration procedures and effective service delivery of LGUs and related agencies by ensuring that applicable regulatory procedures and requirements do not unnecessarily constrain the start and continued operation of businesses.

2.3 To promote a holistic approach in the reform of business registration procedures and the adoption of innovative solutions to increase the productivity and effectiveness of LGUs and other related agencies, as they perform their respective mandates in regulating businesses.

3. LEGAL BASIS

3.1 Republic Act No. 7160 or the Local Government Code of 1991 ("RA 7160")

3.1.1 Section 16 which provides that LGUs shall pursue undertakings to enhance economic prosperity, among other concerns.

3.1.2 Section 455 (b) (3) (iv) and Section 444 (b) (3) (iv) mandate the City and Municipal Mayors to issue licenses and permits and to suspend and revoke the same for any violation of the conditions upon which these permits and licenses have been issued.

3.1.3 Section 132 provides the Sanggunian of the concerned LGU with the power to impose a tax, fee or charge or to generate revenue through the appropriate ordinance.

3.1.4 Sections 134, 142, 151 and 152 allow cities and municipalities to impose and collect taxes, fees and charges on businesses and occupations or on the practic of any profession.

3.1.5 Section 167 mandates that all local taxes, fees and charges should be paid within the first 20 days of January.

3.2 Electronic Commerce Act of 2000 ("RA 8792")

3.2.1 Section 27, which deals with the use of electronic data messages, electronic documents and electronic signatures, specifically mandates: (a) the issuance of permits, licenses, or approval in the form of electronic data messages or electronic document; and (b) the requirement and/or acceptance of payments, and issuance of receipts acknowledging such payments, through systems using electronic data messages or electronic documents.

3.3 Republic Act No. 10173 or the Data Privacy Act of 2012 ("RA 10173")

3.3.1 Section 11 states the general data privacy principles and enumerates the manner by which personal information should be treated or handled.

3.3.2 Section 12 provides the criteria when the processing of personal information is permitted or considered lawful.

3.3.3 Section 13 enumerates the cases where sensitive personal information and privileged information may be processed.

3.3.4 Section 20 enumerates the security or safety measures to be observed in handling or processing personal information or sensitive personal information.

3.3.5 Section 23 provides the requirements relating to access by agency personnel to sensitive information.

3.4 Ease of Doing Business and Efficient Government Service Delivery Act of 2018 ("RA 11032")

3.4.1 Section 5 mandates all government offices, including LGUs that provide government services to regularly undertake cost compliance analysis, time and motion studies and undergo evaluation and improvements of their transaction systems to reduce red tape and adhere to standards in processing time.

3.4.2 Section 7 mandates all government agencies, including LGUs, to adopt a zero-contact policy and to limit contact between an applicant and the government official to the preliminary assessment of requests and evaluation of sufficiency of submitted requirements. When the DICT completes the web-based software enabled business registration system under Section 26 of RA 11032, all transactions shall be coursed through this system.

3.4.3 Section 9 sets standards for accessing government services, such as establishing protocols for accepting applications, setting processing time for government transactions, limiting the number of signatories, directing the development of electronic versions of licenses, clearances and permits, and adopting appropriate working schedules, among others.

3.4.4 Section 10 mandates the automatic approval of applications for, or extension of licenses, clearances, permits and authorizations if such have not been approved by a government office within the prescribed processing time subject to meeting certain conditions.

3.4.5 Section 11 prescribes specifically for LGUs, the use of a unified form, the organization of a physical or electronic business one-stop shop ("BOSS"), automation of business permitting and licensing systems ("BPLS"), integration of barangay clearances with the LGU business permitting system, one-time release of ancillary permits together with the business permit, and granting the option to renew business permits either within the first month of the year or on the anniversary dates of issuance of the business permit. It likewise directs the DICT to make available to LGUs the software for the computerization of the business permit and licensing system.

3.4.6 Section 12 adopts streamlined procedures for getting the Fire Safety and Inspection Certificate ("FSIC") that includes prescribed processing times and other directives for the Bureau of Fire Protection ("BFP") to comply with.

3.4.7 Section 13 mandates the establishment, maintenance, and operation of the Central Business Portal or a central system to receive applications and capture application data involving business-related transactions, including primary and secondary licenses, and business clearances, permits, certifications or authorizations issued by the LGUs. It may also provide links to the online registration or application systems established by National Government Agencies ("NGAs").

3.4.8 Section 14 provides that, at the local government level, the city or municipal Business Permit and Licensing Office ("BPLO") shall not require the same documents already provided by an applicant or requesting party to the local government departments in connection with other business-related licenses, clearances, permits, certifications or authorizations such as, but not limited to, Tax Clearance, Certificate of Occupancy permit and Barangay Clearance.

3.4.9 Section 26 directs the DICT to automate business related transactions by (a) developing the necessary software and technology-neutral platforms; (b) securing infrastructure that is web-based and accessible to the public, in coordination with other concerned agencies; and (c) ensuring that all 3rd, 4th, 5th and 6th class municipalities are provided with appropriate equipment and connectivity, information and communications technology ("ICT") platform, training and capability building to ensure LGU compliance with RA 11032.

3.5 JMC No. 2019-001, Series of 2019, or The Implementing Rules and Regulations of Republic Act No. 11032, otherwise known as the "Ease of Doing Business and Efficient Government Service Delivery Act of 2018"

3.5.1 Rule II provides general provisions such as the legal definition of terms pertaining to ease of doing business and efficient government service delivery.

3.5.2 Rule III provides clarity on the streamlining of government services, with an emphasis that streamlining and process improvement of government services shall cover Government-to-Citizens ("G2C"), Government-to-Businesses ("G2B") and Government-to-Government ("G2G") transactions as cited in the agency's Citizen's Charter; adoption of whole-of-government approach; regulatory management system, regulatory impact assessment; notifications and regulations review process.

3.5.3 Rule V provides for the zero-contact policy to be implemented by all government agencies, including LGUs. It also directs that the DICT shall, within 1 year from effectivity, create a web-based software enabled business registration system that is acceptable to the public and from which all transactions will be coursed through.

3.5.4 Rule IX provides for the streamlined procedures for the issuance of local business licenses, clearances, permits, certifications or authorizations, including issuance of other ancillary permits together with the business permit such as unified business application form; establishment of a BOSS; sanitary permits, environmental, etc.; FSIC for new application and renewal of business permit, co-location of local BFP with the BPLO, online electronic mechanism of the BFP, among others.

3.6 DILG-DTI JMC No. 01, Series of 2010 dated 06 August 2010 (Guidelines in Implementing the Standards in Processing Business Permits and Licenses in All Cities and Municipalities) and DILG-DTI-DICT JMC No. 01-16 dated 30 August 2016 (Revised Standards in Processing Business Permits and Licenses in All Cities and Municipalities) were issued to disseminate service standards in processing business permits and licenses in all cities and municipalities, shifting to automation as a critical element for compliance of LGUs.

3.7 The following circulars issued by ARTA, DILG and the Department of Finance (DOF) to implement some of the provisions of RA 11032 and other activities affecting business registration: CAIHTE

3.7.1 DILG Memorandum Circular 2018-214 dated December 27, 2018 re: "Reengineering of LGU Systems and Procedures."

3.7.2 DILG-DOF JMC dated May 17, 2019 re: "Guidelines for the Review Adjustment, Setting and/or Adoption of Reasonable Regulatory Fees, Charges of Local Government Units."

3.7.3 DILG Memorandum Circular No. 2019-177 dated October 17, 2019 re: "Guidelines in the Integration of the Issuance of Barangay Clearance in the Permitting Processes of Cities and Municipalities."

3.7.4 DILG-ARTA JMC 2019-01 dated December 10, 2019 re: "Guidelines on the Regulatory Reform for LGUs Pursuant to the Ease of Doing Business & Effective Government Service Delivery Act of 2018."

3.7.5 ARTA Memorandum Circular 2020-01, series of 2020, dated January 8, 2020 re: "Requiring Risk Profiling and Removing Locational Clearance as a Requirement for Initial Application/Renewal of Business Permits in Commercial Establishment Located in Shopping Malls and Central Business District."

3.7.6 ARTA Memorandum Circular 2020-02, series of 2020, dated February 14, 2020 re: "Issuance of Order of Automatic Approval or Automatic Extension for Pending Transactions beyond the Prescribed Processing Time of 3-7-20 Working Days."

3.7.7 ARTA Memorandum Circular 2020-07, series of 2020, dated February 14, 2020 re: Guidelines on the Designation of a Committee on Anti-Red Tape (CART) in the Agencies Concerned in Compliance with R.A. 11032, Otherwise Known as the "Ease of Doing Business and Efficient Government Service Delivery Act of 2018" and Its Implementing Rules and Regulations (IRR).

3.7.8 ARTA-DICT-DILG-Department of Human Settlements and Urban Development ("DHSUD")-Department of Public Works and Highways ("DPWH")-Civil Aviation Authority of the Philippines ("CAAP")-Department of Health ("DOH")-Food and Drug Administration ("FDA") JMC No. 01, s. 2020 re: "Streamlined Guidelines for the Issuance of Permits, Licenses and Certificates for the Construction of Shared Passive Telecommunications Tower Infrastructure."

3.8 Directives to implement the RA 11469, which are still operational:

3.8.1 Executive Order No. 112, series of 2020 re: "Omnibus Guidelines on the Implementation of Community Quarantine" identified different quarantine conditions and provided a set of operational guidelines for the different sectors.

3.8.2 DTI-Department of Labor and Employment (DOLE) Joint Interim Guidelines on Workplace Prevention and Control of COVID-19 provided advice on measures which employers can adopt to reduce the transmission of COVID-19 in the workplace.

3.8.3 ARTA Memorandum Circular No. 2020-06 re: "Guidelines on the Issuance and/or Reinstitution of Permits and Licenses under the New Normal."

3.9 Commission on Audit ("COA") Circular 2013-007 re: "Guidelines in the Use of Electronic Official Receipts to Acknowledge Collection of Income and Other Receipts of Government."

3.10 Bureau of Local Government Finance ("BLGF") Memorandum Circular No. 1-2020 re: "Updated Reminders in the Assessment of the Local Business Tax, Registration and Renewal of Business Permits and Licenses and the Imposition of Local Taxes, Fees and Charges."

4. SCOPE/COVERAGE

This JMC covers all Cities and Municipalities (henceforth referred to as "Local Government Units" ("LGUs") in this document), Regional and Provincial Offices of the DILG, DTI, DICT, and ARTA, the BFP, and all other agencies involved in the business permitting and licensing process of the LGUs in view of the general welfare of their inhabitants as it regulates the business operations of individuals, corporations, partnerships, and cooperatives.

5. DEFINITION OF TERMS

For purposes of these guidelines, the following definitions apply, unless otherwise stated:

5.1 ARTA Platform — refers to an online software or application which the LGUs may utilize, as approved by ARTA, for their respective BPLS as well as for other government services being offered to the public.

5.2 Barangay Clearance — refers to any and all documents issued by the barangay with or without corresponding fees as defined in their ordinances relative to or in relation to the issuance of business permit by the LGU or any other permit as may be required. 1

5.3 Barangay Micro Business Enterprise ("BMBE") — refers to any business entity or enterprise engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading and services, whose total assets including those arising from loans but exclusive of the land on which the particular business entity's office, plant and equipment are situated, shall not be more than Three Million Pesos (P3,000,000.00). 2

5.4 Business — means trade or commercial activity regularly engaged in as a means of livelihood or with a view to profit. 3

5.5 Business One-Stop Shop ("BOSS") — refers to a single common site or location (physical BOSS), or a single online website or portal (electronic BOSS) which accepts and processes applications for business permits, issues tax bill, receives payments and releases permits, clearances and other related documents or where the applicant can print the same. The physical BOSS usually has a front end where the public can transact business with officials and a backend where different local regulatory offices and the BFP are located.

5.6 Business Permit (also referred to as "Mayor's Permit") — is a document that must be secured from the city or municipal government, usually through its BPLO, for a business to legally operate in a locality. 4

5.7 Business Registration — refers to a set of regulatory requirements that an entrepreneur must comply with to start operating a business entity in an LGU, including but not limited to, the collection or preparation of a number of documentation, submission to government authorities, approval of application submitted, and receipt of formal certificate or certificates, licenses, permits, and similar documents which confirm the eligibility to operate as a legitimate business entity in the city or municipality. 5

5.8 Digital Signature — refers to an electronic signature consisting of a transformation of an electronic document or an electronic data message using an asymmetric or public cryptosystem such that a person having the initial untransformed electronic document and the signer's public key can accurately determine: (a) whether the transformation was created using the private key that corresponds to the signer's public key; and (b) whether the initial electronic document that had been altered after the transformation was made. 6

5.9 Electronic Business One-Stop Shop ("eBOSS") — refers to an online portal, or a website, including the DICT's iBPLS, the ARTA Platform, and other similar online business permitting systems or platforms of LGUs, with the functionalities and specifications provided in Section 8.3.1.

5.10 Electronic Document — refers to information or the representation of information, data, figures, symbols or other modes of written expression, described or however represented, by which a right is established or an obligation extinguished, or by which a fact may be proved and affirmed, which is received, recorded, transmitted, stored, processed, retrieved or produced electronically. 7

5.11 Electronic Signature — refers to any distinctive mark, characteristic and/or sound in electronic form, representing the identity of a person and attached to, or logically associated with, the electronic data message or electronic document or any methodology or procedures employed or adopted by a person and executed or adopted by such person with the intention of authenticating or approving an electronic data message or electronic document. 8

5.12 Fire Safety Inspection Certificate — is a document issued by the BFP as a prerequisite for the grant of Certificate of Occupancy, Business Permit, and other licenses or permits being issued by other government agencies upon determining that the required fire safety construction are in place, and fire protective and/or warning system are properly installed in accordance with the approved plans and specifications in compliance with RA 9514 and its IRR. 9

5.13 Government Service — refers to the process or transaction between applicants or requesting parties and government offices or agencies involving applications for any privilege, right, reward, license, clearance, permit or authorization, concession, or for any modification, renewal or extension of the enumerated applications or requests, which are acted upon in the ordinary course of business of the agency or office concerned. This includes frontline services enrolled in the existing Citizen's Charter (whether or not related to business), corresponding back-end/support services and regulatory functions related to permitting, licensing and issuance of a privilege, right, reward, clearance, authorization or concession. 10

5.14 Integrated Business Permits and Licensing System ("iBPLS") — refers to a cloud-based system developed by DICT, which includes the Electronic Business Permits and Licensing System ("eBPLS"), that allows the online processing of business permits, building permits, certificate of occupancy, barangay clearance, and other related licenses, clearances, permits, certifications or authorizations.

5.15 Joint Inspection Team ("JIT") — refers to a composite team with members coming from various LGU departments/offices implementing business-related regulations and local units of national agencies created and/or authorized by the LGU to conduct joint inspection of business enterprises instead of individual/separate inspection. 11

5.16 Minimum Public Health Standards — refers to guidelines set by the DOH under Administrative Order No. 2020-015, as well as sector-relevant guidelines issued by national government agencies as authorized by the Inter-Agency Task Force for the Management of Emerging Infectious Diseases ("IATF-EID"), to aid all sectors in all settings to implement non-pharmaceutical interventions, which refer to public health measures that do not involve vaccines, medications or other pharmaceutical interventions, which individuals and communities can carry out in order to reduce transmission rates, contact rates and the duration of infectiousness of individuals in the population to mitigate COVID-19. 12

5.17 Post-registration — refers to the stage or phase of the business permitting process where an applicant is requested to secure permits, clearances, and authorizations after the Business Permit application has been issued. aScITE

5.18 Pre-registration — refers to the phase of the business permitting process where an applicant secures the documentary requirements such as permits, clearances, and authorizations required to be submitted together with the Business Permit application.

5.19 Processing Time — refers to the time consumed by all government offices and agencies under Section 3 of RA 11032 from the acceptance of an application or request with complete requirements, accompanying documents, and payment of fees, up to the issuance of certification or such similar documents approving or disapproving an application or request. 13

5.20 Signatory — refers to the approving authority whose signature/s are affixed in the various business-related documents such as the Business Permit, Sanitary Permit, and other business-related permits.

5.21 Step — refers to any procedure taken by an applicant as part of the process of applying for and/or processing business permits and licenses, whether physical or online/virtual, requiring an action on the part of the office/unit to which the applicant has presented or communicated with, leading to the issuance of a business permit. 14

5.22 Single or Unified Business Application Form — refers to a single common document to be filled up by a business owner in applying for business and ancillary permits, that contains the information needed by various local government departments, in processing local taxes and clearances, sanitary permit, zoning clearance, and other specific LGU requirements including the FSIC from the BFP. 15

5.23 Whole of Government Approach — refers to the ability of government agencies to integrate systems and processes to provide ease of access and use by citizens resulting in an 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 G2C, G2B, G2G, and designating points of service in accordance with the life cycle of citizens and businesses, respectively. 16

5.24 Zero-Contact Policy — refers to the mandated level of interactions between public officials and employees with an applicant or requesting party under RA 11032, where a government officer or employee is prohibited from having any contact, in any manner, with such applicant or requesting party, except during the preliminary assessment and evaluation of sufficiency of submitted requirements, unless such interaction is strictly necessary for the processing of the request or application. 17

6. PERSONS AND ESTABLISHMENTS REQUIRING BUSINESS PERMITS

6.1 A Business Permit is issued for the purpose of regulating any business or undertaking within the jurisdiction of the LGU, which is essentially an exercise of police power of the State within the contemplation of the general welfare clause of the Local Government Code. It shall be required by the LGUs from the following:

a) an individual, partnership, corporation or cooperative regularly engaged in trade or commercial activity as a means of livelihood or with a view to profit in the city or municipality;

b) persons legally authorized to practice their profession ("professionals") and maintain or operate a clinic or office, exclusively for the exercise of their profession, at no cost from the concerned LGU, during the registration of office/clinic and renewal thereof, subject to a duly enacted local ordinance.

6.2. Exemptions from securing business permits. Business Permits shall not be required from:

6.2.1 professionals who, in the practice of their profession, have paid professional taxes in the provinces, city or the lone municipality within the Metropolitan Manila Area where he/she practices her profession. However, as stipulated under the provisions of DOF-LFC No. 001-2019 dated 12 June 2021, the professional who maintains an office or clinic for his/her practice shall be issued a business permit at no cost;

6.2.2 individuals or those registered in the Securities and Exchange Commission ("SEC") as a One Person Corporation ("OPC") who provides personal services that does not fall under the exercise of a profession; provided further, that the individual does not occupy a permanent work or retail space, whether inside the residence or in any commercial space;

6.2.3 service contractors providing temporary or outsourced services outside the LGU where it registered its principal office or branch; and

6.2.4 BMBEs pursuant to RA 9178 and RA 10644.

7. POLICY DIRECTIONS

LGUs shall follow the guiding principles below in streamlining the processing of business permits and other related permits, clearances and authorizations:

7.1 Review their current processes in issuing Business Permits and other ancillary permits and clearances consistent with Section 5 of RA 11032 following the principles below and the required health protocols issued by DOH and other agencies, such us but not limited to physical distancing, and limited contact between clients and officials:

a) Consider the end-to-end processes that cover not only the issuance of the Business Permit by the BPLO but also the issuance of ancillary permits such as the Sanitation Permit by the City/Municipal Health Office, Environmental Clearance by the Environmental Office, Tax Declaration by the Assessor's Office, Barangay Business Clearance by the barangays, and the FSIC by BFP;

b) Retain only such steps, procedures and requirements that are necessary to allow LGUs to fulfill their legal mandate and the policy objectives of their enabling law;

c) Remove redundant and unduly burdensome processes, procedures and requirements;

d) Adopt processes that are the least costly to the transacting public, while giving due regard to the LGUs legal mandate and the policy objectives of its enabling law;

e) Observe the whole-of-government approach which promotes data sharing, simultaneous assessment of application by LGU departments and the BFP, the one-time assessment and payment of business taxes and fees and organization of joint inspection teams.

7.2 Update their respective Citizen's Charters relative to the issuance of business permits, licenses, and related clearances, compliant with ARTA Memorandum Circular No. 2019-002 and ARTA Memorandum Circular No. 2019-002-A, noting that any document, cost or procedure not in the Citizen's Charter shall not be required from the applicant/requesting party. The Citizen's Charter of each LGU shall be updated in accordance with the requirements, steps, cost, and processing time provided in this JMC. DETACa

7.3 Maximize the use of technology as the best way to implement a zero-contact policy through the setting up of the eBOSS described in Section 8.3.1.

7.4 Comply with the relevant provisions of RA 10173 and related rules and regulations, in the collection and processing of personal and sensitive personal information from data subjects and sharing this information to authorized offices of LGUs and other government agencies relating to the processing of business permits and related clearances and licenses.

7.5 Forge data sharing arrangements/agreements within the different offices or units in the LGU.

8. STANDARDS AND GUIDELINES

All LGUs shall implement the standards and guidelines provided below:

8.1 Unified Application Form

8.1.1 LGUs shall provide a single or unified application form ("UAF") for business registration, applicable for both new applications and renewals, which consolidates all the information needed by the BPLO, the Planning and Development Office, the Health Office, the Treasurer's Office, the Environment Office, the BFP and other offices involved in business registration. This unified form shall serve as the application form for the Business Permit, the FSIC for business, the Locational Clearance or its equivalent, the Sanitary Permit and the Environmental Permit (if required). The standard form is provided in Annex 1 of this JMC.

a) The UAF shall be assigned a unique identification number, which will be used as the identifying number for all subsequent transactions between the LGU and the applicant, in relation to the said application.

b) The UAF shall be posted online or in the LGU website using technology-neutral platforms. It shall be in an "editable" format which can be filled up electronically, saved and/or printed.

c) Hard copies of the UAF shall always be made freely available in designated areas in the city/municipal hall or NGA offices involved in business registration.

d) LGUs shall not require the notarization of the application forms both for new and renewal applications.

e) The LGU shall establish data-sharing mechanism that will allow the transmission of the information from the UAF to all relevant offices of the city or municipality and the BFP, among others, to facilitate simultaneous processing of the application; Provided, that only the specific information required by an office or department shall be shared; Provided, further, that the sharing of personal and sensitive personal information shall comply with the provisions of the RA 10173 (Data Privacy Act of 2012); Provided finally, that if data and information will be shared online and stored in electronic databases, the LGU, in coordination with the DICT, shall adopt the necessary policies, processes and procedures to ensure that their data centers and other computerized systems are effectively protected against cyber-threats and unauthorized access from attackers with malicious intent, as provided in Section 7.4 above.

8.1.2 For LGUs with an online system for the submission of application form and documentary requirements where the applicants are differentiated into those applying for a new business permit and renewals, there may be two types of forms — one for new applications and another for renewals. Sample application forms that can be used are presented in Annexes 2 and 3.

8.2 Standard Documentary Requirements.

8.2.1 LGUs shall limit the documentary requirements for business permit applications to be submitted together with the UAF to those listed below:

New Business Permit Applications

a) Proof of registration, i.e., Certificate of Registration:

i) Issued by the SEC for all kinds of corporations;

ii) Issued by the Cooperative Development Authority for cooperatives;

iii) Issued by DTI for sole proprietor;

b) Proof of right of applicant to use location as business address, which may include any of the following:

i) if owned, proof of ownership — Transfer Certificate of Title or Tax Declaration

ii) if not owned by the applicant — Contract of Lease, Memorandum of Agreement, or written consent of property owner

c) Location plan or sketch of the location, clearly showing where business premises is located

d) Fire Safety Inspection Certificate for Occupancy, valid in the last 9 months (requirement of BFP)

e) For applicants with valid FSIC for occupancy, Affidavit of Undertaking that there had been no substantial changes made on the building/establishment given the FSIC (requirement of BFP)

Business Permit Renewal Applications

a) Proof of annual gross receipts which may include:

i) audited financial statements ("AFS") or unaudited AFS for those who are not required to file AFS with the BIR; or

ii) sworn declaration of gross sales or receipts; or

iii) income tax returns.

8.2.2 In addition to those listed in 8.2.1, LGUs may require clearances, permits, authorizations and certifications secured from NGAs in compliance to certain laws as listed in Annex 4.

8.2.3 LGUs are reminded of the following:

a) Barangay clearances related to business permit applications shall be integrated and processed by the BPLO and such need not be secured separately in the barangays where the establishment is located.

b) On Locational Clearance, ARTA circular 2020-01 mandates that: HEITAD

i) Establishments located in malls and in the central business districts (CBD) are no longer required to get a locational clearance following ARTA Circular 2020-01 during the initial application for a Business Permit: Provided that the mall where the business activity will be established is in conformance with the zoning regulations of LGUs; and

ii) LGUs shall not require applicants to get a Locational Clearance during the renewal of the Business Permit since compliance with zoning regulations has already been established during the initial application for Business Permit.

c) The Community Tax Certificate ("CTC") or Cedula shall not be required to be separately secured by the applicant as part of the documentary requirement for business registration but shall be integrated in the tax bill for the Business Permit and issued together with said Business Permit. It shall be secured in the place of residence of the individual or in the place where the principal office of a juridical entity is located.

d) LGUs shall require a Sanitary Permit only for businesses covered in the Sanitation Code of the Philippines which are listed in Annex 5.

e) LGUs shall not require the Health Certificate of employees for the issuance of the Sanitary Permit of a business establishment unless such are required in the Sanitation Code of the Philippines.

f) LGUs shall not require the physical or electronic submission of documents that are available or have been issued by other departments/offices of the same LGU, such as but not limited to, Tax Declaration, Certificate of Occupancy, copies of previous years' Business Permit, Locational Clearance, Sanitary Permit, Official Receipts or Tax Bills and Barangay Business Clearance.

8.3 Business One-Stop Shops. LGUs shall set-up a one-stop business facilitation service, also known as a Business One-Stop Shop ("BOSS") to receive and process manual and/or electronic submission of applications for licenses, clearance, permit or authorization, release tax bills, accept payments and release permits and other documents related to the application for a Business Permit.

8.3.1 Electronic BOSS

a) Consistent with ARTA's Zero-Contact Policy and the health protocols mandated by the government, LGUs are mandated to automate their BPLS or set up an eBOSS not later than 17 June 2021. An eBOSS, shall have the following functionalities:

i) Accept online or electronic submission of business permit applications using the UAF which an applicant can fill up or edit;

ii) Issue electronically the tax bill/order of payment which indicates the amount that the applicant has to pay covering the business tax, fees and charges;

iii) Accept online payments using online payment facilities and other payment gateways or alternative digital payment options;

iv) Issue electronic versions of permits, licenses or clearances, which may be printed by businesses at the convenience of their offices, and which have the same level of authority as hard copies usually issued by LGUs;

v) Provide a gateway facility linked with courier services to allow physical delivery of permits, clearances, and other documents issued in relation to a business registration in cases where the applicant prefers to receive the hard copy of the permit;

Annex 6 provides an illustration of the process flow for an eBOSS.

b) LGUs shall ensure that a customer support system is in place at least during working hours to receive and address the inquiries and concerns of applicants about the eBOSS system that are technical in nature, such as, but not limited to, glitches, errors, and sign in difficulties.

c) LGUs, which currently have no eBOSS are encouraged to utilize the DICT's iBPLS directly, or through the ARTA Platform. The DICT and ARTA will respectively provide training and maintenance support for local governments relative to the iBPLS or ARTA Platform. The non-exclusivity of all the eBOSS platforms to onboard relevant features shall be observed.

d) An online complaints and feedback mechanism related to business permitting shall be integrated or made available in the eBOSS of the LGUs.

8.3.2 Physical BOSS

Pending the establishment of a fully automated end-to-end business registration system described in Section 8.3.1. LGUs shall set-up a one-stop business facilitation service, or a physical BOSS to receive and process manual and/or electronic submission of applications for licenses, clearance, permit or authorization. 18 LGUs shall locate the BOSS in the Negosyo Centers or in its absence or insufficiency, in a designated area within the city/municipal hall. 19

a) A physical BOSS shall have a front-end section for client interface and backroom operations where offices involved in the business registration process are co-located and/or electronically linked. The front-end shall have the following features:

i) a queuing system that would differentiate applicants (a) with single and multiple applications; (b) those to be served in special lanes such as senior citizens, persons with disabilities, and (c) those with specific transactions such a payment of the tax bill only or claiming of permits/documents;

ii) transaction windows conforming to the 3-step procedure in getting a Business Permit, e.g., submission of the application form, getting the tax order of payment and paying in one window, and claiming the Business Permit in another window; and

iii) a public assistance desk to attend to concerns of the transacting public.

b) At the back-end of the BOSS, all offices that issue business-related permits shall be co-located, such as but not limited to, the Planning and Development Office, the Treasurer's Office, the Health Office, the Environment Office and the BFP. The co-located offices shall simultaneously assess the business permit application and provide immediate feedback to the BPLO on the action taken on the application. For approved applications, the preparation of the tax bill, the printing of the permits and their consolidation for release to the applicant are usually part of the backroom operations at the BOSS.

c) The physical layout and elements in setting up the BOSS shall conform to the guidelines issued by the government in relation to COVID-19 20 and the recommendations in the manual of the DTI-DILG JMC No. 1, series of 2016. Annex 7 provides an illustration of a physical lay-out of the BOSS.

d) To prevent the build-up of applicants at the BOSS, an appointment system where applicants are requested to come at designated dates and time shall be devised so that physical distancing and other health protocols can be implemented.

8.4 Standard Steps

8.4.1 A fully automated online business registration system, with features described in Section 8.3.1. defining an eBOSS, will be the gold standard that the LGUs shall implement. The eBOSS, which assumes that all procedures — from submission, securing of the tax bill, payment and issuance of permits — can be completed online entails a one-step process, that is in line with the zero-contact policy stipulated in Section 7 of RA 11032.

8.4.2 To implement the eBOSS, the following conditions are necessary: aDSIHc

a) The use of the UAF for all permits related to the Business Permit, one-time submission of all documentary requirements for all related permits including those for the Barangay Business Clearance and the BFP's FSIC for Business, one-time assessment of business tax, fees and charges, one-time payment and one-time release of documents shall be implemented as part of eBOSS.

b) LGUs, especially the highly urbanized cities, shall forge a Memorandum of Agreement with the Bureau of Fire Protection, that will allow them to assess and collect fire code-related fees, on the condition that the fees to be collected shall be remitted to the BFP within an agreed period of time.

c) LGUs shall implement DILG Memorandum Circular 2019-177 in which the application, issuance of and payment for the Barangay Business Clearance shall be integrated in the business permit application process of the LGU wherein collection of barangay fees shall be included in the tax bill/assessment of the applicant for a Business Permit.

8.4.3 LGUs transitioning to the eBOSS shall ensure that the number of steps or procedures an applicant goes through in relation to his/her business registration shall not exceed four steps, for both new applications and business permit renewals. To comply with the health protocols set by the government, LGUs shall set up an appointment system as part of the transition to the eBOSS where applicants will be requested to go to the BOSS or the city hall at a designated date and time. An illustrative example of the standard four steps, from the applicant's perspective, is given below:

a) Step 1: Setting an appointment for the submission of the application;

b) Step 2: Submission of the application form and documentary requirements;

c) Step 3: Receiving the tax order of payment or tax bill based on the assessment of the business tax, fees and charges; and

d) Step 4: Payment of the tax bill and receipt of the business and related permits.

Annex 8 provides an illustrative flow chart of the above 4-step procedure.

8.4.4 In their transition to the fully automated business registration system or eBOSS, LGUs are encouraged to adopt a partly manual and partly electronic/online system that will reduce the number of steps for processing business permits to less than 4. Some examples of these are shown below which assumes that the applicant needs to secure an appointment before going to the BOSS/BPLO:

a) Electronic submission of application (email, fax or SMS) and transmission of the tax bill with manual payment at the Business One Stop Shop (BOSS) for those without online payment facilities (Annex 9);

b) Electronic submission of application (email, fax or SMS), physical distribution of the tax bill, payment and claiming of the permits at the BOSS (Annex 10).

LGUs may adopt such other measures and facilities to further improve on the illustrative examples above with the goal of transitioning into a fully automated system described in Section 8.3.1.

8.4.5 In processing new business permit applications, the following guidelines shall be followed for both the eBOSS and the transition processes:

a) The BFP shall implement Section 12 (b) of RA 11032 in which the FSIC for occupancy which have a validity period of nine (9) months shall be sufficient as basis for the issuance of the FSIC for business, which shall have a validity of one year.

b) For those without valid FSIC for occupancy, the BFP shall conduct inspection of the applicant's premises and provide the LGUs with the action taken on the application within 3 days, ensuring that the applicant shall receive feedback not later than 3 days after the application has been submitted.

c) LGUs shall issue ancillary permits, such as the Locational Clearance, Sanitary Permit and Environmental Clearance, together with the Business Permit with necessary inspections connected with these permits to be conducted after the permits have been issued as part of the year-round annual inspections. Positive findings during the annual inspections shall be basis for possible revocation of the permits.

8.4.6 For applications for business permit renewals, the following guidelines shall be implemented:

a) The BFP and the offices providing ancillary permits, such as but not limited to, the Planning and Development Office, Treasurer's office, Health Office and the Environmental Office shall transmit to the BPLO a "Negative List" by December 1 prior to the renewal period, containing the names of registered businesses that have violated local ordinances or laws and failed to correct these and/or paid the fines and penalties imposed as of November 30 of each year, after being notified in writing of such violation and the actions necessary to be compliant. Alternatively, a "Positive List" may be submitted by concerned offices containing registered businesses that are fully compliant with the regulatory offices and the BFP during the period covered.

b) Registered businesses not included in the Negative List or those in the Positive List shall be issued a Business Permit together with the ancillary permits without the need for inspection upon payment of business taxes, fees and charges.

c) To prevent the usual long queue during the renewal period which is usually scheduled in the first 20 days of January, LGUs are encouraged to:

i) Set up the eBOSS during renewal period;

ii) Allow the renewal of business permits during anniversary dates as suggested in Section 11 (e) of RA 11032;

iii) Extend the renewal period up to the end of the month or longer or allow early renewal of business permits even before January 1 to avoid crowding at the City Hall;

iv) Establish nodal or alternative physical business registration centers other than those in the city/municipal halls, which will act as "BOSS" that will accept business permit applications, assess taxes and fees, receive payment and release documents, especially in CBDs or in areas where the bulk of establishments are located;

v) Use kiosks that can process renewals to be located at the city hall and other areas where businesses are mostly located;

vi) Provide incentives to registered establishments that will (a) use online or electronic means of submitting the application form and/or using online payment facilities; or (b) apply before the usual renewal period in January; and

vii) Consider a longer validity period for a Business Permit with corresponding adjustments in business tax, fees and charges with some modifications in related permits such as Sanitary Permits where welfare considerations are critical.

8.4.7 Upon submission by the applicant of the filled-up UAF together with the complete documentary requirements, the LGU shall assess and issue the consolidated assessment of all taxes, fees, and charges due for the issuance of the business permit, including payment of community tax, barangay clearance fees and the charges due to the BFP and other offices relating to inspections for the business as well as courier costs for the delivery of the business permit and ancillary permits.

8.4.8 The LGU shall receive the one-time payment of all related taxes, fees and charges from the applicant either via (1) an online payment facility from a single portal; or (2) a payment gateway to accept digital payments (credit cards, debit cards, prepaid/e-money, and/or bank transfer); or (3) alternative digital payment options through service agreements with BSP-regulated private and/or public Payment System Providers or Electronic Payment and Collection System Providers, 21 such as but not limited to EGovPay, Land Bank Link.Biz, Gcash, PayMaya, Coins.Ph, DragonPay, Omni-Pay, BancNet, for digital payment acceptance and electronic Official Receipt ("eOR") provision, and restrict over-the-counter payments to highly exceptional cases. ATICcS

8.4.9 In the immediate short-term, applicants shall provide direct payment to the LGU's designated account for such payments after confirming the LGU's capability for matching payments and invoices. 22 For quick access to digital payments, all Government Agencies shall place in the home page of their website, a hyperlink and/or a Quick Response ("QR") Code to their digital payment platforms. 23

8.4.10 Upon reconciliation by the Cashier or Authorized Official of the validity of the electronic payment, a separate electronic official receipt ("eOR") or a scanned version of the written official receipt shall be issued by the LGU and be transmitted electronically to the payee through any digital messaging platforms, as the LGU may designate. The official receipt shall be issued in accordance with the requirements of Commission on Audit Circular No. 2013-007 (Guidelines in the Use of Electronic Official Receipts to Acknowledge Collection of Income and Other Receipts of Government).

8.4.11 Upon completion of payment and submission of complete requirements, the LGU shall issue the business permit and all ancillary permits and clearances, such as the barangay clearance, subject to post-audit measures such as inspections.

8.4.12 The LGU shall send the electronic version of licenses, clearances and permits through the preferred digital messaging platforms, as the LGU may designate. In the interim, the business permit and ancillary permits may be sent via courier to the applicant. Personal pick-up of the documents shall be pre-scheduled and shall only be done under exceptional circumstances.

8.5 Standard Processing Time

8.5.1 The application for a new Business Permit and for business renewals, which are considered simple transactions, shall be acted upon by LGUs within three (3) working days. Processing time is defined as "the time consumed by all government offices and agencies from the acceptance of an application or request with complete requirements, accompanying documents, and payment of fees, up to the issuance of certification or such similar documents approving or disapproving an application or request." Should the applicant opt not to pay the tax bill immediately, the tracking of processing time for the transaction shall stop and resumes once the applicant pays the bill at the BOSS or any of the designated payment facilities of the LGU up to the time that the Business Permit and other related clearances/permits are received by the applicant.

8.5.2 This maximum time shall be extended only once for the same number of days and the BPLO shall notify the applicant in writing for the reason for the extension and final date of release of the permits, with the notice being properly acknowledged in writing by the applicant.

8.5.3 If the LGU fails to approve or disapprove a business permit application with complete documentary requirements and with the required business tax, fees and charges fully paid within the prescribed processing time, said application is automatically approved with the acknowledgement receipt and the official receipt for payment having the same force and effect as the permit.

8.5.4 For new business permit applications requiring inspections from the BFP or any of the offices/departments of LGUs right after the submission of the application, such inspections shall be conducted so that the required permits can be issued within the prescribed processing time of three (3) working days. The BPLO shall institute measures to fast-track inspections such as but not limited to, forming joint inspection teams composed of regulatory offices including the BFP and providing logistical support for the conduct of inspections.

8.5.5 For business renewals, the BFP, in cases where an application needs to be inspected immediately after an application has been submitted, shall present the FSIC to the BPLO within three (3) working days from application. If the BFP fails to furnish the LGU with an FSIC or inform the same through the negative/positive list, within 3 working days, from application, the business entity shall be deemed to have a valid FSIC for business which shall be the basis for the renewal of the business permit.

8.6 Signatories

8.6.1 The number of signatories to the Business Permit and related ancillary permits such as but not limited to the Locational Clearance, Sanitary Permit, the Barangay Business Clearance and the FSIC for Business shall be limited to a maximum of three (3) signatures representing the officers directly supervising the office/department concerned responsible for the permit/clearance. In case the authorized signatory is on official business or on official leave, an alternate should be designated as signatory.

8.6.2 Since eBOSS is the gold standard of processing business permits, LGUs shall use authenticated digital signatures or electronic signatures in the business permit that will be issued to the applicant. LGUs are directed to avail of and recognize the use of the Philippine National Public Key Infrastructure (PNPKI) of the DICT, which provides a more secure manner of digitally signing official documents or utilize other secured available means of digitally signing official documents such as offered by private entities, in accordance with issuances by the DICT.

8.6.3 The head of the LGU shall issue an appropriate inter-office memorandum stating the rules on controls for the use of the digital signatures as well as proper identification and delegation of authority to alternate signatories in the absence of the regular signatory.

9. COMPLEMENTARY GUIDELINES

9.1 Inspections

9.1.1 In conducting inspections, LGUs shall be guided by the following:

a) Inspections shall be conducted with prior notice to the business permit applicant at the time the business permit application is submitted or by separate written notice so that business owners may exercise their right to be assisted by the appropriate professionals, such as an engineer, during the conduct of the inspection.

b) Check lists shall be used during inspections to ensure that there is no arbitrariness in the parameters used in the conduct of the inspection in evaluating the compliance of the business permit applicant.

c) Applicants shall be informed of the inspection findings immediately after the conduct of the actual site inspection.

d) The business permit applicant should be specifically provided a reasonable period within which to remedy or address any positive finding during inspection.

9.1.2 To limit the face-to-face interaction between the applicant and the LGU officials, joint inspections teams ("JITs") shall be organized to conduct inspection of the applicant's offices/premises, in relation to an application for new business permit or renewal.

9.1.3 For post-permitting inspections, the DILG-DTI-DICT JMC No. 1, series of 2016 recommends two types of JITs that may be organized:

a) Disclosure Verification JIT composed of the BPLO and the Treasurer's Office, to verify information declared in the UAF; and

b) a Safety JIT composed of the BFP, Building Official, Engineering Office, Environmental Office and/or the Health Office to check safety standards prescribed in local ordinances and national laws.

9.1.4 To address the lack of personnel of inspection departments and agencies compared to the number of establishments, LGUs are encouraged to use a system of risk classification of various businesses and adopt an inspection prioritization scheme on this basis, in close coordination with the Department of Health for Sanitary Permits, the BFP for the Fire Safety Inspection Certificate for the issuance of uniform guidelines on risk inspection for specific sectors.

9.1.5 The LGU regulatory offices, concerned national government agencies and barangays shall submit their respective negative lists to the BPLO on a regular basis as may be required, but no later than the first of December every year, to give LGUs reasonable time to evaluate the businesses applying for renewal of their business permits during the renewal period. ETHIDa

9.2 Fees and Charges

9.2.1 Except for new businesses of printing and publication and those enjoying a franchise, newly started businesses shall not be liable for the payment of initial local business tax based on capital investment.

9.2.2 LGUs shall refrain from imposing redundant fees such as Fire Code Inspection Fees which is already being collected by the BFP as mandated under the Fire Code of the Philippines.

9.2.3 Upon the effectivity of this JMC, LGUs, through their Local Chief Executives, shall immediately setup the Regulatory Reform Team/Committee on Anti-Red Tape ("CART") to undertake said review and if necessary, amend their respective tax ordinances to comply with the provisions of this JMC and DILG-DOF JMC 2019-01.

9.3 Single Application for Lease of Multiple Real Properties

LGUs shall simplify the requirements relative to any permit or license to be issued for an applicant engaged in the business of leasing multiple real properties within the same city or municipality. Such applicant shall be required to file a single application only for all of the properties subject of the business and shall simply submit a list of all such properties, indicating the amount of income derived therein. There shall likewise be a single assessment of the taxes, fees, or charges to be paid for all the properties.

9.4 Data Sharing

9.4.1 The DICT and ARTA, shall enable data sharing of registration information between the SEC, DTI, or the Cooperative Development Authority ("CDA") on one hand, and the LGUs on the other to eliminate the requirement for applicants to physically submit SEC Registration and Articles of Incorporation, Certificate of Business Name Registration, or Cooperative Certificate of Registration, as the case may be, to the LGUs.

9.4.2 The DICT shall issue minimum standards that will ensure the interoperability of LGUs' BPLS to the Central Business Portal ("CBP") if they are not using the DICT iBPLS.

9.4.3 Registration information needed by LGUs from SEC, DTI, or CDA shall be made available to them through the CBP or through the Philippine Business Databank ("PBD"). The DICT shall issue guidelines to LGUs for their access to the data stored in the PBD.

9.4.4 The DICT shall ensure that automation/relevant information systems developed by national government agencies/bureaus/offices such as but not limited to the BFP will be seamlessly integrated into the LGU's eBOSS or BPLS in the transition, without resulting in additional steps and requirements to the applicant. In this regard, the ARTA, the DILG, and other concerned agencies of government shall exercise their respective mandates in assisting the DICT to achieve this purpose.

10. ROLES AND RESPONSIBILITIES

10.1 Oversight Committee on Business Permits Reforms

10.1.1 The committee shall be composed of the Presidential Adviser on Streamlining of Government Processes as Chair, and the ARTA, DILG, DTI, DICT, and DOF-BLGF as members.

10.1.2 The Committee shall have the following functions:

a) Provide the policy direction in implementing this circular;

b) Monitor the implementation of the standards and policies contained in this circular;

c) Coordinate the various initiatives of government, the private sector and the development community on BPLS reforms; and

d) Coordinate the capacity building programs for cities and municipalities in implementing the reforms.

10.2 Anti-Red Tape Authority

10.2.1 The ARTA, shall coordinate the adoption and scaling up of the standards set in this JMC.

10.2.2 ARTA, together with the DILG, DICT, and DTI, shall organize an Oversight Committee that shall provide policy direction and monitor the implementation of the standards and policies contained in this JMC.

10.2.3 The ARTA, with the Oversight Committee, shall develop a manual that will provide more details on measures to assist LGUs in complying with the standards and policies in business registration.

10.2.4 The ARTA will coordinate training programs for LGUs with other government agencies like the Local Government Academy or the Development Academy of the Philippines, among others, or private sector training providers on the standards set in the JMC.

10.2.5 The ARTA and DICT, through the CBP or the PBD, shall act as catalysts to enable SEC and DTI to share registration data on corporations to LGUs to eliminate the requirement for applicants to physically submit hard copies of their SEC registration certificates, articles of incorporation and DTI's Business Name Registration.

10.2.6 The ARTA, in partnership with DILG, DICT and DTI, shall mount an information and educational campaign to disseminate the standards and policies contained in this Circular.

10.2.7 The ARTA, in partnership with DILG, DICT, and DTI shall set up a monitoring system that will regularly collect data on the compliance of LGUs with this Circular which, in turn, shall be regularly reported to the Oversight Committee.

10.3 Department of the Interior and Local Government

10.3.1 The DILG shall provide policy direction and monitor the implementation of the standards and policies contained in this JMC.

10.3.2 DILG, together with ARTA, DTI and DICT, shall ensure the implementation of this JMC among LGUs and will mobilize its Local Government Operations Officers nationwide to monitor the implementation of this JMC and report the same to the Oversight Committee.

10.3.3 The DILG shall issue guidelines, if necessary, to further clarify and implement the provisions of this JMC.

10.3.4 The BFP shall implement the streamlined procedures for securing FSIC, such as but not limited to:

a) Allowing the local Fire Marshals/BFP Units to enter into agreements with LGUs for the latter to be deputized as assessors and/or collecting agents for BFP in relation to fire code-related fees collected as part of the Business Permit application;

b) Participation of the BFP in the online business registration systems of LGUs;

c) Recognizing the FSIC for Occupancy for new business applications as basis for issuing an FSIC for business without the need for inspection;

d) Assigning BFP staff to co-locate in the local BOSS in Negosyo Centers or in the designated locations in LGUs;

e) Allowing the participation of the local BFP personnel in JIT to be organized by the BPLO in LGUs;

f) Utilizing the UAF for business in assessing applications for FSIC without the need for applicants to fill up a separate form for FSIC application; and

g) Submission of the negative and positive lists to LGUs regularly before the renewal period.

10.4 Department of Trade and Industry

10.4.1 The DTI, together with the ARTA, DILG and DICT, shall be a member of the Oversight Committee that shall provide policy direction and monitor the implementation of the standards and policies contained in this JMC. TIADCc

10.4.2 Through its Regional Offices, the DTI shall provide technical support to LGUs through its participation in training programs for LGUs on the standards and policies contained in this JMC.

10.5 Department of Information and Communications Technology

10.5.1 The DICT, together with the ARTA, DILG and DTI, shall be a member of the Oversight Committee that shall provide policy direction and monitor the implementation of the standards and policies contained in this JMC.

10.5.2 Consistent with Section 11 (c) of RA 11032, DICT shall make available to LGUs the software for the automation of the BPLS consistent with the model described in Section 8.3.1.

10.5.3 The DICT together with ARTA shall provide guidelines and standards for LGUs in setting up the eBOSS or any online BPLS as described in Section 8.3.1 that will enable them to be linked or integrated to the CBP in the future and other relevant national government agency systems, applications, or platforms, such as but not limited to that of the Bureau of Fire Protection. All eBOSS platforms that are not developed by DICT shall comply with aforesaid guidelines, which shall be issued within fifteen (15) days from the effectivity of this JMC.

10.5.4 The DICT shall provide technical assistance to ARTA in setting up a monitoring system to track compliance with this JMC.

10.6 Local Government Units

10.6.1 LGUs shall comply with the provisions of this JMC and shall issue the appropriate orders or ordinances to adopt this JMC.

10.6.2 LGUs, through their Local Chief Executives, shall comply with ARTA Circular 2020-07 dated 20 September 2020 which recommends the setting up of a Committee on Anti-Red Tape which shall be ensure that the LGU is compliant with RA 11032 and its IRR and other circulars including this JMC.

10.6.3 The Sangguniang Barangay shall enact an ordinance that will allow the LGU to accept applications, process, collect fees and issue clearances relative to barangay business clearance consistent with Section 11 (f) of RA 11032. The LGUs, in turn, shall issue an Ordinance that will mandate the application, processing, assessment and payment of Barangay Business Clearance Fees, and release of the Barangay Business Clearance at the BOSS/BPLO at the city/municipal halls.

11. MONITORING AND EVALUATION

11.1 The DILG shall incorporate compliance on Ease of Doing Business as Governance indicator under the Seal of Good Local Governance ("SGLG") and other existing measurement systems. The DILG shall gather private sector feedback through the Rate My LGU Service Web-Based System.

11.2 The DBM shall, likewise, incorporate the outcomes of this JMC as part of the performance targets in the "Guidelines on the Grant of the Performance-Based Bonus for LGUs," further to Memorandum Circular No. 2020-1 dated 02 June 2020 issued by the Inter-Agency Task Force on the Harmonization of National Government Performance Monitoring, Information and Reporting Systems.

11.3 LGUs shall submit reports of its compliance with the JMC as will be required by ARTA (Citizen's Charter submissions), AO25 IATF, and the SGLG submission.

11.4 Based on the SGLG and Performance-Based Bonus findings, the Oversight Committee will submit to the Office of the President, its findings and recommendations, including compliance of LGUs to the requirements of RA 11032.

12. SEPARABILITY CLAUSE

If any part or provision of this JMC shall be declared invalid or unconstitutional by a competent court, the other parts or provisions not be affected shall continue to be in force and in effect.

13. REPEALING CLAUSE

All issuances, circulars, or memoranda, part or parts of which are inconsistent or contrary to the provisions of this JMC are hereby repealed or modified accordingly.

14. EFFECTIVITY

This Memorandum Circular shall take effect immediately upon its publication in the Official Gazette and filing with the University of the Philippines-Office of the National Administrative Register (UP-ONAR).

15. APPROVING AUTHORITY

(SGD.) ATTY. JEREMIAH B. BELGICA, REB, EnPDirector General

(SGD.) RAMON M. LOPEZSecretary

(SGD.) USEC. BERNARDO C. FLORECE, JR.OIC-Secretary

(SGD.) GREGORIO B. HONASAN IISecretary

16. FEEDBACK

For related inquiries, kindly contact the Doing Business Division and the Office of the Director General of the Anti-Red Tape Authority at Tel. Nos. 8478-5091, 8478-5093, and 8478-5099 or at email addresses [email protected] or [email protected]

ANNEX 1

Unified Application Form for Business Permit

ANNEX 2

Template Unified Application Form for New Business Permit (Online)

ANNEX 3

Template Unified Application Form for Renewal of Business Permit (Online)24

ANNEX 4

List of Permits/Clearances from National Government Agencies for Selected Sectors

 

Line of Business/Sector	Permit/Clearances Needed	Issuing National Government Agency
1. All establishments	Fire Safety Inspection Certificate	Local Bureau of Fire Protection (BFP)
2. Animal Facilities	Certificate of Registration	Bureau of Animal Industry
3. Brokers/Merchants involved in the sale of commodities for future transactions	Future Commodity Merchant/Brokers License	Securities and Exchange Commission (SEC)
4. Cell sites	Refer to ARTA JMC 01-2020
5. Customs Brokerage Business	License	Customs Brokers Commission
6. Dealers of Rice and Corn and Wheat	License (depending on the type of activity)	National Food Authority
7. Drugstores	License to Operate	Food and Drug Administration
8. Forwarders	Accreditation for Sea Freight Forwarders	Philippine Shippers Bureau
9. Funeral Homes/Parlors	Training Certificate and license of Undertaker and Embalmer	Department of Health
10. General/Specialty and Engineering Contractor	Contractor's License	Philippine Contractors Accreditation Board
11. Household/Urban Pesticides	• License to Operate • Certificate of Product Registration	Food and Drug Administration
12. Lending Institutions	Certificate of Authority to Operate	Bangko Sentral ng Pilipinas
13. LPG Dealer	Application to Supply Natural Gas	Department of Energy
14. Manning and Crewing Services	License for Recruitment Agency	Philippine Overseas and Employment Agency
15. Manpower Agencies w/paid up capital of at least PhP5,000,000	License to Operate a Private Recruitment and Placement Agency	DOLE Regional Office
16. Medical Devices	License to Operate	Food and Drug Administration (FDA)
17. Messengerial and Courier Services		Department of Transportation and Communication
18. Mining	Permits depend on the activity	Department of Environment and Natural Resources
19. Pest Control Services	Pest Control License	Fertilizer and Pesticide Authority
20. Processed Foods	• License to Operate • Certificate of Product Registration	Food and Drug Administration (FDA)
21. Pre-School, Elementary and High School	Permit to Operate	Department of Education (DepEd) Division Office and Regional Office
22. Real Estate Broker	License	Department of Trade and Industry OR Professional Regulatory Board
23. Rent-a-Car and Transportation Services	Franchise/Certificate of Public Conveyance	Land Transportation Franchising and Regulatory Board
24. Security Agencies	National License	PCSUCIA
25. Spa/Massage Clinic	Certificate of Training of Therapist or Masseur/Masseuse	• Department of Health • TESDA
	License of Therapist or Masseur/Masseuse	Department of Health
26. STL (Small Town Lottery)	Permit to Operate	Philippine Charity and Sweepstakes Office
27. Structures within 10KM radius of within the 10-km radius of Communication-Navigation Surveillance Facilities located off-airport	Height Clearance Permit	Civil Aviation Authority of the Philippines
28. Telecommunications Firms	License to Operate	National Telecommunications Commission
29. Toys and Childcare Articles	• License to Operate • Certificate of Product Registration	Food and Drug Administration (FDA)
30. Veterinary Products	• License to Operate • Certificate of Product Registration	Food and Drug Administration (FDA)
31. Video Rental Services	Registration for Optical Media Business	Optical Media Board

 

ANNEX 5

List of Sectors/Activities Required to Secure a Sanitary Permit in the Sanitation Code of the Philippines25

 

Sector	Requirements and Relevant Sections in the Sanitation Code of the Philippines
1. Food establishments	• Sanitary Permit (Section 14) • Health Certificates for Employees (Section 15)
2. Markets and Abattoirs	• Chapter IV
3. Public Laundry	• Sanitary Permit (Section 37)
4. Schools and Health Services	• Chapter VI
5. Industrial Establishments	• Chapter VII
6. Public Swimming or Bathing Places	• Sanitary Permit (Section 51)
7. Bus Terminals and Service Stations	• Chapter IX
8. Dance Halls and Night Clubs	• Chapter XI
9. Tonsorial and Beauty Establishments	• Sanitary Permit (Section 58)
10. Massage Clinics and Sauna Bath Establishments	• Sanitary Permit (Section 60) • Health Certificates for Employees (Section 62)
11. Hotels, Motels, Apartments, Lodging, Boarding or Tenement Houses and Condominiums	• Sanitary Permit (Section 64) • Health Certificates for Employees (Section 64)
12. Ports, Airport, and Aviation Services	• Chapter XV
13. Burial Grounds	• Sanitary Permit (Section 93) • Registration Certificates for Embalmers (Section 94)

 

ANNEX 6

Illustrative Process Flow for an Electronic Business One-Stop Shop (eBOSS)

ANNEX 7

Sample Lay-out of the Physical One-Stop Shop

ANNEX 8

Sample Process Flow for the 4-Step BPLS Procedures (without the eBOSS)

ANNEX 9

Proposed BPLS Process Flow for the Transition Modality with Online Submission of UAF, Electronic Transmission of the Tax Bill and Manual Payment and Physical Release of Permits at the BOSS

ANNEX 10

Proposed BPLS Process Flow for the Transition Modality with Online Submission of UAF and Manual Transmission of the Tax Bill, Payment and Release of Permits at the BOSS

Footnotes

1. RA 11032 IRR, Rule 1, Section 4 (h).

2. RA 9178, Section 3 (a).

3. RA 7160, Section 131 (d).

4. RA 11032 IRR, Rule 1, Section 4 (k).

5. RA 11032 IRR, Rule 1, Section 4 (l).

6. Executive Order No. 810, Definition of Terms.

7. Republic Act No. 8792, Section 5 (f); RA 11032 IRR, Rule 1, Section 4 (k).

8. Republic Act No. 8792, Section 5 (g); RA 11032 IRR, Rule 1, Section 4 (k).

9. Rule 3, 2019 Revised Implementing Rules and Regulations to Republic Act No. 9514 (The Fire Code of the Philippines).

10. RA 11032, IRR, Rule 1, Section 4 (gg).

11. DILG-DTI-DICT JMC No. 01, Series of 2016, 30 August 2016, Section 4.7.

12. Omnibus Guidelines on the Implementation of Community Quarantine in the Philippines (with Amendments as of 16 July 2020), Section 1 (11).

13. RA 11032, IRR, Rule 1, Section 4 (yy).

14. DILG-DTI-DICT JMC No. 01, Series of 2016, 30 August 2016, Section 4.12.

15. RA 11032, IRR, Rule IX, Section 2.

16. RA 11032, IRR, Rule 1, Section 4 (nnn).

17. RA 11032, Section 7; RA 11032 IRR, Rule V, Section 1.

18. RA 11032, IRR, Rule IX, Section 3 (d).

19. RA 11032, Section 11 (b); RA 11032, IRR, Rule IX, Section 3 (c).

20. CSC Memorandum Circular No. 10, Series of 2020 dated 07 May 2020 (Revised Interim Guidelines for Alternative Work Arrangements and Support Mechanisms for Workers in the Government during the Period of State of National Emergency due to COVID-19 Pandemic); the CSC-DOH-DOLE JMC No. 1, Series of 2020 (Occupational Safety and Health Standards for the Public Sector) dated 04 March 2020, and the IATF Omnibus Guidelines on the Implementation of Community Quarantine in the Philippines (with Amendments as of 16 July 2020).

21. These service providers will allow agencies to better reconcile payment information through the provision of reference information specific for each transaction, with at least the provision of payment instructions that includes a payee name, payment type (such as license or permit paid for), and a transaction identification number.

22. Section VI — General Guidelines, ARTA Memorandum Circular No. 2020-06, Series of 2020, dated 27 August 2020 (Guidelines on the Issuance and/or Reinstitution of Permits and Licenses under the "New Normal").

23. The use of QR Codes by PSPs is provided for by BSP Circular No. 1055, series of 2019 entitled "Adoption of National Quick Response ("QR") Code Standard."

24.Items highlighted in yellow can be pre-populated based on the information provided by the applicant during the process of new permit application.

25. Presidential Decree 856.