Business registration process simplified

November 28, 2009, 1:25pm

The Department of Trade and Industry (DTI) and Department of Interior and Local Government (DILG) have begun rolling out streamlined business registration and licensing processes nationwide following major gains reported in pilot areas in the Visayas.

The number of registered new businesses reportedly grew by as much as four times in localities like Calbayog, while P17 million in annual productivity savings is projected in Iloilo from the simplified business registration procedures.

DTI and DILG have the backing of the country’s international development partners for the initiative to widely disseminate the successful business permits and licensing system (BPLS) model. BPLS has helped many local government units (LGUs) increase revenues and cut red tape while also improving their local investment climate and productivity.

Multi-donor support for the BPLS rollout is provided by German Technical Cooperation (GTZ), the International Finance Corporation (IFC) and the United States Agency for International Development (USAID). These development agencies have pooled their resources through the Philippine Development Forum (PDF) where they are members of the working groups in growth and investment climate (GIC) and decentralization.

Co-championing the drive to mobilize BPLS across the country are Trade Undersecretary Zenaida Maglaya, Interior and Local Governments Undersecretary Austere Panadero and the National Competitiveness Council (NCC).

Complicated and burdensome business registration is a common gripe among business owners, many of whom are opting to skip the process altogether. For the LGUs, lower registrations mean less revenue and therefore even lesser funds from dues and taxes that would have gone into the development of their areas.