Business finds ally in ARTA

Business registration from the Securities and Exchange Commission for the certificate of incorporation, to the Bureau of Internal Revenue for the tax identification number, to the Social Security System, Philhealth, and Pag-IBIG all in one day and everything done online?

Sounds like a dream, but that is what the Anti-Red Tape Authority (ARTA) is working on right now and expects to achieve by next year.

In fact, by November this year, applicants who want to start a business, in particular one-person corporations (OPC) and corporations with less than five incorporators, will benefit from a fully automated system and online platform called the Central Business Portal (CBP) – which is a joint project of ARTA and the Department of Information and Communications Technology.

In an exclusive interview via Zoom, ARTA director-general Jeremiah Belgica told this writer that an applicant who wants to start an OPC or a corporation with less than five incorporators can register with the SEC, and then proceed with its BIR, SSS, Philhealth, and Pag-IBIG registration all in one seating. Soon, businesses can apply for secondary licenses through the CBP, with the Food and Drug Administration (FDA) to be the first agency issuing a secondary license to join. Around 20 other government agencies may also be integrated in the CBP by the second or third quarter of 2021.

By the first quarter of next year, the facility will be available to regular corporations or those with at least five incorporators, and to sole proprietorships and cooperatives.

Also by November, there will be only one number used (Philippine business number), which will either be the SEC registration number of the TIN issued by the BIR, depending on what will be agreed upon by the agencies. But, Belgica said, they are working towards juridical entities having only one number for SEC, BIR, Philhealth and SSS.

As for the LGUs which issue the business permit, Belgica said that the Quezon City government has already launched its electronic business one-stop shop. ARTA hopes that soon, all LGUs will be connected to the CBP.

The ARTA head also revealed that there is already a software made by DICT for the automation of LGUs called the Integrated Business Permits and Licensing System (IBPLS) which would allow LGUs and their constitutes to apply and process building permits and occupancy permits electronically and to electronically process business permits. And soon, the online processing of applications for barangay clearance will be integrated in the software. There is also the electronic business processing and licensing software (EBPLS) for LGU automation.

Republic Act 11032, or the Ease of Doing Business Act of 2018, provided for the creation of a CBP to receive and capture application data on business-related transactions, and provide links to online registration of national government agencies (NGAs); a Philippine business databank (PBD) to provide NGAs and LGUs access to data and information to verify the validity and existence of business entities so that applicants need not submit documentary requirements previously submitted, among others.

But even with so many things that have yet to be accomplished, Belgica is proud of the fact that since last year, the Philippines has already jumped from 124 to 95 in the World Bank Ease of Doing Business ranking. He is confident that by the end of President Duterte’s term, the country will be part of the top 40 percent of the 190 countries participating in the survey.

This year, ARTA has launched its flagship Program Nehemiah, which aims to reduce the time, costs, requirements, and procedures of certain sectors by 52 percent within 52 days. The sectors included in the first phase of the program are the common towers and interconnectivity sector, housing, food and pharmaceutical, logistics, and energy.

Belgica said that Program Nehemiah aims to break the silo system and lack of interconnection among government agencies. Because these agencies function independently from each other, it creates redundant processes while achieving minimal results. The program started last March this year up to March next year, and the sectors can choose the 52 days to achieve the intended result.

In the case of the common towers, he said they have already reduced the steps from 241 days to 16 days. By November, the Food and Drug Administration will be connected to the CBP. Belgica said the FDA would be the first agency to issue a secondary license through the CBP. For the energy sector, he said that there is already an energy virtual one stop shop for processing of requirements which just needs some push to help in the streamlining. The socialized housing sector, meanwhile, will have its one-stop shop for the processing of all requirements to do business.

As for the logistics sector, Belgica said that starting Oct. 20 until December of this year, around 70 LGUs and 15 NGAs would have to recognize one rapid pass. “Right now, every LGU, national highway, PEZA require separate stickers from the trucks to the point na napupuno na ang windshield,” he said.

By next year, 10 more sectors will be identified to join Program Nehemiah, including the construction sector.

Another priority project of ARTA is to make sure that around 70 government agencies involved in trading should be linked within the next three to four months to the National Single Window program of the Department of Finance. The link is implemented via the tradenet platform. “Mamamalo tayo if they do not join,” he said.

Lastly, ARTA wants to be internally automated by creating an “eye in the sky,” which will be connected to the CBP, tradenet, and the National Single Window to see agencies not moving, allowing ARTA to be proactive instead of just being reactive. Plans are to give the President his eye in the sky so he can see for himself how the different agencies are performing in terms of reducing red tape.

Belgica emphasized that full automation cannot be achieved until processes and procedures are streamlined, simplified and reengineered. Let’s hope that all agencies and LGUs join the call.

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