Presentation on the NERBAC

Regional Operations and Development Group (RODG)

Department of Trade and Industry
Director Dorecita T. Delima
9 November 2011

OUTLINE OF PRESENTATION
Background Why reform?
NERBAC Legal Basis & Mandate,
Center Goals & Functions
Business Registration Process
NERBAC One Stop Shop
Key Challenges

OUTLINE OF PRESENTATION
Background Why reform?
NERBAC Legal Basis & Mandate,
Center Goals & Functions
Business Registration Procedures
NERBAC One Stop Shop
Key Challenges

Why the need for reforms

Status of RP Competitiveness
Weak Areas:

WEF Global
Competitiveness Index

International investment
Infrastructure
Education
Starting a business
Dealing with construction
permits
Protecting investors
Paying taxes

2008

2009

2010

71

75

71

71

87

42

45

40

43

39

121

126

133

141

144

(Out of
181)

(out of 175) (out of 175) (out of 178)

IMD World
Competitiveness

2007

(out of 125) (out of 122) (out of 131) (out of 134) (out of 133)

Corruption
Inefficient government
bureaucracy
Inefficient supply of
infrastructure
Political Instability

Doing Business

2006

(out of 183)

2010 Comparative Ranking

Malaysia

Thailand

Indonesia Vietnam

Philippines

WEF

24

36

54

75

87

IMD

10

26

35

39

DB
Survey

23

12

122

93

144

Why Streamline?
Doing Business Survey by WB
Ease of

2010 Rank
(2008 H2
2009H1)

2009 Rank
(2007 H2
2008 H1)

Doing Business

144

141

Starting a Business

162

155

Starting a Business
RP

East
Asia &
Pacific

OEC
D
Ave.

No. of Steps

15

8.1

5.7

Time (days)

52

41.0

13.0

Cost (% of
income per
capita)

28.2

25.8

4.7

Min. capital (% of
income per
capita)

5.5

21.3

15.5

Indicator

To address these
results, DILG and DTI
agreed to implement
a standard business
registration
procedure for new
business and comply
with the provisions of
the Anti-Red Tape
Law
5

RP Lowest Recipient of Foreign Direct Investments

Among ASEAN Countries, 1999-2007

P-Noys Message at the

2010 State of the Nation Address (SONA)
A reminder to all:
creating jobs is foremost
in our agenda, and the
creation of jobs will come
from the growth of our
industries. Growth will
only be possible if we
streamline processes to
make them predictable,
reliable and efficient for
those who want to invest.

OUTLINE OF PRESENTATION
Background Why reform?
NERBAC Legal Basis & Mandate,
Center Goals & Functions
Business Registration Procedures
NERBAC One Stop Shop
Key Challenges

RA 7470
The National Economic Research and
Business Assistance Center of the
Philippines Act of 1992 [NERBAC]
) to provide necessary and strategic
economic and business information
and research assistance to speed up
the process and encourage the growth
of entrepreneurship in the country

-RA 7470 Declaration of Policy

- a one-stop business registration,

investment promotion and
information center established
with the Department of Trade and
Industry as lead implementing agency

NERBAC Expected Outputs & Functions

Investment
Promotion
Business
Registration &
Licensing
Knowledge
Management

Increased Investments
Reduced processing time,
costs and flow for business
registration, licensing and other
documents
Improved access to relevant
information

NERBAC Nationwide
Network
15 Regional Centers
71 City/Provincial Centers

NERBAC Organizational Structure

Regional Director

Regional Advisory
Board

Center Manager

Investment
Promotion and
Facilitation
Investment Promo
and Facilitation
Knowledge
Management
Inter-Agency
Licensing & Regstn
(8)

Business Licensing
and Registration
DTI Licensing and
Registration

One Stop Export

Documentation
Board of
Investments
IP Registration

OUTLINE OF PRESENTATION
Background Why reform?
NERBAC Legal Basis & Mandate,
Center Goals & Functions
Business Registration Procedures
NERBAC One Stop Shop
Key Challenges

STEPS IN STARTING A BUSINESS

DTI/SEC/CDA

DTI/
SEC

STEPS IN STARTING A BUSINESS

DTI/SEC/CDA

MAYORS PER MIT

BARANGAY
BUILDING

ELECTRICAL

FIRE

SANITARY
LOCATION

OCCUPANCY

DTI/
SEC

LGU

STEPS IN STARTING A BUSINESS

DTI/SEC/CDA
TAX CERTIFICATE/TIN
MAYORS PER MIT

OFFICIAL RECEIPT

BOOK OF ACCOUNTS

DTI/
SEC

LGU

BIR

STEPS IN STARTING A BUSINESS

DTI/SEC/CDA

SSS NO.

MAYORS PER MIT

TAX CERTIFICATE/TIN

DTI/
SEC

LGU

BIR

SSS

STEPS IN STARTING A BUSINESS

DTI/SEC/CDA

PHILHEALTH NO.

MAYORS PER MIT

TAX CERTIFICATE/TIN

SSS NO.

DTI/
SEC

LGU

BIR

SSS

PHIL
HEALTH

STEPS IN STARTING A BUSINESS

PAG-IBIG NO.

DTI/SEC/CDA
MAYORS PER MIT

TAX CERTIFICATE/TIN

PHILHEALTH NO.

DTI/
SEC

LGU

BIR

SSS

PHIL
HEALTH

PAG-IBIG

LICENSE

DTI/SEC/CDA

SPECIFIC LICENSES
FROM OTHER
GOVT AGENCIES
i.e. PCAB, BFAD,
DOLE, DENR, etc.

MAYORS PER MIT

TAX CERTIFICATE/TIN

PHILHEALTH NO.

PAG-IBIG NO.

DTI/
SEC

LGU

BIR

SSS

PHIL
HEALTH

PAG-IBIG

STEPS IN STARTING A BUSINESS

DTI/SEC/CDA
MAYORS PER MIT

TAX CERTIFICATE/TIN

PHILHEALTH NO.

PAG-IBIG NO.
LICENSE

START
BUSINESS OPERATION

DTI/
SEC

LGU

BIR

SSS

PHIL
HEALTH

PAG-IBIG

OUTLINE OF PRESENTATION
Background Why reform?
NERBAC Legal Basis & Mandate,
Center Goals & Functions
Business Registration Procedures
NERBAC One Stop Shop
Key Challenges

PARTNER
INSTITUTIONS
Registration, Licensing & Accreditation
- DTI
- SEC
- LGU
- CDA

- BIR
- PHIC
- HDMF
- DOLE
- SSS
- PRA
- CIAP/PCAB

Registration & Incentives availment

- IPCs/IPUs

- BOI

Export Documentation Processing

- BOC
- FIDA

- BPI/PQS
- DENR

- BFAR

15 minutes
Business Name
processing time

NERBACs are designed to accommodate detailed

staff from other mandatory agencies to be able to
process applications within the center cutting
further over-all processing time of business permit
applicants.

BIR

SSS

PHILHEALTH PAG-IBIG

NERBAC can provide these services to

clients for their new investments:
DTI (BN Registration)- 15 min
SSS (Clearance) 5-10 min
Philhealth (Certificate of Good Standing/Premium Remittance)- 15 min
BIR (Form and Discuss Requirements) (The Client has to go to BIR to get
TIN & pay Annual Reg Fee of P500 at accredited banks) (3 DAYS)
9 Pag-IBIG (Clearance) -3 min
9 LGU-GSC (Accept & process)- 5-7 days ( LGU staff processes the papers
at Treasurer's Office > Planning > Engineers > Environment > Health > City
Administrator > Licensing > Treasurer's Office > Bureau of Fire >
Permits/Licensing
9
9
9
9

To complete the registration process, the client has to go to the

following:
LGU-GSC (Release of Business Permit on the 7th day upon submission of
items 1-4 listed above)
BIR (Certificate of Registration released upon attendance of orientation;
requires copy of business permit and proof of payment of ARF of P500; BIR
Certificate of Registration is needed for the issuance of Authority to Print
ORs)

PHILIPPINE
BUSINESS
REGISTRY
There is an on-going efforts to finally launch the
Philippine Business Registry (PBR) which will
reduce further processing time and allow clients to
track documents on line even as locally, we continue
meeting with licensing and registration agencies to
do process improvements
The PBR project has equipped all regional NERBACs
with workstations and servers for connectivity and for
use of clients once the PBR gets online

While we look for

more ways to
streamline our
processes to make
business start-ups
easier, I hope the

LGUs can also

find ways to
implement
reforms that will
be consistent with
the ones we have
already started.
30

30

BUSINESS PERMIT
AND LICENSING
SYSTEM
Business Permits & Licensing System
(BPLS) streamlining and can now process
mayors permit within the day or even
within an hour.

Legal Basis for the BPLS Project

RA 9485 - An Act to Improve Efficiency in
the Delivery of Government Service to the
Public by Reducing Bureaucratic Red Tape
Preventing Graft and Corruption and
Providing Penalties Therefore
(Anti-Red Tape Act)

JMC on Guidelines in Implementing the

Standards in Processing Business Permits
And Licenses in all Cities And Municipalities
32

Objectives of BPLS
To streamline the BPLS in as
many LGUs as possible
nationwide
To recommend minimum
service standards (for new
business applications and
renewals) for LGUs
To organize government
agencies at the regional level
to work with LGUs in
implementing the BPLS
reforms
To harness private sector
support & participation for
BPLS reforms

BUSINESS
PROMOTION
)Creating a business and investment-enabling environment
Economic briefings ; Policy support
) Facilitating Investment Promotion Programs
Facilitation and coordination work for industry
clusters/industry associations & sectoral groups
Networking with LGU Investment Promo Offices
Investment Marketing
)Addressing investment queries and other needs
Investment Briefings & Servicing; business Meeting Hosting

BUSINESS
INFORMATION
Most if not all NERBACs maintain their respective Resource Center
which houses the following *:
1.Cost of Doing Business
2.Investment Incentives Codes
3.Socio Economic Profiles
4.Economic Fact book
5.Development Plans [Land Use, Strat Plans, Comprehensive
Development Plans,
6.Economic Plans, Regional/Provincial/Municipal Development Plans
7.Maps
8.Promo Collaterals/Investment Brochures
9.Industry Cluster Background Papers
10.Project Briefs
11.BRL Agency Reference Docket/ Guide to Business Registration
12.Citizens Charter [Agencies & LGUs]
* Others have yet to be housed but are already targeted for collection

BUSINESS
INFORMATION
Most if not all NERBACs maintain their respective
Resource Center which houses the following
1. Statistical Reports
2. Economic Indicators - Tracking
3. Directories Business Name Registrants, mayor Permittees
- Chambers, Business Organizations, Industry Cluster
Members
4. Industry Profiles
5. Value Chain Analysis
6. Project Briefs
7. Investment Plan (Regl/Provl/Mun)
8. Feasibility Studies
9. Trainings,Seminar-workshops,Conferences Modules/Manuals
10. Business Directories
11. Management & marketing References

CIAP WINDOW
(Construction Industry
Authority of the Philippines)

9 Contractors Licensing
and Registration
9 Overseas Construction
Registration
9 Contract Dispute
Resolution
9 Contractors
Performance Evaluation
System (CPES)

we bring CIAP
services closer
to you . . . . . .

Medium Term Philippine Development Plan

2011 - 2016

MANDATE - To promote, accelerate and

regulate the growth and development of the
construction industry in conformity with
national goals (Sec.2, PD1746)
CIAP Over-all Goal:
Enhance Competitiveness of the
Construction Industry

OUTLINE OF PRESENTATION
Background Why reform?
NERBAC Legal Basis & Mandate,
Center Goals & Functions
Business Registration Procedures
NERBAC One Stop Shop
Key Challenges

Regional/Provincial NERBAC Positioning

) As anti-red tape convergence

) as Regional Investment arm
[or if a separate body is already
established, NERBAC acts as
secretariat]
) as primary source of
economic information/data

Key Challenges

Business Registration
& Licensing

* working more proactively with other licensing

agencies?
* getting NERBACs to handle some of the
processes of these agencies @ the center
[especially those who cannot be at the center]
* codifying licenses and permits
* tracking LGU resolutions, ordinances or laws
that affect ease in setting up/registering
businesses

Key Challenges

Investment
Promotion

* tracking of all investments in the region

* setting the framework on investment
generation
to address the issue of poverty reduction
* increasing productivity levels of identified or
new economic development drivers agri,
forestry, industry, service sectors
* generating investments through OFWs
* tapping local investment sources [domestic
savings/ banking resources]

Key Challenges

Knowledge
Management

* identifying relevant data sets/clusters e.g

cost of doing business, indicators to track
dynamism of the local economy, new
trends/opportunities [researches, data on new
technologies], etc.]
* strengthening of partners [sources of data]
* KM initiatives [infra and other projects]
for pitching to LGUs

All will certainly benefit from this streamlining

be it businessmen, soldiers, rebels and ordinary Filipinos.
As long as the interests of Filipinos will not be jeopardized,
we will explore all available avenues to make this a reality.
We must start now, and we should all help achieve this and
not stand in each others way.
45

Thank you!