Starting a Business

Measures all procedures, as well as the time, cost, and paid-in minimum capital required for an entrepreneur to start up or incorporate and formally operate a business.

In the Doing Business Report, the business is assumed to be a corporation to be registered in Quezon City.



Reduction of steps and days, from 16 and 34 to 6 and 8, through the use of online platforms, deleting and merging of steps, as detailed below:



Old Procedures

New Procedures

Agencies Flowchart


REFORM:

  1. The Securities and Exchange Commission (SEC), together with the Social Agencies, namely Social Security System (SSS), Home Development Mutual Fund (HDMF or the Pag-IBIG Fund) and Philippine Health Insurance Corporation (PhilHealth), developed an online business registration system known as the Integrated Business Registry System (IBRS). The IBRS reduces the number of steps and days in starting a business by generating SEC Registration Number, Tax Identification Number and Employers Registration Number for each of the three Social Agencies in just one application. SEC reported that majority of companies were able to register through the IBRS within 1 day. IBRS is now fully operational in the National Capital Region where majority of the country's incorporations are registered. From April 15, 2015 to July 16, 2015, a total of 6,812 corporations were processed and 95.49% or a total of 6,451 corporations of the total registration applications for the period were approved within one business day.
  2. The SEC sought to remove the requirement for depositing the paid-in minimum capital at the bank.
  3. The Local Government Unit of Quezon City (QC LGU) signed a Memorandum of Agreement with the Department of Interior and Local Government (DILG) and the National Competitiveness Council (NCC) to reduce the business application procedures in the City to 1 or 2 days. The City now has its Online Registration for New Corporations that accepts business registrations for new corporations, partnerships, foundations, and cooperatives.
  4. The Local Government of Quezon City (QC LGU) reiterates that payment of community tax has been part of QC LGU's payment of all fees and charges since 2012. Thus, there is no need for a separate Step 6 in the current procedure as reported in DB 2015.
  5. The Bureau of Internal Revenue (BIR) and the SEC extended the application of their signed guidelines on pre-generated TIN to the usage of SEC's IBRS.




Reference Links:

  • IBRS Unified Registration
  • Ease of Doing Business.pdf
  • IBRS PERFORMANCE from April 15 to July 16
  • Testimonial of a Satisfied Incorporator on SEC IBRS
  • BIR Revenue Regulation 18, 2012 On Processing of Authority to Print Official Receipts etc
  • Revenue Memorandum Order 12, 2013 On Processing of Authority To Print etc
  • SEC Memorandum Circular No. 6 Series of 2012 On MinimumPaidin Capital Requirement
  • MOA (Signed) DILG NCC QC LGU on Ease of Starting a Business at the Local Government Level
  • QC Executive Order No. 8 S-2015 on Online Business Registration
  • QC Executive Order 17 2011 On Streamlining Further the Ease of Doing Business
  • QC Proof of Reform on Community Tax Payment
  • SEC and BIR Implementing Guidelines for the Electronic Exchange of Information



    • Agencies

    Securities and Exchange Commission Department of Trade and Industry Department of Interior and Local Government
    Quezon City Local Government Unit Bureau of Internal Revenue Pag-IBIG Home Development Mutual Fund
    Philippine Health Insurance Corporation Social Security System Philippine Business Registry

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