iRealtee OS Glossary

Ease of Doing Business Act

Republic Act No. 11032, the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, amends RA 9485 (Anti-Red Tape Act) to shorten processi...

Ease of Doing Business Act

Ease of Doing Business Act is a law that streamlines Philippine government services by setting processing time standards, limiting signatories, and penalizing delays in permits and licenses.

Definition

Republic Act No. 11032, the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, amends RA 9485 (Anti-Red Tape Act) to shorten processing times, require unified business application forms, and impose sanctions for red tape. For real estate, it accelerates processing of Business Permits, building permits, and developer accreditations handled by LGUs and national agencies.

Key Provisions

  • Processing times: 3 working days (simple), 7 (complex), 20 (highly technical).
  • Automatic approval: deemed approved if no action within the prescribed period, after complete submission and payment.
  • Fewer signatories: limits redundant signatures; requires fixed steps and posted timelines.
  • Central Business Portal: unified online submission of permits and licenses.
  • Penalties: administrative and criminal liability for fixers and officials causing delay.

Who is Affected?

  • Developers and brokers securing LGU Business Permits, building permits, and occupancy permits.
  • Service offices like BIR, SEC, and LGUs processing registrations and clearances.
  • Applicants for real estate-related approvals (e.g., License to Sell, zoning clearances).

Penalties

  • First offense: administrative liability and six months suspension.
  • Second offense: dismissal, perpetual disqualification, forfeiture of benefits, and criminal liability (imprisonment and fines) for responsible officials.

Relevance (Philippine Real Estate)

  • Faster business permit renewals reduce launch delays for brokerage branches and project sites.
  • Developers benefit from defined timelines for building permits and occupancy, aiding pre-selling and turnover schedules.
  • Use Document Management System to keep complete digital submissions and Payment Tracking to confirm fee payments within timelines.
  • Track deadlines and service-level adherence with Workflow Management System or Notification System to avoid lapsed applications.

References

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