Manual-for-the-Reengineering-of-Business-Permits-and-Licensing-Systems-in-All-Cities-and-Municipalities-BPLS-Operations-Manual

Final version (6 October 2022)
Anti-Red Tape Authority

Diliman, Quezon City, Philippines 1128
Published 2022
Printed in the Republic of the Philippines
Suggested citation:
ARTA-DTI-DILG-DICT. 2022. “Manual for the Reengineering of Business Permits and
Licensing Systems in All Cities and Municipalities”. Quezon City.
This Manual was prepared for the Anti-Red Tape Authority (ARTA) as part of the technical
assistance extended by the Regulatory Reform Support Program for National Development
(RESPOND) implemented by the University of the Philippines Public Administration Research
and Extension Services Foundation, Inc. (UPPAF) under a grant from the United States
Agency for International Development (USAID). The views herein expressed are solely by the
authors and do not represent the views of UPPAF, USAID, and/or the United States
Government.
UPPAF-RESPOND Team
Mario B. Lamberte, PhD – Team Leader for the Manual
John A. Montoya – Deputy Team Leader
Maria Jobellieza A. Alzate – Program Officer
Technical Writing Team

Ofelia M. Templo – Lead Writer
Maria Cristina R. Beriña – Member
Sheryl Ann M. Buñag – Member
Don Christian Mariano – Member
Christopher Daniel Tan Mercado – Member
Sheryl N. Peral – Member
Leandro Tomas David D. Tan – Member
Technical Reviewers
Alex B. Brillantes, Jr., PhD
Mary O’ Territorio Penetrante, DM
Editorial Team
Leandro Tomas David D. Tan – Lead editor
Sophia Maria M. Cuevas – Member
Paolo Antonio G. Fernando – Member
Manual for the Reengineering of BPLS in All Cities and Municipalities i

Manual for the Reengineering of BPLS in All Cities and Municipalities ii
Messages of Support
Department of Finance
I congratulate the Anti-Red Tape Authority, the Department of the

Interior and Local Government, the Department of Trade and
Industry, and the Department of Information and Communications
Technology for the successful completion of this operational
manual.
As head of the Economic Development Cluster, I commend this

inter-agency initiative to enhance the competitiveness of the
Philippine business climate at the most tangible and crucial level.
This manual is not only a significant achievement for the
Philippine government, but is a definite win for the nation as well.
We are making a bid for a smarter, greener, and globally-competitive economy that is fit for
and ready to meet the demands of the 21st century. This ambitious endeavor requires a whole-
of-nation effort, business-friendly policies, and an enabling regulatory framework that allows
for greater efficiency, transparency, and fairness in public service delivery.
With that, I now call on our city, municipal, and local government units to faithfully implement
the standards set in this manual. Your role as the primary touchpoints of businesses will be
key to the success of this effort. Rest assured that the Department of Finance stands ready to
support you in this endeavor.
BENJAMIN E. DIOKNO
Secretary
Department of Finance
Manual for the Reengineering of BPLS in All Cities and Municipalities iii
Department of Information and Communications Technology
The Department of Information and Communications Technology

(DICT) is proud to be part of the development of the Joint
Memorandum Circular No. 1, s. 2021 between ARTA, DILG, DTI,
and DICT, also known as “Guidelines for Processing Business
Permits and Related Clearances and Licenses in all Cities and
Municipalities”, which culminated in the creation of this Operations
Manual. By providing digitized options for securing business
permits, clearance, and licenses for our cities and municipalities,
the Filipino people can enjoy a more convenient and streamlined
experience in transacting with the government.
It has always been a part of my mission as the DICT Secretary to promote e-governance for
the Philippines. A government that is efficient, accessible, and trustworthy— this is a
government that our citizens deserve. Hence, the JMC serves as a testament to our collective
efforts, and I look forward to the expected improvements that this initiative will bring. I
commend the work and commitment of the agencies involved— ARTA, DILG, and DTI. It is
an honor to serve the Filipino people alongside honest and hardworking public servants. Let
us continue to create a better government as we build the digital Philippines that we envision,
together.
IVAN JOHN E. UY
Secretary
Department of Information and Communications Technology
Manual for the Reengineering of BPLS in All Cities and Municipalities iv

Department of the Interior and Local Government
My warmest congratulations to the Anti-Red Tape Authority

(ARTA) for the production of this Manual for the Reengineering of
Business Permits and Licensing Systems in All Cities and
Municipalities.
The DILG is one with the ARTA, DTI, and DICT in our common goal to
streamline transaction processes to promote ease of doing business
(EODB) as underscored by the Joint Memorandum Circular 01,
s.2021 signed in April 2021; and in line with the Republic Act No. 11032 known as the EODB
and Efficient Government Service Delivery Act of 2018. Our gratitude to the University
of the Philippines Public Administration Research and Extension Services Foundation, Inc.
for the Regulatory Reform Support Program for National Development (UPPAF-RESPOND)
for their assistance in carefully developing this Manual.
Indeed, this handy Manual is a realization of our collaborative effort to promote business-
friendly regulatory reforms of local government units (LGUs) towards improved business
transactions of permits, licenses, and clearances.
The DILG is elated to have been a part of this worthwhile undertaking as we continue to
execute our own measures that led to 94 percent of LGUs being compliant with all standard
reforms for new business applications and renewal of business applications, among others,
resulting in 2.3-million business registration and P91.81-billion taxes, charges, and fees
collected nationwide in 2021.
To ensure that LGUs continue to improve their business processes, the DILG has integrated
into the Seal of Good Local Governance (SGLG) incentive program's governance criteria the
business-friendliness and competitiveness of LGUs.
Further, under DILG's U.N.I.T.E. campaign in 2023, the Department is committed to

introducing innovations in governance systems and processes which includes amplifying the
Department's call for improved business processes.
The DILG is confident that this Manual will contribute to achieving the administration of
President Ferdinand 'BongBong' Marcos, Jr.'s Eight-Point Economic Agenda, which includes
reducing barriers to entry and limits to entrepreneurship and creating quality jobs by
increasing employability.
Thus, may this Manual lead to more progressive innovations on streamlining business
transactions in the government not only for the benefit of the business sector but ultimately
for the delivery of improved services for the Filipinos and revival of local economies amid the
COVID-19 pandemic and the beginning of full devolution following the Supreme Court's
Mandanas-Garcia ruling.
Maraming salamat and let us be firm in our unity for an ever-progressing Philippines!
ATTY. BENJAMIN C. ABALOS, JR.

Secretary
Department of Interior Local Government
Manual for the Reengineering of BPLS in All Cities and Municipalities v

Department of Trade and Industry
The Department of Trade and Industry (DTI) sends its warm

congratulations to the Anti-Red Tape Authority (ARTA), Department of the
Interior and Local Government (DILG), and Department of Information
and Communications Technology (DICT) on the success of our joint
initiative, the "Manual for the Reengineering of Business Permits and
Licensing Systems in All Cities and Municipalities." We thank the
University of the Philippines Public Administration Research and
Extension Services Foundation for its technical assistance, as well as
United States Agency for International Development for funding the
development of this Manual.
Creating an enabling environment by improving the ease of doing business is imperative to make
the Philippines an attractive destination for local and foreign businesses and investments.
DTI has been working to reduce regulatory burdens by streamlining and digitalizing institutional
and regulatory requirements and processes. The work involves supporting the Ease of Doing
Business and Efficient Government Service Delivery Act of 2018. In line with the directive of
President Ferdinand Marcos, Jr. to steer the country toward digital transformation, DTI has also
been coordinating with the DICT to promote e-governance in bringing services to the public, and
to increase investments in digital infrastructure. With the help of DILG, we are working to enable
local government units (LGUs) to digitize their data and digitalize their operations.
Vital to these endeavors is the implementation of reforms-at the city, municipal, and other local
government levels-that ease and increase business activities. This Manual provides guidance on
how to streamline and improve business requirements across different phases, including the shift
to an Electric Business One-Stop Shop.
This Manual further helps fulfill the objectives the Joint Memorandum Circular on the "Guidelines
for Processing Business Permits, Related Clearances and Licenses in all Cities and
Municipalities." It does so by: (1) providing detailed guidance on streamlining the processing of
business permits and related documents; (2) promoting enhanced service delivery to businesses;
and (3) encouraging LGUs to innovate as they deliver public services in better ways. These efforts
at promoting business-friendly regulatory requirements will ultimately contribute to increased
business activities, and eventually, more investments, more jobs, and more inclusive economic
growth.
I hope that our partners in local governments will find this Manual helpful and meaningful in their
work, and that businesses, investors, and the public will find value in this initiative by government.
Mabuhay tayong lahat!
ALFREDO E. PASCUAL
Secretary
Department of Trade and Industry
Manual for the Reengineering of BPLS in All Cities and Municipalities vi

In line with its mandate to reduce bureaucratic red tape and

reengineer processes of government, the Anti-Red Tape Authority
(ARTA) in partnership with various government agencies and
development partners has been steadfast in implementing various
reform initiatives geared towards improving service delivery to
businesses and the general public.
Recalling the issuance of the ARTA-DTI-DILG-DICT JMC No. 1

Series of 2021 last 13 April 2021, ARTA together with proponent
agencies have collaborated to streamline the business registration
process, particularly in the local government. Applying a holistic
approach to reform and the adoption of innovative solutions, it has
been the goal of the government to offer efficient systems and
procedures to ensure ease of doing business. With this in mind,
we have crafted the appropriate guidelines corresponding to this
JMC, which has been coined as the Business Permits and Licensing Systems (BPLS)
Operations Manual.
Strengthening further its commitment to increase the productivity and effectiveness of LGUs
in enabling business and investments, ARTA extends its sincerest commendation and
gratitude to its partner agencies and institutions for the successful launching of the BPLS
Operations Manual. Indeed, through this initiative, we nourish the seeds of economic
development that we have planted in the past years. As we move forward, may we continue
to recognize process reform, streamlining, reengineering, and automation as vital activities
that we must practice and embed in the way we work in government.
Once again, congratulations to ARTA, DTI, DILG, DICT, and our partners from UPPAF-
RESPOND for attaining yet another milestone in our pursuit of ease of doing business. May
our common passion for growth and an improved business climate in our country drive us joint
consistent efforts in implementing necessary projects and programs, along with inclusive
policymaking and development.
ERNESTO V. PEREZ
Undersecretary / Officer-in-Charge
Manual for the Reengineering of BPLS in All Cities and Municipalities vii
Acknowledgments
This Manual benefited from the technical assistance provided to the Anti-Red Tape Authority
(ARTA) by the USAID-funded UPPAF RESPOND Project under the leadership of Chief of
Party Enrico L. Basilio. The assistance of the RESPOND team who drafted the Manual is
acknowledged for their contributions: Mario B. Lamberte (team leader), Maria Jobellieza A.
Alzate, Alex B. Brillantes, Jr., Maria Cristina R. Beriña, Sheryl Ann M. Buñag, Sophia Maria
M. Cuevas, Paolo Antonio G. Fernando, Don Christian Mariano, Christopher Daniel Tan
Mercado, John A. Montoya, Mary O’ Territorio Penetrante, Sheryl N. Peral, Leandro Tomas
David D. Tan, and Ofelia M. Templo.
The comments and suggestions of the ARTA staff led by ARTA Undersecretary and Officer-
in-Charge Ernesto V. Perez, are likewise gratefully acknowledged. The comments and
suggestions coming from various national government agencies, local government units, and
many individuals during the stakeholders’ consultations to develop this Manual have improved
the substance and form of the Manual.
This Manual also benefited from the experiences of some cities in reengineering business
permits and licensing processes shared with the RESPOND team. Special thanks are due to
the cities of Cagayan de Oro, Manila, Parañaque, Pasig, Quezon, and Valenzuela.
Manual for the Reengineering of BPLS in All Cities and Municipalities viii
List of Acronyms
AFS audited financial statements

AGDB authorized government depository bank
API application program interface
ARTA Anti-Red Tape Authority
ASEAN Association of Southeast Asian Nations
B2B business to business
BFP Bureau of Fire Protection
BIR Bureau of Internal Revenue
BLGF Bureau of Local Government Finance
BOSS Business One-Stop Shop
BPLO Business Permits and Licensing Office
BPLS Business Permits and Licensing System
BSP Bangko Sentral ng Pilipinas
CAR collect-aggregate-remit
CART Committee on Anti-Red Tape
CBD central business district
CBP Central Business Portal
CDA Cooperative Development Authority
CES client effort score
CFM client feedback management
C/MEO City/Municipal Environment Office
C/MLAO City/Municipal Legal Affairs Office
C/MLGU City/Municipal Local Government Unit
C/MHO City/Municipal Health Office
C/MPDO City/Municipality Planning and Development Office
C/MSMO City/Municipal Social Media Officer
C/MTO City/Municipal Treasurer’s Office
CO Certificate of Occupancy
COA Commission on Audit
COMPLAN communication plan
CSM client satisfaction measurement
CSO civil society organization
Manual for the Reengineering of BPLS in All Cities and Municipalities ix

CTC Community Tax Certificate or “Cedula”
DICT Department of the Information and Communication Technology
DILG Department of the Interior and Local Government
DOF Department of Finance
DOH Department of Health
DTI Department of Trade and Industry
eBOSS electronic business one-stop shop
eBPLS electronic business permits and licensing system
e-Collection electronic collection
EODB ease of doing business
e-Payment electronic payment
eOR electronic Official Receipt
EPCSP electronic payment and collection system provider
FAQ frequently asked question
FOI Freedom of Information Office
FSD functional specification document
FSIC Fire Safety Inspection Certificate
GIS geographic information system
GPS Global Positioning System
HUC highly urbanized city
iBPLS Integrated Business Permits and Licensing System
IC inspection checklist
ICTO Information and Communications Technology Office
IEC information, education and communication
IRR Implementing Rules and Regulations
IT information technology
JIT joint inspection team
JMC Joint Memorandum Circular
LBT local business tax
LCE local chief executive
LFC local finance circular
LGU local government unit
M&E monitoring and evaluation
Manual for the Reengineering of BPLS in All Cities and Municipalities x

MOA Memorandum of Agreement
NGA national government agency
NGO non-governmental organization
NPS net promoter score
OBO Office of the Building Official
OR official receipt
Pag-IBIG Home Development Mutual Fund
PBD Philippine Business Databank
PBH Philippine Business Hub
PCI payment card industry
PhilHealth Philippine Health Insurance Corporation
PHP Philippine Peso
PIA Privacy Impact Assessment
PIO Public Information Office
PNPKI Philippine National Public Key Infrastructure
POS point of sale
PSIC Philippine Standard Industrial Classification
PSP payment service provider
QMS quality management system
QR quick response
RCS Report Card Survey
RRT regulatory reform team
SCC self-collect and credit
SCP Sanitary Code of the Philippines
SDM software development methodology
SEC Securities and Exchange Commission
SMS short message service
SSAs social security agencies
SOA statement of account
SOP standard operating procedure
SQ survey questionnaire
SSL Secure Sockets Layer
SSS Social Security System
Manual for the Reengineering of BPLS in All Cities and Municipalities xi

SWOT strengths, weaknesses, opportunities, and threats
SMART specific, measurable, attainable, relevant, and time-bound
TIN tax identification number
TOP tax order of payment
TSD technical specification document
TWG technical working group
UAF unified application form
UAT user acceptance testing
UI user interface
URL Uniform Resource Locator
VAPT Vulnerability Assessment and Penetration Testing
Manual for the Reengineering of BPLS in All Cities and Municipalities xii
Table of Contents
Messages of Support ......................................................................................................... iii

Acknowledgments ........................................................................................................... viii
List of Acronyms................................................................................................................ ix
Table of Contents ............................................................................................................. xiii
1.0 Introduction.............................................................................................................. 1
1.1 End-To-End Business Registration in the Philippines ............................................................... 2
1.2 Role of LGUs in Business Registration ...................................................................................... 4
1.3 Entities Requiring Business Permits .......................................................................................... 5
1.4 Use of this Manual ..................................................................................................................... 5
2.0 Getting Ready to Streamline ................................................................................... 6
2.1 Learning the Guiding Principles ................................................................................................. 6
2.2 Knowing the Standards .............................................................................................................. 8
2.3 Organizing the CART ............................................................................................................... 11
2.4 Understanding the Process of Streamlining............................................................................. 15
3.0 Discovery Phase .................................................................................................... 20
3.1 Standards ................................................................................................................................. 21
3.2 Complementary Reforms ......................................................................................................... 44
3.3 Diagnostic Process .................................................................................................................. 49
4.0 Design Phase ......................................................................................................... 59
4.1 Setting the Reengineering Goal ............................................................................................... 59
4.2 Identifying Reengineering/Streamlining Solutions ................................................................... 61
4.3 Preparing for Automation ......................................................................................................... 83
4.4 Transitioning to EBOSS: Hybrid Streamlined BPLS Models ................................................... 94
4.5 Improving Boss Operations .................................................................................................... 105
4.6 Promoting Business-Friendly Inspections .............................................................................. 107
4.7 Formulating Reform Strategies .............................................................................................. 112
4.8 Action Planning for Process Reform Implementation ............................................................ 116
5.0 Delivery Phase ..................................................................................................... 116
5.1 Implementing the Reengineered BPLS .................................................................................. 116
5.2 Developing a Communication Plan ........................................................................................ 119
5.3 Training of LGU Staff and Users ............................................................................................ 134
5.4 Production Support in Automated Systems ........................................................................... 136
6.0 Continuous Improvement Phase ........................................................................ 139
6.1 Formulating a Monitoring and Evaluation Strategy ................................................................ 139
6.2 Monitoring Client Feedback or Perception ............................................................................. 146
Manual for the Reengineering of BPLS in All Cities and Municipalities xiii
Bibliography .................................................................................................................... 153
LIST OF APPENDICES
Appendix A: List of Resources in the Toolkit ..................................................................... 155
LIST OF BOXES
Box 1: Functions, Duties, and Responsibilities of CART ..................................................... 12
Box 2: Highlights of the COA Guidelines on the Use of Electronic Collection (e-
Collection) and Electronic Payment (e-Payment) for Government Transactions ...... 39
Box 3: Sample of Client Satisfaction Survey Results ........................................................... 57
Box 4: Operational Flow for Hybrid Model 1 ........................................................................ 95
Box 5: Operational Flow of Hybrid Model 2 ......................................................................... 97
Box 6: Operational Flow of Hybrid Model 3 ......................................................................... 99
Box 7: Operational Flow of Hybrid Model 4 ....................................................................... 101
Box 8: Operational Flow for Hybrid Model 5 ...................................................................... 103
Box 9: Duties and Responsibilities of the Social Media Team ........................................... 131
Box 10: Information Required by DILG for Monitoring BPLS Reforms ............................... 144
Box 11: Adapting Client Effort Score and Net Promoter Scores to BPLS .......................... 147
Box 12: Sample Client Feedback Mechanism in Ugnayan sa Pasig Unit........................... 150
LIST OF TABLES
Table 1: Summary of BPLS Variables in a Sample Process Table ...................................... 18
Table 2: List of Required Documents as per 2021 JMC ...................................................... 24
Table 3: Features and Prerequisites of an eBOSS .............................................................. 28
Table 4: Features of the Physical BOSS ............................................................................. 32
Table 5: List of Fees and Charges for Setting up a One-Time Assessment......................... 33
Table 6: Typical Cost Component of LGU’s Business Permit .............................................. 34
Table 7: Definition of the Indicators in the Process Table .................................................... 50
Table 8: Converting Steps into Tasks .................................................................................. 54
Table 9: Illustrative Comparison of Baseline Data and 2021 JMC Standards ...................... 55
Table 10: Metrics from the Facebook Page of an LGU ........................................................ 58
Table 11: Information Requirements of LGU Regulatory Offices and the BFP .................... 62
Table 12: Data Repository and Data Requirements Among LGU Regulatory Offices .......... 65
Table 13: Option 1 Operational Process Flow of Activities .................................................. 68
Manual for the Reengineering of BPLS in All Cities and Municipalities xiv
Table 16: Operational Process Flow of Activities Between City/Municipality and the
Bureau of Fire Protection .................................................................................... 71
Table 17: Number of C/MLGUs Integrated with the CBP (PBH) (as of September 2021) .... 91
Table 18: Sample Table Showing Proposed BPLS Strategies Linked with Streamlining
BPLS Procedures ............................................................................................. 114
Table 19: List of eBOSS Functionalities and the Legal Requirements ............................... 117
Table 20: Messaging Matrix by Type of Stakeholder (Audience) ....................................... 122
Table 21: Identifying Tactics for the Communication Goals ............................................... 124
Table 22: Sample Goal Metrics for the BPLS Communication Plan................................... 126
Table 23: Production Issues Classification by Severity...................................................... 138
Table 24: Summary of 2021 JMC Reforms and the Corresponding Performance
Standards .......................................................................................................... 140
LIST OF FIGURES
Figure 1: Ease of Doing Business Index Scores among ASEAN Countries in 2019 .............. 2
Figure 2: End-to-End Business Registration in the Philippines .............................................. 3
Figure 3: Membership and Proposed Structure of CART for C/MLGUs ............................... 12
Figure 4: Phases and Milestones of the Reengineering Process for BPLS.......................... 16
Figure 5: Illustration of an eBOSS Process Flow ................................................................. 28
Figure 6: The 4-steps in the Manual Processing of Business Permits at the Physical
BOSS ................................................................................................................. 30
Figure 7: Illustrative Process of Registration at the Physical BOSS..................................... 31
Figure 8: Framework for Establishing Barangay Business Clearance Fee .......................... 36
Figure 9: Working of Payment Gateways ............................................................................ 38
Figure 10: Reform of the Inspection Process ...................................................................... 45
Figure 11: Illustrative End-to-End Business Permit Process by Regulatory Office ............... 56
Figure 12: Framework of the Philippine Business Hub ........................................................ 91
Figure 13: Illustrative Process Flow for Hybrid Model 1 ....................................................... 96
Figure 14: Illustrative Process Flow for Hybrid Model 2 ....................................................... 98
Figure 15: Illustrative Process Flow for Hybrid Model 3 ..................................................... 100
Figure 18: Concentration of Establishments in the City of Manila ...................................... 106
Figure 19: End-to-End Online Business Permit Process for New Business
Applications ...................................................................................................... 113
Figure 20: Streamlined Process for New Business Permit Applications ............................ 115
Figure 21: Creating a Communication Plan ....................................................................... 120
Figure 22: M&E and the Feedback Loop Processes (Welborn 2020) ................................ 148
Figure 23: Administrative and Choice-and-Voice Feedback Loops.................................... 149
Manual for the Reengineering of BPLS in All Cities and Municipalities xv

1.0 Introduction
This Manual for the Reengineering of Business Permits and Licensing Systems in All Cities
and Municipalities is a comprehensive and user-friendly tool for the use of city, municipal,
and all other local government units (C/MLGUs) mandated under the Local Government
Code to issue permits, clearances, and licenses needed to operate businesses. This
Manual provides a Toolkit containing case studies, policy instruments, references, and
templates as listed in the Appendix.1
This Manual is part of an inter-agency effort to promote “ease of doing business” by

implementing regulatory reforms that would facilitate the processing of requirements for all
types of business operations at the C/MLGU level. A business-friendly implementation of
government regulatory requirements would foster increased business activities that would
result in more investments, greater employment opportunities, inclusive economic growth,
and better quality of life for the majority. These goals are aligned with the overarching and
long-term goals of international and national policies such as the Sustainable Development
Goals 2030 of the United Nations, the AmBisyon Natin 2040, and the Philippine
Development Plan.
As mandated by the Implementing Rules and Regulations (IRR) of the Ease of Doing
Business and Efficient Government Service Delivery Act of 2018 (Republic Act 11032), the
Anti-Red Tape Authority (ARTA) spearheaded the Joint Memorandum Circular (JMC)
together with the Department of the Information and Communication Technology (DICT),
Department of Interior and Local Government (DILG), and Department of Trade and
Industry (DTI). The Memorandum Circular (henceforth referred to as “2021 JMC”) provided
the “Guidelines for Processing Business Permits, Related Clearances and Licenses in all
Cities and Municipalities”.2 The 2021 JMC demands strict compliance with service
standards as mandated under Republic Act 11032 and imposes heavy sanctions for non-
compliance.3
This Manual aims to achieve three objectives of the 2021 JMC.

• Provide detailed guidance to C/MLGUs in streamlining the processing of business
permits and related clearances, certifications, and authorizations as per Republic
Act 11032.
• Promote efficient and effective service delivery to facilitate the start-up and
continued operations of businesses.
• Encourage all local government units (LGUs) to innovate or adopt solutions with
the end-view of improving public service delivery to the business sector.
1Toolkit can be accessed at:

https://drive.google.com/drive/folders/1aPlNDJInBr_mvPx9lUx1b8azocgbjJKZ?usp=sharing
2
A copy of the 2021 JMC can be found in the toolkit under the folder/filename: Policy Instruments/ 6.
ARTA-DILG-DTI-DICT JMC No.1, s2021 .
3
A copy of this legislation has been included in the toolkit under the folder/filename: Policy
Instruments/1. RA 11032.
Manual for the Reengineering of BPLS in All Cities and Municipalities 1

1.1 End-To-End Business Registration in the Philippines
In terms of “ease of doing business”, the Philippines ranked 171st out of 190 countries
world-wide, and seventh among the 11 member countries of the Association of Southeast
Asian Nations (ASEAN) in 2019 according to the World Bank Doing Business 2020 report.
(Figure 1).
Figure 1: Ease of Doing Business Index Scores among ASEAN Countries in

2019
100.0
90.0 86.2
81.5 80.1
80.0
70.1 69.8 69.6
70.0 62.8
60.0 53.8 50.8
50.0 46.8
40.0
30.0
20.0
10.0
0.0
Source: Statista, Ease of Doing Business (EODB) among ASEAN Countries 2020
Compared to our neighbors in ASEAN, our Business Permits and Licensing System (BPLS)
lags behind most as it requires applicants to undertake 13 steps which can only be
accomplished in 33 days.4 In this situation, businesses are either stopped even before start-
up or forced to go underground. For businesses to grow and bring about the desired
benefits to the economy, streamlining our business registration processes becomes
imperative. Government has arrived at a two-pronged solution to this problem of slow
delivery systems: automation of business registration at the LGU level and imposition of
stricter standards for compliance by regulatory offices.
Figure 2 shows the steps for registration and permitting in the country to date. There are
currently both online and Manual options in applying for registration and permits with most
agencies involved in business registration and permitting.
4In the World Bank methodology, time is recorded in calendar days. It is also assumed that the
minimum time required for each procedure is one day, except for procedures that can be fully
completed online, for which the minimum time required is recorded as half a day.

Figure 2: End-to-End Business Registration in the Philippines
Establishments wanting to operate in the country need to follow ten (10) steps.
• First, the establishment needs to undergo primary registration (Step 1) with either
the Securities and Exchange Commission (SEC) for corporations, the DTI for
Business Name Registration for single proprietors or the Cooperative Development
Authority (CDA) for cooperatives.
• Next, the establishment needs to secure several documents from the Bureau of
Internal Revenue (BIR), namely: Tax Identification Number (TIN) (Step 2) as a
prerequisite before the issuance of the Certificate of Registration (Step 3).
• After which, the establishment needs to register with the social security agencies
(SSAs), namely the Social Security System (SSS) (Step 4), the Philippine Health
Insurance Corporation (PhilHealth) (Step 5), and the Home Development Mutual
Fund (Pag-IBIG) (Step 6).5
• After creating the legal identity of the business, establishments need to secure the
Business Permit which is the legal requirement for any business to operate in the
Philippines. Depending on the nature of the business, establishments may also be
required to secure Secondary Permits (Step 7a) as part of the prerequisite
documents for the Business Permit application. C/MLGUs also require Ancillary
Permits (Step 7b) in addition to the Business Permits, as well as valid Certificates
of Occupancy.6
5 Securing the registration numbers from the Social Security Agencies in Steps 4-6 can be done
simultaneously with getting a Mayor's Permit or Business Registration in Step 7. But in many
cases, the applicants would prefer to get SSA numbers since some LGUs still have in their
application form a field on SSS number.
6 Ancillary permits refer to certificates, clearances or permits that are required by national laws or
local regulations which are secured together with the Business Permit. The common ancillary
permits are the Fire Safety Inspection Certificate for business, the Locational Clearance, the
Sanitary Permit, and the Environmental Clearance.

• Once the establishment is operating, the final steps involve enrolling all employees
with the SSAs as required by law, namely: SSS (Step 8), PhilHealth (Step 9), and
Pag-IBIG (Step 10).
The Central Business Portal (CBP) has been operational since January 2021 and has been
relaunched on 20 June 2022, with a new brand name - the Philippine Business Hub (PBH).
The PBH is a single online platform for registering businesses that is designed to reduce
the above steps substantially and allows transactions with SEC, DTI, BIR, and some local
government units to be done online.
This Manual focuses only on the permits issued by the LGU, specifically Step 7 and Step
7b of the business registration process (Figure 2). This Manual provides guidance for
C/MLGUs to institute an efficient and effective system for issuing the Business Permits and
all the ancillary permits required.
1.2 Role of LGUs in Business Registration
Business permits are necessary for any establishment to operate in the country. The
C/MLGU, through its Business Permits and Licensing Office (BPLO), will process the
Mayor’s Permit to Operate or the Business Registration in the area where the establishment
will conduct its business. Apart from the Mayor’s Permit, the establishment may have to
secure a set of ancillary permits from the C/MLGU.
When processing the issuance of the Business Permit, C/MLGUs need to ensure that the
business is legitimate and registered—or has the necessary secondary permits or licenses
from national government agencies (NGAs) for special sectors. Before applying for
business permit, the applicant is required to secure a valid Certificate of Occupancy issued
by the Office of the Building Official (OBO). Certain businesses need to be compliant with
the local regulations and laws which require ancillary permits such as the Sanitary Permit
issued by the City/Municipal Health Office (C/MHO), Environmental Clearance by the
City/Municipal Environment Office (C/MEO), the Locational Clearance by the
City/Municipality Planning and Development Office (C/MPDO), Barangay Business
Clearance by the barangays, and the Fire Safety Inspection Certificate (FSIC) by the
Bureau of Fire Protection (BFP).
This process should be practical and convenient for the applicant who wants to start a
business. The users of this Manual should be able to transform the traditional BPLS
process into a fast, convenient, and rewarding process for all business owners.

1.3 Entities Requiring Business Permits
The 2021 JMC explicitly defined the entities that are required to get a business permit and
those establishments or persons who may be exempt from getting one.7 Entities that fall
into two specific categories are required to get a business permit:
• An individual, partnership, corporation, or cooperative regularly engaged in trade or
commercial activity as a means of livelihood or with a view to profit in the city or
municipality.
• Persons legally authorized to practice their profession (“professionals”) and
maintain or operate a clinic or office, exclusively for the exercise of their profession,
at no cost from the concerned LGU, during the registration of office/clinic and
renewal thereof, subject to a duly enacted local ordinance.
However, as mentioned, there are some exceptions to the rule. If an entity meets any of
the following criteria, they are exempt from registering its business.
• Practicing professionals who have paid professional taxes in the provinces, cities,
or the lone municipality within the Metropolitan Manila Area where they practice
their profession.8
• An individual or those registered in the SEC as a One Person Corporation who
provides personal services that do not fall under the exercise of a profession. The
individual does not also occupy a permanent work or retail space, whether inside
the residence or in any commercial space.
• Service contractors providing temporary or outsourced services outside the
C/MLGU where it registered its principal office or branch.
• Any business that qualifies as Barangay Micro Business Enterprise pursuant to
Republic Act 9178 and Republic Act 10644.9
Knowing these rules allow C/MLGUs to accurately determine whether a business would
require the issuance of such permits prior to starting their operations.
1.4 Use of this Manual
Following the conditions set in the 2021 JMC, the proposed streamlined process flow for
the application of business permits and related clearances are discussed in detail in the
7
Section 6 of the 2021 JMC, a copy of which can be found in the toolkit under the folder/filename:
Policy Instruments/6. ARTA-DILG-DTI-DICT JMC No.1, s2021.
8Under the provisions of Local Finance Circular No. 001-2019 issued by the Department of
Finance on 12 June 2021, the professional who maintains an office or clinic for his/her practice
shall be issued a business permit at no cost. DOF-LFC No. 001-2019, entitled “Guidelines on the
Imposition and Collection of Local Taxes, Fees and Charges on Professionals which can be
accessed in the toolkit under the folder/filename: Policy Instruments/22. DOF-LFC 001-2019.
9 To qualify for exemption from securing a business permit, the enterprise should have been
issued a Certificate of Authority for Barangay Micro Business Enterprise from the DTI, following
Section 5 of RA 10644 or the Go Negosyo Act, a copy of which is included in the toolkit under the
folder/filename: Policy Instruments/2. RA 10644. Furthermore, a local ordinance must be enacted
by the LGU in order for a business entity to be exempt from local taxes and fees.

subsequent sections, particularly those related to the integration of the Business Permit
and other ancillary permits, such as the Sanitary Permit, Environmental Certificate, the
Barangay Business Clearance, and FSIC into one single process for the applicant.
The Business One-Stop Shop (BOSS) model as described in both its physical and
electronic forms is thoroughly discussed in this Manual, along with other standards that
would ease the process of registering a business at the C/MLGU level. The overall goal of
the Manual is to provide useful information to help C/MLGUs achieve the gold standard in
business permitting, which is an online end-to-end business registration system or the
electronic Business One-Stop Shop (eBOSS). C/MLGUs would be able to gain the ability
to diagnose, design, implement, and monitor their BPLS to continuously improve the
system in the service of the business sector.
This Manual should enable readers to reform / streamline their business permit systems
following the legal standards stipulated in the 2021 JMC. It presents the reengineering of
the whole system in its entirety and is organized to provide detailed guidance on how to
achieve each standard in all the different phases of the reengineering process.
This Manual provides instructions for all prescribed tasks and activities, including detailed
information on the various options or solutions that the LGU may decide to implement. For
a broader and deeper understanding of the reengineering in context, readers are provided
with an accompanying toolkit containing the pertinent legal and policy instruments,
references, case studies, samples, and templates that are referenced in this Manual.
2.0 Getting Ready to Streamline

This section discusses the process of transitioning the C/MLGUs’ existing business
registration system using a more streamlined process for the maximum levels of
convenience and practicality for the applicant, at minimal cost and with less effort for the
C/MLGU, and toward a positive impact on the local economy.
2.1 Learning the Guiding Principles
There are nine (9) streamlining principles highlighted in the 2021 JMC. C/MLGUs need to
review their current processes in issuing Business Permits and other ancillary permits and
clearances, to see if they are consistent with the guiding principles for streamlining the
BPLS:
Streamlining Principles of the 2021 JMC
Promote Customer- Focus on creating the best experience for the customer by
Centric Service reducing the time and burden of compliance with regulations.
Begin with a mindset that the “taxpayer” or the applicant is an
honest person rather than a cheater.
Consider the End-to-End Track the steps, processing time, and documentary
Process of Business requirements of the business permitting process at the C/MLGU
Permitting level from the time the applicant submits the application form up

to the issuance of the business permit, including ancillary
permits and clearances.
Reduce Steps and Remove redundant and excessively burdensome processes,

Requirements procedures, and requirements. Retain only the essential steps,
procedures, and requirements that allow C/MLGUs to fulfill their
legal mandate and the policy objectives of their local ordinances
and regulations.
Minimize Costs Be business-friendly by adopting processes that are least

expensive to the transacting public, while giving due regard to
the C/MLGUs’ legal mandates.
Adopt the Whole-of- Take the whole-of-government approach through data sharing,
Government Approach in co-location, and seamless operations. Practical and convenient
Business Permit functionalities like simultaneous review and validation of
Streamlining applications by C/MLGU departments/offices and the BFP, one-
time assessment and payment of business taxes and fees, and
organization of joint inspection teams can only be implemented
using the whole-of-government approach.
Use Technology Implement the zero-contact policy by using innovative

information technology (IT) solutions to set up an electronic
Business One-Stop Shop (eBOSS), an automated environment
where customers can transact online to apply, assess, and
secure permits conveniently.10
Comply with Health Live with COVID-19 where service providers are required to
Protocols comply with health protocols issued by the Department of Health
(DOH) and other agencies. Designing the physical space for the
Business One-Stop Shop (BOSS) will have to conform to public
health standards.
Care in Handling Implement strictly relevant provisions of the Data Privacy Act of
Personal Information 2012 (Republic Act 10173) in the collection and processing of
information submitted by applicants for business permits along
with the related clearances and licenses.11 Guidelines will also
have to be followed with regard to data sharing with authorized
offices of C/MLGUs and other government agencies.
Amend the Citizen’s Maintain transparency by reflecting the streamlined processes

Charter in the Citizen's Charter. Any document, cost, or procedure not in
10Section 7 of Republic Act 11032; a copy of this legislation has been included in the toolkit under
the folder/filename: Policy Instruments/1. RA 11032.
11 A copy of the law is in the toolkit under the folder/filename: Policy Instruments/3. RA 10173.

the Citizen’s Charter shall not be required from the
applicant/requesting party.12
2.2 Knowing the Standards
The 2021 JMC has set the standards and complementary guidelines that C/MLGUs need
to comply with in establishing their eBOSS while maintaining the same standards and
services in the physical BOSS. This document has laid out the steps on how C/MLGUs can
streamline the business registration process and deliver the promise of “ease of doing
business” to their constituents. These standards take into consideration the various
elements and parts that make up the business registration process, retaining what is
integral and dispensing with redundancies.
Streamlining does not happen overnight. If at first, these standards are not met as
described, C/MLGUs should view these first attempts as merely part of the learning
process. C/MLGUs, however, should strive to build upon what has already been achieved
until they are able to transform their BPLS into an eBOSS and attain the gold standard in
issuing business permits.
Standards of the 2021 JMC
Unified Application The UAF is a pro-forma document intended to gather important details
Form (UAF) or information about the business and its owner. The form should
contain all information required by regulatory offices to facilitate
information exchange between local and national governments. The
UAF consolidates all the information needed by the BPLO, C/MPDO,
C/MHO, C/MEO, BFP, the City/Municipal Treasurer’s Office (C/MTO),
OBO, and other offices involved in business registration.
Standard C/MLGUs shall limit the documents that are required to those specified
Documentary in the 2021 JMC. Furthermore, the 2021 JMC states that documents
Requirements submitted previously to offices of the LGU should no longer be required
for resubmission. Examples of these documents include but are not
limited to the following: Barangay Clearance, and Community Tax
Certificate (CTC) or “Cedula”. Moreover, renewal applications are no
longer required to submit physical or electronic copies of documents
that were previously issued by the same LGU.
Business One- C/MLGUs should establish their BOSS, both electronic and physical, to
Stop Shop receive and process the submission of applications for licenses,
clearances, permits or authorizations, release tax bills, accept
12In compliance with ARTA Memorandum Circular No. 2019-002 and ARTA Memorandum
Circular No. 2019-002-A. A copy of the former is found in the toolkit under the folder/filename:
Policy Instruments/13. ARTA MC 2019-002.

payments, and release permits or other documents related to the
application of a Business Permit.
(1) Electronic C/MLGUs are mandated to set up an eBOSS not later than June 17,
BOSS 2021, following ARTA’s Zero-Contact Policy and health protocols
implemented by the government. The main functions of the BOSS
should be translated into digital processes such as:
• Allow applicants to accomplish the UAF online
• Accept online or electronic submission of applications using the
UAF
• Issue electronically the Tax Order of Payment (TOP) or
Statement of Account (SOA)13 which indicates the amount that
the applicant must pay covering business tax, fees, and charges
• Accept online payments or alternative digital payment options
• Issue electronic versions of the permits, licenses, or clearances;
these shall have the same authority as hard copies issued by
C/MLGUs
• Provide a gateway facility linked to courier services to allow
physical delivery in cases where the applicant prefers to receive
a hard copy of the permits
(2) Physical This is the actual facility or location in which C/MLGUs can receive and
BOSS process manual and online applications for business permits. These
should be located in the Negosyo Centers or a designated area in the
city/municipal hall. Guidelines have also been stipulated in terms of the
front- and back-end operations of the physical BOSS to consistently
streamline the offline business registration.
Front-end operations need to meet the following standards:
• An appointment system to prevent crowding within the
premises
• Queuing system that differentiates applicants in terms of
single/multiple applications, applicants that may use senior
or person with disabilities privileges, and those with specific
transactions
• Transaction windows that conform with the 3-step procedure
in getting a Business Permit
• A public assistance desk
Back-end operations need to meet the following standards:
• Co-location of all offices that issue business-related permits
• Physical layout and elements compliant with health protocols
13 TOP and SOA are used interchangeably in this Manual.

Standard Steps From the client's perspective, the experience of registering a business
should be consistent and follow a specific set of steps. The eBOSS,
which is an online registration system where all transactions are made
electronically, entails a one-step process.
In the physical BOSS, where applications are received and processed
manually, the standard is a four-step process on the side of the client.
• Step 1: Set an appointment for the submission of the
application (offline) or go to the LGU eBOSS (online)14
• Step 2: Submit physically the UAF with the standard
documentary requirements
• Step 3: Receive the TOP/SOA
• Step 4: Pay the necessary fees and charges at the cashier
window and receive all the permits and other documents.
Standard The application for a new Business Permit and business renewals
Processing Time should be finished within three (3) working days. This includes
certificates/permits/clearances that require inspections from the BFP or
other offices.
Signatories The number of signatories shall be limited to a maximum of three (3)

signatures per permit/clearance/certificate. The use of authentication
digital signatures is encouraged. Alternate signatories should also be
designated in case authorized signatories are absent.
Complementary reforms such as synchronizing the movements of the various moving parts
involved in the BPLS can greatly improve efficiency. The list below describes the
complementary guidelines stipulated in the 2021 JMC that are integral to further achieving
efficiency and lowering the cost of business registration at the local level.
Complementary Guidelines of 2021 JMC
Inspections Inspections need to be business-friendly and implementing several reforms

will help the C/MLGU achieve this.
• Regulatory offices should issue prior notice to business owners

of the schedule and purpose of the inspection, including a
checklist of inspection requirements.
• Business owners should be able to exercise their right to be
assisted by an appropriate professional during the conduct of the
inspection.
14The appointment system was set up to avoid overcrowding in the BOSS at the height of the
pandemic. However, with the easing of restrictions, some local governments have removed their
appointment system.

Complementary Guidelines of 2021 JMC
• Checklists shall be used during the inspection to ensure that

parameters for evaluation are applied consistently, not arbitrarily.
• Applicants shall be informed of the findings immediately after the
conduct of site inspection.
• The applicant should be given a reasonable amount of time to
address adverse findings during the inspection.
Joint Inspection Teams (JIT) can limit the number of face-to-face visits to
establishments. Two types of JIT maybe organized – Disclosure Verification
JIT which verifies the information declared in the UAF and the Safety JIT
which ensures that safety standards prescribed in national and local laws
and regulations are complied with.
Other measures that will lead to more efficient service include the
submission of negative or positive lists before the end of the year and the
use of a system of risk classification of businesses in determining the
establishments to be inspected and the frequency of inspections.
Fees and The Regulatory Reform Team (RRT) or the Committee on Anti-Red Tape
Charges (CART) is advised to review the LGU tax ordinances to comply with the
requirements of the 2021 JMC, especially on the following:
• Imposition of local business tax for newly started businesses

based on capital investment
• Redundant fees such as Fire Inspection Fees which are already
collected by the BFP
Fees and charges imposed by C/MLGUs should cover the cost of processing
business permits and ancillary permits.
Single An applicant engaged in the business of leasing multiple real properties

Application within the same city or municipality shall be required to file only one (1)
for Lease of application provided that all properties are listed with the appropriate income
Multiple derived from each. This allows the LGU to do a single assessment of the
Real taxes, fees, or charges to be paid for all properties.
Properties
Data Data collected in the business permit process by the BPLO and other
Sharing regulatory offices are shared following the requirements of the Data Privacy
Act. In the development of the eBOSS, C/MLGUs should plan for eventual
integration with National Government portals on business registration such
as the PBH and the Philippine Business Databank (PBD) following the
guidelines stipulated by the DICT regarding access to the data.
2.3 Organizing the CART
The re-engineering process requires institutional support that would oversee the design
and implementation of reforms. The crux of this process is the setting up of the CART,

which serves as the coordinating body for the establishment of an eBOSS and oversees
the reengineering of the C/MLGUs’ BPLS as outlined in this Manual.15
C/MLGUs with existing RRTs created under DILG-ARTA JMC 2019-01, may use these as
the equivalent of the CART, with additional functions as provided for in ARTA MC 2020-
07.16 Figure 3 shows a proposed structure and staffing of the CART for C/MLGUs. The
Chairperson makes the final decision on the composition of the committee and its
subcommittees.
Figure 3: Membership and Proposed Structure of CART for C/MLGUs
The specific functions (see Box 1) and membership of the CART are also defined in ARTA
Circular No. 2020-07.
Box 1: Functions, Duties, and Responsibilities of CART
1. Conduct compliance cost analysis, time and motion studies, evaluation and
improvement of all the agency’s services and reengineering design.
2. Subject to the Guidelines/National Policy on Regulatory Management
System to be issued by ARTA:
15Creation of a CART is required in ARTA Memorandum Circular No. 2020-07 dated September
30, 2020. A copy of this document can be found in the toolkit under folder/filename: Policy
Instruments/11. ARTA MC 2020-07.
16
The DILG-ARTA JMC 2019-01 creating the RRTs can be found in the toolkit under the
folder/filename: Policy Instruments/5. ARTA-CSC-DTI JMC No. 2019-01.

a. Notify ARTA of every formulation, modification, and repeal of
regulations, ordinances, or other related issuances.
b. Conduct post-implementation assessment and review of existing
regulations, ordinances, or related issuances, and undertake
Regulatory Impact Assessment.
c. Prepare a Preliminary Impact Assessment whenever there is an
intent to formulate, modify or repeal a regulation and submit it to the
ARTA.
d. Produce a Regulatory Impact Statement upon completion of each
assessment and submit it to ARTA for review and assessment.
e. Refer to ARTA’s policy option recommendations to the appropriate
decision-makers within the agency.
f. Submit an inventory and electronic copies of all existing (both in-
effect and repealed) regulations and issuances to populate the
Philippine Business Regulation Information System.
3. Ensure effective knowledge transfer, or information dissemination among
office employees on ARTA-related trainings, briefings or such related matters
obtained by office staff within sixty days (60) from the end of the training.
4. Register new regulations and issuances to the following, if applicable, within
fifteen (15) days from issuance to (a) UP Office of National Administrative
Register; and (b) Official Gazette for publication.
5. Set-up the most current and updated service standards and post it in the
Citizen’s Charter in accordance with the prescribed template issued by ARTA
and submit the same to ARTA to populate the Anti-Red Tape Electronic
Management Information System.
6. Monitor and periodically review the office or agency’s Citizen’s Charter,
specifically: procedures/steps, time, documentary requirements and fees.
7. Ensure that an updated Citizen’s Charter, is posted not later than March 31st
of each year.
8. Ensure compliance of the agency on the zero-contact policy in accordance
with the law.
9. Ensure the compliance of the agency’s’ external and internal services with
the prescribed processing time as mandated by Republic Act 11032 or the
agency’s’ mandate under special law.
10. Develop and foster client feedback mechanisms and client satisfaction
measurement.
11. Report to ARTA not later than the last working day of January of each year
the results of the Client Satisfaction Survey for each service based on
guidelines issued by ARTA.
12. Establish and manage a public assistance complaints desk or ARTA
Helpdesk to effectively receive complaints, feedback and monitor customer
satisfaction via hotline numbers, short messages service (SMS), information
and communication technology or other mechanisms where clients may

adequately express their complaints, comments, or suggestions. The CART
must ensure that complaints forwarded by the Presidential Complaints
Center, Civil Service Commission’s Contact Center ng Bayan and
Complaints Action Center of ARTA are acknowledged, received, responded
to and/or acted upon within the designated period by the intended recipient
with their agency.
13. Serve as overall coordinating body for the establishment of an eBOSS in
compliance with the mandate under Republic Act 11032, its IRR and other
issuances by ARTA. The CART must facilitate and assist various
departments and offices involved during the development and
implementation of the eBOSS, including logistics and personnel
requirements, security of the system, development of a communication plan,
implementation of contingency measures and protection of data and
information, as applicable.
14. Coordinate with the C/MLGU’s Communications/Public Relations Office the
dissemination of ARTA Information, Education and Communication
materials for public consumption.
15. Perform other functions, duties and responsibilities under Republic Act
11032, its IRR and other issuances by ARTA.
Source: Section 6.2 of the ARTA Circular No. 2020-07 [Toolkit filename: 11. ARTA MC 2020-07]
Due to the substantive undertaking on streamlining the business registration process, this
Manual recommends the creation of the Sub-Committee on BPLS Reforms and eBOSS.
Though not legally mandated, C/MLGUs will certainly benefit from their self-instituted
subcommittees whose main responsibility is to meet the standards stipulated in the 2021
JMC.
The Sub-committee on BPLS Reforms and eBOSS will serve the following functions:
• Oversee the reengineering of the BPLS described in this Manual.
• Oversee the preparation of all the legal requirements for the reforms and follow
through with their approval.
• Approve the action plan for the implementation of the BPLS reforms.
• Recommend the budget for the BPLS reforms and seek funding support.
• Approve and oversee the implementation of the Communication Plan including the
communication materials that will disseminate the reforms to the public.
• Oversee the formulation of a Monitoring and Evaluation Plan for the BPLS
reforms.
• Ensure that ARTA and DILG reportorial requirements are complied with,
especially the revisions of the Citizen’s Charter.
• Oversee the continuing improvements necessary for the implementation of
eBOSS and other BPLS reforms.

For the Subcommittee on BPLS Reforms and eBOSS, the following membership is
proposed:
• Chairperson: City Administrator
• Vice Chairperson: Business Permits and Licensing Officer
• Members: City/Municipal Information and Communication Officer, City/Municipal
Treasurer, City/Municipal Planning and Development Officer, City/Municipal
Assessor, City/Municipal Health Officer, City/Municipal Environmental Officer,
City/Municipal Barangay Relations Officer, Local Fire Marshal of the Bureau of
Fire Protection, City/Municipal Information Technology Officer
The main reason for creating subcommittees is to ensure that there will be an institutional
body that will champion the reforms required to successfully establish the BOSS and
eBOSS. After the successful re-engineering of the BPLS, the sub-committee can continue
the review and assessment of future reforms to ensure that the business permit registration
system remains dynamic and adaptive to the changing times.
2.4 Understanding the Process of Streamlining
With the guiding principles and the CART in place, C/MLGUs are now ready to transform
the existing BPLS processes following the reengineering framework in Figure 4. The
streamlining process follows a four-phased cycle: discovery, design, delivery, and
continuous improvements.17
This section gives an overall view of the different phases involved in the streamlining
process. Figure 4 itemizes what needs to be done during each phase of the streamlining
process, thus providing a theoretical framework for the desired transformation of the BPLS.
Understanding the overall process as designed is critical in making the streamlining work,
not only according to the principles set by 2021 JMC but also in making the process
sustainable.
17The four-phased reengineering process follows the framework in ARTA’s “Reengineering

Manual: Supporting the Whole-of-Government Approach in Streamlining Philippine Government
Systems & Procedures in Delivering Public Services” which is intended to be a guide for agencies
and C/MLGUs as they reengineer their systems and procedures.

Figure 4: Phases and Milestones of the Reengineering Process for BPLS
The explicit steps to be undertaken for each phase will be discussed thoroughly in the
following chapters.
2.4.1 Discovery Phase
The Discovery Phase is all about objectively scrutinizing the existing BPLS in light of the
standards set by the 2021 JMC. The first action, therefore, is for the LGU to assess and
diagnose the current BPLS, identifying its strengths and weaknesses.
C/MLGUs should analyze their existing BPLS in its entirety - processes, operations, and
technological environments - with the view of not only identifying what needs to be done to
satisfy the standards set in the JMC, but of appreciating the readiness, or the lack of it, of
their organizations, staff, financing, and technical infrastructure to implement the prescribed
BPLS.
The goal of the Discovery Phase is to assist the LGU in gathering baseline data of present
processes and a comprehensive checklist of the work required to make these comply with
JMC standards.
Using the Process Table as a Diagnostic Tool
There are five areas in the 2021 JMC that should be examined: (1) the unified application
form and compliance with documentary requirements, (2) steps/procedures, (3) processing
time, (4) signatories needed, and (5) the BOSS.
The process table is a matrix that tracks the ten (10) variables involved in the first four
areas mentioned above and is akin to the conduct of a time and motion study with the

LGU officials playing the role of the applicant in tracking the different tasks and steps in
getting permits.18
These variables to be entered into the process table for measurement are: (1) the number
of steps, (2) tasks, (3) form, (4) documentary requirements, (5) outputs, (6) total amount of
cost, (7) number of signatures and initials required, (8) number of visits, (9) the processing
time divided into travel time, waiting time, and transaction time, and (10) the total time it
takes an applicant to go through the end-to-end business permit process.
For a total picture of the BPLS, the process table will also track the following information:
1. the tasks done by the involved LGU officials/staff (for manually submitted applications)
or the function performed by an automated BPLS;
2. the office where the city official performs the task, and
3. the location of the office.
All regulatory offices in the LGU involved in the BPLS, including the local BFP, should be
accounted for to complete the process table. This provides the LGU with the baseline end-
to-end process data on its BPLS. The data derived for each indicator will be used during
the Design Phase of the reengineering process.
A summary of variables derived from a sample process table is shown in Table 1.
Gathering Client Feedback for Context
Numbers alone do not tell the whole story. C/MLGUs will need feedback from clients or
applicants to identify pain points, measure client satisfaction, and identify areas for
improvement. C/MLGUs can collect this kind of data using the two methods below:
• Customer Perception Survey. C/MLGUs, in partnership with the academe or local

business groups, can conduct a Client Perception Survey that will cover some areas
or standards in business permitting.19 The survey can be used to assess the level
of satisfaction of applicants with the LGUs’ business permit processes and provide
data to validate the C/MLGUs’ performance vis-a-vis government standards.
• Monitoring on Social Media. Social media provide constituents with convenient
platforms for feedback. C/MLGUs can use their Facebook, Instagram, or Twitter
accounts to engage the local community. C/MLGUs can monitor BPLS-related
comments, reactions, and suggestions even as they can directly respond to
inquiries of constituents.
18A copy of the template process table can be found in the Toolkit under the folder/filename:
Templates/1. Unified Application Forms.
19A sample Client Perception Survey which was used by UPPAF for the City of Manila can be
found in the Toolkit under the folder/filename: Case Studies/2. Sample Client Perception Survey
for Manila.

Table 1: Summary of BPLS Variables in a Sample Process Table
No. of No. of No. of No. PEAK (In Minutes)20
Type of Permit / Applicant No. of Cost Total
Steps Forms Required Signatures of Travel Waiting Processing
Document and Office Tasks Outputs (PHP) Length of
(All) Documents & Initials Visits Time Time Time Time
BUSINESS PERMIT
Barangay Clearance
1 1 0 1 1 500 1 1 1 10 10 21
(Barangay)
Business Permits (BPLO) 2 7 6 10 5 6,530 4 6 19 80 64 163
Zoning Clearance
1 2 0 3 1 600 1 1 8 10 8 26
(C/MPDO/Zoning)
Tax Order of Payment and
1 1 0 2 1 0 1 1 1 10 2 14
Receipt (C/MTO or BPLO)
SUB-TOTAL FOR
5 11 6 16 8 7,630 7 9 29 110 84 223
MAYOR’S PERMIT
SANITARY PERMIT
Sanitary Permit
6 8 1 6 9 0 10 6 10 9,775 130 9,915
(C/MHO)
Tax Order of Payment and
1 1 1 1 1 0 1 1 1 10 2 13
Receipt (C/MTO)
TOTAL FOR SANITARY
7 9 2 7 10 0 11 7 11 9,785 132 9,928
PERMIT
ENVIRONMENTAL CLEARANCE
Environmental Clearance
2 3 0 3 2 504 4 3 7 1,545 35 1,587
(C/MENRO)
TOTAL FOR
ENVIRONMENTAL 2 3 0 3 2 504 4 3 7 1,545 35 1,587
CLEARANCE
FIRE SAFETY
INSPECTION 3 5 2 6 4 6 7 3 6 740 94 840
CERTIFICATE (BFP)
SUB-TOTAL (Post-
12 17 4 16 16 510 22 13 24 12,070 261 12,355
Registration)
OVERALL TOTAL 17 28 10 32 24 8,140 29 22 53 12,180 345 12,578
20“Peak” refers to the period when the bulk of registered establishments renew their Business Permit, which is usually the last week of the renewal period. In most C/MLGUs,
the renewal period starts from the first working day of January up to the 20th, which, in most cases, is extended up to the end of January.
18
Manual for the Reengineering of BPLS in All Cities and Municipalities
2.4.2 Design Phase
The Design Phase involves the following sub-phases: goal setting, identification of re-
engineering or streamlining solutions, and formulation of BPLS reforms.
Streamlining will cover the procedures for processing new business permit applications and
business renewal applications. If the LGU allows both online and manual submission of
applications, streamlining will cover 4 types of processes – the online and manual systems
for new business permit applications and the online and manual systems for renewals.
The Design Phase will cover the same areas that were assessed in the Discovery Phase.
These are (1) procedures or steps, (2) processing time, (3) use of the unified application
form, (4) documentary requirements, (5) number of signatories, and (6) features of the
BOSS. The operational details of government-set standards are described in Chapter 4 of
the Manual.
The LGU, moreover, can also implement its own improved process design based on the
diagnosis resulting from the Discovery Phase.
2.4.3 Delivery Phase
After the streamlining or reengineering solutions have been agreed upon, the next phase
is to plan the implementation of the streamlining reforms. The general milestones by which
C/MLGUs’ readiness to execute this phase are indicated by the completion of the following
tasks:
1. CART Organized - The CART plays a pivotal role in overseeing the reengineering
process. This committee also ensures that the resources required to implement the
plans formulated during the Design Phase are available.
2. Communication Plan as Prepared is Executed - The LGU needs to inform the public
of the reforms prior to their implementation since these changes will directly affect
the public and would impact their livelihood. Execution of the communication plan
includes ensuring that official social media channels have been created and ready
for messaging and that official communication media such as the Citizen’s Charter
and Public Assistance Units, among other things, are already in place.
3. Executive Orders / Ordinances Issued - The streamlining process requires a strong

legal foundation. The issuance of these policies not only formalizes the BOSS and
eBOSS but also provides them with the legal authority it requires.
4. Customer Training Conducted - Personnel who would be manning the frontlines at

the BOSS and working the eBOSS need to be well trained for the smooth and
efficacious operation of the reformed BPLS.
Experience shows that three (3) things are critical to the success of the reform of the BLPS:
1. Agreement on the budget required and sourcing of funds;
2. Training of front liners and personnel involved in the new BPLS processes; and,

3. Timely, effective, and sustained communication between and among the C/MLGUs
and their business constituents for purposes of information, monitoring, and
feedback.
To facilitate the implementation of the streamlining solutions, the formulation of an action

plan is recommended in this Manual which identifies the required activities and tasks to
undertake the reforms together with a time frame for implementation, the unit/s or person/s
responsible, and the resources needed for each streamlining solution.
2.4.4 Continuous Improvement Phase
Continuous monitoring and evaluation of the implementation of the new BPLS processes,
including problems / suggestions encountered, are part of the improvement process. This
Manual discusses the formulation of a monitoring and evaluation strategy for the project.
Even if the BOSS or eBOSS is already operational, it is still important to periodically review
and assess the new system. The actual progress of the new BPLS, whether in terms of
client satisfaction or cost effectiveness, can be validated, hence, be properly addressed,
when data obtained from monitoring is compared with the baseline data obtained in the
Discovery Phase. Data from continued monitoring for client feedback via the Report Card
Survey, client perception surveys and social media insighting are essential sources of
information for future improvements to the BOSS and eBOSS systems that may even
surpass the standards set by the 2021 JMC.
The need for reengineering does not stop with the attainment of the standards set by the
2021 JMC. While it is necessary to naturally look back to the Discovery Phase to objectively
assess how far the new BPLS has transitioned, the reality of fast advancing technologies
can render the standard of today obsolete in a matter of months or a year.
The future will definitely reveal new problems that would require new solutions. Positioning
the C/MLGU in the face of certain obsolescence and redundancy is, in the interest of
continuous improvement, the real challenge of its leaders and constituency.
3.0 Discovery Phase

This chapter will guide the C/MLGU in diagnosing what is wrong with its existing BPLS
when compared with the 2021 JMC standards. In this phase, the C/MLGU needs to identify
the different areas where they need improvement as a first step to creating / adopting
appropriate reengineering solutions. Needless to say, it is in this first step of the
reengineering process that the success of the succeeding phases will depend.
But first, it is important to pay particular attention to what one is up against – in this case,
the detailed description of the standards (3.1 Standards) and the complementary reforms
(3.2 Complementary Reforms) as stipulated in the 2021 JMC. The following discussions
will describe the ideal version of the BPLS that all C/MLGUs are required to attain, short of
which would entail heavy penalties. By knowing the ideal version, this Manual intends for
each C/MLGU to discover the weaknesses and strengths of their existing BPLS practice
and process.

For eye-opening purposes, every discussion will be followed by a few diagnostic questions
that would help the C/MLGU appreciate the comparison between their BPLS and that set
by the 2021 JMC. The last part of this section will also discuss the different methodologies
that can be used in the conduct of the diagnosis (3.3 Conducting the Diagnostic Process).
3.1 Standards
This section will go through the roster of the standards identified in the 2021 JMC for
purposes of comparison with current practice in processing business permit applications
by C/MLGUs. It is also important to keep in mind that each 2021 JMC standard is being
evaluated and assessed from the viewpoint that these already contain the solutions needed
in reforming the existing business permit application process.
3.1.1 Unified Application Form
Under the law, the UAF is the instrument used to process new permit applications and
renew business permits.21 The 2021 JMC provides that the UAF shall also be used for
applying for other ancillary permits and clearances related to the business permit.
Using the UAF would benefit the local government by making the process of business
permitting less costly due to reduced printing costs. It also shortens processing time for
applications by focusing data fields on only those needed by the offices. Standardizing the
form and the fields required of applicants will also facilitate data sharing among the various
offices by having a single reference document for business information.
Below are the parts of the UAF following the template provided in the 2021 JMC.
• The first section of the UAF contains basic information on

the application.
• Date of Receipt. This information is important in determining
the start time for tracking processing time, a standard set in
Republic Act 11032.
• Tracking Number. This is used in many LGUs as the
Type of reference code in tracking the status of applications in the
Application BPLO and other regulatory offices.
• Business ID Number. This is the official business number
that is displayed by establishments and may be used to
provide relevant information on the establishments. It is also
useful in tracking the compliance of businesses after the
permitting process. C/MLGUs have the option to have the
same set of numbers for application tracking and business
ID.
21Section 11a of the RA 11032 provides for the use of a single or unified application form when
applying for new or renewing a business permit. The template UAF is provided in Annexes 1-3 of
the 2021 JMC which can also be found in the Toolkit under the folder/filename: Templates/1.
Unified Application Forms.

• Type of application: (1) New, (2) Renewal, or (3) Additions

or Amendments
• Mode of Payment: (1) Annually, (2) Bi-annually, or (3)
Quarterly
• This section provides the basic details of the business to
establish and verify its legal identity. The data fields in the
new UAF are also classified according to the legal identity
of the business (business registration information) and the
nature of its operations. Some of this information is required
of C/MLGUs in reporting to national government agencies,
Business i.e., gender of owner. Data fields for the contact details of
Information the main office were also added for those companies whose
business operation is apart from their headquarters or main
office.
• Details needed are (1) Business name, (2) Main office
address, (3) Contact details, (4) Type of business structure
(including male- or female-owned information), (5) Name of
business owners, and (6) Corporate nationality.
• This section provides details on the line of business and a
description of the operations of a business. This information
provides regulatory agencies with the basis for (1)
computing the business tax, fees, and charges, (2)
determining compliance with zoning regulations, (3)
Business
granting incentives, and (4) whether the property where the
Operations
establishment is located is registered with the C/MLGU.
• Details needed are (1) Area of the establishment, (2)
Number of employees, (3) Number of delivery vehicles, (4)
Business location, (5) Land ownership, (6) Line of business,
(7) Products/services produced, and (8) Gross sales.
• The oath of undertaking is a statement that the business
applicant will sign to attest that the details provided in the
UAF are true and complete. This also allows the C/MLGU
to use the UAF as evidence in cases of perjury or
misrepresentation. This provision removes the need for the
notarization of the UAF as provided in the 2021 JMC.
Oath of • The statement also includes a provision that the applicant
Undertaking allows the C/MLGU to share information in the UAF with
other regulatory agencies in compliance with the Data
Privacy Act.
• The sample statement is as follows:
• “I declare under penalty of perjury that all information in this
application is true and correct based on my personal
knowledge and authentic records submitted to the [Name of

LGU]. Any false or misleading information supplied, or
production of fake/falsified documents shall be grounds for
appropriate legal action against me and automatically
revokes the permit. I hereby agree that all personal data (as
defined under the Data Privacy Law of 2012 and its
implementing Rules and Regulations) and account
transaction information or records with the [City/Municipal
Government] may be processed, profiled, or shared with
requesting parties or for the purpose of any court, legal
process, examination, inquiry, audit, or investigation of any
authority.”
• The C/MLGU may add to the above sample statement as
needed. Section 4.2.1 cites the modified Oath of
Undertaking used by the City of Valenzuela.
In the eBOSS where applications can be accessed online, the 2021 JMC advises the use
of separate forms for new business applications and a shorter or pre-filled renewal business
application form. The three templates UAF (offline form for new businesses and renewals,
online form for new businesses, and online form for renewals) are mandated in Republic
Act 11032.22
It is important to note that C/MLGUs should not add fields to the form unless these are
absolutely necessary to reflect local regulations or ordinances that could not be revised
immediately to conform to the 2021 JMC. They can add their logos and no other. The first
step in conducting a diagnosis on the UAF is knowing the difference between their current
form and the new form.
Diagnostic Questions:
• Has your C/MLGU already implemented the UAF?

• If not, do clients have to file separate application forms for the different permits
and clearances?
• What data requests or questions are redundant across the forms?
• Is the C/MLGU’s online UAF the same for new business applications and for
renewals?
• Does the C/MLGU see any barriers against implementing the UAF in your
processes?
22Section 4.2.1 on designing the Unified Application Form contains proposals for creating an
online UAF. The UAF template for online business registration systems like the eBOSS can be
found in the Toolkit under the folder/filename: Templates/1. Unified Application Forms.

3.1.2 Documentary Requirements
Documentary requirements refer to the documents or certifications that applicants need to

submit together with the UAF for the processing of the business permit. In assessing LGU
compliance with these provisions, check the documents that all regulatory offices require
for business applicants based on the line or nature of their business (Table 2).
Table 2: List of Required Documents as per 2021 JMC
Renewal of Business Permit

New Business Permit Applications
Applications
Proof of registration Proof of annual gross receipts such as:

• Issued by the SEC for corporations and • Audited financial statements
partnerships (AFS) or unaudited AFS for
those who are not required to
• Issued by the DTI for sole proprietors
file AFS with the BIR
• Issued by the CDA for cooperatives
• Sworn declaration of gross
Proof of right of applicant to use location as sales or receipts
business address which may include any of the • Income tax returns
following:
• If owned, proof of ownership – Transfer
Certificate of Title or Tax Declaration
• If not owned by the applicant- Contract of
Lease, Memorandum of Agreement
(MOA), or written consent of the property
owner
Location plan or sketch clearly showing where

the business premise is located
FSIC for Occupancy, valid in the last nine (9)

months (BFP requirement)
For applications with valid FSIC for Occupancy,

Affidavit of Undertaking, that there had been no
substantial changes made on the building /
establishment since the FSIC was given (BFP
requirement)
The 2021 JMC is explicit that the required documents for new permit applicants and permit
renewal applicants should only be those listed in Table 2. However, some businesses need
to secure secondary permits to comply with national laws and regulations prior to the
issuance of a business permit, but this would only cover these sectors:23
23Annex 4 of the 2021 JMC specified several businesses that are required to secure documentary
requirements from NGAs based on their sector. Based on ARTA consultations, the list of

1. Contractors and Construction-related businesses. Circular 04-2019 of the
Government Procurement Policy Board requires contractors to secure their license
from the Philippine Contractors Accreditation Board prior to securing their business
permit. For C/MLGUs, compliance with this requirement by checking the
accreditation of applicants in the following link:
https://www.dpwh.gov.ph/dpwh/business/procurement/civil_works/registered_cont
ractors
2. Lending Institutions. The Lending Company Regulation Act of 2007 (Republic Act
9474) requires lending institutions to secure a Certificate of Authority from the SEC
and an Authority to Operate from the Bangko Sentral ng Pilipinas (BSP) prior to the
issuance of a business permit.
The 2021 JMC removed several documents that were required of applicants during permit
application or renewal. The list below shows which documents are no longer required and
a brief explanation or justification for why these documents have been removed from the
list of required documents.
List of Documentary Requirements in the 2016 JMC Removed in the 2021 JMC
Certificate of The Business Permit is required to check the legitimacy of the business, i.e.,
Occupancy whether it is registered and has all the necessary clearances/certificates to
operate. The Certificate of Occupancy checks whether a structure is fit to be
occupied. Also, copies of the Certificate of Occupancy can be obtained from
the OBO rather than being provided by the applicant.
Barangay DILG Memorandum Circular No. 177 s. 2019 stipulated the integration of the
Clearance issuance of the Barangay Clearance in the permitting processes of
C/MLGUs. This means that C/MLGUs should no longer require applicants to
secure a Barangay Clearance prior to applying for a business permit. A
Barangay Clearance is automatically applied for when an applicant applies
for a Business Permit.
Previous The BPLO should have a copy of the Business Permit that it issued.
Year’s Requiring the applicant to provide a copy is contrary to Republic Act 11032.
Business The business ID number is already provided in the UAF for easier document
Permit tracking. Should other regulatory offices require the Business Permit, they
should secure a copy from the BPLO.
TOP/SOA or These are issued either by the BPLO or the Treasurer’s Office. Requiring a
SOA copy from the applicant is inconsistent with Republic Act 11032,
Official These are issued by the Treasurer’s Office, which should have copies
Receipt (OR) available in its office. Other regulatory offices which need the OR should
have data sharing arrangements to access the information without the need
for the applicant to photocopy the OR for submission to these offices.
secondary licenses and permits that C/M/LGUs should require prior to applying for a Business
Permit are limited to the sectors listed. Additional consultations will be made to validate the permits
listed in Annex 4.

List of Documentary Requirements in the 2016 JMC Removed in the 2021 JMC
CTC or The Barangays or the BPLOs should not require the applicant to submit a
Cedula Cedula or CTC as a requirement for business permits. All business
applicants will automatically be issued a CTC, with the fees already
incorporated in the TOP. Only principal establishments are required to have
CTC; separate CTCs for branch offices of establishments are not required.
Locational C/MLGUs no longer need to ask for applicants to submit a Locational

Clearance Clearance as a requirement for a Business Permit since this can be checked
in the backroom by the Zoning Office upon submission of the Business
Permit application.
For new applicants with newly built or renovated structures, compliance with
zoning regulations presumably has been assessed prior to securing a
Building Permit. Applicants no longer need to submit a Locational Clearance
if there are no changes in the nature or line of business or its location. For
renewal applicants, compliance with zoning regulations should have been
determined during the initial application of the business.
Locational Clearances should also be removed as a requirement for
businesses or establishments within commercial or business districts as
mandated by ARTA Circular 2020-01.24 Since these districts are specifically
designed for commercial establishments, compliance with local zoning
regulations should be deemed approved.
• Does the C/M/LGU have additional documentary requirements other than those
in the 2021 JMC?
• Do regulatory offices involved in business permitting separately require
additional documents from applicants in addition to those listed in the 2021
JMC?
• Are there constraints in implementing a one-time submission of all documentary
requirements to allow simultaneous assessment of the business permit and the
ancillary permits?
3.1.3 The BOSS and the Steps for Business Permit Application
The 2021 JMC is explicit that the business permit application process at the LGU level
should be reengineered towards achieving the BOSS model—a one-stop business
facilitation service to process all the applications to secure a Business Permit. However,
24
A copy of the circular can be found in the Toolkit under the folder/filename: Policy Instruments/12.
ARTA MC 2020-01.

there are two different modalities that this service provides to the clients: the online or digital
mode (eBOSS) and/or the offline or traditional mode (Physical BOSS).
The eBOSS Process
A fully online business registration system or eBOSS will be the gold standard that the
C/MLGUs shall implement. This can be accomplished completely online through a one-
step process from the side of the applicant. C/MLGUs that will use the manual processing
of business permits will follow the standard of a four-step process from the side of the
applicant.
The illustration of the eBOSS process flow (Figure 5) shows the LGU operations bearing
the bulk of the work. Traditionally, the literal “leg work” required for applying for business
permits is skewed against the applicant where they go from one office to the next,
submitting several different forms. Applying customer-centric principles to the
reengineering of the business permit application process requires the LGU to do more
heavy lifting.
This requires substantive reform to the LGU operations, foremost is the establishment of
the one-time assessment process which requires the orchestration of several LGU
offices listed in the illustration. Achieving the one-time assessment process will result in the
integration of several permits’ application processes into one: Business Permit, Barangay
Business Clearance, FSIC, Sanitary Permit, Environmental Permit, and Locational
Clearance.
Streamlining the business permit process involves the utility of information technology to
establish the digital structure for these transactions to take place. It also requires
streamlining the operations of the various LGU offices involved in processing business and
related ancillary permits. This Manual will include a detailed discussion on the different
options to integrate inter-office operations to allow for the smooth process flow of the BPLS.
Features and Prerequisites of the eBOSS
The eBOSS is an online portal, or a website, such as the DICT’s Integrated Business
Permits and Licensing System (iBPLS), and other similar online business permitting
systems or platforms of C/MLGUs, with the functionalities and specifications provided in
the 2021 JMC. With the eBOSS which is fully automated, C/MLGUs should be able to
provide a one-step process for clients applying for a Business Permit (Figure 5).

Figure 5: Illustration of an eBOSS Process Flow
As the gold standard, eBOSS has some advanced features that can only be made possible
if the C/MLGU meets certain criteria. With the list of attributes and prerequisites of an
eBOSS (Table 3), the C/MLGU should be able to approximate which features will need to
be redesigned as part of the streamlining process. As mentioned, this information should
then be carried over to inform the planning process.
Table 3: Features and Prerequisites of an eBOSS

Features of an eBOSS Requisites of an eBOSS
Accept online or electronic submission of business ● Use of the UAF for all permits
permit applications using a fillable and editable related to the Business Permit
UAF
● One-time submission of all
documentary requirements for

Features of an eBOSS Requisites of an eBOSS
the Business Permit, the
Barangay Business Clearance,
the ancillary permits and the
FSIC from the BFP
Issue electronically the TOP/SOA which indicates One-time assessment of the

the amount to be paid for business tax, fees, and business tax, and related fees and
charges charges, including the fees for FSIC
and the Barangay Clearance.
Accept online payments using online payment One-time payment process for the
facilities or thru payment gateways or alternative C/MLGU- related taxes and fees and
digital payment options those for FSIC and Barangay
Clearance.
Issue digital or electronic versions of permits, • Use of digital signatures

clearances, or licenses which may be printed by
• Security features for
businesses at the convenience of their offices or
permits/certificates
workplace and bearing the same level of authority
as hard copies physically issued by C/MLGUs
Provide options on the physical delivery of One-time release of permits and

permits, clearances, and documents related to clearances through courier service
business registration using courier services for applicants requiring hard copies
of permits
• Has the C/M/LGU conducted a streamlining of its BPLS to prepare for the
transformation of its processes into an eBOSS? Is the process for securing
the FSIC included in the BPLS streamlining?
• Does the BPLS of C/MLGU have all the functionalities of an eBOSS? If not,
are there plans to comply with the eBOSS requirements?
• Do the regulatory offices processing ancillary permits and the BFP have data
sharing arrangements with BPLO to allow simultaneous processing of permits?
• Can online payments be done? Are the online payment channels enough?
• Does the C/M/LGU issue electronic permits/clearances?
• Are the approving officials in the C/MLGU using digital signatures for business
and related permits?
The Physical BOSS and the Manual Process for Business Permitting
“Physical” BOSS refers to a single common site or location which accepts and processes
applications for Business Permits, issues the TOP, receives payments, and releases
permits, clearances, or other related documents. This is also a place where the applicants

can print official receipts and Cedula like in the City of Manila. The processing of business
permits in the BOSS in most instances is performed manually. A four-step process
standard is stipulated in the 2021 JMC for the manual processing of business permits. In
the physical BOSS, the applicant will only undergo three steps - steps 2 to 4 - since the
setting of appointments can be done through phone, online or SMS (Figure 6).25
Figure 6: The 4-steps in the Manual Processing of Business Permits at the

Physical BOSS
Features and Prerequisites of the Physical BOSS
The C/MLGUs may introduce variations in the steps for processing the business permit for
as long as the number of steps inside the BOSS will not exceed three (3) steps. One
variation may involve combining the submission of the UAF and documentary requirements
with receiving the TOP/SOA into one step such as steps 2 and 3 in Figure 6 into a new
step 2 while payment and claiming of all the permits and clearances can be split into new
steps 3 and 4, respectively.
The physical BOSS allows C/MLGUs to receive and process manual or electronic
submissions of applications for licenses, clearances, and permits. The physical BOSS also
helps C/MLGUs to comply with the standards for business permit processing in the
absence of an online end-to-end business registration system. C/MLGUs can place the
BOSS in the Negosyo Centers or a designated area within the city/municipal hall. The 2021
JMC is specific in terms of the guidelines for the establishment and layout of a physical
BOSS (Figure 7).
25 In some cities like Quezon City, the appointment can be arranged in the BOSS.

Figure 7: Illustrative Process of Registration at the Physical BOSS
The features of both front- and back-end operations are also listed (Table 4).
The physical setup of a one-stop shop comprises front- and back-end operations. Front-
end refers to the offices or employees that interface with the applicants during the entire
permit registration or renewal process. Backend, meanwhile, refers to the operations of
offices that are not visible to applicants but act as support or are essential to the entire
process of business registration or renewal.
In the front-end, transaction windows should comply with the standard three-step
procedure in processing permits. Assigning separate transaction windows for each step
will help reduce bottlenecks in the process. The JMC also encourages C/MLGUs to provide
separate lines or transaction windows for processing applications from senior citizens,
pregnant women, and persons with disabilities. Minimum public health standards also need
to be considered in the design and layout of the BOSS.
Backend arrangements should facilitate the evaluation of the application and the
implementation of the one-time assessment and payment procedure.

Table 4: Features of the Physical BOSS
Features Requisites
Front-end
Customer • Customer service desk to assist applicants that have inquiries on the
Service registration or renewal process.
Desk • Prominently display the documentary requirements and process
flowcharts.
• Assigned personnel to the desk should be knowledgeable on the
requirements and processes for all types or nature of business.
Document • A designated window/s where applicants will submit their application form.
Receiving • Separate windows may be designated for new applications and renewals,
Window together with the documentary requirements.
• This window assesses the completeness of documents for processing.
Assessment • Complete and compliant applications will proceed to this window where
Window the amount of fees and taxes will be determined.
• Applicants will receive their tax bill or tax order of payment indicating the
amount to be paid for the registration or renewal of their business permit.
• C/MLGUs may do away with having a separate assessment window for
as long as a 3-step procedure is followed and instead opt to
➢ use the Document Receiving Window for the release of the
assessment or TOP.
➢ release the TOP/SOA at the Payment Window as described below.
Payment • Payment transactions must be conducted at this window to complete the
and application.
Claiming • The C/MLGU may also use this window to release the business permit,
Window together with the ancillary permits and clearances as payment is received.
Back-end
Co-Location • To expedite the transactions and facilitate coordination among the LGU
of Offices offices, all offices that issue business-related permits and clearances
should be placed within the same area.
• Offices should include but are not limited to the following: Planning and
Development Office, the Treasurer’s Office, the Assessor’s Office, the
Health Office, the Environment Office, and the Bureau of Fire Protection.
• These offices would be simultaneously assessing the application and
providing immediate feedback to the BPLO.
Physical • Adhere to the physical layout stipulated in the 2021 JMC
Layout and • Create a space that complies with the health protocols; particularly that of
Elements social distancing
Applicant Implement an applicant appointment system where a specific date and time
Appointment are provided to avoid crowding inside the BOSS.
System

• How large is the physical BOSS in relation to the number of applicants in the
city/municipality that will have their permits renewed at the start of the year?
• Are frontline transactions with the applicant located on one floor?
• Does the front-end service conform to the health protocols of the government
such as but not limited to, the presence of contact tracing forms, temperature
taking, presence of alcohol, physical distancing?
• Does the front-end part of BOSS have a queueing device and transaction
windows that conform to a 3-step process prescribed in the JMC?
• Are there enough chairs in the waiting area?
• Is the Citizen’s Charter posted at the BOSS and is easy to understand?
• Are there flowcharts of the business registration process that are visible at the
BOSS?
• Are there amenities in the BOSS, e.g., coffee, TV aircon or electric fans?
One-time Assessment for Tax Order of Payment
The 2021 JMC through Section 8.4.7 emphasizes that C/MLGUs should assess and issue
the consolidated assessment of all business-related taxes, fees, and charges such as
inspection fees including those from units and agencies outside the city or municipal offices
such as the courier costs for the physical delivery of the permits and other related
documents (Table 5).
Table 5: List of Fees and Charges for Setting up a One-Time Assessment

Permit / Clearance / Inspection / Service Office / Department / Agency
1. Mayor's or Business Permit City/Municipal BPLO
2. Zoning Clearance/Certificate of Conformance C/MPDO
3. Tax Declaration City/Municipal Assessors’ Office
4. Community Tax Certificate C/MTO
5. Sanitary Permit C/MHO Sanitary Division (if applicable)
6. Environmental Certificate C/MENRO (if applicable)
7. Fire Safety Inspection Certificate BFP
8. Barangay Business Clearance Barangay units with BPLO and C/MTO26
9. Courier/Delivery Courier Service Provider
26Compliance with Section 11 (f) of RA 11032 requires that the assessment of Barangay Business
Clearance Fee should be incorporated in the TOP/SOA by the CTO or the BPLO, whichever is
assigned by the C/MLGU to prepare the tax bill.

In practice, there are additional fees and charges imposed on the applicant. Depending on
the local Revenue Code, the fees and the bases of the fees may differ across C/MLGUs.
A typical TOP/SOA (Table 6) would have the following components: Mayor’s Permit fee,
Business Tax, Annual engineering inspection fees, among other taxes and fees such as
the fees associated with the ancillary permits - Locational Clearance, Sanitary Permit, and
Environmental Clearance.
Table 6: Typical Cost Component of LGU’s Business Permit
Item Office / Agency / Department / Unit
1. Mayor’s or Business Permit Fee BPLO or C/M/CTO
2. Business (City) Tax
Other Fees and Charges:
3. Business Plate/Sticker Fee BPLO
4. Barangay Business Clearance Fee Barangay
5. Locational Clearance Fee (for new) C/MPDO
6. Environmental Inspection Fee C/MENRO
7. Waste Management/ Garbage Fee
8. Signboard Fee BPLO
9. Sanitary Inspection Fee C/MHO
10. Health Certificate Fee
11. Occupational Permit
12. Fire Inspection Fee-Local27 C/MTO
13. Fire Safety Inspection Fee-National BFP
14. Delivery Courier Fee Service Provider
Annual Engineering Inspection Fees:
15. Building Inspection Fee Office of the Building Official or City/

Municipal Engineering Office
16. Electrical Inspection Fee
27Some C/MLGU collects a Fire Inspection Fee separate from the FSIC Fee imposed by the BFP
as required in the Fire Code of the Philippines. The 2021 JMC recommends that the local FSIC fee
should be removed.

Item Office / Agency / Department / Unit
17. Mechanical Inspection Fee
18. Plumbing Inspection Fee
In looking at the items that should be subsumed under the one-time assessment, three
specific items will require integration under the TOP/SOA issued by C/MLGU when
processing applications for business registration: (1) the Community Tax Certificate, (2)
Barangay Business Clearance Fee, and (3) FSIC fee.
Community Tax Certificate (Cedula)
Since the 2021 JMC required that the Cedula should be processed alongside the
application to register the business, it should also be included in the TOP/SOA for the
Business Permit. Some C/MLGUs provide incentives to barangays to encourage them to
allow the city or municipality to centralize the collection and release of the CTC in the
business registration process.28 For single proprietors, their Cedula can be secured in the
place of residence but for bigger businesses, the Cedula should be secured in the area
where the head office of a juridical entity (i.e., a corporation or a cooperative) is located.
Barangay Business Clearance
Republic Act 11032 and DILG Memorandum Circular 2019-177 directed cities and
municipalities to integrate the barangay clearance fees for businesses in the C/MLGUs’ tax
order of payment.29
Issues that have been raised in the implementation of this provision are listed below.
1. How much should the city/municipality collect the Barangay Clearance fee for
business?
Section 6.3.1.4 of the DILG Memorandum Circular 2019-177 cites that the barangay
fees that have been approved and stated in the barangay ordinance should be the
fee to be collected by the city/municipality. Barangays without any ordinance on
their fees and charges should issue one as legal reference of the LGU.
2. Can the city/municipality standardize the Barangay Business Clearance fee for all
the barangays under its jurisdiction?
No. Section 22 of the Local Government Code (RA 7160) provides for the full
autonomy of local government units to exercise their proprietary functions and in
28 The City of Paranaque provided a 50-50 sharing in the collection from cedula with the
barangays. The city ordinance to implement this incentive is found in the Toolkit under the
folder/filename: Case Studies/3.2 Paranaque Ordinance 19-04 on Cedula.
29A copy of DILG Circular 2019-177 can be found in the Toolkit under the folder/filename: Policy
Instruments/19. DILG MC 2019-177.

the management of their economic enterprises. Section 152 of the same law also
stipulates that levying fees and charges for the issuance of the Barangay Business
Clearance is within the taxing powers of the barangay and not of the city or
municipal council.
However, city and municipal councils can exercise their powers to review all
ordinances approved and issued by the Sangguniang Barangay, as provided for in
section 458(1)(i) of RA 7160. This was also expressed in DILG’s Legal Opinion No.
34 s. 2018 dated June 25, 2018.
3. How can the barangay determine the fee to impose?
The DILG and the Department of Finance (DOF) issued Joint Memorandum Circular
No. 2019-01 entitled “Guidelines for the Review, Adjustment, Setting and/or
Adoption of Reasonable Regulatory Fees and Charges of Local Government
Units.”30 Based on this circular, fees and charges should compensate for the cost
of rendering the service, which operationally consists of direct and variable costs.
If the city/municipality were to collect the Barangay Business Clearance fee, the fee
to be imposed should consider both the costs that will be incurred by the
city/municipality as well as the barangay in the processing of the clearance. A
framework for setting the fee is given in Figure 8.
The Bureau of Local Government Finance (BLGF) issued Circular No. 020-2019
which provided a toolkit for computing reasonable fees and charges.31 Component
barangays can seek the assistance of the BLGF Regional Offices in training their
local treasurers in the review and adjustment of barangay fees.
Figure 8: Framework for Establishing Barangay Business Clearance Fee32
30
. A copy of this document can be found in the Toolkit under the folder/filename: Policy Instruments/19.
DILG-DOF JMC 2019-01.
31
A copy of the circular is found in the Toolkit under the folder/filename: Policy Instruments/15. BLGF
MC 020-2019. A fillable Excel sheet template for setting fees and computing for barangay fees can be
found in Toolkit under the folder/file name: Templates/3.2 BLGF Local Fees and Charges Toolkit
Template.
32Based on the DILG-DOF Joint Memorandum Circular No.2019-01 and BLGF Circular No. 020-
2019 from folder/filenames: Policy Instruments/19. DILG-DOF-JMC-No. 2019-01 and Policy
Instruments/15. BLGF MC 020-2019.

FSIC Fee for Business
Integrating the FSIC fee in the business permit process requires the BFP to forge an
agreement with the C/MLGU to integrate the assessment and payment of FSIC fees under
the BPLS. This would serve as the legal basis for whether such transactions can be
handled by the C/MLGU on behalf of the local BFP office. Specifically, the FSIC charges
are computed as 15 percent of all fees and charges of the LGU but should be no lower
than PHP500.33 Operationally, the base for the 15 percent is not the total amount paid to
the LGU but would exclude taxes such as business tax, Community Tax Certificate,
Occupational Permit, Health Certificate, and Barangay Business Clearance in the
computation.
• Are applicants still required to visit the offices separately to get the TOP of
ancillary permits?
• What are the cost components included in a TOP for business registration in
your C/M/LGU?
• Are the charges for the Cedula, FSIC, and/or Barangay Business Clearance
fees part of the TOP for the application for business registration in your
C/MLGU?
• Does the C/M/LGU have agreements in place with the Barangay LGU and the
local BFP offices regarding the assessment and collection of fees and
charges?
• Do the various fees and charges in the TOP have legal basis?
Determining One-Time Payment Channels
All the necessary taxes, fees, and charges reflected in the issued consolidated TOP/SOA
are recommended to be paid by the applicant altogether through various payment
channels. The traditional over-the-counter exchange of cash payment at the city hall should
be physically located at the "Payment Window" of the physical BOSS. But even these over-
the-counter transactions can be further improved, particularly in terms of allowing the use
of debit or credit cards on a point of sale (POS) card reader located at the payment window.
However, since the 2021 JMC transitions the BPLS away from the physical BOSS towards
the eBOSS, the rest of this section will discuss steps to consider when establishing an
online payment channel for the LGU. Online payment can take the form of various
modalities.
• An online payment facility from a single portal
• A payment gateway to accept digital payments such as credit cards, debit cards,
prepaid/e-money, and/or bank transfer
• Alternative digital payment options through service agreements with private and/or
public Payment System Providers (PSPs) or Electronic Payment and Collection
33
Based on Rule 12, Section 12.0.0.4 (Schedule of Fees and Charges) of the revised Implementing
Rules and Regulations of the Fire Code of the Philippines.

System Providers (EPCSPs) regulated by the BSP, such as but not limited to
EGovPay, LandBank Link.Biz, GCash, PayMaya, Coins.Ph, DragonPay, Omni-
Pay, BancNet, for digital payment acceptance and electronic Official Receipt
(eOR) provision and restrict over-the-counter payments to highly exceptional
cases.34
When a secure online payment channel (Figure 9) is established, ease and convenience
benefit both sides of the transactions: (1) clients can pay any time at their convenience, (2)
C/MLGUs are assured that each step is properly logged into the system, and (3) the
transactions are recognized in real-time. Due to the commercially available PSPs or
EPCSPs, building a secure infrastructure for financial transactions will not incur further
costs or investments from the LGU.
Figure 9: Working of Payment Gateways
Considering all available online payment channels, the LGU only needs to decide which of
the options best serves their BPLS requirements.35 This section discusses a few questions
that the LGU needs to resolve to determine what payment channel to choose from among
the many commercially available service providers.
Determining the Government Financial Requirements
• What are the requirements of the Commission on Audit (COA) that need to be
complied with by the LGU when it hires a PSP to manage the online payment
system?
34These service providers will allow agencies to better reconcile payment information through the
provision of reference information specific for each transaction, with at least the provision of
payment instructions that includes a payee name, payment type (such as license or permit paid
for), and a transaction identification number.
35A list of selected online PSPs in the Philippines and their features can be found in the Toolkit
under the folder/filename: References/2. Selected PSP in the Philippines.

The LGU should ensure compliance with the requirements of COA Circular 2021-
014 issued on December 22, 2021, which set guidelines on the use of electronic
collection and electronic payment for government transactions including those
involving LGUs.36
Box 2: Highlights of the COA Guidelines on the Use of Electronic Collection

(e-Collection) and Electronic Payment (e-Payment) for Government
Transactions
General Guidelines
1. The use of collection and/or payment intermediaries shall be covered by a contract

between the government entity and service intermediaries (or payment service
providers), which includes the scope of the collection and disbursement function
(e.g., responsibilities on reporting facilities and security standards) between the
government entity and the intermediary and allowing COA access to data reports.
2. Only intermediaries regulated/supervised by the Bangko Sentral ng Pilipinas should
be contracted following the provisions of RA 9184 (Government Procurement Reform
Act) or RA 6957 (BOT Law).
3. Government entities are required to design, implement, and continuously review
appropriate internal controls, including prevention and detection controls over the
use of e-Collection and e-Payment systems.
4. Government entities shall submit a Management Representation Letter to the COA
Audit Team every March 31.
5. Intermediaries are required to allow COA access to view, generate, download, and
print data/reports, which should be expressly included in the contract with
intermediaries.
6. A focal person shall be designated for the implementation of the e-Collection and e-
Payment systems of the government entity. The office/officer designated by the office
shall keep the electronic copy of all e-Collection and e-Payment documents (i.e.,
report of daily collection, electronic official receipts (eOR), acknowledgment receipts
and other relevant documents) in the active file of the government for a period one
year from the end of transaction year and shall be made available to the audit team
and forwarded to COA as part of the regular reporting submission.
Source: COA Circular 2021-14 (22 December 2021)
Determining the Features of the Payment Channel Best Suited for the LGU and its
Clients
Based on the services requirements of the C/MLGUs specified in the earlier section, the
LGU should be able to assess which PSP will be able to best provide these services.
36A copy of the COA circular can be found in the toolkit under the folder/filename: Policy
Instruments/16. COA C 2021-014.

• What payment methods do the LGU want its applicants to use?
The LGU should study the profile of registered firms in their locality and the likely
preferred mode of payment other than cash, bearing in mind that the ultimate
objective of having an online payment system is to facilitate payment of Business
Permits. If the LGU is in an urban area, different payment modalities like credit and
debit cards may be considered. But if the LGU is in the 4th or 5th income class, the
payment modalities may be more of POS or some other payment mode.
• What other features does the LGU want?

Some other features that C/MLGUs can consider are (1) mobile payment
transactions since there is now a growing number of citizens using smartphones,
(2) payment modalities for clients abroad who have businesses in the locality, and
(c) recurring payment processing for establishments opting to pay quarterly.
• Do you want to stack multiple gateways? Is the LGU ready to engage one or
more PSPs?
Given the analysis of the existing PSPs in the country and the LGU’s study of the
profile of its registered companies, the LGU may wish to consider hiring a mixture
of PSPs, maybe a government bank and a private sector-owned PSP, which have
services that potentially address the payment mode preferences of its applicants.
• Does the LGU have an ideal processing speed for the payment step in their
BPLS?
ARTA sets a 3-day processing period and the LGU must set a target or acceptable
period for the checkout and payment step in the BPLS. Lengthy and tedious
payment procedures may discourage online payment users. The speed of money
transfers from the applicant to the LGU account is always important.
• What is the checkout process that the LGU wants?

The checkout process is part of the customer experience. Given its existing BPLS,
the LGU needs to imagine the steps that the applicant goes through to do the online
payment. For instance, after the assessment is given, is the applicant given a link
to another website where there is a need to register anew before payment? Does
the LGU want to “customize” the checkout process given its current eBOSS
procedures?
• Does the LGU need a recurring feature in its online payment system?
Since business tax and fees can be paid quarterly, the LGU might want the PSP to
set up a recurring billing model that saves the payment data of applicants who opt
to make payments quarterly.
• What kind of security features does the LGU want from the PSP?
Online payment systems are vulnerable to security threats. One of the reasons for
not using the internet is the fear that information provided thru the internet may be
lost or stolen. The most common threats are worms, Trojans, viruses, phishing,

pharming, spoofing, man-in-the-middle, denial of service attack, transaction
poisoning, and spamming. The LGU should request the PSP to explain its security
policies and risk reduction models.
Understanding the Fees or Pricing Models to Set-up the Payment Channel
The C/MLGUs should ensure that there are no hidden costs in the pricing of the PSP
service and that the fee structure conforms to that of the PSP’s proposal. The pricing of the
service would normally consist of fixed and varying costs. As stated earlier, the period of
payment settlement is a very important provision in the contract. To ensure immediate or
real-time remittance of payments, the LGU may wish to inquire if the PSP and its bank are
affiliated with InstaPay.37
The LGU may also inquire whether the PSP is willing to open an account with its depository
bank to enable the direct and instant transfer of funds to the LGU bank as collections are
made by the online facility.
• What are the pricing components that the LGU can agree on?
The usual fee components of the PSP include (1) set-up or installation fee which
normally would include the cost of system integration, (2) transaction fee usually
calculated in percentage based on the volume of the transaction (i.e., the higher the
volume, the lower the average cost) and the method of payment, and (3) monthly
fee. Many PSPs do not charge installation fees. The LGU should be able to compute
the total cost of the payment system based on the fee charges of the different PSP
providers and compare the amount with the budget of the project.
• What percentage of the registered businesses will likely use the online payment
system in the next 3-5 years?
The fee structure of the PSP is partly based on the frequency and volume of
transactions. The LGU forecast will be useful during the negotiation stage with the
PSP. Considering that online payment systems are relatively new in the Philippines,
the LGU may wish to conservatively forecast utilization, which may improve
depending on promotional activities and incentives that can be provided.
Determining the Appropriate Reporting System
• What kind of data analytics or dashboard does the LGU want?

Business tax and fees are one of the top revenue sources for many C/MLGUs.
Hence, monitoring payment data is important for informed decision-making at the
local level. The PSP should be able to provide deep details on the payment behavior
37InstaPay is an electronic fund transfer (EFT) service that allows customers to transfer PHP
funds almost instantly between accounts of participating BSP-supervised banks and non-bank e-
money issuers in the Philippines.
(https://www.bpi.com.ph/bpi/home/bank/services/instapay/features). The financial institutions
included in InstaPay are in the Toolkit under the file name: References/1. InstaPay and QR
Participants.

of different types of registered establishments. At the minimum, daily collection
reports should be provided.
• What kind of integration can the current LGU’s online BPLS accommodate?
There is a need for the LGU to determine the type of PSP-BPLS integration that it wants
to set up. The PSP usually provides integration support to the LGU for free, but the LGU
should be able to assess its own system requirements.
• Is there a target period that the LGU wants the integration to happen?
Given the action plan of the LGU, how long should the integration process be set
up? For instance, if the LGU wants to have the online payment system operating
during the renewal period in January, then the deadline can be a factor in the
negotiation process.
Determining the Budget Allocation
• What budget can the LGU afford for the setting up and maintenance of its online
payment system?
Contracting a PSP entails cost. At the outset, the LGU needs to determine the
budget for the project and the source of funding before the negotiation.
Determining the Customer Support Provided
• What kind of customer support does the LGU want?

Given the importance of the payment module in eBOSS, the LGU would want to
detail the minimum level of support it wants. In case of problems, does the LGU
prefer responsive support vs. a ticketing system? Does it want to have dedicated
account managers? Are live chats available? These are some modalities of support
that C/MLGUs may wish to identify, especially for C/MLGUs with poor internet
connection.
3.1.4 Processing Time
Processing time refers to the time usually consumed by the LGU starting from the receipt
of an application or request (with complete requirements, accompanying documents, and
payment of fees) to the issuance of permits or similar documents approving or disapproving
an application or request. Following the 2021 JMC, Business Permits, whether new
application or renewal, need to be issued within three (3) working days.
The allotted time also includes all required inspections by regulatory offices, including the
BFP. If regulatory offices fail to furnish the BPLO with the ancillary permits and clearances
or inform the said office through positive or negative lists, the business applicant is deemed
to have valid regulatory permits, which shall be the basis for the issuance or renewal of the
business permit.

Should the local government need additional time to process the permits, the BPLO should
notify the applicant in writing, citing the reason for the extension and specifying the final
date for the release of the permits. The applicant needs to acknowledge the receipt of this
notice. This extension may only be done once or per application and should not exceed an
additional three (3) working days.
Failure to issue the business permit within the prescribed processing time, given all
requirements are complete and taxes and fees due are paid, will result in the automatic
approval of the application. The acknowledgment or official receipt will then serve as the
business permit.
The 2021 JMC introduced a stop time in measuring the processing time. The stop time only
applies when the applicant opted to cut the process and not pay the tax bill immediately.
Tracking of the processing time resumes once the applicant proceeds to payment.
• What is your current processing time for the Business Permits and ancillary
permits on average?
• Where are the bottlenecks?
• Is the C/M/LGU able to comply with the standard processing time even with the
conduct of inspections by the regulatory offices?
3.1.5 Signatories
Signatory refers to the approving authority whose signature/s are affixed on the various
business-related documents such as the Business Permit, Sanitary Permit, and other
business-related permits. The policy limits the number of signatories to the Business Permit
and each ancillary permit and clearance to a maximum of three (3) representing the officers
directly supervising the office/department concerned. The number of initials should also be
reduced since these are indicative of the number of people that the document needs to
pass through for evaluation, which adds to the processing time. Republic Act 11032 also
provides that alternate signatories are identified in the absence of the official signatory.
The law also encourages the use of electronic and digital signatures to reduce time
lags/delays due to the absence of designated signatories. The use of electronic or digital
signatures allows signatories to authenticate documents despite not being physically
present in the office. These reforms also seek to move the business permitting process to
a paperless or automated process.
Electronic signatures refer to any distinctive mark or characteristic representing the identity
of a person to approve or authenticate a document. Digital signatures refer to electronic
signatures generated using a public cryptosystem to certify the authenticity of the signature
and determine alterations on the document before and after attaching the signature. Digital

signatures can be generated using DICT’s Philippine National Public Key Infrastructure
(PNPKI) or through private sector-certified public key infrastructures.38
• How many officials serve as signatories on your Business Permit and each of
the ancillary permits issued in your LGU?
• Does your LGU identify, or delegate alternative signatories said documents to
ensure that there are no delays in delivering the permits to the applicants?
• Are provisions for electronic signatures in place in your BPLS?
3.2 Complementary Reforms
Complementary reforms are additional measures in the prescribed reengineering solutions

aimed at making these more transparent, professional, and less costly to business owners.
3.2.1 Inspection
Inspection is indispensable to the evaluation function of regulatory offices of the C/MLGU

and the BFP. The 2021 JMC recommends several reforms to inspection procedures (Figure
10).
• Inspection should be conducted outside the permitting period. Scheduled
inspections can be done year-round between February and November, the results
of which should be shared with the BPLO as basis for the renewal or nonrenewal
of the establishment’s Business Permit.
• In instances when inspection needs to be conducted right after the submission of
the application, the results of such inspection must be relayed to the BPLO so that
the required permits can be issued within the prescribed processing time of three
(3) working days.
• For firms that require inspection immediately after an application has been
submitted during the renewal period, the BFP shall present the FSIC to the BPLO
within three (3) working days from application. If the BFP fails to furnish the LGU
with an FSIC or inform the same through the negative/positive list, within 3 working
days, from application, the business entity shall be deemed to have a valid FSIC for
business which shall be the basis for the renewal of the Business Permit.
To facilitate the approval of renewal applications, the BFP and the regulatory offices of the
LGU, including the barangays, are required to submit a negative or positive list to the BPLO
on or before the first day of December every year. The negative list would identify
businesses that should not be issued permits because inspection revealed findings or
issues that the establishment failed to address during the prescribed period for settling non-
compliances. The positive list would identify businesses that have no issues and whose
38A brief presentation on the PNPK, its functions, the workings of digital signature and the
certification process is included in the Toolkit under file name: References-03-PNPKI Presentation

applications for renewal could be immediately processed and approved. The 11-month
inspection window gives these offices more than enough time to complete all evaluation
processes before the renewal period comes around.
Figure 10: Reform of the Inspection Process
To improve the conduct of inspections of establishments, the 2021 JMC recommends two
measures: (1) joint inspection teams (JIT), and (2) best practices in effective inspections
Organizing Joint Inspection Teams (JIT)
The JIT will be composed of members from the BPLO, C/MPDO, C/MENRO, C/MHO, BFP,
and the OBO, among others. The JIT would come together to conduct a comprehensive
annual inspection and the inspection reports would be used as basis for the negative or
positive lists for submission to the BPLO. The lists should be submitted to the BPLO
annually before December 1 so that the C/MLGU would know which businesses to approve
right away and which ones would have to submit additional requirements by the time they
file for renewals.
Ultimately, this would lead to a more efficient operation for all the various offices involved
in the BPLS as a result of the shared checklists, information exchange, and possible
deputization arrangements under permissible laws. This win-all solution also reduces the
cost of conducting inspections through the sharing of resources such as vehicles, supplies,
and budgets, even as it minimizes the potential for corruption.

Promoting Good Practices in Effective Inspections
Inspections, while indispensable for good governance, need not be unpleasant for the
business sector. The public, LGU, and the business sector benefit immeasurably from
regulatory inspections that achieve the goals of public safety, good governance, and good
relations.
There are good practices that the C/MLGUs can adopt to make annual inspections
beneficial to all concerned. The standard operating practices (SOP) listed below are the
outcome of a study conducted by USAID in 2011 culled from interviews with the business
sector and selected C/MLGUs on how regulatory inspections can be made more effective
and business friendly.
1. Sufficiency of Statutory / Regulatory Basis – the presence of a legal basis for any
inspection that is conducted. Examples of this include a law or issuance adopted
by the national government or its agencies within the scope of their respective
authorities; and/or local law or ordinance.
2. Prior Inspection Notice – the provision of advance information given to the registrant
on the schedule of the inspection.
3. Proper Authorization – the provision of a proper mandate or order to do the
inspection.
4. Proper Identification – the presentation of a proper identification card or the wearing
of a uniform to clearly identify the inspector.
5. Client Representation during Inspection – the presence of the registrant or his/her
representative during the conduct of the inspection.
6. Use of Inspection Checklist & its Prior Disclosure – the use of a checklist showing
the factors to be assessed during the inspection and its prior disclosure to the
registrant.
7. Reasonable Duration of Inspection Time – the reasonable length of time from the
start of the actual inspection to the time it is completed on site, excluding the writing
of the report and the post inspection conference with the registrant.
8. Number of Inspectors – the total number of persons who conduct inspections should
not be too many.
9. Post Inspection Conference with Client – presentation of the inspection findings to
the registrant immediately after the conduct of actual site inspection.
10. Inspectors’ Qualifications – Inspections are conducted by professionals with
commensurate education and training.
Some of these practices are already incorporated in the 2021 JMC (refer to #s 2, 5, 6, and
9). Needless to say, applicants with positive findings during inspection should be allowed
a reasonable period to remedy their deficiencies.
The use of risk classification of businesses as basis for prioritizing inspections is

encouraged. This will partly address the perennial problem involving the lack of inspectors
for the annual inspection of all establishments in the C/MLGU. Since regulatory offices have

different welfare considerations, it would be ideal if the setting of risk classification can be
implemented uniformly nationwide and that the system of risk classification is set by an
oversight committee composed of building and construction regulators, sanitation
specialists, the BFP for FSIC-related inspection, among others. In the meantime, the
regulatory offices may institute their own risk classification to guide their inspection
processes.
• Have your city or municipality adopted any of the best practices enumerated
above when conducting inspections?
• Are your regulatory offices able to inspect all registered enterprises?
• Do your regulatory offices follow any risk categorization in conducting
inspections?
• How much time do the inspections of your offices usually take to finish? Are
your regulatory offices able to inspect and release their ancillary permits
within the prescribed processing time set by ARTA?
• How much do these inspections cost each office? How much is the
consolidated cost for conducting all the inspections separately per
application?
• Are there constraints in organizing Joint Inspection Teams in the C/MLGU?
3.2.2 Fees and Charges
The cost of doing business is an important consideration in the decision to invest in a certain
locality. Hence, part of the ease of doing business initiatives of the government is to review
the legality of the business tax, fees, and other charges that is part and parcel of getting a
Business Permit.
The 2021 JMC mandates that, except for new businesses involved in printing and
publication and those enjoying a franchise, “newly started businesses shall not be liable for
the payment of initial local business tax based on capital investment.”39 C/MLGUs therefore
may not impose a business tax on new Business Permit applications based on the
capitalization of an establishment which is the current practice in most cities/municipalities.
This provision is based on a study conducted by ARTA that states that charges imposed
on the issuance of new business permits shall be treated as regulatory fees, as defined
under Section 131(l) of the LGC.
39This provision is also based on the BLGF Memorandum Circular No. 001-2020 entitled “Updated
Reminders in the Assessment of the Local Business Tax (LBT), Registration and Renewal of
Business Permits and Licenses and the Imposition of Local Taxes, Fees and Charges” which is
included in the Toolkit under the folder/filename: Policy Instruments/14. BLGF MC 001-2020.

In further pursuit of the ease of doing business, C/MLGUs are advised against imposing
redundant fees such as Fire Inspection Fees which are already being collected by the BFP
as mandated under the Fire Code of the Philippines.
To ensure that only reasonable fees based on the cost of processing a Business Permit
are imposed by C/MLGUs, a review of the local tax ordinances is required to ensure
compliance with the provision of the 2021 JMC. Useful in this review will be the DOF-DILG
Joint Memorandum Circular No. 2019-01 which “Provides Guidelines for the Review,
Adjustment, Setting and/or Adoption of Reasonable Regulatory Fees and Charges of Local
Government Units.40 Amendment to the local revenue code may also be necessary after
the tax ordinance review.
• How much does it cost to open a new business in your city or municipality?
• Is the business tax imposed in your city/municipality for new business permit
applications based on capitalization?
• Does the city/municipality impose additional fees such as a Fire Inspection
Fee separate from the FSIC fee paid to the BFP?
• Are the fees and charges included in the TOP computed based on cost
recovery as recommended in the DOF-DILG Memorandum Circular 2019-01
(signed on May 17, 2019)?
• What are the bases of the computation of charges and fees that apply to
Business Permits in your LGU?
3.2.3 Lease of Multiple Properties
Section 9.3 of the 2021 JMC mandates C/MLGUs to simplify the requirements and
procedures for business applicants involved in the leasing of multiple properties within the
same city or municipality.
As per the 2021 JMC, lessors or leasing companies will only be required to secure a single
business permit for their multiple properties leasing businesses. These applicants will only
be required to submit the following documentary requirements: (1) UAF, (2) proof of gross
receipts, and (3) a list of all properties for leasing in the LGU, indicating the amount of
income derived in each.
Likewise, the application will only be subject to a single assessment of taxes, fees, or
charges to be paid for all the properties. C/MLGUs are reminded that fees are collected
based on the principle of cost-recovery or fees will only be charged based on the service
provided. For Business Permit renewals of lessors with multiple properties, fees to be
40A copy of the circular can be found in the Toolkit with folder/filename: Policy Instruments:/19.
DILG-DOF-JMC-No. 2019-01.

charged or included should be with respect to the type of inspections conducted on each
property.
• How are business permits of applicants who lease multiple properties processed?
• What are the possible issues against simplifying the requirements and procedures
on businesses that lease multiple properties?
3.3 Diagnostic Process
A major consideration in reengineering the business permitting process is the

rationalization of the end-to-end processing involved.
Operationally, the issuance of the Business Permit by the BPLO entails the issuance of
ancillary permits such as the Sanitary Permit by the C/MHO, Environmental Clearance by
the C/MENRO, the Locational Clearance by the C/MPDO, Barangay Business Clearance
by the barangays, and the FSIC by the BFP.
This Manual recommends using three key tools / methodologies to adequately come up
with an actionable assessment of a BPLS. The data generated from these tools not only
provide the basis for a data-driven and evidence-based action plan. It also provides the
baseline data by which the LGU can objectively measure the progress, or lack of it, of the
reengineered BPLS once it is fully operational.
3.3.1 Using the Process Table
Another tool that can be used in tracking the end-to-end processes involved in business
permitting is the process table. It is a spreadsheet containing the variables / indicators that
will enable tracking of the LGU’s performance vis-à-vis the standards set in the JMC. The
process table measures the following JMC standards on (1) steps, (2) the use of the unified
application form and documentary requirements, (3) processing time, and (4) signatories.
Who should use the process table?
Before the process table can be set up, the LGU must first identify all the required permits
/ licenses / clearances / certificates required before any business could operate in its
locality. The LGU offices involved in the process should then start filling out their respective
process tables for the permit / certification they issue. Hence, corresponding process tables
should be made for each of the following documents by the issuing office:
1. Business Permits and Licensing Office - Business Permits
2. Assessor’s Office - Tax Declaration
3. Treasurer’s Office – Official Receipts for payment of various permits
4. Planning and Development Office – Locational Clearance

5. Health Office – Sanitary Permit
6. Environmental Office – Environmental Permit
7. Bureau of Fire Protection – Fire Safety Inspection Certificate
Below are a few tips for those assigned to fill out the process table:
1. The official / staff should put himself / herself in the shoes of an applicant when
filling out the process table;
2. Relive the process as an applicant going through the process of securing, filling-
out, and submitting the application form, paying applicable fees, undergoing
inspection, and getting the permit;
3. Assume that the applicant is new to the process;
4. Assume that the applicant has all the requirements for the permit and has no
positive findings that would merit rejection of his / her application; and,
5. Assume that the applicant is ready to settle the fees.
How to collect data using the process table?
Information on the current Business Permit processing is gathered using a process table
which is an excel matrix with 16 columns that captures the indicators related to the service
standards set in the 2021 JMC.41 Where applicable or appropriate, a regulatory office can
fill out as many as four (4) process tables for a specific permit.
1. New Business Permit applications, manual
2. New Business Permit applications, online
3. Business Permit renewal, manual
4. Business Permit renewal, online
These process tables are usually used in the time and motion studies where an applicant’s
transactions while applying for a Business Permit. The regulatory offices fill in the process
table or record all the tasks, steps, time, visits, and costs that an applicant goes through in
the process. The definition of the terms used in the process table and specific instructions
and information on how to encode the data into the spreadsheet is provided in Table 7.
Table 7: Definition of the Indicators in the Process Table

Column Terms Definition Specific Instructions
NO. The numerical sequence of the steps.
STEPS Any procedure taken by an applicant as
part of the process of applying for and/or
processing business permits and licenses
requiring an action on the part of the
41A process table template can be found in the Toolkit under the folder/filename: Templates/2.1
Process Table for the Diagnosis of BPLS.

office/unit to which the applicant has
presented or communicated with, leading
to the issuance of a business permit.42
APPLICANT An action or set of actions the applicant When filling out these cells,
TASKS performs when applying for a permit. Also specify if an automated
includes tasks performed without system (e.g., Go Manila) is
interface with the city official/staff, e.g., used and attach
photocopying of requirements, getting a screenshots of the tasks
claim stub, and getting a queuing number. referred to.
CITY OFFICIAL/ The counterpart task that the city
STAFF official/staff/system performs in relation to
/SYSTEM the applicant’s task.
TASKS
TYPE OF FORM Any physical or online document that an Use a single cell per form.
applicant fills out to provide the For instance, the
information needed by the application form and the
city/municipality. form for getting a cedula or
Logbooks or any other form requiring the community tax certificate
applicant to provide information/details should be encoded in
regarding the application and affix his/her separate cells.
signature are also considered as a form.
REQUIRED Documents that the C/MLGU requires Use a single cell per
DOCUMENTS from an applicant in undertaking the task. document. i.e., list each
These may include national government- document such as
issued documents, e.g., DTI/SEC Barangay Business
registration, and tax declaration. Clearance, Locational
Clearance, etc. per cell.
OFFICE The office where the task was performed If the office is within the
or the office of the official/staff is indicated BOSS, indicate the office in
in the City Official Tasks Column. the BOSS, (e.g., BOSS,
For tasks performed by the applicant M/CTO in the BOSS).
involving the private sector, the office may
refer to a person (e.g., notary public).
For online transactions, the office may
refer to the city/municipality online portal.
LOCATION The location of the office where the task Specify building name and
took place. floor/room/window number,
For online transactions, the location may if applicable.
refer to the web address and needs to be
validated by ITC experts.
42 DILG-DTI-DICT JMC No. 01, Series of 2016, 30 August 2016, Section 4.12

TRAVEL TIME Estimated time the applicant spent In estimating travel time
traveling from one office to another while when the task involves
doing each of the tasks in the Applicant submission of the
Tasks Column. For instance, if the task is application form, the “initial”
payment of fees, travel time would point can be the entrance of
indicate the time traveled from the BPLO the building where the office
window to the cashier. is located. For instance, in
For online transactions, this would be getting a Barangay
zero. Business Clearance, travel
time can start at the
entrance of the barangay
hall up to the window or
desk where the application
is submitted.
WAITING TIME Estimated time spent waiting in line or For renewals, assume
time spent by the applicant waiting to be waiting time for
served. physical/manual
For online transactions, the estimated applications or transactions
time spent waiting for notification when as the period during which
the TOP/SOA or the permits are ready. most applicants renew their
permits (or “peak period” as
For inspections, the estimated time from
defined by BPLO)
the period the inspection fee was paid,
and an advice/notice was given up to the
time the inspection was conducted.
TRANSACTION Estimated time spent by an applicant For renewals, assume
TIME while being served or transacting with the transaction time for physical
frontline city/municipal official/staff. / manual applications or
For online transactions, this refers to the transactions as the period
estimated time spent from the time the during which most
application has been received / applicants renew their
acknowledged up to the time that the permits (or “peak period” as
Business Permit-related documents are defined by BPLO)
released to the applicant. For online submission of
For inspections, the estimated time from application, it is the
the period the inspection fee was paid estimated time waiting for
and an advice/notice was given up to the the system to accept or
time the inspection was actually acknowledge the
conducted. application documents
OUTPUT A written, electronic, or verbal Use a single cell per output,

acknowledgment of receipt or decision or e.g., Mayor’s Permit, FSIC,
approval made by the city/municipal official receipt
office.

COST Amount to be paid or spent by the Please indicate the amount
applicant to obtain the output, which paid as indicated in the
includes photocopying costs. TOP/SOA and other costs
(e.g., photocopying)
separately.
No need to indicate the
peso sign (₱) in the form
POSITION OF The position or title of the person/s whose Use a single cell per
SIGNATORIES signature or initial is on the output/s given signatory or a person
to the applicant. putting initials on the
document
NO. OF VISITS The no. of times an applicant visits the
office, in relation to the task, and
interfaces with the city/municipal
official/staff involved.
For online transactions, this refers to the
number of times the applicant interfaces
with the system
NOTES Refers to additional information or
comments on the responses in each
column pertaining to the tasks.
How to process the data collected with the process table?
1. Classify all the process tables submitted into those pertaining to new Business
Permit applications and those for Business Permit renewals.
2. Check the correctness of the data provided. For each task, do the entries make
sense?
3. Convert tasks into steps, which is defined as a task or set of tasks the applicant
performs as part of the application process to create a breakdown similar to Table
8. To put it simply, to be called a step, it should satisfy the following conditions:
• There is an interface with a public office or unit (physical or virtual for online).
• It triggers an action from the office/unit the applicant communicates with.
• It leads to a result (a document, certification, or decision).
4. Determine the sequence of the steps and reorganize the excel sheets according to
the steps. Then, determine the number of the steps.
5. Add the columns corresponding to the indicators in the table. From the totals,
prepare a summary table like Table 1 in chapter 2.

Table 8: Converting Steps into Tasks
Tasks
No. Steps
Applicant City Official Tasks
PRE-REGISTRATION
Photocopy required documents

Apply for Barangay Fill out Barangay Business Check Barangay.
1
Business Clearance Clearance Application form and Application Form and
submit documents requirements
Pay Barangay fees and receive Receive payment and
2 Pay Barangay Fees
OR issue OR
Claim Barangay Business
Claim Barangay Print Barangay
3 Clearance and sign in the
Business Clearance Clearance and sign
logbook
Total 3 4 3
REGISTRATION
Photocopy documents
(Barangay Clearance, DTI, etc.)
File application for
4 Submit required docs and
Business Permit Encode and Process
complete the Business Permit
Application
Application form
Get assessment of fees Generate/ print SOA
5 Pay Business Fees Receive payment and
Pay fees and Claim OR
release OR
Photocopy documents (FSIC,
OR, etc.)
Claim Business
6 Prints Business Permit,
Permit Claim Business Permit,
registration plate, and
registration plate, clearances
BP Director signs
Total 3 6 3
4. Create another table comparing the performance of the LGU with the 2021 JMC
standards as shown in Table 9.
5. Based on Step 4, illustrate the sequence per office (Figure 11). This will be used
during the Design Phase (4. Design Phase) of the reengineering process

Table 9: Illustrative Comparison of Baseline Data and 2021 JMC Standards
Baseline
2021 JMC
BPLS Indicators
Assessment of Assessment for Standard
New Applications Renewals
STEPS 9 17 3
NO. OF FORMS 1 10 1
REQUIRED 5 (new); 1
8 32
DOCUMENTS renewal
SIGNATORIES 15 29 3
26 DAYS
TOTAL ELAPSED TIME 3- 44 DAYS 3 DAYS
(with inspection)

Figure 11: Illustrative End-to-End Business Permit Process by Regulatory Office

3.3.2 Conducting a Client Perception Survey
The C/MLGU can also conduct a Client Perception Survey to determine the applicant’s
experience in applying for a business permit and the related ancillary permits in their
locality.43 The length and coverage of the survey instrument will depend on the kind of
information which the city or municipality would like to know.
Box 3: Sample of Client Satisfaction Survey Results
A sample set of results of a Client Perception Survey conducted by the University of

the Philippines Public Administration Foundation (UPPAF) in an LGU illustrates how
customer insights can be used to identify issues from the perspective of the applicants.
With digital technology, the survey can even be done online with the assistance of the
local business groups.
Source: UPPAF 2020
3.3.3 Customer Insighting on Social Media
Feedback and constant communication have always been considered one of the best ways
to improve the delivery of services to people. In this day and age of the Fourth Industrial
Revolution (FIRE 4.0), the internet has dominated and influenced communication
processes at the global, national, and local levels. It is within this context that social media
platforms – such as Facebook – have played a key role in the entire feedback and
communication processes.
The Philippines has consistently been the leading country in the world for social media and
internet usage for several years (Chua 2021). Thus, it is important for C/MLGUs to regularly
43Refer to the sample Client Perception Survey conducted in the City of Manila in the Toolkit
under the folder/filename: Case Studies/2. Sample Client Satisfaction Survey in the City of Manila.

check platforms such as Facebook and Twitter for the sentiments of their constituents
regarding Business Permit processing.
It is easy for citizens to share feedback with reactions and comments to a post related to
business permit processing on the official social media page of any C/MLGU.
Table 10: Metrics from the Facebook Page of an LGU

Facebook Scan Findings • Page: XXXXX Public Information Office
(as of March 26, 2021) • Likes: 575,164
• Followers: 668,126
• Number of Related Posts: 5
Items January 17 January 20 January 22 February 1 February 4
Topic Limit of Last day to Renewals Extension of Reminder on
transactions pay renewal now open renewal to February 5
per taxpayer with 10% Saturdays & February 5 deadline
discount Sundays
Reactions
Comments 22 24 11 0 2
Shares 15 19 7 17 7
Positive 3 (14%) 1 (4%) 0 (0%) N/A 0 (0%)
Negative 8 (36%) 10 (42%) 2 (18%) N/A 0 (0%)
Question 1 (5%) 3 (12%) 2 (18%) N/A 1 (50%)
Suggestion 0 (0%) 0 (0%) 1 (9%) N/A 0 (0%)
Unrelated 10 (45%) 10 (42%) 6 (55%) N/A 1 (50%)
Facebook Scan Findings: Nature of Comments
Positive Negative Question Suggestion
XXXXX is easy to use Long lines Tax computation Inclusion of signage
permit
Email is responsive No social distancing Process of renewal
High taxes Printing of business
permit
Minimal reduction Extension
on taxes after
rebilling
Messy system Need for unopened
Long waiting time businesses to renew
vs. 2020
Process is hard to
understand; not
communicated
properly
Better in other cities

C/MLGUs should look at reactions and comments made to posts done during a period of
at least three (3) months before the deadline for business permit renewals. Apart from
taking note of the individual comments/reactions, LGU can also organize and summarize
findings in terms of Likes, Followers, and Number of Related Posts. The figures could be
gathered over a specific time for comparison (Table 10).
From these findings, C/MLGUs may make observations in terms of (1) what they should
continue doing, and (2) what they need to review to improve their processes.
Recommendations may be made as well in terms of the way content is created and posted,
as well as the frequency and expediency of LGU feedback to comments / suggestions /
questions.
4.0 Design Phase

After conducting comprehensive data gathering and diagnosis during the Discovery Phase,
it is now time for the gathered data and information to be used to inform the planning
process. Once there is full knowledge of the strengths and weaknesses of the existing
BPLS, the resources available, the expectations of the clients (applicants or citizens), and
the standards as set by the 2021 JMC, then it is now possible to progress to the Design
Phase.
4.1 Setting the Reengineering Goal
Setting the C/MLGU goal for going through the BPLS reengineering process is the first step
to a successful reengineering design. Why should C/MLGUs streamline or reengineer their
BPLS?
Other than the obvious answer: “it is required in Republic Act 11032”, the C/MLGU
needs to look beyond the sanctions to regulators for non-compliance with the law to the
immediate benefits of customer satisfaction to the long-term goal of growing local
business.44 As the framers of the 2021 JMC envision, making business permitting easy for
applicants attracts more investments which lead to more and better employment, higher
income for citizens and LGU employees, and the ultimate good of all – better quality of life
for the constituency.
C/MLGUs, while in full appreciation of the vision of 2021 JMC, need to set a reengineering
goal that is acceptable to its BPLS team. Consensus-building among those designing the
reformed BPLS is critical to the successful completion of the reengineering project. By
using many facilitation techniques before initiating the Design Phase, agreement on reform
goals that everyone in the team believes they can do in order to comply with the
government standards identified in the 2021 JMC can be achieved.
44The law imposes strict sanctions for non-compliance, more popularly known as the “two-strike”
policy where first offense will be meted with administrative liability with six (6) month suspension.
The second offense will be harsher with administrative and criminal liabilities with dismissal from
service, perpetual disqualification from holding public office and forfeiture of retirement benefits
and imprisonment of 1-6 years with a fine of no less than ₱500,000 but not more than ₱2 million. A
copy of the legislation can be found in the Toolkit under file name: Policy Instruments/1. RA 11032.

C/MLGUs can also research good practices studied and implemented by others to be
the basis of creating an effective BPLS model.
Benefits of Implementing the Standards of 2021 JMC
Unified • Reduced costs in printing forms for C/MLGUs

Application
• Shortens processing time by focusing only on data fields needed by
Form
the offices
• Facilitates data sharing among the various offices with a single
reference document for business information
• Easier to fill out forms with dropdown options, especially with hard-to-
get fields like the Philippine Standard Industry Classification (PSIC)
classification45
Standard • Reduce the number of required documents submitted by the applicant

Documentary
• Avoid filing and storage redundancy across regulatory offices
Requirements
BOSS Serves clients effectively and efficiently, maximizing the number of

approved applicants or “new businesses” to encourage economic activity
within the city/municipality
(1) Electronic • Fully digital operations to reduce number of physical transactions

BOSS during the pandemic
• Paperless transactions to the public
• Provides service at the convenience of the client
(2) Physical • Fewer steps and more efficient processing of permits

BOSS
• Minimizes health risks to personnel and clients while maintaining
operations of a public office
Standard Steps • Create an efficient workflow among the various offices that operate
within the BPLS
• Improve cooperation and coordination within the C/MLGU
Standard Reduces the number of hours spent by clients during the application
Processing process
Time
Signatories Create clear lines and links of accountability to ensure continued service
delivery
45The Philippine Standard Industrial Classification (PSIC) is a detailed classification of industries

prevailing in the country according to the kind of productive activities undertaken by
establishments. https://psa.gov.ph/content/philippine-standard-industrial-classification-
psic#:~:text=The%20Philippine%20Standard%20Industrial%20Classification,productive%20activiti
es%20undertaken%20by%20establishments

4.2 Identifying Reengineering/Streamlining Solutions
4.2.1 Designing the Unified Application Form
The 2021 JMC provides a pro-forma template for the unified application form for new and
renewal business applications.46 The pro-forma template can already be used by the local
government unit as its UAF. The LGU only needs to put its official letterhead (or logo) on
the pro-forma UAF.
In designing your own UAF, the first step is determining the data fields that should be
included in the form based on the needs of the regulatory offices involved in business
permitting. At the same time, the C/MLGU should think of the key sections of the form that
the applicants need to fill out and ensure that the Information requirements in the UAF are
readily available and known to the applicants.
Transitioning to the Revised UAF
C/MLGUs are currently using the UAF prescribed in the 2016 JMC. Several data fields in
the current UAF had to be removed in the revised UAF mandated by the 2021 JMC as
described below.
Data Fields Excluded from UAF
Contact details of lessor, The contract of lease is already provided as a

including monthly rental documentary requirement.
Classification of gross receipts This was removed because it does not apply to all
as essential and non-essential C/MLGUs.
LGU section on verification of This information is filled out by the LGU rather than the
documents and assessment of applicant. Internally, a separate verification sheet and the
applicable fees assessment of fees can be attached to the application
form during processing.
City/Municipality Fire Station The BFP will be provided with the UAF or sections of the
Section form with the information needed by the BFP
Formulating the Oath of Undertaking.
The template UAF contains a section on the “oath of undertaking” which the applicant signs
to (1) attest to the veracity of the information provided in the form, and (2) allow the sharing
of personal information for processing and profiling to requesting parties including any court
or legal procedure, examination, inquiry, audit or investigation. Some C/MLGUs like
Valenzuela City have amended the oath of undertaking to add statements to ensure: (1)
46The UAF template can be found in the Toolkit under folder/filename: Templates/1. Unified
Application Forms.

compliance with all the requirements for the city’s business permit and licensing, and (2)
that the applicant will allow the ocular inspection of the establishment.
The additional statements in Valenzuela’s Oath of Undertaking are shown below:
“As an applicant for a business permit/license for the City/Municipality of

__________ and as a law-abiding citizen and taxpayer thereof, I undertake to
comply with all the requirements for the issuance of a business permit and
license as required by the law or Ordinance.
I further undertake to allow a duly authorized inspector of the City/Municipality

of _______ to conduct ocular inspection of my establishment to ensure faithful
compliance to any regulatory measures and post inspection requirements and
in case of violation or non-compliance thereof, it will result in the closure or if
warranted, the revocation of business permit of the business establishment
without need of notice or Executive Order.”
Data Sharing
Since there will only be one form that applicants will use in applying for the Business Permit
and the ancillary permits including the FSIC, the BPLO will be providing the regulatory
offices with the information needs of the offices. The 2021 JMC requires data sharing
arrangements that will allow the transmission of the information in the UAF to all the
concerned offices of the LGU and the BFP to enable simultaneous evaluation of the
application. However, only the specific information required by the office or agency should
be shared (Table 11).47
Table 11: Information Requirements of LGU Regulatory Offices and the BFP
Regulatory Office Data Needed Purpose
Business Permits • All information in the UAF To monitor, record, and

and Licensing Office report on the business
profile of the LGU
Planning and • Business Information and To verify if the business
Development Office Registration in the UAF is allowed in the
or Zoning location, zone, or district
• Business Location Address
Administrator
• Line of business/PSIC
• Business Area
Treasurer’s Office • Business Information and To assess business tax
or BPLO (whichever Registration Section of the UAF and fees to be charged
is assigned to to the applicant
• Business Operations Section of
prepare the TOP)
the UAF
47 Section 8.1.1 (3) of the 2021 JMC. A copy of this circular can be found in the Toolkit under the
folder/filename: Policy Instruments/6. ARTA-DILG-DTI-DICT JMC No.1, s2021.

Regulatory Office Data Needed Purpose
Assessor’s Office • Business Information and To validate whether the

Registration Section of the UAF property where the
business is located is
• Whether property is owned
registered
• Tax Declaration Number
• Property identification Number
Health Office • Business Information and To determine
Registration Section of the UAF compliance with local
health and sanitation
regulations
• Line of business
• PSIC
• Number of employees
Environment and • Business Information and To assess
Natural Resource Registration Section of the UAF environmental impacts
Office of businesses and
determine mitigation
measures to be applied
• PSIC by the business
• Number of employees
Bureau of Fire • Business Information and To determine fire safety
Protection Registration Section of the UAF requirements for
• Business Location Address business compliance
• Business Area
Designing an Online UAF
When designing online versions of the UAF, there are some options that C/MLGUs can
consider.
• Use of drop-down lists for certain fields. Some data fields in the UAF have definite
answers which can already be pre-identified and included in drop-down lists for
applicants to choose from. Drop-down lists display a list of elements that users can
choose from. These types of choices are especially useful for data fields that may be
vague or unfamiliar to the applicants, i.e., the PSIC. The PSIC is a newly added data
field in the UAF that is useful to the national and local governments in determining the
line or nature of a business using a common set of industry classifications. The codes
or categories range from 21 to 520 depending on the level of detail needed. Drop-down
lists can also be used for business structure, type of application, and mode of payment.
• Pre-determining required fields. One of the benefits of using an online fillable form is
pre-determining required data fields that applicants need to accomplish. Applicants will
not be able to apply without accomplishing the required fields. This function ensures
that all needed information in processing a permit application or renewal is complete.

• Save function for incomplete or unfinished form. C/MLGUs using online forms should
include a save function for unfinished or incomplete forms. This helps applicants save
a draft of their form if they still need to secure additional information or documentary
requirement.
• Creating a dashboard for verification. C/MLGUs can create a dashboard for verifying or
processing the application. The dashboard should have modules where regulatory
offices can provide their assessment of the application. This will help provide updates
to applicants on the status of their applications. Applicants can also send electronic
copies of documents or other requirements that regulatory offices need to process
applications.
• Removing the requirement for a signature on the UAF. For online application systems,
there is usually a section where the applicant signifies agreement to the oath of
undertaking. By clicking / ticking the field "I AGREE”, the business applicant /
representative already read, understood, and is legally bound by the undertaking. The
application online shall be considered as electronic evidence.
Good Practices in Designing the UAF
• Use of Geographic Information System (GIS) and online mapping platforms. Instead of
asking applicants to fill out the address fields in the UAF, applicants can just pin their
business location in an online web mapping platform, i.e., Google Maps. This will also
allow regulatory offices such as the Zoning Office to load the GPS (Global Positioning
System) coordinates into their own GIS to match land classification with the nature of
the business.
This is currently being implemented in Valenzuela City. Business compliance with local
and national regulatory requirements is also included in the city’s GIS, for easier
verification and assessment.
Inputting other business information in a GIS will also allow the LGU to assess several
things.
➢ Density of business establishments by district or by zone – this will help in
scheduling regulatory inspections and determining areas where a satellite BOSS
may be located.48
➢ Workforce density – which will help the LGU in identifying areas where social
services for employees may be provided, i.e., vaccination.
➢ Business support – looking at the profile of businesses in an LGU can help identify
support services that can be extended to the business groups (i.e., Business-to-
Business (B2B) networking, supply chain management).
• Pre-populating the UAF using available information. C/MLGUs can pre-populate the
UAF, especially for renewal applications, using information from the account creation
or registration and the initial business permit application. Most business information,
48Satellite BOSS refers to business one-stop shops set up in areas other than the city/municipal
hall that can receive business permit applications, release the TOP, accept payments, and issue
the Business Permit and ancillary permits.

especially on the legal identity of the business does not change during renewal, i.e.,
trade and franchise name, structure, location, and nature of businesses. Hence, these
fields may be pre-populated in the applicant’s UAF for renewal.
• Reducing fields in the UAF for renewal. Since most information does not change during
renewal, C/MLGUs can opt to create a different application form for renewal wherein
applicants will only be required to fill in information that regularly changes annually or
those that are pertinent to the renewal process (i.e., amount of gross sales).49 In
Cagayan de Oro City, for renewal, the applicant can access his/her pre-populated UAF
using the permit application number and the registered business name.
4.2.2 Distribution of Documentary Requirements
The 2021 JMC stipulated that the number of documentary requirements to be submitted by
the applicant be reduced to its standard. Section 3.1.2 listed down the standard
requirements for business permit and ancillary permit applications in general though
additional documents may be required for special sectors. Once the documents attached
to the UAF have been received, these should be distributed to the offices requiring these
for their evaluation of the application, particularly where the original (Repository Office) or
copy (Office Requiring the Information) of the document should be given (Table 12).
Table 12: Data Repository and Data Requirements Among LGU Regulatory
Offices
Repository Office Requiring
Document Information Needed
Office the Information
Proof of Registration • Certificate of Registration BPLO Treasurer’s Office

(DTI/SEC/CDA) • Business/Trade Name
• Business Registration
Number
• Capitalization
(SEC/CDA)
Proof of Ownership • Property description and BPLO • Assessor’s Office
(Transfer Certificate of value • Treasurer’s
Title, Tax Declaration, Office
Contract of Lease,
MOA or Consent of
Owner)
Locational sketch Business Location BPLO • Planning and
Development
Office
• Health Office
• Environment
Office
49The template for online UAF for new applications and renewals can be found in the Toolkit
under the folder/filename: Templates/1. Unified Application Forms, pp. 4-5.

Repository Office Requiring
Document Information Needed
Office the Information
• Bureau of Fire
Protection
FSIC for Occupancy Fire Safety Compliance BFP BPLO

(Valid for 9 months)
Affidavit of No structural changes after BFP Office of the Building
Undertaking (no the Certificate of Occupancy Official
substantial changes was secured
were made to the
building or
establishment since
the FSIC for
Occupancy was given)
Proof of Annual Gross Receipts for business CTO / BPLO CTO / BPLO
Gross Receipts (AFS, tax computation
Sworn Declaration of
Gross Sales or
Receipts, Income Tax
Returns)
The documents containing the required information are available in the LGU. In the past,
these documents rarely pass between offices—it was more convenient to ask the applicant
to submit a separate copy to each office. With the new standard on documentary
requirements, that burden is lifted from the applicant, and it has become the C/MLGUs’
responsibility to coordinate internally to exchange the necessary data.
Manually, this would require a person moving from one office to the next bearing stacks of
paper. Fortunately, with the use of technology, the exchange of data can be made easier.
However, a central database where regulatory offices can source business information is
non-existent in most C/MLGUs. There are various commercial cloud storage options
available to the LGU (i.e., Google, Dropbox, OneDrive) but local and physical servers can
also be installed within the premises of the city/municipal hall.
As with any handling of sensitive data, there needs to be a management system that
organizes and regulates access to the information in a manner that is secure but convenient
for the regulatory offices. The LGU then needs to create a method by which the data can
be easily pulled and extracted from the server or central database. The personnel would
also have to be trained in terms of accessing the data to ensure that they can use the
appropriate search parameter that will facilitate document lookup in checking applicant
requirements or business information. The data management system needs to be
compliant with the Data Privacy Act provisions which limit the sharing of information on the
business applicant to those needed by the regulatory offices.

4.2.3 Reducing the Steps in the Business Registration Process
The reduction in the number of steps on the part of the applicant is an objectively verifiable
indicator of the inner workings and operations of an LGU. This section provides several
options that an LGU can undertake to improve its performance and get closer to meeting
the standard on steps as stipulated in the 2021 JMC.
Integration of the Barangay Business Clearance Process in eBOSS
The eBOSS cannot be realized without integrating the Barangay Business Clearance
process in the BPLS. It is mandated that Barangay Clearance and permits related to doing
business are issued and collected at the city/municipality level. To achieve this, it is
important to fulfill the legal requirements of enacting an ordinance to implement Section 11
(f) of RA 11032 at the city/municipal level while enacting both an ordinance and a resolution
at the barangay level.50
To fulfill these legal requirements, there are three (3) options by which an LGU can
approach the integration of the Barangay Clearance process with the city/municipal
business registration system: (1) Following the Proposal in DILG Memorandum Circular
2019-17, (2) LGU Processing with Real-Time Feedback, and (3) LGU Processing without
Immediate Barangay Feedback.
• Option 1: Following the DILG Memorandum Circular 2019-17751. The DILG Circular
outlines the standards for new applications and renewals for the integration of the
Barangay Clearance process with the City BPLS:
New Applications
• BPLO to notify immediately the Barangay as soon as the UAF is received (Section
6.1.1.2)
• Barangay to do ocular inspection (Section 6.3.2.3.1)
• Barangay to issue immediately the clearance to conform to the standard of 1-2 days
(DILG-DTI-DICT JMC 1, 2016) (Section 6.3.2.3.2)
• BPLO to issue and release the Barangay Business Clearance with the Business
Permit (Section 6.1.1.2)
50 DILG Memorandum Circular 2019-177 (Section 6.3.1.1) requires that cities and municipalities
“enact ordinances and requisite orders and directives relative to new standards and other
complementary reforms for business and issuance of locational clearance for building permits.” In
the case of barangays, there are two directives in the circular: (1) the Sangguniang Barangay to
enact an ordinance relative to Barangay Clearance fees on Business Permit and Locational
Clearance for Building Permit; (2) the Sangguniang Barangay to pass a resolution authorizing the
City/Municipal Treasurer to collect fees for Barangay Clearance for Business Permit and
Locational Clearance purposes. A copy of the DILG circular can be found in the Toolkit under the
folder/filename: Policy Instruments/21. DILG MC 2019-177.
51 The case study of Cagayan de Oro City, which developed their eBOSS that conforms to Option
1, can be found in the Toolkit under folder/filename: Case Studies/1.1 Option 1 (Cagayan de Oro
City Model).

Renewals
• Conduct inspection three (3) months prior to the renewal period (Section 6.3.2.4.1)
• Barangay Business Clearance to be issued prior to renewal period, if the business
is compliant with applicable laws (Section 6.1.1.3)
• Inform in writing the City/Municipal Mayor for immediate action in cases of any
illegal acts committed by business owners/applicants (Section 6.3.2.5.2)
• Monitor establishments and ensure that their business operations are consistent
with what was applied for
Table 13 shows in detail the operational process flow of activities.
Table 13: Option 1 Operational Process Flow of Activities
Applicant City / Municipality Barangay
New Business Permit Applications

Submits • Receives application • Receives notice from
application • Evaluates application C/MLGU
and • Conducts inspection
• Informs Barangay
requirements (if necessary)
• Gives feedback to
C/MLGU in 3 days
Receives the • If all clear, prepares TOP/SOA (including
TOP/SOA and Barangay Business Clearance fee)
settles • Gives TOP/SOA to Applicant
payment
• Receives payment (C/MTO)
• Prepares OR (C/MTO)
Claims permits • Prepares permits including Barangay • Prints Barangay
Business Clearance Business Clearance
• Releases permits and documents and sends to
C/MLGU
Renewal Applications
Submits • Receives application
applications • Evaluates application
and
• Checks negative list based on inspection
requirements
done 3 months prior to renewal period
settles • Gives TOP/SOA to applicant
payment
Claims permits • Prepares permits including Barangay
Business Clearance
• Releases permits and documents
Post-permit Requirements
• Remits Barangay fee collection to the • Submits a negative
Barangays after 1 month list to C/MLGU by
Dec 1

• Option 2: City/Municipality Processing with Real Time Barangay Feedback. 52 The
processing for Barangay Business Clearance is done by the BPLO but the barangays
are informed in real-time of applications located within their jurisdiction. Like Option 1,
the renewal process is the same as the process of new business permit applications
except that a negative list is provided to the BPLO to crosscheck whether applicants
have positive findings during the inspection which have not been addressed.

Submits • Receives application • Receives notice from

application • Evaluates application C/MLGU
and • Conducts inspection
• Informs Barangay
requirements
• Gives feedback to C/MLGU
same day
Receives the • If all clear, prepares TOP/SOA
TOP/SOA and (including Barangay Business
settles Clearance fee)
payment • Gives TOP/SOA to applicant
Business Clearance
• Prints Barangay Business Clearance
• Gives Business Clearance fee • Submits a negative list to
collection to Barangay (after 1 month) C/MLGU (December 1)
• Option 3: City/Municipality Processing without Immediate Barangay Feedback. 53

For C/MLGUs with no existing automated system that allows real-time feedback to
Barangays, processing of Barangay Business Clearance for business is done by the
BPLO. In this option, barangays are informed of the applications under their jurisdiction
at a later period, usually during the time that the remittance of the barangay fees are
transferred to their account. The responsibilities are similar, except that the barangay
is no longer notified immediately by the BPLO of the application.
52Parañaque City which developed an eBOSS that conforms to Option 2 and a brief case study
can be found in the Toolkit under folder/filename: Case Studies/1.2 Option 2 (Paranaque City
Model).
53 This option is illustrated in a case study of Valenzuela City that can be found in the Toolkit under
folder/filename: Case Studies 3 Option-3- (Valenzuela City Model).

Submits • Receives application

application • Evaluates application
and
• Consolidates the List of establishments for
requirements
inspection by the Barangay
settles • Gives TOP/SOA to applicant
payment
Business Clearance
• Prints Barangay Business Clearance
• Remits collection of Barangay Business • Receives fees
Clearance fee of Barangay after 1 month (remitted by C/MTO)
with the list of
establishments
• Conducts inspection
(if necessary)
• Sends negative list by
December 1
Additional Recommendations (DILG Memorandum Circular 2019-177)
• For New Business Permit Applications. Since the Barangay Business Clearance is a
requirement for securing the Locational Clearance needed before a Building Permit can
be secured, new business applicants are no longer required to submit a Barangay
Business Clearance provided the newly-built structure is intended for the same
purpose.
To conform to the standard processing time set in the 2016 and 2021 JMCs, the
concerned barangay should process the application and submit the clearance to the
BPLO to enable the release of the Business Permit with the other ancillary permits in
three (3) days.
• For Renewal of Business Permit Applications. Since Barangays are advised in the DILG
Circular to conduct inspections three (3) months prior to the renewal period, the
Barangay Business Clearance should be issued to the applicant prior to the renewal of
the Business Permit if the business is compliant with the applicable laws and local
regulations governing the permits/certificate such as the BFP’s FSIC, C/MHO’s
occupational, health and safety standards and other similar requirements based on
findings conducted by the inspection team.

Integration of the Processing of the FSIC for Business in eBOSS
The Fire Code of the Philippines (Republic Act 9514) provides that no business permit
should be issued without an FSIC. As per the first circular on the new service standards in
BPLS, the processing of the FSIC should be made inside the physical BOSS where the
assessment and collection of fire code-related fees are done simultaneously with the
C/MTO.54 In line with the one-stop-shop concept, all processing, including the FSIC, should
be done within the BOSS.
The same principle applies in the setting up of the eBOSS wherein assessment and
collection of Fire Code-related fees are integrated within the system.
An MOA signed between the C/MLGU and the BFP will allow such integration to happen.55
The MOA should also state that the fees collected shall be remitted to the BFP within an
agreed period. There are three steps in the process flow for this integration (Table 16).
However, the BFP is currently in the process of rolling out its online Fire Safety Inspection
System (FSIS), an online system with the following features: (1) filling up and submission
of an application form; (2) online assessment of fees; (3) payment of the fees; and (4)
issuance of electronic FSIC. The integration of the FSIS with the eBOSS of the
cities/municipalities is still being discussed.
Table 16: Operational Process Flow of Activities Between City/Municipality

and the Bureau of Fire Protection
Applicant City / Municipality BFP
Submits • Receives application • Receives notice from C/MLGU

application • Evaluates application • Assesses applicant’s compliance with
and the Fire Code of the Philippines
• Informs BFP
requirements
• If there are no positive findings, BFP
will inform C/MLGU
Receives • If all clear, prepares • Prepares the FSIC
TOP/SOA and TOP/SOA (including FSIC • Sends FSIC to C/MLGU
settles fee)
payment • Gives TOP/SOA to Applicant
• Receives payment (CTO)
• Prepares OR (CTO)
• Remits fire code fees to
BFP56
54 This requirement was first introduced in the DILG-DTI Joint Memorandum Circular No. 2010-
001, “Guidelines in Implementing the Standards in Processing Business Permits and Licenses in
all Cities and Municipalities” and remained in the 2021 JMC.
55 Republic Act 11032, Section 12 (h) explicitly states: “The BFP may enter into agreements with
cities/municipalities, allowing the latter to be deputized as assessors and/or collecting agents for
the fire safety and inspection fees…”. A copy of the template MOA from the BFP can be found in
the Toolkit under the folder/filename: Templates/3.1 MOA between the BFP and C/LGU.
56Under Rule IX, Section 11(b) of the IRR of Republic Act 11032, remittance of FSIC collection by
C/M/LGU with MOA with the BFP shall be done not later than 2 days after the transaction is made.
A copy of the IRR is included in the Toolkit under the folder/filename: Policy Instruments/5. ARTA-
CSC-DTI JMC No. 2019-01.

Applicant City / Municipality BFP
Claims • Collects FSIC for BFP
Permits • Prepares permits including
FSIC
• Releases Permits and
Documents
Additional BFP Conditions
The 2021 JMC has additional conditions which should be followed by the BFP in assessing
business permit applications.
New Applications
• For the BFP to implement Sec. 12 (b) of RA 11032 stating that the FSIC issued in
connection with the Certificate of Occupancy, which has a validity period of nine (9)
months, is sufficient as basis for the release of the FSIC for business permit to be valid
for one year.
• For the business owner/applicant with valid FSIC for Occupancy, to execute the
Affidavit of Undertaking that, from the time of release of the FSIC for Occupancy, there
were no substantial alterations made on the building/establishment and its original use
or purpose remains the same by the time the Business Permit application is submitted.
If a violation of the Fire Code is found during validation inspection by the BFP, the
Business Permit is deemed automatically revoked.
• For those without valid FSIC for Occupancy, the BFP shall be given three (3) days to
conduct an inspection of the business applicants’ premises. The BFP should also
inform the LGU of the action/s taken and provide feedback to the applicant no later than
3 days after the application has been submitted.
Renewals
• For the BFP and the regulatory offices providing ancillary permits such as the
City/Municipal Planning and Development Office, Treasurer’s Office, Health Office, and
the Environmental Office to transmit a "negative list" to the BPLO by December 1 prior
to the renewal period. This will contain the names of registered businesses that have
been notified of their violations and those who failed to correct these and/or settle the
fines and penalties imposed as of November 30 of each year.
• As an alternative to item 1, a “Positive List” may also be submitted by concerned offices
containing registered businesses that are fully compliant with the regulatory offices, and
the BFP, as well as the barangay, during the period covered.
• Upon payment of business taxes, fees and charges, registered businesses not included
in the Negative List or those in the Positive List can already be issued a Business Permit
and all ancillary permits without the need for inspection.

Integration of the Processing of Ancillary Permits in eBOSS
When the client submits his/her application for business registration, regulatory offices will
be provided with the application form simultaneously to allow them to evaluate the
application at the same time and to submit their findings within the prescribed period of
three days. Following the eBOSS model, all the permits for the business to operate (if
approved) or notice of disapproval should be released by the third day after receipt of the
application. This is different from the current practice in many C/MLGUs where ancillary
permits are processed as post requirements and released weeks or months after the
Business Permit has been issued by the BPLO.
The regulatory offices in charge of the ancillary permits must be reminded of certain
guidelines:
1. ARTA has classified the business permit application (including securing ancillary
permits) as a simple transaction that can be processed in three days.
• The application must be processed simultaneously by the regulatory offices
including the BFP.
• The documentary requirements for all the ancillary permits should be
submitted one-time together with the application form.
• If the evaluation of the regulatory offices indicates compliance with the
pertinent laws and regulations, they will provide the BPLO with electronic
copies of the permits.
• All fees associated with the ancillary permits should be integrated by either the
BPLO or CTO, whichever office is tasked with preparing the assessment.
• For the renewal of applications, the regulatory offices shall provide the BPLO
with negative lists by December of every year.
2. Inspection should be routinely done during the year as part of the annual
inspection process. The inspection required in the ancillary permits intends to check
whether the operations of the firm will not endanger public welfare. The annual
inspection is when noncompliance with the checklists provided in the Sanitation
Code, for instance, or the local Environmental Code can be best determined. The
2021 JMC has specific provisions on inspection that must be complied with:
• For new business permit applications where firms are not yet operating,
immediate inspection, if conducted, will not be able to detect deficiencies in
operation. Therefore, it will not be practical to conduct inspections during the
time of application for a new business permit.
• For new business permit applications requiring inspections from the BFP or
any of the offices/departments of C/MLGUs: the inspections shall be conducted
so that the required permits can be issued within the prescribed processing
time of three (3) working days. The BPLO shall institute measures to fast-track
inspections such as but not limited to, forming joint inspection teams composed
of regulatory offices including the BFP, and providing logistical support for the
conduct of inspections.

• For business renewals, the BFP, in cases where an application needs to be
inspected immediately after an application has been submitted, shall present
the FSIC to the BPLO within three (3) working days from application. If the BFP
fails to furnish the LGU with an FSIC or inform the same through the
negative/positive list, within 3 working days, from application, the business
entity shall be deemed to have a valid FSIC for business which shall be the
basis for the renewal of the business permit.
3. Section 8.2.3 (d) mandates the C/MLGUs to limit requiring the sanitary permit only
to businesses covered in the Sanitation Code which are listed below and, therefore,
should NOT be required for ALL establishments:
• Food Establishments
• Markets and Abattoirs
• Public Laundry
• Schools and Health Services
• Industrial Establishments
• Public Swimming or Bathing Places
• Bus Terminals and Service Stations
• Dance Halls and Night Clubs
• Tonsorial and Beauty Establishments
• Massage Clinics and Sauna Bath Establishments
• Hotels, Motels and Apartments, Lodging, Boarding, or Tenement Houses,
and Condominiums
4. Section 8.2.3 (e) of the 2021 JMC also directs the C/MLGUs that the employees’
health certificate should not serve as a prerequisite for the issuance of the sanitary
permit of a business unless specified in the Sanitation Code.
5. On Locational Clearance, ARTA Memorandum Circular 2020-01 mandates that:

• Establishments located in malls and the central business districts (CBD) are
no longer required to get a locational clearance following ARTA Circular 2020-
01 during the initial application for a Business Permit: Provided that the mall
where the business activity will be established is in conformance with the
zoning regulations of C/MLGUs.
• C/MLGUs shall not require applicants to get a Locational Clearance during the
renewal of the Business Permit since compliance with zoning regulations has
already been established during the initial application for Business Permit.57
A copy of this circular can be found in the Toolkit under file name: Policy Instruments/12. ARTA
57
MC 2020-01.

Integrated Assessment of Fees and Charges in the Tax Order of Payment
The business registration system should also have a one-time assessment feature
whereby the applicant receives only one TOP/SOA from the LGU. The 2021 JMC
emphasizes that C/MLGUs should assess and issue a consolidated assessment of all
business-related taxes, fees, and charges including inspection fees in the processing of
the Business Permit. The 2021 JMC also requires that the CTC or Cedula, which is usually
collected separately either by the barangay when getting the barangay clearance for
business or by the C/MTO, shall now be integrated with the TOP/SOA for the Business
Permit.
Integration of Barangay Clearance Fees in the Tax Order of Payment
The DILG Memorandum Circular 2019-177 directs cities and municipalities to integrate the
barangay clearance fees for business in the C/MLGUs tax order of payment.58 Moreover,
the DILG and the BLGF have issued JMC 2019-01 which breaks down the fees and
charges to compensate for the cost of rendering the service and which operationally
consists of direct and variable costs.59 If the city/municipality were to collect the barangay
clearance fee, the fee to be imposed should consider both the costs that will be incurred
by the city/municipality as well as the barangay in the processing of the clearance. To
standardize the computation of the cost, BLGF has released the toolkit for the fees and
charges.60
Integration of FSIC Fee for Business in the Tax Order of Payment
The terms of the template MOA between the BFP and C/MLGU allow the city/municipality
to assess and collect fire code fees, the amount of which should be included in the
breakdown of the TOP. Specifically, the FSIC fee for business is equivalent to 15 percent
of all fees and charges imposed by the LGU but should be not lower than PHP500.61
Operationally, the base for the 15 percent is not the total amount paid to the LGU as shown
58A copy of the DILG Circular can be found in the Toolkit under the file name: Policy-19- DILG MC
2019-177.” A copy of template excel sheet Toolkit for computing fees and charges can be found in
the Toolkit under the folder/filename: Templates/3.2 BLGF Local Fees and Charges Toolkit for the
Computation of Barangay Business Clearance Fees.
59DILG-DOF Joint Memorandum Circular No. 2019-01 “Guidelines for the Review, Adjustment,
Setting and/or Adoption of Reasonable Regulatory Fees and Charges of Local Government Units”.
A copy of the document is included in the Toolkit under folder/filename: Policy Instruments/17.
DILG-DOF-JMC-No. 2019-01.
60 The Toolkit is based on BLGF Memorandum Circular No. 020-2019 dated September 2, 2019,
entitled “Local Fees and Charges (LFC) Toolkit on the Review, Setting and/or Adoption of
Reasonable Local Fees and Charges” which is also in the Toolkit under the folder/file name: Policy
Instruments/15. BLGF MC 2020-2019. A separate excel worksheet developed by BLGF to be used
in the computation of fees and charges is in the Toolkit under the folder/file name: Templates/3.2
BLGF Local Fees and Charges Toolkit Template for the Computation of Barangay Business
Clearance Fees.
61Based on Rule 12, Section 12.0.0.4 (Schedule of Fees and Charges) of the revised
Implementing Rules and Regulations of the Fire Code of the Philippines.

above but would exclude taxes such as Business Tax and Community Tax Certificate in
the computation.
Based on the IRR of RA 11032, the remittance of the FSIC fees should be made not later
than two days after the payment has been made. The template MOA of the BFP also
stipulates that 100 percent of the collected amount should be remitted to the BFP.62
One-Time Payment: Setting up the Online Payment Facility
• Factors in Choosing Payment Service Providers. After determining the “business

model” for an online system, the LGU should now consider the different proposals
submitted by the PSPs that are targeting to service the LGU. In this step, the decision
to hire the PSP will most likely depend on how close the PSP proposal matches your
needs based on the answers to the various questions raised in the Diagnostic Phase.
While the LGU doesn't need to design the system infrastructure of the payment
channel, there are still several factors that it needs to determine prior to selecting a
payment provider.
Services Based on the requirements of the services, the LGU should be able
Offered to assess which PSP will be able to best provide these services.
The C/MLGUs should ensure that there are no hidden costs in the
pricing and that the fee structure initially conceived conforms to that
of the PSP’s proposal. The pricing of the service would normally
consist of fixed and variable costs. The period of payment
Fees and settlement is a very important provision in the contract. To ensure
Financial immediate remittance of payments, the LGU may wish to inquire if
Terms the PSP and its bank are InstaPay-affiliated institutions.
The LGU may also inquire whether the PSP is willing to open an
account with the depository bank of the LGU and has enough cash
balance to enable the immediate transfer of collected funds.
Since the LGU has an eBOSS, does the PSP have a service
module that can be easily integrated into the LGU BPLS? One
important aspect to consider in choosing the PSP to engage with is
the ease of setting up and use of the online payment system.
Technical Usually, the integration is done through an Application Program
Requirements Interface (API) at no cost to the LGU. Is the API open for
customization?
The LGU should be conscious of the customer experience. Ideally,
the applicant should be able to make payments in the eBOSS
system where he/she can select payment methods.
62The Guidelines on the release of the 20 percent LGU share from Fire Code revenues are in
DOF-DBM-DILG Joint Circular No. 2015-01 which are in the Toolkit under the folder/filename:
Policy Instruments/24. DOF-DBM-DILG JC 2015-01.

Data To motivate the business permit applicant to use the online
Protection payment system, the C/MLGUs need to guarantee the safety and
and Security security of the payment gateway. Hence, the LGU needs to inquire
Policies about the security features of the PSP’s payment gateway.
There are risks in managing an online payment system such as

Risk
fraudulent activity and payment errors, among others. The PSP
Management
should be able to minimize such risks through measures in its risk
Policies
management policies.
PSPs have support systems for their clients. The C/MLGUs should
check whether these are limited to tickets or emails in which case
manual instructions are given to fix a problem. In other cases, live
technical support can be provided and the LGU staff can talk to a
Level of
person to settle technical issues. Other features that may be
Support
asked: (1) the methods of contact, (2) personnel assigned to the
account, (3) average response times, (4) details of the service level
agreement, and (4) whether support is provided 24/7 or during
working hours only.
The PSP should be able to give the LGU an onboarding roadmap

Onboarding
that details the timelines, the required documentation, the training,
Process
and the level of support that will be provided.
The PSP should be able to offer a customer database, tracking,

and reporting. At the minimum, daily collection reporting should be
Reports
required by the LGU using an agreed format with the LGU
Treasurer’s Office.
Does the PSP also service other C/MLGUs in their BPLS or other
LGU public services, such as real property payments? What has
Track Record been the experience of these C/MLGUs? It would be best to make
quick phone calls to check the performance of the PSP in the
mentioned C/MLGUs.
• Legal Requirements for Setting Up an Online Payment System. Craft the following
legal documents:
1. City / Municipal Ordinance or Resolution - PSPs generally require an official

resolution or ordinance from the city or municipal council or Sangguniang
Panglungsod / Bayan authorizing the local chief executive (LCE) or Mayor and/or
the executive department to enter into a formal agreement or contract with the
service provider.63 A complementary implementing guidelines document is usually
issued to implement the ordinance’s mandate.
63A sample ordinance authorizing the use of e-payment channels in Parañaque City is included in
the Toolkit under the folder/filename: Case Studies/5.1 Paranaque Ordinance 2020-05 on
ePayment.

2. Memorandum of Agreement with Non-Disclosure Agreement – Local governments
may enter into such agreement or contract specific to a PSP to supply the services
to be rendered, with provisions on obligations, among other operational
requirements such as service fees and collections system, and terms and
conditions set by both parties including data privacy and confidentiality clause.64
The latter is necessary as highlighted in the Data Privacy Act of 2012 and reiterated
in Sec. 3.3 of the 2021 JMC, enumerating the cases where sensitive personal
information should be managed. It also provides the criteria on stipulations of
proper and lawful processing of those considered privileged information.
• Technical Requirements for Setting Up an Online Payment System. Determine the

following specifications according to available resources:
1. Identification and Set-up of Technical Requirements with the LGU’s Information and
Communications Technology Office (ICTO) Team/Unit - C/MLGUs accepting online
payments need to comply with a list of IT and other technical and security
requirements including the provision for the required API for system interface
purposes. The online payment-specific security is designed to lower if not eliminate
the chance of the billing and personal information being stolen. The payment
transfer needs to occur over a strictly secure encrypted connection.65
2. City / Municipal-based ICTO Team / Unit – Having a dedicated IT team or unit is

crucial to the success of setting up any digital system from institutional to
operational processes. C/MLGUs need to have a team specifically assigned to lead
the digital transformation of the city/municipality’s business processes towards full-
blown digital services. The ICTOs will manage the formulation and execution of the
payment digitization plans including the processing, development, and
maintenance of the entire online BPLS programs and services of the C/MLGU
(including partnerships with the PSPs).
Setting up an online payment system has already been done successfully by various
C/MLGUs across the country. The City of Valenzuela was the first city to adopt online
business registration services including an online payment system.66
• COA Regulations on e-Collection. COA Circular 2021-014 issued very specific

guidelines for the collect-aggregate-remit (CAR) scheme, an arrangement where
64A sample template MOA with PSP is contained in the Toolkit with folder/filename: Template/4.1
Template MOA with Payment Service Providers.
65The IT technical specifications and requirements are discussed in detail in the reference for
Using Technology for Reform found in the Toolkit under file name: References-04-Using-
Technology-for-Reform. Pay particular attention to subsections on “Documenting Functional and
Non-functional Requirements Specifications of the System” and “Assessing Infrastructure
Readiness” for more information
66The city ordinance of Valenzuela City on its online business registration system can be found in
the Toolkit under the folder/file name: Case Studies/5.2 Valenzuela Ordinance No. 610, Series on
Online Services.

collections are done by the PSP on behalf of the city/municipality, aggregated, and held
by the PSP for a period of time before being remitted to the local government’s account.
1. PSPs are required to generate an eletcr9onic Acknowledgment Receipt (AR), which
should be immediately issued to the payor via online, mobile, or printed copy for every
collection made. The form of the AR is attached as an annex to the circular.
2. The electronic AR shall, be accepted to the same extent as an OR issued by the local
government. Such AR should have a security protocol to ensure authenticity,
completeness, and traceability of the collection.
3. For auditing purposes, the city/municipality is not required to issue a separate OR to
individually acknowledge each collection made through the PSP. Since the amount paid
is part of public funds, reports on collections and deposits made either with the
assistance of the PSP or by its own efforts should be made. Such reports include the
List of Daily Collections within the next banking day from the date of the collection and
are supported with an electronic copy of all corresponding ARs issued and the
Certification of Deposit.
4. PSPs are required to remit or deposit the full amount of collections to the appropriate
account in the authorized government depository bank (AGDB) within the next banking
day from the collection date or within the time period prescribed by the Department of
Finance, with the submission of a Certification of Deposit to the local government.
5. The PSP shall be required to post a bond in favor of the contracted local government
as the beneficiary, which shall cover any amount collected by the PSP in the event that
it fails to deposit the collections to the appropriate AGDB account within the prescribed
period. The bond coverage may be adjusted depending on risk exposure but should be
submitted before the start of collections for the local government can be made.
For local governments which are collecting the business permit fees using the PSP’s
technology or infrastructure, but whose collections do not pass through the hands of
the collecting officer and are directly credited to the LGU’s AGDB account or what is
known as the Self-Collect and Credit (SCC) scheme, COA also issued guidelines which
are detailed below:
1. The LGU, using its own front-end system for online collection shall immediately issue
the eOR to acknowledge every transaction.
2. For face-to-face collection where no cash, check or physical note was used through the
collecting officer, the LGU shall issue an eOR.
3. For all collections wherein the funds are not yet in the appropriate AGDB account, the
LGU shall prepare the Report of e-Collections and Deposits. For collections credited to
the AGDB, a Report of Daily Collection Directly Deposited to the Agency’s Bank
Account shall be made.
• Legal Requirements for the Issuance of Electronic Official Receipts. The COA
provided guidelines on what may be considered as electronic forms of evidence of
payment where it explicitly states that the following conditions, among others, must be
met:

1. The electronic document has remained complete and unaltered, apart from the
addition of any endorsement and any authorized change, or any change which
arises in the normal course of communication, storage, and display.
2. The electronic document is reliable in the light of the purpose for which it was
generated and in the light of all the relevant circumstances.
The complete list of specific terms and conditions for the recognition of eORs is detailed
in COA Circular 2013-007.67
For transactions to be securely processed through the online collection system, the
LGU should abide by the provisions of the DOF and the DTI Joint Department
Administrative Order No. 02 s. 2006 on the “Guidelines Implementing R.A. No. 8792 on
EPCS in Government” or any subsequent amendments.68
Based on the said COA Guidelines, the eORs should have the following minimum data
content:
• Name of the agency issuing the receipt
• Location and Location Code (place where the collection is made and its assigned
code)
• Name of payor (person/entity)
• Date and time of receipt
• Nature of collection (such as business tax, fees, charges, etc.)
• Amount received, detailed as to the nature of collection coded as to their
subsidiary ledger revenue classification
• eOR Number (a unique and sequential number generated by the system for every
eOR issued)
• Transaction Number (generated for every transaction accepted by the system
which does not necessarily pertain to the generated eOR)
• Mode of payment (credit card, electronic fund transfer, mobile wallets, etc.)
• Order of Payment Slip Number or Assessment Number
To date, despite the BIR and COA regulations recognizing the legitimacy and authority
of eORs, few C/MLGUs have digitized their official receipts. Many cities, such as
Cagayan de Oro and Legazpi that have initially issued their digital official receipts, allow
67 Commission on Audit Memorandum Circular No. 2013-007 on the “Guidelines for the Use of
Electronic Official Receipts (eORs) to Acknowledge Collection of Income and Other Receipts of
Government”. This circular is anchored on RA 8792 otherwise known as the “Electronic
Commerce Act of 2000” on the legal recognition of electronic documents. Specifically, its Section 7
states that, “electronic documents shall have the legal effect, validity or enforceability as any other
documents or legal writing and (a) where the law requires a document to be in writing, that
requirement is met by an electronic document if the said electronic document maintains its integrity
and reliability and can be authenticated so as to be usable for subsequent reference….”
https://www.coa.gov.ph/issuances/circulars/#98-106-wpfd-cy-2013. A copy of this circular can be
found in the Toolkit under folder/file name: Policy Instruments/17. COA MC 2013-007
68 A copy of the DTI-DOF Joint Administrative Order can be found in the Toolkit under the
folder/filename: Policy Instruments/21. DTI-DOF JDAO 02-2006.

taxpayers and/or business registrants to claim the physical copy of their ORs from the
CTO upon request.
For wider acceptance from the business community and to overcome resistance to
electronic ORs, the LGU should intensify its communication campaigns to correct public
misconceptions about eORs.
4.2.4 Reducing the Processing Time
The reduction of processing time is a direct consequence of streamlined steps in the end-
to-end process. The 2021 JMC has achieved a milestone reform with its 3-day processing
time standard for the Business Permit and ancillary permits which normally take weeks if
not months to secure. The eventual adoption of an eBOSS will lead to an even shorter
processing time once C/MLGUs put the streamlined process into full operation.
The C/MLGU can also implement additional measures to further shorten processing time:
• Time tracking the processing of the permits in the backroom by concerned offices,
• Ensuring that all documentary requirements are immediately forwarded to the
regulatory offices so that assessment can be done simultaneously,
• Scheduling the conduct of inspection for new applications soon after the release of
the application and not during the 3-day processing period, and,
• Providing full logistical support to the inspection team for the timely and efficient
conduct of inspection by all offices.
4.2.5 Addressing the Long Queues During the Renewal Period
The Local Government Code of 1991 specifically provided that local taxes, fees, and
charges shall be paid within the first 20 days of January or on each subsequent quarter, as
the case may be, and which can be extended by the local Sanggunian for justifiable reason
without surcharges for a period not exceeding six months.69
• Most cities/municipalities experience long lines during the renewal period which is
taxing not only for the applicants who are forced to wait for hours or even days
before they can be issued their Business Permits. The protracted process also
affects the city/municipal officials and staff who spend long hours or render overtime
work to finish the processing of permits. To ease the burden of business applicants
during renewal period, the 2021 JMC proposed measures to reduce the rush of
applicants to the city/municipal hall during the renewal period:
• Set up the eBOSS during renewal period.
• Extend the renewal period up to the end of the month or longer or allow the early
renewal of business permits even before January 1.
• Establish nodal or alternative physical business registration centers other than
those in the city/municipal halls, which will act as “BOSS” that will accept Business
Permit applications, assess taxes and fees, receive payment, and release
69 Section 167 of RA 7160 or the Local Government Code of 1991.

documents, especially in CBDs or in areas where the bulk of establishments are
located.
• Use kiosks that can process renewals to be located at the city/municipal hall and
other areas where businesses are mostly located.
• Provide incentives to registered establishments that will use online or electronic
means of submitting the application form and/or using online payment facilities or
apply before the usual renewal period in January.
• Consider a longer validity period for a Business Permit with corresponding
adjustments in business tax, fees, and charges and with some modifications in
related permits such as Sanitary Permits where welfare considerations are critical.
• Allow the renewal of business permits during anniversary dates as suggested in
Section 11 (e) of RA 11032.
4.2.6 Reviewing Fees and Charges for Processing Business Permits and Ancillary
Permits and Clearances
The 2021 JMC provides for the creation of the Regulatory Reform Team or the CART for
the review of business tax and fees charged to applicants. Section 6 of RA 11032 stipulates
that the rates for availing government services should be properly specified in the agency’s
citizen’s charter. Charging additional fees and charges not specified in the citizen’s charter
shall serve as a violation of the law. This section discusses some points to consider in the
review of fees and charges.
Removal of business tax for new businesses
Section 9.2.1 of the 2021 JMC stipulates that newly-started businesses will be exempt from
paying initial local business taxes based on capital investment, except for businesses
involved in franchising, printing, and publication. C/MLGUs are encouraged to revise their
revenue ordinances to implement the said provision. Doing so would spur local economic
growth by enticing individuals to establish local businesses.
Removal of fees for omitted requirements under the JMC
The JMC stipulates revisions in the documentary requirements for registering or renewing
a business (See section on Documentary Requirements). Applicants whose nature of
business is considered exempt from securing the regulatory requirements omitted by the
JMC should not be charged fees related to such permits or clearances, i.e., Sanitary
Permits and Locational Clearances. Furthermore, fees and charges related to securing
documents that are otherwise not BPLS-related should not be charged to the applicant.
Standardization of Barangay Business Clearance Fees
Cities and municipalities can encourage their component barangays to set standard fees
in processing Barangay Business Clearance applications. This will make it easier to
integrate the barangay clearance process into the business permitting system as described
in the barangay integration models. Since the cost of processing Barangay Business

Clearances is generally the same for all barangays within a C/MLGU, fees for securing
such clearances should be of the same amount.
Standardization of processing fees for ancillary permits and clearances
Processing of permits and clearances undergoes the same process in the backroom
operations, which should allow LGUs to set a standard fee for the processing of ancillary
permits and clearances (i.e., Sanitary Permit, Locational Clearance, and Environmental
Clearance). Costs for securing ancillary permits and clearances would only differ
depending on the risk considerations of concerned regulatory offices and the need to
conduct inspections to check compliance.
Rationalization of inspection fees
Most C/MLGUs require inspection of business premises to check regulatory compliance for
Business Permit registration and renewal. Fees for the conduct of such inspections are
reflected in the tax bill of each applicant. Some C/MLGUs charge recurring regulatory fees
that should not be part of the regular inspection visits (i.e., plumbing and electrical, among
others). Some C/MLGUs also charge building-related inspection fees for the registration of
new businesses, even if a Certificate of Occupancy was already submitted by the applicant.
The process and requirements for building-related inspections should have been complied
with and paid for by the applicant during the occupancy certification process. C/MLGUs are
also encouraged to review their business permitting processes to determine inspections
that will form part of the regular or annual visits of the joint inspection teams. The tax bill or
order of payment should only reflect fees and charges for inspections that were conducted
for each application.
4.3 Preparing for Automation
After successfully identifying reengineering solutions, the C/MLGU is now ready to think of
how best to automate. After all, the national government plans to link up the LGUs’ eBOSS
into the PBH, the national system for receiving and processing business registration
applications.
But first, the LGU should ask and answer the following questions: Are we ready for an
eBOSS? Are internet services and other digital infrastructures available and reliable in our
locality? Are there IT-savvy personnel employed at the LGU?
Once a decision is made in the affirmative, the next question is: How do I start planning for
setting up an eBOSS? These topics are discussed in this chapter.
4.3.1 System Options
This section specifies a selection of readily available system options for the implementation
of the eBOSS. The options now available to the LGU ensures that building the eBOSS

does not have to start from scratch. A detailed discussion on planning for automation is
available in the accompanying toolkit.70
Integrated Business Permits and Licensing System (iBPLS)
The iBPLS is a cloud-based system developed by DICT which includes the Electronic
Business Permits and Licensing System (eBPLS) that allows the online processing of
Business Permits, Building Permits, Certificate of Occupancy, Barangay clearance, and
other related licenses, clearances, permits, certifications, or authorizations. There is
already a total of 377 C/MLGUs that are actively using the iBPLS: Business Permit module
as of September 2021.71 The many features of the system are listed below:
● Online application and renewal of business permits. Clients or business owners can
apply for or renew their business permits in the comfort of their homes by accessing
the web-based iBPLS application. Prior to submission, the required documents are
posted on the screen to guide applicants on the documentary requirements needed for
the application, and BPLO employees no longer need to spend time explaining the
requirements to the registrants. Online applicants may also view and upload/download
documentary requirements.
● Online endorsement. Upon submission of the completely filled-up form and
requirements, the application goes to the concerned regulatory offices which can view
the application online and check if all the information and submitted requirements are
complete. Initially, the application has to be verified by the BPLO, then it will be
subjected to review and verification by the C/MLGU regulatory offices including BFP.
● Auto-assessment of fees. Once the application has been verified by the C/MLGU
regulatory offices, the system automatically computes the TOP/SOA based on the
(assessment) business rules set in the system. This eliminates the manual computation
done by each regulatory office, ensuring that the computation is accurate, and account
categories for assessed taxes, fees, and charges are automatically recorded in the
system, thus minimizing the time that will be used to process the assessment and to
account for the received payments.
● ePayment and payment tracking. The client has several payment options to choose
from, including online payment, if the C/MLGU has made prior arrangements with other
service providers. Because of this, C/MLGUs now have an accurate record of assessed
fees due to them, as well as payment transaction details that may be used to trace
payment delays. These records assist local governments in proactively working with
firms to resolve problems and/or arrears.
● Issuance of manual and eOR. Once paid, the system generates an Official Receipt. An
applicant may claim his manual OR at the designated place at the LGU office or, if the
LGU has a courier partner, may opt to have it delivered. The applicant also has an
70This discussion can be found in the Toolkit under file name: References-04-Using-Technology-
for-Reform.
71There are 815 LGUs with MOAs with the DICT and are in different stages of implementation
(e.g., data build-up, pilot testing, training).

option to download and print his eOR. The system-generated eOR is secured by a QR
(Quick Response) code which contains the basic information of the transaction.
● ePermits and expedited approval. Since the electronic system immediately resolves
document control and can fulfill LGU security standards, eBPLS eliminates the need for
the LCE and the Barangay Captain to manually sign each permit and clearance that
will be issued to the applicant. The LCE may use DICT’s PNPKI for the digital signing
of the Business Permit while the electronic signature of the Barangay Captain may also
be uploaded to the system and be affixed to the Barangay Business Clearance.
Business owners also have an option to print the electronic version of their permit in
the comfort of their homes. The system also has features on pre-defined templates and
LGU-customized permits.
● Tracking the status of applications. Applicants may also monitor and track the status
and history of their application by logging in at the iBPLS. While the LGU may also track
and monitor the aging of transactions per action officers.
● Reports for monitoring and evaluation. C/MLGUs can use eBPLS to get the data they
need to track and improve processes in real time. Because the BPLS logs and tracks
the amount of time each task takes, process steps or activities can be monitored at a
high level or a granular level.
● Data integration. The LGU can generate system, reports required by NGAs (e.g.,
ARTA, COA. DILG, BSP, DTI), thus eliminating the manual process of preparing these
reports.
● Downloadable forms translate to lower costs. Making company registration forms
downloadable from an online facility or a local government's website will reduce printing
expenses and reduce the likelihood of local governments running out of printed forms
for registrants.
● Dashboard. The iBPLS is also equipped with a dashboard that is based on the profile
of the user who is logged in.
● Barangay Business Clearance processing. For C/MLGUs where issuance of the
Barangay Clearance is already integrated into their business permitting process, this
module can be used by the LGU once the legal requirements are compiled (e.g.,
execution of the C/M/Barangay Ordinance) and setups/configuration can be done by
the LGU.
Private Sector-Developed Systems
Some C/MLGUs, especially the Highly Urbanized Cities (HUCs), have opted to not use the
iBPLS and instead build their own BPLS or have it developed by external providers. Their
main reason for doing this is the limitation of the iBPLS to cater to the customizations that
the HUCs want. These C/MLGUs have internal systems that they want to integrate with the
iBPLS, but which the latter cannot accommodate. Hence, the decision to develop their own
system or acquire from a vendor.
Selecting the right automation software for the C/MLGU is a crucial step in automating
business registration processes and improving them over time. The BPLS software system
must have baseline features that should help the C/MLGU comply with the 2021 JMC

standards. It must also have a technical foundation that enables the C/MLGU to add custom
functions that the system needs.
The C/MLGU can buy a packaged solution, construct a system from the ground up, or
tweak a purchased package to match its needs and budgetary limits when purchasing a
BPLS solution.
Packaged Solutions, also known as commercial-off-the-shelf products, are best suited for
simple C/MLGU environments with limited technical resources. Package solution vendors
supply both the product and the technical knowledge needed to deliver it. The Pasig LGU,
given its IT manpower constraint, chose this option. However, the problem with this option
is that the software functionality cannot be freely modified or customized. Because the
manufacturer owns the source code, the C/MLGU must employ certified system integration
services and must not modify the code without first informing the manufacturer or licensor.
Build Solutions are best suited for complicated C/MLGU setups with enough financial and
experienced technical resources like that of Parañaque City. The following are the
advantages of developing a system from the ground-up:
Advantages
• The software (design and source code) is solely owned by the C/MLGU.
• Without fear of violating software license terms, the C/MLGU can tweak the
software, improve the architecture, and add/remove functions.
• Integration with other internally developed C/MLGU applications will be easier
because C/MLGU developers will be familiar with them.
Customized Solutions entails acquiring a license to utilize a fully working software

package and then having it customized to the C/MLGU's operating requirements. The
following are the advantages and disadvantages of acquiring one:
Advantages
• When compared to constructing BPLS software from the ground up, an already fully
functional software product allows for speedier deployment.
• Enhancements can be divided into module releases to avoid disrupting production
systems.
Disadvantages
• Higher costs associated with training development teams engaged in customizing
the packaged solution to retain the system's functional integrity.
• Expenses for consulting/system integrators to customize the product if the LGU
development team has no capability.
• Customized packages, by convention, are beyond the scope of annual maintenance
and support agreements between software vendors and local governments and
cannot be guaranteed to operate with vendor-released security or application
patches.

4.3.2 Planning for Automation
Planning for automation specifies the sequence of activities for the implementation of the
eBOSS. Outputs include (1) Finalization of the features of the system, (2) Functional
specifications document, (3) Data conversion and migration plan, (4) Development and
testing plan, (5) Privacy and impact assessment report, (6) Vulnerability assessment and
penetration testing plan, and (7) Assessment and inventory of existing resources and
determination of required resources (e.g., hardware, software, connectivity, manpower,
and required training/skills set of the manpower).
Determining the Features of the System
The first stage in setting the eBOSS is to figure out which functions should be automated.
At its most basic level, the eBOSS must include registration, application assessment,
cashiering, LCE approval, issuance, and security modules.
Writing the Functional Requirements Specifications Document and Other Technical

Documents
Documentation is a must for various reasons: to clarify product functionality, unify project-
related information, and allow stakeholders and developers to discuss any issue that may
arise. During the eBOSS development, C/MLGUs need to prepare the Functional
Specifications Document (FSD) and the Technical Specifications Document (TSD) which
is also referred to as Software Architecture Design Document, Test Plan, and User and
System Manuals.
An FSD is a document that describes in detail a system’s intended capabilities,

appearance, and interactions with users for software developers. Typically, it shows the
visual appearance of the user interface (UI) and describes each of the possible user input
actions and the program response actions.
Unlike the FSD which describes what needs to be built in a system, the Technical
Specification Document or the TSD is about how to build it. The TSD provides an overview
of the guiding architecture and design principles that will be applied to the system’s
development. It also contains process flows for business processes as well as situations
connected to them. A TSD also contains a list of the solution’s planned services, modules,
and components. It also provides diagrams and/or graphic materials to help understand
and communicate the structure and design principles.
Another important technical document is the Test Case Specifications Document which is
included in the Test Plan. It contains a series of detailed actions to verify each feature of a
system’s functionality.
Lastly, there is also a need to create end-user documentation such as user and system
administrator manuals. A user manual provides an overview of the system’s functionality
and gives basic guidelines on how to use it while a system administration manual covers
installation and updates that help the system administrator with maintenance of the system.

Data Conversion and Migration
The project team will need to quantify data requirements before embarking on a full-fledged
eBOSS project. For example, data conversion entails transforming records from their
original condition to an electronically accessible format that the eBPLS can use. The time
and effort necessary to translate data must be considered as well as the manpower
resources for the data encoding. For example, the bigger the number of records saved in
physical, non-electronic format, the longer it will take to convert them, and more people
may be required to do the task.
Development and Testing
Depending on the nature of the product being developed and the tools utilized, the software
development process can take a variety of shapes. Software Development Methodology
(SDM) refers to the process of creating a program through the development of code and
the application of various tools. SDM is governed by the need to ensure that jobs are
divided into manageable components and that a process is iterated several times. The
application of an SDM frequently establishes and encourages best practices in the
development of new software for a group of developers. Without an SDM to refer to during
development, the process can quickly become chaotic, wasting both financial and time
resources.
Two of the most popular SDMs are the “waterfall” and “agile” models. Regardless of which
option is pursued, the following are the essential stages in the development of an
automated BPLS.
• Discovery. The team gathers a full list of requirements for the entire project.
• Design. Solution Architects define how to build the software and how it is going to
work
• Coding. Developers implement UI design according to client's requirements.
• Testing. Quality assurance engineers check the whole codebase for bugs or
inconsistencies.
• Deployment. Developers integrate various pieces of the product and show its
demo version to stakeholders.
• Maintenance. The team provides support and fixes bugs.
Privacy Impact Assessment
The Data Privacy Act of 2012 (Republic Act 10173) provides that it is the state's policy to
protect the fundamental human right to privacy in communication while allowing the free
flow of information necessary for innovation and progress.72 The state also acknowledges
its inherent responsibility to ensure that personal information in government and private
sector information and communications networks are secured and protected. A Privacy
Impact Assessment (PIA) is a procedure for assessing and managing the privacy impacts
72A copy of the law can be found in the Toolkit under the folder/filename: Policy Instruments/3. RA
10173.

of a Personal Information Controller or Personal Information Processor program, project,
process, measure, system, or technology product. It considers the nature of the personal
data to be protected, the flow of personal data, the risks to privacy and security posed by
the processing, current data privacy best practices, security implementation costs, and,
where applicable, the size of the organization, its resources, and the complexity of its
operations.
System Security
To mitigate significant threats to a web application, security measures and controls should
be implemented. The DICT identified basic security features which should be considered
in the development of an eBOSS.73 The following lists down some of the security measures
recommended by the DICT, without prejudice to other standard security measures that
should also be considered:
1. There must be a security control system in place to verify the user’s identity. A user ID
account and a password are commonly used for this. The password must be long and
complex, using alphanumeric characters and, if possible, special characters. After the
user has been authenticated, a security control mechanism must ensure that the user’s
data access privileges are limited to his approved access level alone. Implement user
access with the bare minimum of privileges.
The use of multi-factor or at least two-factor authentication may also be explored as an
additional security feature. Multi-factor authentication is a type of electronic
authentication in which a user is permitted access to a website or application after
successfully presenting two or more pieces of evidence to an authentication
mechanism. The first factor is a password and the second commonly includes a text
with a code sent to the user’s smartphone.
2. All input data must be validated, i.e., length criteria and acceptable data types must be
checked. All outputs must be sanitized to ensure that they do not reveal too much
information (e.g., default system-generated messages) that an attacker can use to
exploit security flaws.
3. Use Secure Sockets Layer (SSL) certificates and ensure Payment Card Industry (PCI)
compliance. Even if the system uses payment gateways, since it will manage consumer
data, it must comply with PCI standards. PCI Data Security Standard is a set of
technical requirements which protect and secure payment card data. The same goes
for using SSL authentication which is a must to ensure secured communication
between the customers and the server.
73 In compliance with Section 10.5.3 of the 2021 JMC, DICT drafted an ARTA-DICT Joint
Memorandum Circular entitled “Guidelines on the Integration of National Government Agency
(NGA) Information Systems with Local Government Unit (LGU) and the Integration of LGU eBOSS
or BPLS to the Central Business Portal (CBP) and Philippine Business Databank (PBD)” which
includes basic security features in the development of the eBOSS. A copy of the draft circular (as
of September 2021) has been included in the Toolkit under the folder/filename: Policy
Instruments/7. Draft ARTA-DICT JMC on LGU eBOSS Integration with CBP.

4. Maintain up-to-date security patches and fixes.
5. Maintain audit logs. It is vital to have enough audit records in place to be able to detect
an attack. Procedures for audit logging must be documented. Restricted access to the
log files should, ideally, be limited only to administrators. User activities, exceptions,
and information security events must all be recorded in audit logs.
6. LGUs and NGAs must include both or any of the following security measures on all
permits, licenses, reports, or certificates they issue:
• Digitally signed through PNPKI, or digital signatures certified by the DICT-
Cybersecurity bureau; and/or
• QR code containing the basic information of the transaction.
7. Vulnerability Assessment and Penetration Testing (VAPT) should also be regularly

performed in the system. These are security services that look for flaws in the network,
server, and system infrastructure. Apart from the fact that it is mandated by a slew of
industry standards and laws, LGUs and NGAs must conduct proactive security audits
to protect their data and systems from emerging dangers / hacking.
8. Segregate development, testing, and live environments. After a web application’s

development and testing are completed, the administrator should apply the
modifications to the live environment and confirm that none of the changes introduced
pose any security problems.
Integration with the Philippine Business Hub and the Philippine Business Databank
The PBH and PBD are mandated projects in Republic Act 11032 intended to make
business registration easier for both the public and the C/MLGUs. Developed by the DICT,
these are external systems that the BPLS can link to reference or extract data on business
registrants. Meanwhile, the PBD is still being developed, but its design and objectives
warrant integration with eBPLS at some future time.
The Philippine Business Hub
The PBH is envisioned to be the central registration system to receive applications and
capture application data involving business-related transactions, including primary and
secondary licenses, and business clearances, permits, certifications, or authorizations
issued by the C/MLGUs. Phase 1 of the original CBP had the following features: (1) Unified
form for agencies, (2) Online registration with SEC, (3) Online registration with BIR, and (4)
Online generation of TIN for BIR and Employer Number for SSS, Philhealth, Pag-IBIG.
Since then, the CBP added new features: (1) Online payment for BIR filing and registration
fees; (2) Unified Employee Reporting Module for SSS, Philhealth, and Pag-IBIG; (3)
Issuance of secondary licenses featuring the Food and Drug Administration’s License to
Operate for Center for Drugs; (4) Interface with the Quezon City Business Permitting
System and 16 pilot LGUs with eBPLS; and (5) Redirection to the Parañaque City Business
Permitting System.

As a centralized database, C/MLGUs (especially HUCs), will be part of the PBH (refer to
Figure 12). There are currently two ways for C/MLGUs to be part of the system: thru
hyperlink or integration.
Figure 12: Framework of the Philippine Business Hub
Source: DICT
Table 17 shows the number of C/MLGUs integrated and hyperlinked to the portal. From
the perspective of the LGU, their inclusion will potentially raise the number of registered
enterprises who can immediately register with them for their Business Permit right after the
primary registration at the PBH. At the same time, the validation of the documentary
requirements such as those from SEC and DTI will be easier. The faster registration
process will also encourage more formal registration with the C/MLGU, leading to more
revenues.
Table 17: Number of C/MLGUs Integrated with the PBH (as of September
2022)
Status on Linking with PBH Count LGUs
Integrated with PBH 18 (16) DICT-iBPLS, Valenzuela, Quezon City
Hyperlinked with PBH 11* + Paranaque, Valenzuela, Pasay, Caloocan,
778** Pulilan, Panabo City in Davao Del Norte,
Muntinlupa, Marikina, City of Cadiz, Cabuyao,
Manila
With Letter of Intent (LOI) 11 Caloocan, Pulilan, Panabo City in Davao Del
Norte, Muntinlupa, Marikina, City of Cadiz,
Magallanes, San Pablo, Mandaluyong,
General Trias, Manila
LGUs using iBPLS 16 Ilagan City, Isabela; Baler, Aurora; Dipaculao,
integrated to PBH Aurora; Limay, Bataan; Macabebe, Pampanga;
Paete, Laguna; Santa Cruz, Marinduque;
Labo, Camarines Norte; Santa Barbara, Iloilo;

Status on Linking with PBH Count LGUs
Mandaue City, Cebu; Palo, Leyte; Molave,
Zamboanga del Sur; Dumingag, Zamboanga
del Sur; Catarman, Camiguin; Kabacan, North
Cotabato; Manay, Davao Oriental
LGUs using iBPLS to link to 778 Deployed in PBH production
PBH
* LGUs w/ Independent BPLS
** LGUs using DICT's iBPLS
Source: DICT report as of September 2022.
The DICT and the DTI launched the integration of the Business Name Registration System
in the PBH on 15 March 2022 together with the eBOSS of the cities of Quezon and
Valenzuela that will enable an end-to-end online business registration experience for single
proprietors from these cities. By the end of 2022, the DICT plans to integrate the CDA into
the PBH. In the future, the PBH will also cover renewals, amendments, and changes in
business names and classifications.
The DICT will be issuing a circular on the requirements for integrating the eBOSS of
C/MLGUs with the PBH.74 At the minimum, C/MLGUs intending to integrate with the PBH
must have a working online eBOSS, with the following functionalities:
• Accepts online business permit and license applications
• Captures data and stores them using an online unified application form
• Processes and approves the business permit applications online using a simplified
process including verification, assessment, and releasing of the business permit
certificates
• Allows multiple Business Permit applications using a single user account
• Issues digital copies or e-copies of the Business Permit, allowing the use of
government-approved digital signatures
• Integrates with other agencies’ systems through API to achieve end-to-end
processing
The DICT has also specified the requirements for integration for C/MLGUs using the iBPLS
and those with independent systems.
For C/MLGUs using iBPLS

• C/MLGUs shall confirm acceptance of the integration of PBH and iBPLS through
User Acceptance Testing (UAT) sign offs.
• C/MLGU representatives shall undergo a briefing on PBH and iBPLS integration
via a system walkthrough.
For C/MLGUs using independent systems
74A draft of the circular dated September 20, 2021 is included in the Toolkit under folder/filename:
Policy Instruments/7. Draft ARTA-DICT JMC on LGU eBOSS Integration with CBP .

• C/MLGUs shall sign off on the business requirements documents and technical
mapping prepared by DICT.
• C/MLGUs shall confirm acceptance of the integration of PBH and LGU BPLS
through UAT sign offs.
• C/MLGU representatives shall undergo a briefing on PBH and LGU-BPLS
integration via a system walkthrough.
• C/MLGUs shall ensure the readiness and availability of LGU-BPLS technical team
which can either be organic employees or outsourced (whichever is applicable), to
support and address technical issues encountered during LGU-BPLS operations.
Prior to integration of their BPLS with PBH, C/MLGUs are expected to submit the following:
• Letter of Intent signed by the City/Municipal Mayor
• Uniform Resource Locator (URL) of the online BPLS
• Point of contact both from business process and technical group
• Process flow diagram
• API documentation
On the legal side, the C/MLGUs will have to sign an MOA with DICT with Data Sharing
Agreement between the LGU and DICT, with specific provisions on its conduct and
completion.75
• Privacy Impact Assessment76
• VAPT and analysis and fixing of any medium and high-risk findings, prior to the
release of the DICT and LGU-BPLS to the public
• Non-Disclosure Agreements, whenever applicable
• Binding agreement of LGUs with third-party payment providers to implement
online payment
The DICT has identified additional requirements for the integration:

• Maintain a system of unique identifiers. These are the Business ID Number and
Business Permit Number issued through the eBOSS. These unique identifiers
shall be used for all permits, licenses, and certificates issued by the LGU and shall
serve as reference for the C/M LGU, NGAs, offices, and bureaus.
• Strict use of the Unified Application Form. The C/MLGU shall enforce and monitor
the strict use of the UAF and submission of the documentary requirements
through the eBOSS.
Philippine Business Databank
75A template MOA on Data Sharing Arrangement can be found as Annex A in the draft ARTA-
DICT JMC which can be found in the Toolkit under the folder/filename: Policy Instruments/7. Draft
ARTA-DICT JMC on LGU eBOSS Integration with CBP.
76 The detailed steps on how to prepare a PIA can be found in the Toolkit under the
folder/filename: References/4. Using Technology for Reform (pp.5-8).

To reduce the documentary requirements that applicants provide to the C/MLGUs,
documents that have already been provided by the applicant to local government
departments/offices in connection with other business-related permits, licenses,
certifications, or authorizations such as tax clearance, Building Permits, are not to be
submitted again to other departments, even if these are for other permits. To assist the
C/MLGUs in verifying the information provided by Business Permit applicants, the DICT
has been mandated to set up the PBD which is envisioned to be a central database that
provides the concerned NGAs and LGUs access to data and information of registered
business entities for purposes of verifying the validity, existence of and other relevant
information pertaining to business entities
The PBD is currently being developed. As a participant in the PBD, C/MLGUs will be
required to submit or upload entity data to the PBD which includes (1) Business Name, (2)
Regulatory Reference ID (e.g., SEC Registration Number), (3) Registration Date, (4) Expiry
Date, (5) Status (e.g., active, dissolved, etc.), (6) Address, (7) City/Municipality, (8) Zip
Code, (9) Contact Number, (10) PSIC Reference, (11) TIN, (12) Agency/LGU Code (Unified
Account Code Structure), and (13) Business owners.77
The C/MLGU must comply with its obligations as a PBD participant with respect to the
uploading of Entity Data under Part IV, Section 6 of DICT Memorandum Circular 001-2019.
4.4 Transitioning to EBOSS: Hybrid Streamlined BPLS Models
Many cities/municipalities have been able to institute an online system for the submission
of applications but fall short of some of the functionalities of an eBOSS. The experience of
cities/municipalities that have established the eBOSS, shows that it usually takes several
phases before a fully functioning eBOSS can be operated. A hybrid BPLS – partly online
and partly offline (physical transactions at the physical BOSS) – is an option for C/MLGUs
as they work out the various technical and institutional issues for the establishment of an
eBOSS. The hybrid versions are still an improvement over the purely physical or manual
BPLS. There are two illustrative hybrid scenarios that the 2021 JMC described. Two case
studies were added to illustrate the process flows when the city/municipality does not have
an MOA with the BFP and if the eFSIC is downloaded from the FSIS. Even in these cases,
the applicant steps are better than the standard 4-step process in the purely manual
business registration process.
4.4.1 Hybrid Model 1: Online Submission of Business Permit Application but

Offline Assessment and Payment
This case assumes that the C/MLGU has a system where applications can be submitted
electronically but securing the TOP, payment of the tax bill, and release of documents are
done at the BOSS (Box 4 and Figure 13).
77Derived from Section 11 of DICT Memorandum Circular 001, series of 2019 signed on June 17,
2019, entitled “Prescribing the Implementing Rules and Regulations for Section 14 of RA 11032 –
For the Department of Information and Communications Technology (DICT) To Establish, Manage
and Maintain the Philippine Business Databank (PBD). The circular can be found in the Toolkit
under the folder/filename: Policy Instruments/18. DICT-MC-001_s2019 on PBD.

• To prevent crowd buildup at the BOSS, an appointment system is in place where
applicants will book in advance their submission of application at the BOSS. This
can be through phone calls or web-based. The objective is to comply with the health
protocols. The appointment can be done while the application is lodged or after the
TOP/SOA is transmitted.
• The application form and documentary requirements can be submitted
electronically through an online portal or email, but the rest of the steps are
transacted at the BOSS.
Box 4: Operational Flow for Hybrid Model 1
Steps (Applicant)
1. Applicant submits application online and books an appointment to go to the BOSS.

2. Applicant goes to the BOSS at appointed date and time, receives the TOP/SOA
and pays at the same window.
3. Applicant receives all the permits.
Backroom Operations
1. Upon receipt of the application online, the BPLO and other regulatory offices will
assess the compliance of the applicant to the laws and regulations of the
city/municipality. The assessment is fed back to the system or the BPLO and
triggers either approval or disapproval.
2. If approved, the TOP/SOA is prepared either by the BPLO or the CTO. For
C/M//LGUs with MOA with BFP, the assessment will include the FSIC fees. For
those without a MOA, the assessment of the LGU is passed on to the BFP which
computes the FSIC fee and prepares a separate assessment. The combined
assessment of the city and the BFP is then sent to the applicant thru email or any
electronic means.
3. The CTO receives the payment and informs the regulatory offices.
4. The regulatory offices will print the permits and submits these to the BPLO.
5. All permits are consolidated by the BPLO which releases the permits at the
appropriate window.

Figure 13: Illustrative Process Flow for Hybrid Model 1
96
4.4.2 Hybrid Model 2: Online Submission of Business Permit Application and
Transmission of the TOP/SOA but Offline Payment
This case assumes that the LGU has an online system to receive business permit
applications with the TOP/SOA that is electronically transmitted to the applicant. However,
this model lacks an online payment system. This model has several of the features listed
below including the operational flow (Box 4 and Figure 14).
• The TOP/SOA is generated through the system or manually computed but
transmitted to the applicant electronically through email.
• Payment and release of all permits are done at the BOSS.
• Because of the appointment system, the regulatory offices can assume that
payment will be made and already print the permits ahead of time and the BPLO
consolidates these in advance so that the applicant need not wait too long to claim
them.
• The city/municipality can offer courier services to deliver the permits once payment
is made if hard copies of the permit are requested by the applicant.
Box 5: Operational Flow of Hybrid Model 2
Steps (Applicant)
1. Applicant submits application online. Applicant can already book an appointment

with knowledge that the TOP/SOA would be emailed to them in at most 3 days.
Applicant receives the TOP/SOA electronically. In some systems, the TOP/SOA
is generated through the system and is received immediately after submission of
application form. In some cases, the TOP/SOA is emailed to the applicant.
2. The applicant goes to the BOSS at the appointed date and time to pay the
business tax and fees indicated in the TOP.
3. The applicant receives all the permits in the BOSS or by courier services.
Backroom Operations
assess the compliance of the applicant to laws and regulations of the
city/municipality. The assessment is fed back to the system or to the BPLO and
2. If approved, the TOP/SOA is prepared either by the BPLO or the CTO. For
C/MLGUs with MOA with BFP, the assessment will include the FSIC fees. For
those without a MOA, the assessment of the LGU is passed on to the BFP which
computes the Fire Code-related fee and prepares a separate assessment. The
combined assessment of the city and the BFP is then sent to the applicant thru
email or any electronic means.
3. The CTO receives the payment and informs the regulatory offices.
4. The regulatory offices will print the permits which are sent to the BPLO.
5. All permits are consolidated by the BPLO which releases the permits at the
appropriate window.


4.4.3 Hybrid Model 3: eBOSS with Emailing Features
In this model, the LGU’s permitting system has most of the functionalities of the eBOSS
but transmission of documents between the applicant and the LGU is done through the
email rather on an online portal. This case assumes that the LGU has a MOA with the BFD
that allows the assessment and collection of BFP fees by the C/MLGU (Box 5 and Figure
15). This model assumes that
• The LGU has an online payment system.
• The LGU has a MOA with the BFP.
• The permits are claimed at the BOSS but can also be delivered or sent through a
courier service.
Steps (Applicant)
1.1 Applicant emails the LGU for a copy of the UAF, which he/she receives and fills
up.
1.2 Applicant fills up the form and submits this with the documentary requirements
through email.
1.3 Receives TOP, including instructions on payment options.
1.4 Pays online.
1.5 Receives ePermits or makes arrangement to claim these at the BOSS / receives
these through delivery.
NOTE: If the permits are claimed at the BOSS, this is an additional step (Step 2)
for the applicant.
Backroom Operations
1. The BPLO receives the request for an application form through email and provides
the applicant with the UAF.
2. The BPLO receives the filled-up UAF through email and distributes it to relevant
offices.
3. The regulatory offices including the BFP will send the assessment results to the
BPLO which will prepare the TOP. If the M/CTO in the LGU is tasked to do the
assessment, the BPLO will inform the M/CTO to prepare the TOP/SOA for
transmission to the applicant through electronic means.
4. Once the applicant pays the amount in the TOP/SOA through any of the
acceptable payment channels, the M/CTO will inform the BPLO that payment has
been made.
5. The BPLO will then collect all the permits that will have to be released to the
applicant.

4.4.4 Hybrid Model 4: eBOSS with Most Functionalities but Without BFP-C/MLGU
MOA
In this model, the LGU has an automated system for accepting applications, transmitting
the TOP, receiving payment, and issuing ePermits. However, the LGU does not have an
MOA with the BFP, which separately assesses and collects FSIC fees. The transmission
of the TOP/SOA of the city and the BFP is done together through the BPLO or the M/CTO.
The applicant also prints the LGU permits through the portal but downloads the eFSIC
through the BFP National Capital Region (NCR) website (Box 6 and Figure 16).78
Steps (Applicant)
1.1 Applicant fills up and submits the UAF in the LGU portal.
1.2 Applicant receives the TOP/SOA of the LGU and the TOP/SOA of the BFP
together if approved.
1.3 Applicant pays the TOP/SOA of the LGU online.
1.4 Applicant prints the permits and other documents.
2. Applicant pays the FSIC fees at the BFP station.
3. Applicant downloads the eFSIC in the BFP Portal (for establishments at NCR).
Backroom Operations (LGU)
2. If approved, the assessment is made either by the BPLO or the M/CTO. The
assessment of the LGU is passed on to the BFP which computes the Fire Code-
related Fee and prepares a separate assessment. The combined assessment of
the city and the BFP is then sent to the applicant thru email or any electronic
means.
3. The CTO receives the payment made by the applicant covering the business tax,
fees, and charges due to the LGU.
4. The regulatory offices in their dashboards allow the printing of electronic permits
and other documents.
Backroom Operations (BFP)
5. BFP will receive the payment of the FSIC fee and encodes the information that
will allow the applicant to download the eFSIC.
78 The online service for downloading eFSIC is at present only available at the BFP NCR website -
http://ncr.bfp.gov.ph/choose-calendar-year/.
102
4.4.5 Hybrid Model 5: eBOSS with BFP-C/M/CLGU MOA but FSIC Downloaded
from BFP FSIS
In this model, the C/MLGU has all features of the eBOSS, including an MOA with the BFP
but the BFP does not provide the FSIC to the C/MLGU and requires the applicant to access
the FSIC through their website to get the eFSIC (Box 8 and Figure 17).
Box 8: Operational Flow for Hybrid Model 5
Steps (Applicant)
1.1 Applicant starts the registration process online by following the steps below:
• Applicant fills up and submits the UAF in the LGU portal.
• Applicant receives the TOP/SOA of the LGU and the TOP/SOA of the BFP
together if approved.
• Applicant pays the TOP/SOA of the LGU online (including FSIC).
• Applicant prints the permits and other documents.
1.2 Applicant downloads the eFSIC in the BFP Portal (for establishments at NCR).
Backroom Operations (LGU)
1. Upon receipt of the application online, the BPLO and other regulatory offices
triggers either approval or disapproval of the application.
2. If approved, the TOP/SOA is prepared either by the BPLO or the M/CTO. Since
the C/MLGU has an MOA with BFP, the TOP/SOA will include the FSIC fee.
3. The M/CTO receives the payment covering the business tax, fees, and charges
due to the LGU.
4. The regulatory offices in their dashboards allow the printing of electronic permits
and other documents.
Backroom Operations (BFP)
5. BFP will receive a notice from the CTO that payment has been made. The BFP
encodes the information that will allow the applicant to download the eFSIC.
4.5 Improving Boss Operations
In designing the BOSS, C/MLGUs are encouraged to perform a time and motion study to
determine the time it takes an applicant to complete each process or transaction in a
window. Queue data and transaction times can help C/MLGUs in determining the optimum
number of transaction windows to prevent bottlenecks in the process and reduce waiting
time or time spent in queues.
C/MLGUs can also adapt various queueing solutions to regulate and optimize
pedestrian flow within the physical BOSS. These solutions are based on classifying
applicants based on the complexity of their applications and their business risk
categorization.
Multiple permit applications – Local governments can assign time slots or separate queues
for clients applying for or renewing multiple businesses. These clients would create
bottlenecks in the process, considering the length of time needed to review their
applications and documentary requirements. Having a dedicated time or queue for multiple
transactions would separate them from those with single applications. This, however,
assumes that the C/MLGU has a significant number of clients applying for multiple permits.
Simple permit applications – Simple businesses (i.e., sari-sari stores, non-government

organizations, and professional firms) usually take the bulk of applications in local
governments. These applications require a simpler set of ancillary permits and clearances,
thus requiring shorter processing times. C/MLGUs may opt to dedicate a schedule or queue
for the processing of such applications. This will provide more time for the processing of
other more complex applications during the latter days of the renewal period.
By risk classification – Similar to the process for simple and multiple applications, local
governments can provide dedicated timeslots or queues for either high-risk or low-risk
transactions. This entails the formulation of risk categories based on the nature and size of
the business. Low risk applications can be scheduled during the first days of the renewal
period, considering that they may have less requirements to complete compared with high-
risk applications.
By compliance – The JMC encourages regulatory offices, including the BFP, to prepare
positive lists prior to the renewal period. Local governments can use this list to create a
dedicated schedule for compliant businesses or those on the positive list. These
businesses can be scheduled during the early days of the renewal period since they have
complied with most of the regulatory requirements. 3.2 Complementary Reforms discussed
the use of positive and negative lists.
Temporary / Satellite BOSS – C/MLGUs can also make use of remote solutions to regulate
the number of applicants within a physical BOSS, especially during the renewal period.
This entails having information on the concentration or density of businesses within the
locality. C/MLGUs can set up satellite offices or business one-stop shops for districts or
areas where businesses are heavily concentrated. This brings the BOSS closer to the
business applicants and reduces the number of people coming into the city or municipal
hall to file or renew their applications. Some C/MLGUs can also opt to set up temporary
BOSSes in central business districts during the renewal period.
Figure 18 shows the number of establishments by district in the City of Manila using 2020
data. Based on the figure, most of the businesses in the city are concentrated in the 3rd and
5th districts, where it would make sense to set up several nodal BOSSes.
Figure 18: Concentration of Establishments in the City of Manila
Source: City of Manila
Use of Drop Boxes – C/MLGUs may also designate drop boxes or mailboxes wherein
applicants may leave their documents, in envelopes, to submit their business permit
application/s or renewal. These drop boxes will serve as a satellite receiving window of the
LGU for business permit applications or renewal. However, it is suggested that C/MLGUs
employing this solution create separate guidelines for the processing of applications
submitted through drop boxes in their citizens’ charter. Preferably, the LGU can set up an
appointment system and dedicated queues for applicants coming into the BOSS solely for
payment of business tax and fees.
Use of kiosks – C/MLGUs may also design and develop kiosks for receiving applicant
submissions, managing queues, paying of business taxes and fees, and printing of ORs.
Kiosks will help reduce pedestrian queues within the BOSS. Kiosks can be placed in malls
or nodal BOSS that will be set up. For C/MLGUs adopting this solution, it is suggested that
separate queues be created for claiming of permits and clearances.
For C/MLGUs that have established a fully operational eBOSS, the physical BOSS may
have a different layout from the illustrative set-up in the 2021 JMC. The City of Manila,
which won second place in the 2021 Digital Governance Awards for its BPLS, has designed
a non-traditional physical BOSS with the following features:
• Provision of iPads which applicants can use to input information on the UAF and
through which the TOP/SOA can be generated.
• Availability of kiosks where applicants can pay their business tax and fees, and
which can print out ORs and cedula.
• Interaction with the applicants is limited to assisting them in using the iPad and the
kiosk.
• The regulatory offices that are co-located at the physical BOSS track applications
through the eBOSS system.
4.6 Promoting Business-Friendly Inspections
Aside from making the permitting process easier for applicants, improving the conduct of
inspections reduces the burden of complying with the regulatory requirements. These
reforms also help reduce costs associated with the conduct of inspections. Below are some
strategies or reforms to promote business-friendly inspections.
4.6.1 Improving Transparency and Addressing Uncertainties in the System
Preparation of regulatory checklists – Regulatory agencies should prepare a checklist of

their inspection requirements. The checklist should specify all the aspects of the
establishment that is being assessed during inspection, including the risks and hazards
being checked by inspectors. The checklist should also identify the documents that the
applicant or business owner needs to present during inspection.
Issuance of prior notice of inspection – Regulatory agencies or offices should issue a notice
to the business applicant on the date and time of the inspection. The notice should include
the purpose of the inspection, the checklist of requirements, and the process flow for the
actual conduct of the inspection. The issuance of inspection notices provides applicants or
business owners enough time to call on technical staff/experts knowledgeable about the
areas to be inspected. This also allows applicants and business owners to prepare the
necessary documents needed by the inspectors.
Development of a standard inspection process – Regulatory agencies should also

formulate a standard process flow for the conduct of inspections, including all necessary
preparations needed and the report required after the conduct of inspections. Having a
standard flow will help inspectors ensure that all the risks and hazards posed by
establishments are properly assessed during inspection. Providing applicants or business
owners a copy of the process flow would help them understand the requirements and
process of regulatory inspections and foster cooperation.
Conduct of post-inspection conference – Results of the inspection should be shared with

the applicant through the conduct of a post-inspection conference which ideally should be
done immediately after onsite inspection. During the conference, the business applicant
may raise clarificatory questions or comment on the findings of the inspection team. Initial
results of the inspection should also be issued to the business applicant through an after-
inspections report.
Preparation of Information, Education, and Communication (IEC) materials and campaigns
– Regulatory agencies or the C/MLGUs may conduct an IEC campaign to inform business
owners of the standard requirements and process for inspections.
Conduct of orientation or training for inspectors – After the preparation of the inspection
checklist and standard inspection process, regulatory offices should conduct an orientation
for all their inspectors. Uniform orientation would make sure that each inspector would
explain the same process and require the same set of documents during the conduct of
inspections. This would also address the confusion that different sets of inspectors
implementing different sets of requirements would engender.
4.6.2 Improving Data or Information Sharing among Regulatory Agencies
Creation of positive or negative lists – Regulatory agencies should prepare positive or

negative lists after the conduct of inspections. A negative list is a list of businesses with
positive findings during inspection, while businesses listed in the positive list are those
businesses found compliant during inspection. The creation and submission of positive or
negative lists are provided under Section 9.1.5 of the 2021 JMC. The guidelines also
mandate those regulatory agencies to submit their lists to the BPLO no later than December
1 of every year. The positive or negative lists should be shared with the BPLO to facilitate
the renewal process for compliant businesses.
Compliant businesses will be allowed to renew their permits without delays in the process.
Businesses listed in the negative list, meanwhile, need to be informed of their non-
compliance including the mitigating measures that they need to implement to address the
findings. Compliance of these businesses will then be assessed upon submission of
required documents or the conduct of another inspection.
Creation of an inspection database – The ICTO, supported by the BPLO, the regulatory
offices, and the BFP, should lead the formation of an inspection database. The inspection
database will contain all the results of regulatory inspections conducted on each business,
including copies of certificates issued to businesses upon compliance. The database will
help in building up a profile of the businesses within the locality and in determining trends
in business compliance, including identifying businesses that habitually fail to comply with
the standards.
LGUs can also use existing software solutions to link the inspection database with satellite
imagery (i.e., Google Maps). In Valenzuela, information regarding regulatory inspections is
plotted in their GIS and linked with satellite imagery. This allows regulatory agencies to
check the compliance of establishments with a single click in the map’s street view.
Effectivity of the regulatory permits and certificates are also indicated in their system,
allowing regulatory agencies to determine which establishments need to be inspected
within the year.
4.6.3 Improving Effectivity and Efficiency in the Conduct of Inspections
Use of information during the application for Certificate of Occupancy – Most new
businesses underwent construction or some form of renovation of their establishments,
requiring them to secure a Certificate of Occupancy from the LGU prior to applying for a
Business Permit. In securing this certificate, applicants are subjected to regulatory
inspections to ensure the safety of the structure. Some of the safety criteria examined
during the inspection for ancillary permits for business have already been checked during
the inspections conducted in relation to the firm’s application for a Certificate of Occupancy.
Coordination between the regulatory offices and the Office of the Building Officials may
lead to reduced time and information gathering in the conduct of inspections.
Formation of Joint Inspection Teams – C/MLGUs are encouraged to form JITs to limit face-
to-face interactions between the applicant and the LGU officials. The formation of JITs will
help in reducing interruptions in business operations due to the conduct of several
inspections. It will also streamline the inspection process by addressing the overlapping
requirements of regulatory agencies and redundant presentation of documents during
actual inspection.
When organizing the JIT, each regulatory office must formulate its own inspection checklist
and standard process. The JIT should then level off the requirements by removing
duplicated / redundant items. The process of conducting the actual inspection should also
be thoroughly discussed by the JIT members, focusing on the following:
1. Segmentation of businesses by location – The JIT should discuss how they plan to
conduct inspections for all the businesses within the locality. JITs may be assigned
“zones” within the locality depending on the volume of business per zone. Some
inspections take much longer than others which may create inefficiencies in the conduct
of joint inspections of this nature. Conducting inspections by zones would allow
agencies to move quickly from one business establishment to the next.
JIT members should identify which businesses within their assigned zones are exempt
from inspection for consideration in drafting the schedule of inspections.
2. Schedule of inspections – The members of the JIT should discuss allocating specific
days of the week for the conduct of business inspections. This will address issues of
scheduling by the regulatory offices. This will also give time for inspectors to prepare
post-inspection reports on days when there are no scheduled inspections.
3. Areas of establishments to be inspected – Regulatory agencies need to discuss which

areas of the business they need to inspect. This will help reduce the time needed to
conduct inspections, especially of large establishments, where inspectors may agree
to simultaneously inspect different areas of concern in the establishment, according to
their expertise.
4. Documenting the joint process of inspections – JITs should strive to have a dedicated
operations manual for the conduct of joint inspections. The manual should contain a
unified checklist of inspection requirements for each type or nature of business and a
flowchart illustrating the process of joint inspections, at the minimum.
5. Forming composite JITs – The JIT members can also discuss the possibility of
organizing composite inspection teams. Composite inspection teams can focus on
conducting inspections for either high or low risk establishments. Section 9.1.3 of the
2021 JMC provides guidelines for organizing composite JITs. The JMC suggests two
kinds of composite teams:
• Safety Inspection Team – The team will be composed of the BFP, Local Health
Office, Office of the Building Official, Engineering Office, and Environment Office.
The safety inspection team shall inspect compliance with safety standards as
prescribed by existing laws and regulations.
• Disclosure Verification Team – The team will be composed of the Local Treasurer’s
Office and the Business Permits and Licensing Office to verify information declared
by the applicant in the Unified Application Form.
The organization of JITs can be challenging for LGUs. The manual for the 2016 JMC
provides tips on how to operationalize the team, some of which are reproduced here:79
• Official mandate – The LGU should have a legislative or executive issuance mandating
the operationalization of such teams, together with the checklist to be used and
operating procedures / guidelines to be followed.
• Agreement with national agencies – Since the LGUs do not have authority over local
units of NGAs, including BFP and social security agencies, they should have clear
arrangements regarding their participation in JITs. Whenever possible, LGUs must
have an MOA with them.
• Deputization arrangements, if any – Especially for non-technical inspections (e.g.,
validating information submitted during permit application), LGUs are encouraged to
have deputization arrangements where other JIT team members can check the
inspection requirements of other offices. For example, BPLO inspectors may be
deputized by the M/CTO to check the veracity of the information provided in the UAF
which is of interest to the latter. Deputization will lead to fewer inspectors visiting
establishments.
• Schedule of inspections based on prioritization criteria – JITs should have criteria for
prioritization as basis for scheduling inspections. Ideally, such criteria should be risk-
based – i.e., business establishments in areas with greater safety risk and higher rates
of non-compliance in the past will be inspected first.
• Post-inspection protocols – A key step after the inspection process is following up with
establishments that have been inspected through formal (written) results of the
inspections. Ideally, only one office should take the lead in transmitting inspection
reports / letters to inspected establishments. Needless to say, keeping permanent and
centralized records of inspection results is a must.
• Regular JIT monitoring and assessment – The JITs, especially in the first few months
of their operation, should conduct regular (e.g., monthly) meetings to assess their
operations and undertake modifications as necessary to continually improve inspection
processes.
79DILG and USAID, "Manual on Implementing the Revised Standard in Processing Business
Permits and Licenses in Cities and Municipalities in the Philippines" (JMC 1, s.2016).
Development of risk or size-based categorization – Risk or size-based categorization
means that priority or focus is given to businesses that pose higher risks to the community.
An issue that often arises in the implementation of this strategy is determining the
businesses that will fall under each category. The respective agencies or regulatory offices
conducting inspections are the best resource persons to determine which businesses
should fall under the high or low risk categories. Applying risk or size-based categorization
in the conduct of regulatory inspections will help offices focus their resources on conducting
inspections for businesses that pose higher risks to the safety and well-being of the
community. This will also help ease the process of renewing business permits for those
within the low-risk category.
The regulatory offices, given their mandates and areas of concern, would have different
criteria for determining the risk classification of establishments. For instance, the BFP
would use fire safety as basis for classifying establishments into risk levels. Health
considerations will be the main concern of the local Health Office in relation to sanitary
inspections while environment protection will be the basis for the C/MENRO. The challenge
for the JIT is to first draw up the criteria and the classification of establishments according
to risks and then come up with a common list of establishments that would be prioritized
for inspection.
Use of digital devices or solutions in the conduct of inspections – The use of digital devices
helps lessen the required time to conduct inspections. There are some devices available
in the market that can help in the conduct of business inspections:
• Laser distance meter – This device measures distance using a laser beam which makes
it easier to gauge distance from entry to exit, room size, length of pipes, and wiring,
among others.
• Tablet computers – The use of tablet computers can help inspectors in taking pictures
for documentation, bringing up reference documents for inspections, and preparing
after-inspection reports.
• Borescopes – A visual inspection tool with a tube and lens on one end and an eyepiece
on the other.
• Borescopes can help inspectors access narrow openings or pipes/tubes which are
otherwise inaccessible.
• Drones – Drones can help inspectors inspect the surrounding area of the business and
measure the height and area of buildings or other infrastructure.
Conduct of virtual inspections – Regulatory agencies may also opt to conduct virtual
inspections. This entails that both parties—the inspectors and the business
representative—have smartphones and tablet computers for the conduct of the inspection.
The business representative will take the inspector or the inspection team on a virtual tour
of the business. The inspector or inspection team can then direct the representative to
focus the camera on specific areas of concern, as it would have been done during actual
inspections. Required documents can be uploaded by the business representative to a
cloud drive or sent through the official email address of the regulatory offices. It is
suggested that virtual inspections be recorded for documentation of the process and to
help the inspection team in preparing its after-inspection report.
4.6.4 Professionalizing the Conduct of Inspections
Creation of the legal mandate for inspections – The basic and foremost requirement in the
creation of JIT is the creation of a legal mandate, which outlines the basis of the team’s
activities, roles, and responsibilities. This can be either through a local ordinance or an
administrative or executive order. The policy should at least provide the following: (1)
members or composition of the team, (2) roles and functions of each office, (3) schedule of
inspection, (4) time and place of assembly, (5) conduct of inspection, (6) report preparation,
(7) policy and accountability, and (8) resources and funding requirements.
Use of Mission Order and IDs during inspection – Inspection teams should bring a copy of
their mission order to specify the purpose of the inspection and the list of inspectors who
are present during the actual inspection. The usual practice is to have the Mission Orders
signed by the applicant or his / her representative during inspection. Identification cards of
the inspectors should also be presented to the applicant or representative for confirmation.
Issuance of notices of non-inspection – At times, inspectors or inspection teams are not

allowed entry or access to the business facility due to the absence of the business owner,
lack of knowledge on the conduct of inspections, or for other unforeseen circumstances. It
is suggested that C/MLGUs provide a form that inspectors or the inspection team can issue
to businesses that deny entry or the conduct of inspection. The notice of non-inspection
should be properly received and acknowledged by a representative of the business.
Sanctions or penalties should also be levied on businesses who repeatedly deny entry to
their facilities for inspections.
4.7 Formulating Reform Strategies
An integral part of the Design Phase is identifying the solutions that would accompany the
streamlining process. From the Diagnostic Phase wherein the LGU tracks the number of
steps an applicant usually goes through in applying for a Business Permit and related
ancillary permits to the desired one-step process of the eBOSS, demands a parallel
process of reducing steps to the barest minimum while identifying the accompanying reform
strategies that would achieve the goal of the streamlining process – an end-to-end online
BPLS.
To illustrate the process, Figure 19 is drawn to show the steps per C/MLGU office that an
applicant goes through in applying for a Business Permit and ancillary permits. The first 3
steps involve getting the Barangay Business Clearance. These 3 steps, however, can be
removed if the C/MLGU will integrate the Barangay Business Clearance process into the
BPLS. This strategy is shown in Table 18 for the barangay.
Figure 19: End-to-End Online Business Permit Process for New Business Applications
Following this example, each office identified in Figure 19 will propose how it can reduce
steps and the accompanying strategies or actions needed. Table 18 is a sample table that
links the streamlining proposals with the office strategies needed to achieve the streamlined
process or reduced BPLS steps.
Table 18: Sample Table Showing Proposed BPLS Strategies Linked with
Streamlining BPLS Procedures
Office Proposal Strategy
1. Barangay Remove steps 1-3 • Integrate Barangay Business
Clearance with BPLS
2. Assessor’s Office Remove steps 4-6 • JMC UAP already has 2 fields – Tax
Declaration number and Property
Number
3. City Planning & Remove steps 7-8 • Make the review of the zoning
Development Office compliance of the applicant part of
backroom operation
• Inspection to be done as part of the
annual inspection
• Set up GIS
• Implement ARTA Memorandum
Circular 2020-01 that those in CBD
need not get Locational Clearance
4. Bureau of Fire • Remove separate • Use new JMC UAF as basis for
Protection application for FSIC assessment
(Step 12)
• Remove payment • Forge MOA with the LGU for the
(Step 13) collection of FSIC fees for BFP
• Remove for new • Implement RA 11032 Section 12 (b)
applications with • Inspection to be done after the
valid FSIC for issuance of FSIC as part of annual
occupancy (Step 14) inspection
• Remove Claiming • BFP to give FSIC to be released with
(Step 15) the Business Permit
5. Health • Remove Steps 16-19 • Follow the 2021 JMC to limit getting
Department Health Certificates only to sectors
identified in the Sanitation Code of
the Philippines (SCP)
• Remove Steps 20-22 • Follow JMC to limit getting Sanitary
Permits only to sectors identified in
the SCP
Visualizing the impact of streamlining, Figure 20 illustrates the result of implementing the
various proposed strategies to the BPLS.
Figure 20: Streamlined Process for New Business Permit Applications
115
4.8 Action Planning for Process Reform Implementation
Once the streamlining or reengineering solutions have been agreed on, it is now necessary
to plan the implementation of the streamlining reforms. A tool that has been found useful
by C/MLGUs in planning reforms implementation is the use of an action planning
template.80
The action plan template looks at the following variables: (1) solutions, (2) activities, (3)
timeframe, (4) responsible unit/person, and (5) resources needed. Basically, all that is
needed is for the C/MLGU to look at the streamlining solutions (4.2 Identifying
Reengineering / Streamlining Solutions), break each selected solution into several activities
focusing on doable actions and steps, determine the timeframe, identify the responsible
unit / person, and list the required resources.
This template can be accomplished by the CART Subcommittee on BPLS Reforms and
eBOSS since its membership is from the various offices that would have the authority,
capability, and resources to introduce the reforms. Critical in this exercise is the agreement
on the budget required in implementing the reformed BPLS and the sourcing of funds for
streamlining activities.
5.0 Delivery Phase

After creating action plans, the C/MLGU should be ready to implement the solutions. The
previous section already outlines what needs to be prepared in terms of meeting the 2021
JMC standards for BPLS. The ability to transform plans into reality will require patience and
hard work. The implementation process will not be an overnight transformation. To properly
streamline the BPLS, the C/MLGU will have to move steadily and consistently according to
plan.
This section will provide detailed information about laying the legal foundation, developing
a communication plan, training staff and users, and preparation of operation manuals. The
eBOSS is an automation system, so this chapter also includes tips for implementing the
eBOSS on the technical side.
5.1 Implementing the Reengineered BPLS
The reengineering process requires institutional support that would not only oversee the
design and implementation of reforms but keep the process on course. This would involve
transforming the CART Technical Working Group (TWG) into the implementation mode
with clear delineation of responsibilities among team members, especially process owners.
Equally important is the enactment of the needed legal basis for the implementation of the
streamlined BPLS processes.
80An Action Plan template can be found in the Toolkit under the folder/filename: Templates/2.2
Action Plan for eBOSS Reengineering Solutions.
5.1.1 Establishing the Policy Foundation
Issuance of an Executive Order or Ordinance
At the minimum, an Executive Order or a City/Municipal Ordinance needs to be issued.

Since Republic Act 11032, its IRR, and the 2021 JMC contain the standards for business
permitting, these documents should be used as major references in drafting the Executive
Order or Ordinance to implement the BPLS reforms. Many C/MLGUs opt to start by issuing
an Executive Order containing the new streamlined procedures before enacting an
ordinance. This is the case for the City of Valenzuela. Other C/MLGUs like the City of
Manila and Cagayan de Oro City had an Ordinance issued.81 Either way, the LGU needs
to have a local legal mandate to implement the reforms.
Other Legal Requirements for the eBOSS
Some of the functionalities of an eBOSS, require additional legal instruments which

C/MLGU should prepare. The toolkit provides samples of legal documents that will firmly
establish the legality and authority of the various eBOSS functionalities.
Table 19: List of eBOSS Functionalities and the Legal Requirements
eBOSS Functionalities Legal Requirements
• One-time 1.1 Integration of Barangay Business Clearance Process in

Assessment of Fees BPLS
and Charges • Barangay Ordinance Setting Fees and Allowing
City/Municipality to Collect Barangay Fees82
• City/Municipal Ordinance Allowing the Processing of
Barangay Clearance by the City/Municipality83
1.2 MOA between the city/municipality and the district Bureau
of Fire Protection84
• Online Payment 2.1 MOA with online payment service providers85
81City of Manila Ordinance No. 8754 and Cagayan de Oro City Ordinance No 13992-2020 can be
found in the Toolkit under the folder/filenames: (1) Case Studies/4.1 Manila Ordinance No. 8754
on RA 11032; and (2) Case Studies/4.2 CDO Ordinance No. 13992-2020 on RA 11032.
82The City of Manila, which has the greatest number of Barangays at 186, used a template
barangay ordinance allowing the city government to collect Barangay Business Clearance fees, a
copy of which is attached in the Toolkit under the folder/filename: Case Studies/3.3 Manila’s
Template Barangay Ordinance.
83The City of Paranaque’s Ordinance No.19-03 allowing the city government to collect Barangay
Fees can be found in the Toolkit under the folder/filename: Case Studies/3.1 Paranaque
Ordinance 19-03 on Issuance of Barangay Clearance.
84The BFP prepared a template MOA between the C/MLGU and the BFP can be found in the
Toolkit under the folder/filename: Templates/3.1 MOA between the BFP and C/MLGU.
85A template MOA with the PSPs which can be used by C/MLGU can be found in the Toolkit
under the folder/filename: Templates/4.1 Template MOA with Payment Service Providers. Land
eBOSS Functionalities Legal Requirements
• Issuance of ePermits 3.1 Certification of digital signatures (e.g., use of PNPKI which is
issued by DICT)
3.2 MOA with security providers
• Delivery service of 4.1 MOA with courier service providers86
Permits
5.1.2 Creation of User, Administrative, and Systems Manual
A manual serves to establish the duties and responsibilities, and record the rules, about
managing the eBOSS on the frontline and from the backroom operations. The manual
should include detailed information on who exactly is allowed to access the system and the
functions that accompany that authority.
System documentation is an essential component of effective software development,

engineering, and use. It contains crucial reference information made up of descriptive
language, pictures, and photos that help users comprehend the software. Many developers
struggle to write software documentation that is both thorough and easy to understand.
The C/MLGU needs to release a user manual about its software system's needs and
functions so its intended users will know how it works.87 The user manual is intended to
show the typical individual how to install and use the program or service correctly. Hence,
it should be written in a way that is not only appealing but easily understood by ordinary /
non-IT persons such as the personnel who handle the day-to-day clerical operation of the
eBOSS.
User documentation may also include best practices for optimal outcomes, an explanation
of features and their advantages, and a description of various tips and tricks for enhancing
software performance.
User documentation can include everything from how to download and install software to
how to use each aspect of the software or system. It should contain user manuals and
frequently asked questions (FAQ) sections, video lessons, flashcards, web pages to visit
for help, or on-screen help text, as well as step-by-step diagrams or images showing how
to avail of all the software's features.
Finally, it should offer instructions for troubleshooting issues that arise when using the
software, such as how to handle various errors and how to seek assistance if they
encounter an undocumented problem or an issue they cannot resolve.
Bank’s template MOA for LINK.Biz Portal is also attached under the folder/filename: Templates/4.2
LINK.Biz Portal MOA Template.
86A template MOA with the Courier Service Providers that C/MLGUs can use is in the Toolkit
under the folder/filename: Templates/5.Template MOA with Courier Service Providers.
87The Toolkit contains advice on how to write a user manual under the folder/filename:
References/4. Using Technology for Reform.
The IT Team of the C/MLGU should also prepare a more technical documentation, detailing
the system's capabilities and attributes for its IT personnel, such as the systems
administrator and IT operations and maintenance staff. Access to this systems manual
should be restricted as it could contain sensitive information that can have repercussions,
especially in terms of the security and stability of the eBOSS.
In general, this documentation is intended to educate the reader about the software by
describing how it was produced, what it is intended to do, and how it functions. It should
also be simple to locate or access, and it should be updated as the software too is
upgraded.
Process documentation is written for those who work in the internet technology business
and employs industry-specific lingo to describe the software engineering and development
process. The product documentation explains what the product is and how to utilize it.
5.2 Developing a Communication Plan
Many C/MLGUs do not have an institutional communication plan (COMPLAN). Others do

not have the know-how to conduct a communication campaign such as, in this case,
promoting the BPLS reforms. Many more do not have the extra budget for a COMPLAN,
whether institutional or project specific.
Yet lack of appreciation of the importance of, and capability to prepare a COMPLAN or
wage a communication campaign have resulted in many well-intentioned projects being
wasted and forgotten. The BPLS reforms need not suffer the same fate.
LGU projects will usually not prosper without the LCE’s support. If the LCE orders the
preparation of a COMPLAN, this will be prepared and duly budgeted. Hence, the BPLO
should, first of all, be able to sell the idea of a COMPLAN for the BPLS project to the LCE,
citing the advantages of successful BPLS reforms in terms of higher LGU revenues that
can be generated from the increased number of registered businesses, a better regulated
business sector, and an attractive business environment. Citing the heavy sanctions
against non-compliance with RA 11032, the ARTA Law, and 2021 JMC can also help bring
the LCE to the BPLO’s side on the issue of priority.
The real challenge to the BPLO and other regulatory offices of the LGU, the process owners
of the reforms, is working with the Public Information Officers (PIO) in the preparation of a
COMPLAN that is applicable and implementable, hence successful. Getting the PIO on
board the project as early as possible as part of the BPLS team is necessary not only for a
well-informed, hence applicable communication plan but also for a fully cooperative PIO.
A COMPLAN is the C/MLGU’s tool in disseminating information about the reformed BPLS
not only to the public but most especially to its “stakeholders.” The COMPLAN should
enable the C/MLGU to (1) identify the audience or stakeholders that need to be reached,
(2) the communication channels to be used, (3) the messages that will be relayed, and (4)
the timetable for the activities. There are many ways of preparing a communication plan.
The steps proposed in this manual are one of many options. This version follows an 11-
step process (Figure 21) (King n.d.).
In time, the C/MLGU can use its communication plan not only to promote the changes to
its BPLS but also to gain insights from the stakeholders on how best to improve the system.
Figure 21: Creating a Communication Plan
5.2.1 The 11-Step Process in a Communication Plan
Step 1: Assessing the Current Situation
Most C/MLGUs have PIOs who handle public relations or communication projects. At the
outset, the BPLO with the PIO can work together to (1) assess the past performance of
BPLS communication programs (if any) or other similar C/MLGU projects, noting trends,
successes, and losses; (2) assess which messages in past BPLS programs had the best
and worst results; (3) perform a Strength, Weakness, Opportunities and Threats (SWOT)
analysis of the offices’ involved in managing communication projects; and (4) determine
the internal capabilities of the C/MLGU to prepare and execute a communication plan.
Some C/MLGUs hire external advertising agencies to augment their internal
communication groups.
Step 2: Formulating the C/MLGU Communications Objectives
As in the design of the new BPLS, it is important to build consensus on the goals of the
communication plan. The communication objectives will serve as a guide in designing the
plan. even as it will define the outcomes that the C/MLGU would want to realize. In relation
to BPLS reforms, a sample set of communication objectives is listed below:
• To increase public awareness on the BPLS reforms implemented by the C/MLGU;
• To educate the business permit applicants of the new procedures for getting
permits, especially the use of the eBOSS;
• To convince the local legislature and the other offices in the C/MLGU that the BPLS
reforms are a whole-of-local government project, requiring their cooperation; and,
• To communicate to national government agencies, especially the oversight
agencies, that the C/MLGU is compliant with Republic Act 11032, the 2021 JMC,
and other related rules and regulations.
Step 3: Identifying the Target Audience or Stakeholders

To be effective, the C/MLGU needs to target the right audience/s for its communication
plan. The basic question that needs to be answered is: “Who should know about the BPLS
reforms?” There are, at least, four stakeholders that need to be engaged:
1. Business Community/Private Sector: The main beneficiaries of the reforms are the
members of the business community, who will be enjoying the streamlined
processes and faster release of permits. Savings in time and money will be realized
by businesses with more convenient online business registration systems.
2. General Public: The constituency of the C/MLGU / the general public will be
interested in knowing that the city/municipal government is spending its taxes on
projects that benefit the community, in the short term and the long run. Better
regulations and efficient services will entice more investors to the LGU, leading to
more employment, greater income for the local government, and better quality of
life for many citizens. These are benefits that will redound in the community with
the successful Implementation of the BPLS reforms.
3. National Government Agencies. While C/MLGUs are mainly responsible for the
management of the BPLS reforms, the NGAs are tasked to monitor their compliance
with Republic Act 11032 and related issuances as part of their mandates. C/MLGUs
will benefit from informing the oversight NGAs of the status of their BPLS reforms.
Administrating and regulating the country’s businesses are done on the national
level by NGAs such as the DTI, BPS, and SEC as well as on the local level by
C/MLGUs together with devolved units of NGAs such as BFP, Food and Drug
Administration (FDA), Department of the Environment and Natural Resources, to
name a few.
Hence, two types of government agencies should be identified in the
communication plan:
a. The agencies that are involved in the permitting process (i.e., those that
provide secondary licenses / permits, e.g., BFP, BSP, FDA).
b. Oversight NGAs that oversee and monitor the implementation of the BPLS
reforms (e.g., ARTA, DILG).
4. Internal LGU Offices. While designing the BPLS reforms may involve many
regulatory offices within the executive branch of the C/MLGU, there is still a need
to communicate the reforms to the Sangguniang Panglungsod or Bayan as the
passage of an ordinance to institutionalize the BPLS reforms will involve the local
legislature.
Step 4: Crafting Key Messages for Each Audience
For each stakeholder identified, key messages should be formulated. Having identified the
stakeholders, it is best to know more about each stakeholder so the right key messages
will be understood and heeded:
• What are the most important things for this audience to know about BPLS reforms?
• What are some common misconceptions this audience has that the LGU can clear
up?
An example of a matrix of key messages is shown in Table 20 below.
Table 20: Messaging Matrix by Type of Stakeholder (Audience)

Stakeholder/Audience Objective/s Key Messages
A. Business 1. Inform the business • The LGU is committed to
Community e.g., sector of the broad making business permitting
local chambers reforms on business easy and contactless for
and other permitting and their businesses to reduce time
business groups benefits and money in transacting
with government and to
prevent the spread of the
dreaded Covid- 19 virus.
2. Educate the business • The LGU has adopted online

permit applicants on the business registration
new processes for getting procedures and reduced
the Business permit and documentary requirements,
other ancillary permits which will lead to faster
release of permits in the
convenience of the
applicants’ offices/homes.
3. Encourage the business • The LGU will partner with the

sector to partner with the private sector in making the
LGU in monitoring the system more efficient and in
performance of the city, fighting corruption in BPLS
reporting corruption, and processes.
participating in further
improvements in the
BPLS
B. General Public 4. Inform the LGU • BPLS reforms will result in

constituents of the more investments in the
transformative reforms in LGU, more employment, and
business permitting that greater income both for its
are intended to make the citizens and the city
LGU more competitive, government and will lead to
progressive, and reduced poverty and happier
responsive to the needs constituents.
of the people.
Stakeholder/Audience Objective/s Key Messages
C. National Government Agencies
1. Oversight agencies 1. Inform the oversight • The LGU has complied with
(ARTA, DILG, agencies of the status of the President’s instruction to
Office of the the LGU’s compliance reduce long queues and to
President) with RA 11032 and the the provisions of RA 11032
2021 JMC and related and the 2021 JMC to
issuances. establish the eBOSS.
2. NGAs that are 2. Inform NGAs of the new • The LGU has adopted more
involved in procedures for business streamlined procedures that
business permitting permitting in the LGU and will require a new interface or
(e.g., BFP and how their procedures / integration with NGAs’
those issuing systems can interface processes.
secondary permits) with the LGU’s
processes.
D. Internal LGU Offices
1. Sanggunian 1. Engage the local • The Sanggunian has to issue

legislature to strengthen an ordinance to better
the institutional support implement the reforms.
for BPLS reforms
2. Other LGU offices 2. Convince the LGU offices • The LGU offices will reap
to commit to the benefits in implementing the
implementation of the reforms through improved
reforms not only during incomes for the LGU and
the initial stages but to be possibly higher salaries and
involved in the benefits to the employees, in
continuous improvements addition to better perceptions
of the system. of the LGU constituents.
Step 5: Choosing the Right Communication Channels
After identifying the key messages, the next step is to study the best channels that will
deliver the messages. Nowadays there are many options available to the LGU:
• Traditional advertising: print and television
• Print collateral: printed marketing materials like flyers, brochures, signage, and
direct mail
• LGU websites
• Email marketing: use of emails to send newsletters, information, and marketing
materials
• SMS marketing: text messaging for reminders and other short information
• Media relations: tapping media persons to disseminate information
• Digital marketing: pay-per-click ads that deliver targeted links and messaging to
people browsing the internet
• Social Media: use of online platforms or applications such as YouTube, Facebook,
Twitter, and Instagram
Many C/MLGUs are now using social media as a communication channel. To get the best
advantage of social media, it is important to gauge the type of channel that the target
audience of the COMPLAN is using. Section 5.2.2 Use of Social Media in Promoting BPLS
Reforms explains how social media can be used in promoting BPLS reforms.
Once the communication channels that the LGU will be using have been identified, the next
step is to match the channels with the audience using the template as shown below.
Channel 1 Channel 2 Channel 3 Channel 4

Business Sector
General Public
NGAs
- Oversight
- Other NGAs
Internal LGU Offices
- Sanggunian
- Other LGU
offices
Step 6: Outlining the Communications Tactics and Campaigns

The more difficult tasks would be defining the actions needed to spread the key messages
(or tactics) and how often these actions will be done. To do the tactics (Table 21), the LGU
needs to go back to the objectives of the COMPLAN and then identify tactics to achieve
the objectives. How does the LGU plan to achieve its communication goals?
Table 21: Identifying Tactics for the Communication Goals
Communication Objectives Tactics
(1) To increase public awareness of ● Announce on social media platforms the different
the BPLS reforms implemented by features of the BPLS reforms in stages daily one to
the LGU two months prior to actual implementation
● Contract an ad in local newspapers or major news
broadsheets (for the C/MLGUs in NCR) a week
before the launch of the reforms
● Have the LCE be invited to 2-3 local radio stations to
announce the broad reforms which can be posted on
the C/MLGU social media platforms like Facebook
Communication Objectives Tactics
● Prepare tarpaulins to announce the BPLS reforms to

be posted in the city/municipal halls and other
publicly- visible sites like malls
(2) To educate the business permit ● Prepare a video of the new BPLS procedures
applicants on the new procedures for
● Print comics depicting the new procedures for
getting permits, especially the use of
dissemination at public markets and in the different
the eBOSS
barangay halls
● Conduct workshops and training for registered
businesses and prospective businessmen in the
LGU
(3) To convince the local legislature ● Prepare presentation materials for the local
and the other offices in the LGU that legislature on the BPLS reforms, highlighting their
the BPLS reforms are a whole-of- benefits
local government project, requiring
● Present to the management committee of the LGU
their cooperation.
the new reforms and the roles of each LGU office
(4) To communicate to national ● Write articles on how the LGU has complied with the
government agencies, especially the requirements of the oversight agencies
oversight agencies, that the LGU is
● Write the oversight agencies to submit compliance
compliant with
reports (e.g., BPLS Automation/ eBOSS
Republic Act 11032, 2021 JMC and
Implementation Compliance Reports and revision to
other related rules and regulations
the Citizen’s Charter)
The LGU can also organize marketing campaigns to disseminate the reforms. Marketing
campaign projects have these three elements: (1) more than one event, action, or piece of
content, (2) a unified theme that connects them, and (3) clear beginning and end dates
(King n.d.).
Step 7: Computing for the Communications Budget Requirements

The marketing activities indicated in the communication plan will entail costs. It is important
to detail in an excel sheet the proposed activities from the tactics in Step 6, the channels
that will be used, the resources, and their budget requirements. A budget plan, similar to
the sample below, will have to be prepared for these activities for approval by the LCE.
Proposed Communication Channels to be Resources Proposed

Activities (Tactics) Used Needed Budget
Step 8: Preparing a Calendar of Activities
The execution of the activities in a communication plan for BPLS needs to be planned with
clear timetables and persons or offices responsible. A timetable for the activities as shown
below, which were identified during the tactic’s formulation step, can be created along with
the identified persons / offices responsible for implementing the activities. This is very
similar to preparing an action plan for BPLS Reforms (refer to Chapter 4).
Proposed Communication Timetable Responsible

Activities (Tactics) Start End Person/Office
Step 9: Defining the Communications Goal Metrics

At this stage, the LGU needs to think of goal metrics or quantifiable measures with which
to judge its performance in relation to the objectives set in the communication plan. To do
this, the objectives need to be converted into “SMART" goals: Specific, Measurable,
Attainable, Relevant, and Timely (Table 22).
Table 22: Sample Goal Metrics for the BPLS Communication Plan
Communication Objectives Measures of Success (Metrics)
(1) To increase public awareness of the • Number of press releases/media pick-up

BPLS reforms as implemented by • Return on investments (positive vs.
the LGU negative) media pick-ups
• Amount of media values (column space,
airtime, advertisement, or public relations)
• Social media measurement (number of
likes, shares, etc.)
(2) To educate the business permit • No. of applicants using online registration
applicants of the new procedures systems as % of total (say 50%)
for getting permits, especially the • No. of applicants using online payment
use of the eBOSS modules (say 50%)
• Positive net satisfaction rating88
(3) To convince the local legislature • Passage of an ordinance mandating the
and the other offices in the LGU implementation of the BPLS reforms
that the BPLS reforms is a whole-
of-local government project,
requiring their cooperation.
88Net satisfaction rating is calculated in terms of the percentage of people who are very satisfied /
satisfied with the overall event experience minus the percentage dissatisfied/very dissatisfied.
Communication Objectives Measures of Success (Metrics)
(4) To communicate to national • ARTA recognition of eBOSS established

government agencies, especially • Higher score in government services in the
the oversight agencies, that the Cities/ Municipalities Competitive Index
LGU is compliant with RA 11032,
2021 JMC and other related rules
and regulations
Step 10: Executing the Communications Plan
To execute the communication plan, the LCE must first approve it. The approval can come
in the form of an Executive Order that includes the budget allocation for the plan.
Step 11: Monitoring the Communication Plan Implementation
To ensure its effectiveness, the strict monitoring of the COMPLAN in 3 aspects of its
implementation is important: One, the project’s budget should be used as planned and
duly accounted for. Second, the COMPLAN’s successful and timely operation should
achieve the necessary pre-conditions for the successful launch / implementation of the
BPLS reforms and the eventual attainment of the goals set by 2021 JMC. Three, the
outcome of close monitoring will make timely corrections to the COMPLAN possible even
as it informs the design of future COMPLAN projects.
The monitoring of the COMPLAN may start with the set of metrics developed in Step 9
which has been designed in accordance with the COMPLAN objectives. The PIO, with the
assistance of the BPLO, should lead in gathering the data on the metrics and report the
results to the CART and the LCE. The assessment of the metrics should be compared to
the data on the number of business registration and revenues generated from business
permitting (pre- and post-BPLS-reforms) as well as the cost of the project.
5.2.2 Use of Social Media in Promoting BPLS Reforms
Taking off from the COMPLAN that was crafted, the C/MLGU needs to identify the
appropriate platform to use to engage its audiences / stakeholders. Cost-wise and reach-
wise, a social media BPLS reforms promotions campaign ranks first in the selection of
available information options.
We Are Social and Hootsuite have ranked the Philippines as a leading user of social media
platforms (Kemp 2021). While in recent years, Facebook has occupied most Filipinos' time
on social media; due to the pandemic, YouTube is now dominating usage. Instagram and
Twitter follow Facebook, while the adoption of Tiktok is not far behind.
Given these data, it is practicable for C/MLGUs to harness the influence of social media
platforms on the Filipino audience for its information dissemination needs.
Planning a Social Media Campaign
Step 1: Selecting the Appropriate Social Media Platform/s to Use

There are some criteria that C/MLGUs can use to determine which social media sites are
suitable:
1. Purpose – The social media platform must be relevant to the fulfillment of the LGU's
mandate, goals, and purpose.
2. Audience – The users or subscribers of a particular social media platform shall coincide
with the citizen-clients of a particular LGU or the demographic target of the LGU.
3. Social Media Range – The social media platform must have enough active subscribers
fitting the criteria of the main audience to justify the use of resources and personnel in
maintaining the social media account
4. Content Supported – The social media platform must support the file formats which the
LGU plans on disseminating through that particular social media platform.
5. Appearance and Design – The social media platform must be easy to use, interactive,
and accessible.
6. Terms of Service and Contract – The terms of service, end user agreement,
subscription agreement, or any other contract governing the LGU's use of the social
media platform shall be reviewed by the City/Municipal Legal Affairs Office (C/MLAO)
to ensure that the obligations imposed on the LGU by virtue of the said contracts are
legal and to the LGU's best interests.
Below is a summary of the uses of popular social media platforms as far as the government
and public sector trends are concerned (PSMI 2021).
1. Facebook: Main information dissemination platform
2. Twitter: Engagement with media and other interest groups
3. Instagram: Bringing audiences behind the scenes to show them the culture behind your
LGU
4. LinkedIn: Professional network profile
Step 2: Creating an Approval Process for Social Media Accounts to be Used

Social media platforms shall be screened by the management of the LGU using an approval
process based on the selection criteria outlined above. The social media platform approval
process is as follows:
1. The LCE or his/her designated representative/official shall either grant or deny approval
to utilize the social media platform under consideration.
2. If approved, the social media platform shall be reviewed periodically by the C/MLAO to
ensure continuing compliance with the selection criteria and to ensure that any
amendments or supplements to the contracts with the social media platform are within
the best interests of the LGU.
Step 3: Formulating Guidelines for Creating and Naming Social Media Accounts
The following are guidelines on creating official social media accounts:

1. Only official email addresses (with “[department name]@[LGU acronym].gov.ph”) shall
be used when creating all social media accounts.
2. For existing accounts, the City/Municipal Social Media Officer (C/MSMO) must check
whether these were created with the official government email.
3. If items (1) and (2) are not observed, the social media account shall be deemed
“unofficial” and shall be deleted. A new one shall be created immediately.
4. Prior to the deletion of the account, the administrator must announce in the unofficial
social media account that its followers should transfer to the new one. Adequate time
must be allotted prior to the termination of the account.
5. The C/MCSMO shall submit/resubmit the necessary requirements for the account to be
verified or certified as “official”.
6. For other social media platforms that require a Gmail account (or any similar electronic
mail service), the social media team could create one in the LGU’s name. The e-mail
address shall not be named after one individual.
7. Civil servants must create separate social media accounts using their official emails if
they will become administrators or editors of the page. Those without LGU-issued e-
mail addresses shall not be allowed to be administrators of any official social media
account.
The following are guidelines for naming official social media accounts:
1. C/MLGUs shall spell out their entire name.
2. If there are limits on the number of characters that may be used, the official acronym
shall be used, followed by “gov.ph”.
3. If the account name is already taken, the LGU shall contact the account name holder
and/or the social media platform and request for the use of the said name or request
the revocation of the name in favor of the LGU.
Step 4: Creating Guidelines for Uploading Content

Whenever possible, C/MLGUs must include the following information either on a prominent
page in their social media account or as a link to their official website:
1. Charter and mandate
2. Description of the LGU with its vision, mission, and goals
3. Citizen's Charter
4. Organizational Chart
5. Contact details, including address, telephone numbers, email, and official website URL
6. Participation and Moderation Rules
While the specific content of the social media posts is largely left to the discretion of the
Social Media Team, research shows a preference for an ideal format for each social media
channel. The format discussed in this section would consist of options for the Social Media
Team to consider.
The following are the recommended image sizes per social media platform (Olafson &
Tran 2022):
Instagram Facebook Twitter LinkedIn
Profile Photo 320x320 170x170 400x400 400x400
Landscape 1080x566 1200x630 1024x512 120x627
Portrait 1000x1150 630x120 N/A 627x1200
Square 100x100 1200x1200 N/A N/A
Stories 1000x1920 1000x1920 1000x1920 1000x1920
Cover photo N/A 851x315 1500x1500 1120x191
The following are ideal text lengths per platform for maximum engagement (Zote 2021):
1) Facebook Post: 50 characters or less
2) Instagram Caption: 125 characters or less
3) Instagram Hashtags: 1 – 10
4) Twitter: 240 – 259 characters
5) LinkedIn Publishing Post: 100 characters or less
6) YouTube:
a) Video Title: 100 characters
b) Description: 5,000 characters
The following are the best practices for video length per platform (Chen 2020):
1) Facebook: 2 – 5 minutes
2) Instagram: 26 seconds
3) Twitter: 15 seconds or less
4) LinkedIn: 30 seconds or less
5) YouTube: 10 minutes or less
Organizing the Social Media Team
Each C/MLGU shall create a social media team that shall ensure that: (1) guidelines are
properly executed, (2) the use of social media aligns with the LGU’s objectives, and (3) the
social media approach suits the program and target audience and complements the other
forms of media used by the LGU. There are a number of C/MLGUs that have used social
media and have set up a team to manage their different platforms.89
The social media team shall be composed (but not limited to) of the following:
1. Social Media Officer who shall act as an advocate and provide overall supervision and
control of the social media program with the qualifications listed below.
• An officer designated by the LCE or PIO
• At least a second level executive-managerial officer of the C/MLGU with at least
one (1) year experience in IT or communications
• Must exhibit management competencies such as the overall direction of the
social media strategy of the C/MLGU, community building and crisis
management, marketing, and an understanding of social media technology and
landscape
• Must have been, ideally, involved in the overall design, content, and campaign
planning for the social media program
2. Account Administrator who shall create and maintain social media account/s that
would represent the C/MLGU or any of its units or programs for a specific audience,
program, or purpose, and should have at least one (1) year of relevant experience in
IT.
Box 9: Duties and Responsibilities of the Social Media Team
1. Social Media Officers must be guided by the following when posting on behalf of the
LGU:
• Initiate the development and periodic review of the social media policy
• Act as a social media advocate and ensure that resources are allocated for the
purpose
• Initiate social media analytics
• Recommend to the LCE or department head concerned the approval of requests for
the creation of social media accounts in the desired social media platform that
would represent the LGU or any of its units, programs, or projects
2. An Account Administrator shall be guided by the following when posting on behalf of

the C/MLGU:
• Ensure consistency of posts with LGU policies and pronouncements
• Plan and manage the content of the account, such as posting of original content or
sharing of content from other websites, to keep it active and updated
• Review and delete posts based on participation and moderation rules of the social
media account
89The City of Valenzuela has a well-established social media team known as the Digital
Communication Unit. Its structure, membership and functions are summarized in a presentation in
the Toolkit under the folder/filename: Case Studies/6.4 Valenzuela Digital Communications Unit.
• Interact with users of the social media platform with good faith and in accordance
with the code of conduct prescribed under Republic Act 6713
• Social media account administrators shall be responsive, prompt, and courteous
• Acknowledge concerns within twenty-four (24) hours of receipt.
3. Members of the Social Media Team shall answer queries from users which shall be
processed as follows:
• Refer the user to a post or page on Frequently Asked Questions (FAQs) or provide
an answer based on the FAQs
• Refer the user to any relevant prior posts
• Refer the user to the office, or division in charge of the matter under inquiry or to
the office help desk
• Refer the client to the appropriate LGU
• Be as accurate as possible. He/she shall be able to verify information, check
grammar, spelling and punctuation, and be quick in admitting mistakes and in
correcting inaccuracies; content must be sourced from credible, reliable, or
validated entities or websites only
• Be encouraged to disclose his/her position as a representative of the LGU
• Know limitations when answering to posts. The team can refer to a link or
government site or elevate an issue to a higher office / official.
4. The Social Media Team shall create the Participation and Moderation Policies of the
Social Media Accounts of the LGU:
• The participation policy provides the set of rules governing the behavior expected of
users of the on-line discussion or community. Users must be required to
acknowledge having read and agreed to the participation policy before registering
or posting.
• The moderation policy must specify the form of moderation being applied, the
person or team responsible for moderation, and their contact information; must link
back to the participation policy; and must inform users that comments violating any
of the rules shall be removed from the site.
Content Planning and Management
LGUs should be guided by the provisions of Republic Act 6713, Republic Act 10173 on
Data Privacy, National Budget Circular 542 series 2012 on the Transparency Seal,
Executive Order No. 2 s. 2016 on Freedom of Information, and other relevant laws and
issuances when publishing information. The following do’s and don’ts should be strictly
followed when posting, uploading, or sharing any content on all the social media platforms
of the LGU:
1. Posting or uploading of content shall only be done by authorized personnel such as the
social media team, the C/MLAO, or the LCE.
2. Contents classified as “Top Secret”, “Secret”, “Confidential”, or “Restricted” as defined
in the Office of the President Memorandum Circular No. 78, series of 1964, cannot be
posted and the disclosure and / or misuse of such information as stated in Republic Act
6713 is prohibited.90
3. Ownership, privacy, security, and copyright issues as identified by the legal affairs office
reviewing a social media platform's terms of service, end users’ agreement,
subscription agreement, and other contracts shall always be considered. The legal
affairs office reviewing the contracts shall issue a memorandum on content that should
not be posted, uploaded, or otherwise shared on a particular social media platform.
This memorandum shall be approved and adopted by the Local Chief Executive and
shall supplement the blacklist mentioned below.
4. Certain content must be blacklisted and should never be posted:
• Blackmail / insulting content – content which threatens an LGU with possible
problems in exchange for money, other things of value, or personal advantage;
• Pornographic content – content which contains lewd, indecent, or sexually
connotative words, photographs, advertisements, and the like;
• Malicious content – content that shows an intention to discredit an entity/office or a
government representative without basis or substantial proof or evidence;
• Unauthorized posting of copyrighted material – content that is copyright-protected
material such as books, publications, or research that is posted without the
permission of the author / issuing organization, except as may be allowed under the
Intellectual Property Code (Republic Act 8293, as amended by Republic Act 10372);
• Unrelated information, jokes, or promotions – content containing unrelated or
irrelevant advertisements, links, personal jokes, social media pages, and other
information not of value to the LGU;
• Suspicious links and viruses – content with links to files or websites which may pose
security threats to the LGU; and,
• Opinion – content made by employees/individuals, which do not represent the
department’s or LGU’s view.
5. The social media team may readily post recommended or allowable content such as,
but not limited to, the examples listed below:
• Official statements and press releases, including official photos and videos;
• Publication of advisories, memorandums, circulars, and orders that are for public
consumption; and,
• Original materials produced by the LGU, related to dispensing its function/mandate.
6. C/MLGUs should ensure that accounts made for specific plans, programs, activities,
events, or projects shall be deleted when the same has ended.
90 A copy of the Circular can be found in the Toolkit under the folder/filename: Policy
Instruments/4. OP MC 78. Republic Act 6713 refers to the Act Establishing a Code of Conduct
and Ethical Standards for Public Officials and Employees to Uphold the Time-Honored Principles
of Public Office Being a Public Trust, Granting Incentives and Rewards for Exemplary Service,
Enumerating Prohibited Acts and Transactions and Providing Penalties for Violations Thereof and
for Other Purposes.
7. Incident reporting mechanisms shall be installed to document issues arising from the
activity and the action taken.
Valenzuela City has successfully institutionalized the process workflow of its Digital
Communications Unit which follows the above pointers.
Monitoring and Evaluation
The Social Media Officer shall identify specific and relevant performance metrics to
determine if the social media initiative has been effective in achieving its intended purpose.
The following are resources on how to use analytics for various social media platforms:
• Facebook: https://www.facebook.com/business/help/
• Twitter: https://business.twitter.com/en/advertising/analytics.html
• YouTube: https://support.google.com/youtube/answer/9002587?hl=en
• Instagram: https://www.facebook.com/help/instagram/788388387972460
From the 2021 report from We Are Social and Hootsuite, the following are the benchmarks
in terms of the different types of content on Facebook that the C/MLGU could also use:91
Post Type Average Total Post Engagement
All Post Types 0.15%
Photo Posts 0.40%
Video Posts 0.11%
Link Posts 0.04%
Status Posts 0.17%
5.3 Training of LGU Staff and Users
The most important goal of reengineering the BPLS is to make the business permitting
application process a positive experience for the applicant, in other words, customer-
centric. This culture of being customer-centric does not happen overnight, especially
among those where it is most needed - the front liners in government service. Customer
91 According to Hootsuite, engagement rate is “a formula that measures the amount of interaction
social content earns relative to reach or other audience figures”
(https://blog.hootsuite.com/calculate-engagement-rate/). Basically, this rate determines the
number of people who interacts with your content. The simple formula for engagement rate is
computed by dividing total engagements (i.e., reactions, likes, comments, shares, etc.) by the total
number of followers. In the engagement rate benchmark table, a good engagement rate for all post
types is an average of 0.15% or, for example, out of 1,000 Facebook followers, you would get 1 –
2 likes for a Facebook content post.
service training among the staff involved in business permitting should be organized by the
LGU once the reforms are about to be implemented.
A two-part training program is recommended. The first part focuses on the basics of
customer service while the second part explains the new BPLS processes that will be
implemented in compliance with the standards set by 2021 JMC.
5.3.1 Basic Customer Service Training
The basic customer training program is aimed at cultivating within the BPLO the spirit of
customer friendly service - fast, efficient, and effective.
To achieve this, the training modules to be designed should have the following objectives:
1. To understand the importance of service excellence and its critical role in BPLS
reforms;
2. To gain knowledge of the different kinds of customer behavior / expectations; and,
3. To acquire the skills needed in handling different types of customers and situations.
Frontline BPLOs should be trained to assist business registrants in interacting with the
BPLS solution. They should be trained in system navigation, data handling, and workstation
and computer peripheral use as BPLS end-users.
At the end of the training, the participants / front liners should be able to internalize a
customer-oriented service culture and commit themselves to put it into practice at the
BPLO. A two-day training program can be organized for this purpose.
5.3.2 Training on the Reengineered BPLS
Compliance with the JMC would entail drastic changes in the business permitting
procedures of C/MLGUs. Before launching the new procedures to the public, C/MLGUs
should organize a 2-3 day orientation session to be attended by both the frontliners as well
as the backend staff of the BOSS and eBOSS.
The objectives of the training are:

1. To brief the staff on the new procedures for business permitting;
2. To orient the staff on their roles and responsibilities in the new streamlined process;
and,
3. To conduct a dry run of the process to ensure that assignments are clear, and
potential problems are anticipated.
At the end of the training, the entire BPLO should feel confident about the smooth
implementation of the re-engineered BPLS. A soft launch is probably advisable at least two
weeks before the public launch or full implementation to give time for adjustments that may
be needed.
5.3.3 Training of Users / Backend Staff
The functional specifications document discussed in section 4.3.2 serves as the foundation
for determining training needs for a new BPLS roll-out. If an LGU lacks the resources to
undertake a training program, hiring BPLS and LGU business registration experts may
have to be resorted to.
The training plan should be based on an end-user and technical personnel training needs
analysis. The BPLS process (or changes to present processes), changes or updates to
rules and procedures, use of BPLS to execute tasks and job activities, and unique
functional requirements of end-users should all be covered in the training materials. The
materials must competently discuss the project requirements at all levels of implementation
/ operation and the topics and tools critical to understanding and realizing the reforms, as
well as provide the impetus / motivation to commit to the reforms.
For critical staff functions, e.g., customer service, assessors, BPL officers, managers, and
IT systems administrators, materials should be structured into modules. It will be beneficial
for the LGU team tasked to handle the BPLS automation project to be trained on the
features, functions, and capabilities of the various BPLS solutions during the planning
stage. This will enable them to comprehend the process and system flow, as well as the
generation of reports that will be required throughout the project operation.
Project team members should be trained on system implementation techniques during the
implementation stage. This training should cover identifying and documenting processes,
describing, and recording functional tasks, defining differences and gaps between current
processes and BPLS solution options, specifying business rules and conditions to test the
validity and fit of the BPLS solution options, and determining the condition of valid and
trustworthy data. The training should allow the project team to test the BPLS against live
data in a pilot environment and report any issues or events that need to be resolved or
updated to ensure that the systems processes are accurate and bug-free.
The personnel who will eventually manage and administer the BPLS should be trained in
identifying, documenting, reporting, escalating, and monitoring the resolution of system
problems, issues, and bugs. Skills for addressing user inquiries, help desk support,
assisting with the use of the BPLS, and identifying points for improvement should all be
included in the training. On the technical side, IT staff should be trained in database
administration, systems administration, managing security and access to the system,
applying and testing system upgrades and software patch updates, and debugging to some
level.
5.4 Production Support in Automated Systems
While manual operations for business registration and regulations have served their
purpose, several C/MLGUs have discovered that automation makes registration
procedures more efficient. Automation delivers immediate and long-term benefits for LGU
operations, including speedier service and more consistent outputs for company
registrants, increased LGU worker efficiency and skills, and citizen satisfaction with
government services and confidence in the government's data and processes.
The eBOSS, now that the technology and digital infrastructure have become accessible to
many parts of the country, has finally arrived. This section lists some guidelines on the
production support that C/MLGUs should set in place when implementing an automated
BPLS.
5.4.1 Production Support Services
Production support refers to the procedures and disciplines for maintaining and supporting
IT systems and applications that are now in use. A production support person or team
oversees and monitors production servers and scheduled jobs, even as they receive and
manage incidents and requests from end-users, assessing these and either replying to
these with a solution or escalating the issue to other IT teams. Developers, system
engineers, and database administrators are part of this group.
Production support begins as soon as the system is deployed in the environment.

Production issues may be classified according to the severity which also determines the
urgency of responding to the issue (Table 23).
The major steps for production support are as follows:
1. Recording production issue. The on-call person acknowledges the issue via e-mail,
text, or phone call. In addition, the on-call employee logs the information in a
production issue tracking system. The production issue tracking tool generates a
request number, which the support team receives. This request number is used to
track the production support's progress once the request is forwarded to the on-call
support team.
2. Notification of production issue. When a critical production issue occurs, an email
is sent to the entire organization or impacted teams to inform them of the problem.
They are also given an estimate of how long it will take to resolve the production
issue.
3. Investigation or analysis of the production issue. The on-call member of the
production support team gathers all pertinent information concerning the production
issue. Using the assigned support request number, this information is then entered
into the production error tracking program. In the investigation, all details such as
data, environment, process, and program logic that failed are documented.
4. Resolution of production issue. If a previous production error recurs, the issue
resolution steps from the support knowledge base are fetched and the error is
addressed. If the error is a new one, new production issue resolution procedures
are established, and the problem is resolved. The new steps for resolving
production issues are saved in the knowledge base for future reference. Only after
the client or end user confirms that the problem has been fixed is the issue closed.
Table 23: Production Issues Classification by Severity
Service Level
Condition Severity Commitment (Maximum
Response Time)
System is down. All work has stopped. Severity Level 1 8 business hours
System is operational but certain functions Severity Level 2 16 business hours

that affect work are inoperable.
System is operational but errors or Severity Level 3 24 business hours

program exceptions occur infrequently.
Exceptions do not affect work.
Software updates or security patches need Severity Level 4 5 business days

to be applied.
For an outsourced eBOSS, the LGU must require the vendor to provide the following
categories of onsite support:
• Technical support (applications, database, integration, and data connectivity)
• Functional support (application configuration, workflow routing, etc.)
• Training and immersion support
5.4.2 Post-Production Support Services
Post-production support or the “hand-holding” stage immediately follows a system (or

production) roll-out. This support will typically cover onsite consultants for the duration of
the agreed post-production support period. The support period ranges from 30 days to a
maximum of six months depending on the support agreement or what was stipulated in the
engagement contract. Onsite consultants assist end-users with system use and
administration and help technical staff resolve problems that may arise during the post-
production period.
To facilitate the competency development of the LGU’s IT staff in supporting every aspect
of the BPLS software, it is recommended that staff avail themselves of post-production
services via a support escalation process.
There are several levels of support that the LGU may opt for:
Level 1. The BPLO personnel will normally be trained to recognize a problem, identify, and
describe the problem and its behavior, record the problem via screen shots or incident
reports, classify the problem, and conduct initial problem resolution.
Level 2. Second-level support issues are more technical and will require deeper skills in a
few areas (e.g., hardware, network, software, database, or process).
Level 3. Sometimes escalation to the third level is warranted and this involves support from
the product developers themselves. Based on the service level agreement, the response
time in the support escalation process is defined. Some C/MLGUs may decide to train their
personnel to provide services comparable to third-level support.
6.0 Continuous Improvement Phase

The last phase in the reengineering process for BPLS is the continuous improvement
phase. Streamlining or reengineering the business permitting process is a dynamic process
where reforms are continuously being improved on as new laws and regulations are issued
that affect the BPLS, clients’ service preferences change, and technological breakthroughs
for faster and more efficient services become available.
Like in the preparation of a communication plan, the setting up of a project monitoring and
evaluation (M&E) plan is usually not given importance by C/MLGUs. Implementation is
perceived as an all-important activity and M&E is considered as excess work that can be
dispensed with. Fortunately, this way of thinking is slowly changing as more ambitious and
competitive LGUs lead the way by keeping up with the latest in best practices and
technology. Needless to say, M&E has been the key to the success of today’s fast
developing LGUs and their sky-rocketing revenues.
There are two aspects to this phase of the reengineering process. The first involves the
monitoring of the LGU performance relative to the streamlined process as designed and
implemented. The second pertains to the collection of data in compliance with the
requirements of NGAs.
6.1 Formulating a Monitoring and Evaluation Strategy
As the term implies, an M&E strategy/plan combines two major sub-phases: (1) monitoring
which involves the collection of data and information on the implementation of the various
activities in relation to BPLS reforms; and (2) evaluation or analysis in the context of BPLS
reform objectives and planned activities. Integrating the processes of these two sub-phases
to achieve certain goals results in an M&E strategy or plan.
6.1.1 Benefits of an M&E Plan
• M&E enables data-based decision-making during and after reform execution.

• It provides focus on the attainment of the C/MLGUs’ BPLS goals.
• It provides a system for detecting whether activities are on track, outputs are
accomplished and higher-level objectives – outcomes and impacts - are achieved.
• It makes possible systematic adjustments, fine-tuning, and improvements to
address unforeseen issues during implementation.
• It provides feedbacking from clients / applicants / citizens on most popular options
among reengineering solutions and cultivates a participative clientele/constituency.
• It can strengthen the commitment to reform, improve team building, and foster a
customer-centric culture within the C/MLGU and agencies involved in the BPL.
6.1.2 Objectives of an M&E Plan
While the short-term goal of reforming the BPLS is to ensure strict compliance with policy,
nationwide compliance is aimed at the medium-term goal of fueling and sustaining
economic growth on the LGU level by encouraging more people to open businesses,
However, the overarching and ultimate goal of broadening the country’s economic base
and uplifting the quality of life of the majority demands much more. The vision guiding the
2021 JMC, therefore, does not stop at LGU compliance and implementation. The 2021
JMC is an attempt to bring the LGU into real-time operations of the digital age and,
determinedly, into the future. For now, the LGU’s awakening and debut into the digital age
are not so much the reformed BPLS but the creation and operation of the new BOSS— the
eBOSS.
Much like any system, certain bugs and issues would arise during the design and operation
of the eBOSS that would require troubleshooting, redirection, or intensification—depending
on the situation. This is where M&E comes in. Table 24 provides a quick view of the
prescribed performance standards stipulated in the 2021 JMC that C/MLGUs should aim
to achieve. The M&E plan will ensure that, at the minimum, these performance standards
are followed and sustained.
Table 24: Summary of 2021 JMC Reforms and the Corresponding

Performance Standards
JMC Reform
Recommendations
A. BPLS Service Standards
1. Use of the • One form for applicants of Business Permit, FSIC for
Unified Business, Sanitary Permit, Locational Clearance,
Application Environmental Permits, and other ancillary permits
Form • Assigning of a unique identification number
• Form to be posted online or on the website
• No notarization of the form
• Dissemination of hard copies at city hall
2. Standard • Doc requirements will be limited to those in Section 8.2 of
documentary the 2021 JMC
requirements • C/MLGUs are not to require documents issued by the
departments within the LGU
3. Development The BPLS has all the 5 functionalities of the eBOSS stated in 8.3.1
and (a) of the 2021 JMC, viz.,
implementation • Accepting online or electronic applications
of the eBOSS or
• Issuing tax order of payment electronically
an end-to-end
• Accepting online payment thru online facilities
online business
registration • Issuing electronic versions of permits, licenses, or
system clearances
JMC Reform
Recommendations
• Providing courier services for applicants requiring hard

copies of permits
4. Standard Steps • One-step for eBOSS
(new & renewal) • 4-steps for those transitioning to eBOSS as specified in
from applicants’ Section 8.4.3 of the 2021 JMC
perspective
5. Standard 3 working days (including inspections that must be done for new
processing time and renewals outside of the annual inspections)
6. Signatures 3 per permit/document
7. Setting up of a Presence of a BOSS that has features specified in Section 8.3.2 (a)
Physical BOSS of the 2021 JMC
• Queueing system
• Transaction windows conforming to the
B. Complementary Reforms
1. Integration of • Barangay business clearance is not separately applied
barangay • TOP/SOA to include Barangay fees
clearance in the
• Payment of barangay fees is made to the C/MLGU
BPLS
• C/MLGU releases Barangay Clearance
2. Integration of • TOP/SOA to include FSIC fees
assessment and • Payment is collected at the LGU
collection of fire
code fees in the
BPLS
3. Issuance of • Not required for new establishments in malls and the central
Locational business district
Clearance • Not required during renewals
4. Issuance of the • Not to be secured separately
Community Tax • TOP/SOA to include CTC
Certificate
• CTC to be released together with the Business Permit and
ancillary permits
5. Issuance of • Required only in sectors explicitly stated in the Sanitary
Sanitary Code and not from all applicants
Permits/Health • No separate application for Sanitary Permit – the unified
certificates application form to suffice
• For new, Sanitary Permit to be issued together with the
Business Permit; inspection to be done after issuance as
part of annual inspection
• Health Certificates to be required only for sectors explicitly
mentioned in the Sanitary Code
6. Developing • Adopt the principles stated in Section 9.1.1 of the 2021 JMC
business- in conducting inspections
JMC Reform
Recommendations
friendly • Organize Joint Inspection Teams
inspection • Adopt risk-based inspection
systems
• C/MLGUs offices and the BFP to submit negative or
positive lists to the BPLO prior to the renewal period
6.1.3 Components of the M&E Strategy for BPLS Reforms
Monitoring basically involves data collection. What data should be monitored concerning
BPLS reform implementation? Evaluation, on the other hand, considers the performance
of the activities vis a vis data collected. To what extent have beneficiaries benefited from
the different activities? What is the impact of the outcomes of the reform program? What
are the potentials for growth? How can potential be converted to reality?
In relation to BPLS reform implementation, the types of data that should be collected are
based on, but should not be limited to, the following: (1) LGU BPLS action plan, (2) data
and information required by oversight agencies, and (3) client feedback / perception.
The LGU BPLS Action Plans
The starting point in preparing a monitoring plan is the action plan developed during the 4.
Design Phase of the reengineering process. C/MLGUs should monitor the following
variables stated in the action plan:
1. “Outputs” of the reengineering process which refer to the streamlined solutions
2. “Activities and sub-tasks” associated with the streamlined solutions
3. “Timeframe” or the schedule of the activities
4. “Resources” which can be financial, human, and material
The primary focus of the C/MLGU monitoring system would be the implementation of these
standards as reflected in the individual LGU action plans formulated by its CART.
Data Requirements of Oversight Agencies
Being customer-centric is one of the streamlining principles being promoted by the national
government. Hence, the LGU’s monitoring strategy should include a client feedback
mechanism that would gauge the level of satisfaction / dissatisfaction of the applicants
undergoing the new processes. Managing the collected information and transforming these
into continuous improvements in the reengineering of BPLS is equally important to the
success of the project.
In setting up an M&E Plan for BPLS reforms, the C/MLGUs should be aware of the
requirements of the oversight agencies – ARTA and DILG – both of which have mandates
to closely monitor compliance with Republic Act 11032 in general and the 2021 JMC. The
monitoring strategy of the C/MLGU must consider the information requirements of these
two agencies.
ARTA’s Report Card Survey
Section 20 of Republic Act 11032 mandates the conduct of the Report Card Survey (RCS)
by ARTA in coordination with the Civil Service Commission (CSC) and the Philippine
Statistical Authority (PSA) to obtain information on agencies’ (including C/MLGUs’)
compliance with the Citizen’s Charter and their performance. While the RCS has been
implemented by CSC in the past following RA 9485, ARTA has redesigned the survey to
conform to the new requirements of the law and its other issuances. Based on ARTA
Circular 2022-04 which provides the guidelines for the conduct of the RCS, C/MLGUs are
mandated to include the findings of the RCS in their M&E Plan to encourage evidence-
based improvements in their services.92 As per ARTA Circular 2022-05, the CSM Survey
was designed as “an after-service availment survey that will assess the overall satisfaction
and perception of clients on the government service they availed.” The RCS is also
envisioned to be the basis for awards, recognition, and incentives for excellent delivery of
government services.
The ARTA intends to measure the overall satisfaction of clients using the following tools:
1. Compliance Matrix. This tool, which will constitute 40 percent of the overall RCS results,
will assess the C/MLGU compliance with ARTA’s issuances and requirements
mandated in RA 11032.
2. Survey Questionnaire (SQ). Planned to be conducted every three years, the conduct
of this questionnaire involves the hiring of enumerators who will ask clients who have
completed or are about to complete a transaction from the agency/LGU on the citizens
charter and four service aspects: (a) service delivery, (b) access and facilities, (c)
communications, and (d) payments and processes.
3. Inspection Checklist (IC). An inspector will be contracted to avail of the agency/LGU
service incognito and evaluate the two aspects of the service: (a) service delivery,
payment, and processes, and (b) access, facilities, and communications.
4. Client Satisfaction Measurement (CSM).93 This is a mandated survey with a specified
form which should be conducted after every transaction by the agency/LGU. CSM
covers questions on the Citizen’s Charter, overall satisfaction with the service availed
of, and service quality. There are eight (8) dimensions of the latter included in the
questionnaire: (a) responsiveness, (b) reliability, (c) access and facilities, (d)
communication, (e) costs, (f) integrity, (g) assurance, and (h) outcome The overall
results of which shall be annually reported to ARTA.
The SQ, IC, and CSM will constitute 60 percent of the overall RCS results. Additional
bonus points will be given for agency awards/recognition.
92 ARTA Memorandum Circular 2022-04 contains the general guidelines on the RCS which
includes the methods of measurement, components, the computation of the survey results and its
use for rewards and incentives. A copy of the circular can be found in the toolkit under the
folder/filename: Policy Instruments/10. ARTA MC 2022-04
93 ARTA issued Memorandum Circular 2022-05 providing guidelines on the implementation of the
harmonized Client Satisfaction Measurement, a copy of which can be found in the toolkit
under the folder/filename: Policy Instruments/9. ARTA MC 2022-05.
The RCS will be conducted every three (3) years during which agencies will be
subjected to the on-site SQ and IC once during the three-year period. However,
agencies / LGUs will have to conduct the CSM every year starting 2023.
DILG’s Information Requirements
The 2021 JMC underscores the role of the DILG in mobilizing its Local Government
Operations Officers nationwide to monitor its implementation with regular reports to be
provided to the Oversight Committee on Business Permit Reforms. In this connection, DILG
issued Memorandum Circular 2021-008 on January 18, 2021, that provided guidelines for
C/MLGUs in submitting reports to the DILG online monitoring system for tracking
compliance with the standards set in the DILG-DTI-DICT 2016 JMC.94 There are monitoring
requirements of DILG based on BPLS M&E Form 1 as mandated in the said circular (Box
10).
At the minimum, the LGU should include these data requirements when setting up an M&E
system. Online submissions of the monitoring reports to DILG are done on a weekly basis
due to the need for the government to closely monitor the effects of the pandemic on the
registration of establishments.95
Box 10: Information Required by DILG for Monitoring BPLS Reforms
Compliance with Standards:

✓ Use of the unified form
✓ Number of steps
✓ Number of signatories
✓ Processing time
Complementary Reforms
✓ Compliance with standard documentary requirements (detailed)
✓ Establishment of the BOSS
✓ Organization of the Joint Inspection Team
✓ Automation of the BPLS
✓ Online application
✓ Electronic means of providing the TOP
✓ Online payment
✓ Online means of transmitting permits or through courier
94 When the circular was issued in January 2021, the 2021 JMC has not yet been issued. DILG is
in the process of updating the required indicators to conform to those found in the more recent
JMC Nonetheless, the current. List if indicators remain to be relevant. A copy of this circular is
included in the Toolkit under folder/filename: Policy Instruments/20. DILG MC 2021-008.
95 The circular originally required quarterly submission of reports, which are done online.
✓ LGU Support to BPLS Streamlining
✓ Issuance of a legal framework
✓ Creation of a TWG on BPLS Streamlining
✓ Budget allocation for BPLS Streamlining and Automation
Other reforms
✓ Business population and revenues from business
✓ Number of business registration by size
✓ Total collections from business tax, fees, and charges
✓ Structure of the BPLO
✓ Employment status (i.e., permanent or non-permanent)
✓ Structure level (i.e., department head or not).
Source: DILG MC 2021-008
Among the indicators required by DILG, several “outcome” indicators may be used to
determine the short- to medium-term results of the BPLS reengineering efforts.
• Number of establishments: An increase in the number of registered establishments
from the period prior to the BPLS may indicate success in enticing firms to formally
register due to faster processes.
• Collection from business tax and fees: Higher revenues generated from business
tax and fees may happen with higher business registrations.
Alternative outcome indicators that C/MLGUs may wish to monitor to determine their
success in implementing BPLS reforms are listed below.
• Users of online business registration portal or eBOSS: The use of the online
registration system is a more convenient way of servicing the public while at the
same time promoting efficiency in the C/MLGU. Hence, tracking the utilization of
the eBOSS is important to the C/MLGU. The online dashboard of C/MLGUs with
online systems will be able to generate information on this indicator.
• Users of online payment systems: The C/MLGUs are encouraged to provide online
payment services, especially during the pandemic. The more applicants use this
service, the better for the C/MLGU. Hence, the utilization rate of the C/MLGUs’
online payment facility is another variable that should be monitored.
• Employment: The increase in the number of registered businesses can also lead to
higher employment. The UAF actually includes a field on the number of employees
per firm which the C/MLGU can process and track.
• Capitalization: The total capitalization per firm can be a proxy for investments.
Hence, if aggregated across the newly registered establishments, it can indicate
whether investment is increasing in the C/MLGU.
• Gross Sales: The level of economic activity in an LGU can actually be gauged by
computing the total gross sales of all firms renewing their businesses every year.
An increase in total gross sales can roughly indicate that this may have been partly
due to the reforms on BPLS that aim at making it easy to register.
The DILG has also developed an online client satisfaction survey, called the “Rate my LGU
Service”, to (1) validate the report of C/MLGUs’ compliance through a direct client feedback
online survey, and (2) encourage C/MLGU constituents and clients to be proactive in
improving the services of their LGU.
This online survey which can be accessed online by the clients determines client
experience on various aspects of the reform such as:
• Processing time
• No. of Steps
• No. of forms filled up
• No. of signatures
• Mode of payment used
• Rating the service
There are two optional questions on the type of business and the cost of the registration
added to the DILG survey for purposes of analysis according to the type of business and
cost of the permit. The C/MLGUs can access the Rate My LGU Service system, so they
can easily see the responses / feedbacks in real-time. Meantime, the service is currently
being enhanced and has not been in operation since the pandemic. The DILG plans to
continue the survey as soon as the system has been enhanced.
6.2 Monitoring Client Feedback or Perception
There are many ways of getting feedback from clients: (1) social media, (2) client
perception survey, (3) DILG Rate My LGU Service, and (4) ARTA Report Card Survey.
Social media
Many C/MLGUs have Facebook, Instagram, or Twitter accounts. The likes, comments, and
shares from followers provide reliable feedback to the LGU on the general perception of its
constituents to the reforms. The data and analytics on these social media platforms, so-
called trends, are also accessible to the LGU account administrator.
Client Perception Survey
The LGU can again conduct a Client Perception Survey, especially during renewal period
to determine the applicant's experience in applying for a business permit and the related
ancillary permits in the city/municipality. If the client survey conducted during the discovery
phase is implemented again, the new data can be easily compared with the baseline to
have a better grasp of the results or progress.
Other Market Surveys
There are other marketing surveys like the Client Effort Score (CES) and Net Promoter
Score (NPS) that C/MLGUs may apply to the BPLS target clientele as described in Box 11.
Box 11: Adapting Client Effort Score and Net Promoter Scores to BPLS
The core CES question asks how easy it is for BPLS applicants to interact with the
LGU. They can agree or disagree with a statement [“Our LGU made it easy for me to
obtain a business permit”] or rate their effort level [“How easy was it for you to obtain
a business permit today?”] on a seven-point scale.
To encourage positive word-of-mouth, the LGU can also ask the main NPS question:
“How likely are you to recommend undergoing the BPLS process to new and existing
businesses?” To calculate Net Promoter Score, subtract the percentage of detractors
from the percentage of promoters based on the formula: NPS = % of Promoters – %
of Detractors. Promoters are respondents who chose scores of 9 to 10 that represent
satisfied clients who are most likely to recommend you to their friend and colleagues.
Detractors are respondents who chose scores of 0 to 6, being dissatisfied clients who
might spread negative word-of-mouth about the LGU and are likely not to comply in
the future. Passives are the respondents who chose the scores of 7 to 8, are quite
happy with the BPLS service, but are not the biggest fans. The passives are not
accounted for in the NPS calculation.
The CES and NPS can be supplemented by open-ended survey questions such as
• How long did it take to prepare your requirements?
• How long did it take for you to obtain your business permit?
• What is the reason for your score?
• What can we do to improve your score?
• What’s the one thing you would change about applying for a business permit?
• What would be one word you would use to describe the LGU in BPLS operations
and why?
• How satisfied are you with the following features (e.g., public information on
requirements, steps and costs, client service, interface with LGU and/or
employees, waiting area)
Source: Adapted from Survicate.com
6.2.1 Managing Client Feedback
The traditional M&E framework can be further expanded to include client feedback such as
via “The Feedback Loop” processes as seen in Figure 22. In addition to the standard
monitoring and evaluation functions, the importance of dialogue within the LGU and its
constituents is that it provides feedback even prior to the implementation of prospective
reforms, preferably during the design phase of the new BPLS.
Figure 22: M&E and the Feedback Loop Processes (Welborn 2020)
The dialogue involves Client Feedback Management (CFM) which is the process of
integrating feedback into the continuous product development cycle of the BPLS (refer to
Box 10). The process takes data, organizes it, prioritizes it, and develops actionable items
to improve the delivery of BPLS services. The purpose of CFM is to provide documented
information as a tool to determine the client’s level of satisfaction with how their
requirements and expectations are met when applying for a business permit or a license
from a local government unit.
A feedback loop is any mechanism that generates information on the quality of service in
the C/MLGU. Once collected, this information can be used to improve performance. The
service delivery chain starts with a request by the BPLS applicant and ends with the
issuance or delivery of the business permit and/or license by the LGU. A feedback loop
can start collecting information at any point in the delivery chain (Figure 23). The
administrative data loop collects information on individual service transactions (for
example, the number of days between application for business registration and delivery of
business permit for every transaction), while the choice and voice loop collect data on the
service experience of the citizen (for example, satisfaction with the experience). Data
collected can then be used to measure service levels, gauge user satisfaction, and
diagnose problems. (Gelb, Mittal & Mukherjee 2019)
Figure 23: Administrative and Choice-and-Voice Feedback Loops
Source: Gelb, Mittal & Mukherjee (2019)
All feedback on common concerns, complaints, and even compliments of BPLS applicants
in obtaining business permits and licenses is good feedback and is essential to good
regulatory governance. Positive feedback on public service has the dual effect of greater
compliance among the regulated and reinforced motivation among government employees
to do well – a significant but often overlooked factor in sustainability. At times, negative
feedback may even be a more powerful motivator in improving service and in eliciting praise
when concerns are adequately addressed (Zorin 2021). So apart from improving public
service delivery, CFM is instrumental in promoting participant citizenship, inclusiveness,
transparency, and accountability in governance.
“To win back citizen trust, governments should…strengthen their

responsiveness (which is) is a pillar of governments’ mandate to serve its
citizens. It is a two-way interaction, a feedback loop, with governments listening
to citizens and incorporating information into its decision-making and/or directly
responding (to received information).” (NDI 2020)
The establishment of a Digital Feedback Loop can expose and put to rest public concern
on whether “the reform process and outcomes have led to the condition of ‘isomorphic
mimicry’ [sic], a condition in which organizations adopt modern or best practices, or
advocate notions of good governance, although functional performance, given their actual
capability for implementation, may be weak or non-existent” (Ilago 207).
Setting up a Client Feedback Management System for BPLS (Drew & Warnes 2017)
1. Define the challenge. Consultation with stakeholders such as local business chambers,
industry, trade, and local market associations can bring down the barriers that prevent
feedback from not being heard and acted on. The constraints can range from a lack of
staffing, poor or non-existent communication channels, nonworking technology, bad
data management, and confusing information flows. In this regard, the cases, planning
tools, and references in the USAID Guide to Digital Feedback Loops can be helpful
(Whittle & Campbell 2019).
2. Use Stakeholders’ preferred communication channels. It is best to engage stakeholders
through channels they like and trust (see also section 5.2.3). Conducting an Information
and Communication Needs Assessment will determine what channels of
communication they are currently using, what sources they trust, and how they would
like to talk to the LGU about BPLS concerns. Once a connection with stakeholders is
made, gathering feedback and sending information / reaction / reply back (closing the
feedback loop) will entail the use of multiple feedback mechanisms such as score cards
or report cards*, surveys or questionnaires, emails and SMS, telephone hotlines, self-
assessments*, focus group consultations with stakeholders*, feedback or complaints
box, grievance procedures specifically linked to complaints mechanisms*, bulletin /
information boards for reports, budgets, and/or organizational information, brochures,
and banners (CDA 2011). Newer feedback mechanisms include website surveys,
feedback buttons, email-embedded and link surveys, chat surveys, and mobile app
surveys.
3. Do not duplicate efforts. Build a unified system and work process for the handling of
client feedback from various sources including from other government feedback
mechanisms such as ARTA, Public Assistance, and Complaint’s Desk, 8888 Citizen
Complaint Hotline, Presidential Action Center, Civil Service Commission, and DILG
National Police Commission. A notable example of an operational CFM system is the
Ugnayan sa Pasig Unit established by the City government in 2019 following the
issuance of a Pasig Transparency Mechanism Ordinance in 2018.
Box 12: Sample Client Feedback Mechanism in Ugnayan sa Pasig Unit
A developing CFM model for LGUs is the Ugnayan sa Pasig Unit or Freedom of
Information Office (FOIO) which serves as the Public Participation, Accountability, and
Transparency Unit of the city government. The creation of the FOIO builds on the
“Pasig Transparency Mechanism Ordinance” issued in 2018 which recognizes the
people’s right to information and full public disclosure as an important tool in good
governance. This project aims to truly provide the public with an avenue for immediate
assistance and easy access to information on various government services, projects,
and transactions, even as it encourages public participation in crafting LGU policies.
Ready information is provided by the FOIO on a wide range of LGU matters - City
Government Personnel, Budget, programs, and projects, market operations, the status
of various permits/applications, Health Centers, and more. The FOIO also manages
the feedback from the City Government’s Hotline 643-000, Facebook page, Twitter,
and email accounts. The FOIO concept takes the principle of public participation to
another level with the accreditation of civil society organizations / non-government
organizations as active partners in the local government policy formulation and
program implementation. How the FOI balances information so that those coming from
Civil Society Organizations (CSOs) / Non-governmental Organizations (NGOs) /
organized groups do not drown out grassroots / citizen information / feedback would
make an interesting study.
The Executive Order creating the FOIO also defines its functions, composition,
implementation, and process flow, and provides a blank feedback form on which all
feedback information from other sources including walk-ins are consolidated in digital
form for further processing, internal dissemination, resolution, and reporting to the
general public.96
4. Coordinate. Good coordination within the feedback team stems from each member’s
commitment to, and agreement on, internal and inter-agency roles and responsibilities.
Upholding the Standard Operating Procedures (SOPs) - the agreed commitments,
timeframe for follow-up, as well as the different roles of agency / individual - is the first
and only ground rule for good teamwork. The Citizen Charter for the feedback process
of the Ugnayan sa Pasig can be used here as reference.97
5. Focus on what you need to know to make improvements. Collect structured data that
enables you to make decisions and actions in a timely manner. Use free basic plans of
mobile data collection software such as Open Data Kit and Kobo Toolbox for its many
properties – quick collation, time-efficient, error reduction, and standardized data
capture through structured questionnaires.
6. Prepare for sensitive issues. Provide safe channels for confidential reporting. Train
helpline operators on the handling of sensitive cases involving corruption and other
violations of public service conduct related to gender, seniors, people with disability,
indigenous people, and other marginalized / vulnerable sectors of society.
7. Test and refine. Speak to LGUs who also maintain CFM mechanisms and share your
strategy and design to gain input and a better perspective on what works best. Formally
consult with representative stakeholders on their use of, and experience with, the BPLS
preferably during or after their experience. This is not only for the continuous review of
the BPLS but may also provide insights on the environment affecting businesses in
general and consequently BPLS process improvements.
8. Enable evolution. Adapt the CFM mechanism to changing dynamics of the response –
go back to the drawing board if necessary. The more channels that are established the
less risk there is of complete loss of engagement with BPLS applicants if access to one
fails.
96A copy of the Pasig City’s Executive Order 98 which set up the Ugnayan sa Pasig Unit can be
found in the Toolkit under the file name: Case Studies-6.1-Pasig EO on Client Feedback
Mechanism. A copy of the feedback form used by the City of Pasig can be found in the Toolkit
under the folder/filename: Case Studies/6.2 Pasig Complaint Form.
97A copy of the Citizen’s Charter is included in the Toolkit under the folder/filename: Case
Studies/6.3 Pasig City Ugnayan Citizen's Charter.
9. Make data digestible. Visualize the BPLS data, show trends, and find the right forums
for sharing to make it accessible. If certain groups have specific issues, make sure
these are disaggregated and highlighted so the action/solution can be targeted (e.g.,
processing times, inspections, payment, etc.).
10. Demonstrate you have listened. Proactively explain the changes / reforms that have
been made and why certain actions sometimes cannot be taken. Do not wait until the
community is frustrated by the lack of feedback. Make sure a key responsibility of the
mechanism is to ‘close the loop’ either by direct feedback to complainants or sharing
information verbally in speeches or consultations or reporting in print to readers online.
Whether it be the delivery of success stories or not-so-good news the content of the
message is as important as the use of the communications channels. Closing the loop
helps develop the habit of using the CFM by the clientele and the LGU, and in so doing
builds trust in the communication channels and ultimately in the LGU itself.
The conduct of the steps in setting up a CFM system is varied, depending on the BPLS
workload and available resources of the LGU.
Note that there is no simple or one-size-fits-all approach for collecting the right data with
the right frequency and using it the right way for the right decisions. The process of
gathering, assembling, and analyzing data requires judgment, discussion, and iteration.
The process of adapting programs based on what data suggest also requires judgment and
will vary from context to context. (Ramalingam et al (n.d.), pp. 1-2)
The CFM system can be a component of a total Quality Management System (QMS) where
planning, service, and support operations are aligned to ISO 9001 International Standards
as stated in Government Quality Management Systems Standards. Further technical
assistance in the establishment of QMS through certification in ISO 9001:2015 is available
from the Government Quality Management Program of the Development Academy of the
Philippines.98
98https://coe-psp.dap.edu.ph/government-quality-management-program-bringing-quality-
government-service-closer-to-the-people/
Bibliography
Bureau of Fire Protection (BFP). (n.d.). Electronic FSIC (eFSIC) online service. BFP National
Capital Region (NCR) website. http://webcache.googleusercontent.com/search?q=cache:51BI-
0JLIKsJ:ncr.bfp.gov.ph/fsic-tracker/+&cd=1&hl=en&ct=clnk&gl=ph
Bureau of Fire Protection (BFP). (2019). RA 9514 The Fire Code of the Philippines. Revised
Implementing Rules and Regulations - Rule 12, Section 12.0.0.4 (Schedule of Fees and
Charges). BFP Calabarzon Website. http://www.bfpcalabarzon.com/wp-
content/uploads/2020/03/RA9514-RIRR-rev-2019-webcopy_c.pdf
Bank of the Philippine Islands (BPI). (n.d.). InstaPay & PESONet Features. BPI Website.
https://www.bpi.com.ph/bpi/home/bank/services/instapay/features
CDA (2011). Feedback Mechanisms in International Assistance Organizations. CDA Collaborative

Learning Projects. https://www.alnap.org/help-library/feedback-mechanisms-in-international-
assistance-organizations-cda-desk-study
Chen, J. (2020, December 8). Exploring Video Length Best Practices for Social Media.
Sproutsocial. https://sproutsocial.com/insights/video-length-best-practices/
Chua, K. (2021, January 28). PH Remains Top in Social Media, Internet Usage Worldwide –
Report. Rappler. https://www.rappler.com/technology/internet-culture/hootsuite-we-are-
social-2021-philippines-top-social-media-internet-usage
Department of Information and Communications Technology (DICT). (n.d.). Philippine National

Public Key Infrastructure (PNPKI). DICT Website. https://dict.gov.ph/pnpki/
Department of the Interior and Local Government (DILG)-Department of Trade and Industry (DTI).
(2010). Joint Memorandum Circular No. 2010-001. Guidelines in Implementing the
Standards in Processing Business Permits and Licenses in all Cities and Municipalities.
DILG Website. https://www.dilg.gov.ph/PDF_File/issuances/joint_circulars/DILG-
Joint_Circulars-20100813-JMCNo01_Seriesof2010.pdf
Department of the Interior and Local Government (DILG) & United States Agency for International
Development (USAID). (2016). Manual on Implementing the Revised Standard in
Processing Business Permits and Licenses in Cities and Municipalities in the Philippines.
(JMC 1, s.2016)
Development Academy of the Philippines (DAP). (2021, June 25). Government Quality
Management Program: Bringing Quality Government Service Closer to the People.
https://coe-psp.dap.edu.ph/government-quality-management-program-bringing-quality-
government-service-closer-to-the-people/
Drew, K. & Warnes, J. (2017). 10 Steps to Setting up an Effective Feedback System. United
Nations High Commissioner for Refugees Innovation. https://www.unhcr.org/innovation/10-
steps-to-setting-up-an-effective-feedbackmechanism/
Gelb, A., Mittal, N., & Mukherjee, A. (2019). Using Digital Feedback to Improve Service, Voice,
and Accountability. Center for Global Development. https://www.cgdev.org/publication/towards-
real-time-governance-using-digital-feedback-improve-service-voice
Hootsuite. (n.d.). A formula that measures the amount of interaction social content earns relative to
reach or other audience figures. Hootsuite blogpost. https://blog.hootsuite.com/calculate-
engagement-rate
Ilago, S. (2017). Business Process Re-engineering and Local Governments: The Case of Local
Business Permitting and Licensing System Regulatory Reform. Philippine Journal of Public
Administration, Vol. LXI Nos. 1 & 2, 1-19.
Kemp, S. (2021, February 11). Digital 2021: The Philippines. Datareportal.

https://datareportal.com/reports/digital-2021-philippines
King, M. (n.d.). How to Create a Communications Plan in 12 Steps (Template). CoSchedule Blog.
https://coschedule.com/blog/communications-plan-template
Olafson, K. & Tran, T. (2022, January 11). Social Media Image Sizes 2022: Cheat Sheet for Every
Network. Hootsuite Blog. https://blog.hootsuite.com/social-media-image-sizes-guide/
Philippine Statistics Authority (PSA). (2009). The Philippine Standard Industrial Classification
(PSIC) is a detailed classification of industries prevailing in the country according to the kind
of productive activities undertaken by establishments. PSA Website.
https://psa.gov.ph/content/philippine-standard-industrial-classification-
psic#:~:text=The%20Philippine%20Standard%20Industrial%20Classification,productive%20
activities%20undertaken%20by%20establishments
Public-Sector Marketing Institute. (2021). 2021 Social Media Trends for Government and Public-
Sector. https://publicsectormarketingpros.com/2021-social-media-trends-for-government-
and-public-sector/
Ramalingam, B.; Barnett, I.; Oppenheimer, A.L.C., & Valters, C. (n.d.). Bridging Real-Time Data
and Adaptive Management: Ten Lessons for Policy Makers and Practitioners. United States
Agency for International Development.
Republic Act No. 6713. (1989). Rules Implementing the Code of Conduct and Ethical Standards
for Public Officials and Employees. DTI website.
https://www.dti.gov.ph/sdm_downloads/implementing-rules-of-republic-act-no-6713/
Republic Act No. 7160. (1991). Local Government Code of 1991. Official Gazette.
https://www.officialgazette.gov.ph/1991/10/10/republic-act-no-7160/
Statista. (2021, November 9,). Ease of Doing Business (EODB) among ASEAN Countries 2020.
Statista Research Department. https://www.statista.com/statistics/979161/asean-ease-of-
doing-business-scores/
United States Agency for International Development (USAID). (2012, November). BPLS
Inspections Guide: A Guidebook for the Conduct of Business-Friendly Inspections in the
Philippines. (Unpublished manuscript).
Welborn, V. (2020, December 10). Using Feedback Loops to Build Citizen Trust. National
Democratic Institute. https://www.ndi.org/our-stories/using-feedback-loops-build-citizen-trust
Whittle, D. & Campbell, M. (2019). A Guide to Digital Feedback Loops. United States Agency for
International Development. https://www.usaid.gov/sites/default/files/documents/15396/
A_Guide_to_Digital_Feedback_Loops.pdf
Zorin, A. (2021, March 15). How to Manage Customer Feedback. Prodcamp Blog.
https://www.prodcamp.com/blog/how-to-manage-customer-feedback
Zote, J. (2021, July 26). How Long Should Social Posts Be? Try This Social Media Character
Counter. Sproutsocial Blog. https://sproutsocial.com/insights/social-media-character-
counter/
Appendix A: List of Resources in the Toolkit
Toolkit Link (5 October 2022):

https://drive.google.com/drive/folders/1EhtjrutPC6O3luHSJ9oaFbeVZWXRC9jO?usp=sharing .
Case Studies/Samples
1. Case Studies on the Integration of Barangay Business Clearance Process with BPLS
1.1 Option 1: Cagayan de Oro City Model
1.2 Option 2: Paranaque City Model
1.3 Option 3: Valenzuela City Model
2. Sample Client Perception Survey Conducted in the City of Manila
3. Sample City Ordinances on Barangay Business Clearance Process Integration with

BPLS
3.1 City of Paranaque Ordinance No. 19-03, series of 2019 entitled “An Ordinance
Empowering the Business Permits and Licensing Office to Process the
Applications, Assess and Issue Barangay Clearance/Barangay Plate for the
Purpose of Issuance of Mayor’s Permit and /or Business Permit and the City
Treasurer’s Office to Accept Payment and Remit Collection to the Barangays”
3.2 City of Paranaque Ordinance No. 19-04, series of 2019 entitled “An Ordinance
m\Mandating the Office of the City Treasurer to Process Application, Payment and
Issuance of Community Tax Certificate (CEDULA) for the Purpose of Issuance of
Barangay Clearance for the Mayor’s {Permit and/or Business Permit”
3.3 City of Manila’s Template Barangay Ordinance entitled “An Ordinance Authorizing
the City Government of Manila to Issue Barangay Clearance and Collect the
Corresponding Fee Thereon as a Requirement for the Application of a New or
Renewal of City Business Permit or License Related to Doing Business within the
Barangay or as a Requirement to Secure Locational Clearance from the City,
Subject to the Remittance of the Aforesaid Fee to the Barangay and the Conditions
Hereunder”
4. Sample City Ordinances to Comply with RA 11032

4.1 City of Manila Ordinance 8754 entitled “An Ordinance Providing for the
Streamlined Procedures for the Issuance of Local Business Licenses, Clearances,
Permits, Certificates or Authorizations in the City of Manila Pursuant to Rule IX of
the Implementing Rules and Regulations of 11032, Otherwise Known as the “Ease
of Doing Business and Efficient Government Service Act of 2018” and for Other
Purposes”
4.2 City of Cagayan De Oro Ordinance No 13992-2020 entitled “An Ordinance
Providing for the Streamlined Guidelines for the Issuance of Permits, Licenses,
Clearances, and Certificates for Business and Nonbusiness-Related Transactions
in all Offices/Departments of the City Government Pursuant to the Joint
Memorandum Circular (JMC) No. 2019-001, series of 2019 Entitled “Implementing
Rules and Regulations of RA 11032) (Ease of Doing Business and Efficient
Government Service Act of 2018) and for Other Purposes”
5. Sample City Ordinances on Electrotonic Payment (ePayment)

5.1 City of Paranaque Ordinance No. 2020-01, series of 2020 entitled ‘An Ordinance
Recognizing and Authorizing the Use of Electronic and Online Payment Channels
as one of the Methods in the Payment of Taxes and Other Fees to the City
Government of Paranaque”
5.2 City of Valenzuela Ordinance No. 610 entitled “An Ordinance Establishing the 3S
Plus Valenzuela City Online Services”
6. Communication
6.1 City of Pasig Executive Order No. PCG-08, Series of 2019, entitled “Creating the
Ugnayan sa Pasig Unit for Public Participation, Accountability, Transparency and
Good Governance, Defining its Functions, Composition and For Other Purposes
6.2 City of Pasig Complaint Form
6.3 Pasig City Ugnayan Citizen's Charter
6.4 Presentation on Valenzuela City’s Digital Communications Unit
Policy Instruments
1. Republic Act 11032 entitled “An Act Promoting Ease of Doing Business and Efficient
Delivery of Government Services, Amending for the Purpose Republic Act N. 9485
Otherwise Known as the Anti-Red Tape Act of 2007, and For Other Purposes”
2. Republic Act 10644 entitled “An Act Promoting Job Generation and Inclusive Growth
Through the Development of Micro, Small and Medium Enterprises”
3. Republic Act 10173 entitled “An Act Protecting Individual Personal Information in
Information and Communications Systems in the Government and the Private Sector,
Creating for this Purpose a National Privacy Commission, and for Other Purposes”
4. Office of the President Memorandum Circular No. 78 entitled” Promulgating Rules
Governing Security of Classified Matter in Government Offices
5. ARTA-CSC-DTI Joint Memorandum Circular 2019-001, series of 2019 entitled “The
Implementing Rules and Regulations of Republic Act 11032, otherwise known as the
Ease of Doing Business and Efficient Government Service Delivery Act of 2018”
6. ARTA-DTI-DILG-DICT Joint Memorandum Circular 01, s 2021 entitled “Guidelines for
Processing Business Permits and Related Clearances and Licenses in All Cities and
Municipalities”
7. ARTA-DICT Joint Memorandum Circular on the “Guidelines for the Integration of
Business Process and Licensing System of the Local Government Units (LGU) to the
Central Business Portal (CBP) and other National Government Agencies’ (NGAs)
Information Systems” (Draft as of Sept 20)
8. ARTA-DILG Joint Memorandum Circular 2019-01 on the “Guidelines on the Regulatory
Reform for LGUs Pursuant to the Ease of Doing Business and Efficient Governed
Service Delivery (EODB-EGSD) ACT of 2018”
9. ARTA Memorandum Circular No. 2022-05 entitled” Guidelines on the Implementation
of the Harmonized Client Satisfaction Measurement”
10. ARTA Memorandum Circular No. 2022-04 entitled “Guidelines on the Implementation
of the Report Card Survey (RCS) 2.0”
11. ARTA Memorandum Circular No. 2020-07 entitled “Guidelines on the Designation of a
CART in the Agencies Concerned in Compliance with RA 11032”
12. ARTA Memorandum Circular 2020-01 entitled “Requiring Risk Profiling and Removing
Locational Clearance as a Requirement for Initial Application /Renewal of Business
Permit of Commercial Establishments Located in Shopping Malls and Central
Business Districts”
13. ARTA Memorandum Circular 2019-002 entitled “Guidelines on the Implementation of
the Citizen’s Charter in Compliance with Republic Act 11032, Otherwise Known as
“the Ease of Doing Business and Efficient Government Service Delivery Act of 2018”
and Its Implementing Rules and Regulations (IRR)”
14. BLGF Memorandum Circular No. 001-2020 entitled “Updated Reminders in the
Assessment of the Local Business Tax (LBT), Registration and Renewal of Business
Permits and Licenses and the Imposition of Local Taxes, Fees and Charges”
15. BLGF Circular No. 020-2019 entitled “Local Fees and Charges (LFC) Toolkit on the
Review, Setting and/or Adoption of Reasonable Local Fees and Charges”
16. COA Circular No. 2021-014 on the “Guidelines on the Use of Electronic Collection (e-
Collection) and Electronic Payment (e-Payment) for Government Transactions”
17. COA Circular No. 2013-007 on the “Guidelines for the Use of Electronic Official
Receipts (eORs) to Acknowledge Collection of Income and Other Receipts of
Government”
18. DICT Memorandum Circular No. 001, series of 2019 entitled “Prescribing the
Implementing Riles and Regulations for Section 14 of RA 11032 – For the
Department of Information and Communications Technology to Establish, Manage
and Maintain the Philippine Business Databank (PBD)
19. DILG-DOF Joint Memorandum Circular No. 2019-01 “Guidelines for the Review,
Adjustment, Setting and/or Adoption of Reasonable Regulatory Fees and Charges of
Local Government Units”
20. DILG Memorandum Circular 2021-008 entitled “Guidelines for Online Monitoring
System of the Implementation of Business Permits and Licensing System (BPLS)
and Building Permits and Certificates of Occupancy”
21. DILG Memorandum Circular 2019-177 entitled “Guidelines in the Integration of the
Issuance of Barangay Clearance in the Permitting Process of Cities Municipalities”
22. DOF Local Finance Circular 001-2019 entitled “Guidelines on the Imposition and
Collection of Local Taxes, Fees and Charges on Professionals”
23. DTI-DOF Joint Department Administrative Order No.02, series of 2006 entitled
“Guidelines Implementing RA 8792 on Electronic Payment and Collection System
(EPCS) in Government”
24. DOF-DBM-DILG Joint Circular No. 2015-01 entitled “Guidelines on the release of the
twenty percent (20%) LGU share from Fire Code revenues”
References
1. List of InstaPay-Affiliated Institutions
2. List of Selected Payment Service Providers in the Philippines
3. Presentation of the Philippine National Public Key Infrastructure (PNPKI)
4. Using Technology for Reform
Templates
1. Unified Application Form
2. Template Tables for the Discovery Phase

2.1. Process Table for the Diagnosis of BPLS
2.2. Action Plan for the eBOSS Engineering Solutions
3. One-time Assessment Templates

3.1. Memorandum of Agreement between the Bureau of Fire Protection and the LGU
on the Assessment and Collection of FSIC Fees
3.2. BLGF Local Fees and Charges Toolkit Template for the Computation of Barangay
Business Clearance Fees
4. Online Payment
4.1. Template Memorandum of Agreement with Online Payment Providers
4.2. LINK.Biz Portal Memorandum of Agreement
5. Courier Service Providers Template Memorandum of Agreement
© Anti-Red Tape Authority
4th & 5th Floor, NFA Building
NFA Compound, Visayas Avenue
Brgy. Vasra, Diliman, Quezon City
Philippines 1128

Manual-for-the-Reengineering-of-Business-Permits-and-Licensing-Systems-in-All-Cities-and-Municipalities-BPLS-Operations-Manual

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Manual-for-the-Reengineering-of-Business-Permits-and-Licensing-Systems-in-All-Cities-and-Municipalities-BPLS-Operations-Manual

Uploaded by

Copyright:

Available Formats

Final version (6 October 2022)

Anti-Red Tape Authority

Technical Writing Team

Manual for the Reengineering of BPLS in All Cities and Municipalities i

I congratulate the Anti-Red Tape Authority, the Department of the

As head of the Economic Development Cluster, I commend this

The Department of Information and Communications Technology

Manual for the Reengineering of BPLS in All Cities and Municipalities iv

My warmest congratulations to the Anti-Red Tape Authority

Further, under DILG's U.N.I.T.E. campaign in 2023, the Department is committed to

ATTY. BENJAMIN C. ABALOS, JR.

Manual for the Reengineering of BPLS in All Cities and Municipalities v

The Department of Trade and Industry (DTI) sends its warm

Mabuhay tayong lahat!

Manual for the Reengineering of BPLS in All Cities and Municipalities vi

In line with its mandate to reduce bureaucratic red tape and

Recalling the issuance of the ARTA-DTI-DILG-DICT JMC No. 1

AFS audited financial statements

Manual for the Reengineering of BPLS in All Cities and Municipalities ix

Manual for the Reengineering of BPLS in All Cities and Municipalities x

Manual for the Reengineering of BPLS in All Cities and Municipalities xi

Messages of Support ......................................................................................................... iii

Manual for the Reengineering of BPLS in All Cities and Municipalities xv

This Manual is part of an inter-agency effort to promote “ease of doing business” by

This Manual aims to achieve three objectives of the 2021 JMC.

1Toolkit can be accessed at:

Manual for the Reengineering of BPLS in All Cities and Municipalities 1

Figure 1: Ease of Doing Business Index Scores among ASEAN Countries in

Manual for the Reengineering of BPLS in All Cities and Municipalities 2

Manual for the Reengineering of BPLS in All Cities and Municipalities 3

1.2 Role of LGUs in Business Registration

Manual for the Reengineering of BPLS in All Cities and Municipalities 4

1.4 Use of this Manual

Manual for the Reengineering of BPLS in All Cities and Municipalities 5

2.0 Getting Ready to Streamline

2.1 Learning the Guiding Principles

Streamlining Principles of the 2021 JMC

Manual for the Reengineering of BPLS in All Cities and Municipalities 6

Reduce Steps and Remove redundant and excessively burdensome processes,

Minimize Costs Be business-friendly by adopting processes that are least

Use Technology Implement the zero-contact policy by using innovative

Amend the Citizen’s Maintain transparency by reflecting the streamlined processes

Manual for the Reengineering of BPLS in All Cities and Municipalities 7

2.2 Knowing the Standards

Standards of the 2021 JMC

Manual for the Reengineering of BPLS in All Cities and Municipalities 8

13 TOP and SOA are used interchangeably in this Manual.

Manual for the Reengineering of BPLS in All Cities and Municipalities 9

Signatories The number of signatories shall be limited to a maximum of three (3)

Complementary Guidelines of 2021 JMC

Inspections Inspections need to be business-friendly and implementing several reforms

• Regulatory offices should issue prior notice to business owners

Manual for the Reengineering of BPLS in All Cities and Municipalities 10

• Checklists shall be used during the inspection to ensure that

• Imposition of local business tax for newly started businesses

Single An applicant engaged in the business of leasing multiple real properties

2.3 Organizing the CART

Manual for the Reengineering of BPLS in All Cities and Municipalities 11

Figure 3: Membership and Proposed Structure of CART for C/MLGUs

Box 1: Functions, Duties, and Responsibilities of CART

Manual for the Reengineering of BPLS in All Cities and Municipalities 12

Manual for the Reengineering of BPLS in All Cities and Municipalities 13

Manual for the Reengineering of BPLS in All Cities and Municipalities 14

2.4 Understanding the Process of Streamlining