A few weeks ago, President Ferdinand R. Marcos, Jr. issued Proclamation No. 818 declaring May as Ease of Doing Business Month. Although primarily ceremonial, the move strategically emphasizes streamlining bureaucracy and promoting transparency in public service. By further empowering the Anti-Red Tape Authority (ARTA), this Proclamation reinforces institutional accountability and government efficiency, signaling the Administration’s serious commitment to investor-friendly reforms that are critical in driving sustainable economic growth.
Not long ago, starting or running a business in the Philippines was ridiculously cumbersome. In 2010, the country languished near the bottom of global Ease of Doing Business (EODB) rankings — 144th out of 190 economies. The following year it dropped to 148th.
Substantial improvements came in 2020 when the Philippines leaped 29 spots to rank 95th, marking its first top 100 placement since 2014.
So, what exactly changed? Reforms — lots of them, both big and small. Government agencies, often prodded by ARTA, alongside the private sector and competitiveness advocates, started to simplify procedures and embrace technology.
During my tenure at ARTA, I observed firsthand how targeted regulatory reforms significantly improved processes. Key to these successes was the synergy between national streamlining and the proactive role of local government units (LGUs). Given the country’s structure — with 82 provinces, 149 cities, 1,493 municipalities, and over 42,000 barangays — local autonomy posed potential hurdles to national-level reform initiatives.
Local legislation varies across the nation as LGUs have their own councils tasked with enacting local ordinances. In one city, being topless in public areas is penalized with a fine or jail time. In another, there was a ban on motorcycle backriding or pillioning, unless the riders were related within the first-degree. A barangay ordinance entitled “Protection of the Unborn Child Ordinance” was widely criticized and later revised for containing a ban on the sale of contraceptives.
Hence, my worry that there would potentially be issues where streamlining succeeded at the national level, only to stall and delay at the local level.
How wonderful it is to be proven wrong.
LGU autonomy on the matter sparked innovation and prompted digitalization throughout the country, setting examples for others to benchmark from and replicate.
In Iloilo City, the enhanced Electronic Business Permits and Licensing System, launched in 2024, allowed for permits to be secured 100% online, from the city to the barangay level.
Tagbilaran City earned the ARTA Certificate of Commendation for a fully streamlined and digitalized permitting system. Customers file unified application forms, upload supporting documents, pay the fees digitally, and receive the digital permits which include barangay and fire safety certificates.
Quezon City (QC), the country’s most populous city and the largest in the National Capital Region (NCR), took very proactive steps in the digitalization of business permitting systems through its Online Unified Business Permit Application System where citizens apply, pay, and receive their permits. Hard copy permits are automatically couriered to the applicants, further reducing opportunities for red tape. QC is also the first city to integrate with the Department of Trade and Industry (DTI), enabling one-stop functionality for sole proprietorships.
QC has taken further steps through its Automated Zoning Evaluation System (AZES), a geotagging tool enabling quick and efficient assessments of business applications in relation to the zoning classifications and regulations. AZES is publicly available and shows business density to the street level, enabling would-be entrepreneurs the ability to ascertain whether their desired location is appropriate for their planned business activity.
Parañaque is arguably the pioneer of EODB improvements, having achieved numerous integrations even prior to the passage of the EODB Law. It integrated barangay permits and other National Government permits into the city’s systems. It was among the first to go fully digital, continuously streamlined their processes, and, through a number of measures including their Project ERIC, completely obliterated the need for physical contact and thereby heavily reduced temptations for red tape and corruption. In 2023, ARTA cited Parañaque as the only city that was fully compliant with the eBOSS mandate.
Some cities placed their services literally in the palm of one’s hand by integrating with the eGovPH app. In the NCR, Caloocan, Makati, Manila, Parañaque, Pateros, and QC have their business permitting systems integrated. For some, the eGovPH app can be used to process or pay for other governmental services, such as parking and traffic violations (Parañaque), occupational work permits (QC), and real property taxes, business taxes, health permits, and community tax certificates (Manila).
These LGUs have benefited from their EODB efforts through visible increases in revenue generation. Between 2023 and 2024, 14 LGUs with eBOSS systems collected P55 billion from business permits alone, jumping 14% to P61.62 billion in 2024. In QC, new businesses breached the 10,000 mark, up by 25%. Bacolod City logged an 8% year-on-year increase as well. Parañaque’s business tax collections and fees increased 17% from P4.4 billion to P5 billion.
The Philippine journey in improving EODB is a story of significant strides forward, albeit with a long road still ahead. From being mired in red tape in the past, the country has shown that political will and concrete reforms can make a tangible difference. The message is clear to investors — we’re open for business.
This article reflects the personal opinion of the author and not the official stand of the Management Association of the Philippines or MAP.
Ira Paulo Pozon is the chair of the EODB Committee of MAP. He is the former chief of staff and OIC director for the Better Regulations Office of ARTA. He is a senior partner of Pozon Recto Peteache and Laiz law office. He is also the manager of the Legal, Policy, and Quality Management Office and the chief of staff of the Southeast Asian Ministers of Education Organization Regional Center for Educational Innovation and Technology (SEAMEO INNOTECH).
