202004

“Get your Business Permit in One Hour at Cabuyao’s

One-Stop Shop”

CABUYAO, LAGUNA

“Get your Business Permit in One Hour at Cabuyao’s One-Stop Shop” Copyright © 2004 Philippines-Canada Local Government Support Program (LGSP) The Philippines-Canada Local Government Support Program encourages the use, translation, adaptation and copying of this material for non-commercial use, with appropriate credit given to LGSP. Although reasonable care has been taken in the preparation of this book, neither the publisher and/or contributor and/or editor can accept any liability for any consequence arising from the use thereof or from any information contained herein. Printed and bound in Manila, Philippines Published by: Philippines-Canada Local Government Support Program Unit 1507 Jollibee Plaza Emerald Ave., Pasig City 1600 Philippines Tel. Nos. (632) 637-3511 to 13 www.lgsp.org.ph This project was undertaken with the financial support of the Government of Canada provided through the Canadian International Development Agency (CIDA).

Summary

About Cabuyao, Laguna’s One Stop Shop

Project History

Project Description

Project Results

Replicating One Stop Shop

Key Implementation Steps

Reference Matrix On Replicating One Stop Shop

Lessons And Insights In Replicating The Project

Annexes

1

3

3

4

7

9

9

10

11

13

CONTENTS

1

Summary

Cabuyao, Laguna is a rapidly urbanizing 1st class city of 106,000 people, with many investors and entrepreneurs attracted because of its proximity to Metro Manila. Cabuyao has thus seen the rapid infl ux of businesses, and consequently,

the resulting fl ood in applications for business permits and licenses.

Initially ill-equipped to deal with the sudden rise in such transactions, processing business permits became a headache for the municipal government and business people alike. Then the LGU came up with the idea for a One-Stop-Shop for business permits processing.

The one-stop-shop project aimed to achieve three objectives: 1) streamline the process of issuing business permits, making it faster and more effi cient, 2) eliminate illegal fi xers that charge exorbitant fees to facilitate processing and 3) improve tax collection.

The rationale behind Cabuyao’s initiative was common sense: since business permit application and processing usually peaks during the fi rst 2-3 months of the year, the sensible solution was to put up a peak-season one-stop-shop, by 1) mobilizing staff from various departments to beef up the business permits and license personnel and 2) putting them all together in one large space to facilitate the work

First launched in 1995, Cabuyao’s one-stop-shop has proven to be a “common sense” idea whose time has come. Business permits that used to take 3 days to process now only take one hour to issue. Revenues from business permits and licenses have steadily increased, giving more funds to the LGU to undertake other projects. Investors and entrepreneurs in Cabuyao are more satisfi ed in doing business in the area and more and more investors are seeing the advantages of a business-friendly LGU like Cabuyao’s.

Get your Business Permit in One HourAt Cabuyao’s One-Stop Shop

Cabuyao, Laguna

“Get your Business Permit in One Hour at Cabuyao’s One-Stop Shop”

2

Cabuyao, Laguna

3

ABOUT CABUYAO, LAGUNA’S ONE STOP SHOP

Project History: Setting up a Business-friendly Environment to Attract and Sustain Business

Before Cabuyao put up its One-Stop Shop, a business permit usually takes an one to three days to secure. Offi ces where some of the requirements are obtained are situated far from each other, making it time-consuming and physically taxing for applicants to go from one offi ce to another. Because of the diffi cult paper route, illegal “fi xers” have sprung up around the LGU, offering to ‘short-cut’ the process for applicants in exchange for exorbitant fees. Fixers make money, while the LGU loses revenue and businesses pay more and wait longer for their papers.

In 1995, the municipal government fi nally decided to do something about the problem. A committee was formed to study the problem and consult with the different agencies and offi ces involved in the issuance of business permits.

With the participation of other stakeholders, including business establishments in the area, the committee set 2 major goals: 1) serve the business community more effectively by reducing processing time for business permits; and 2) establish a “One Stop Shop” where the business community would be able to submit and process required documents in one setting and in one sitting.

From these objectives, the local government then trained the municipal employees and the barangay offi cials to enhance their capabilities to take part in the project. From the trained and permanent employees, the municipal government selected those who were hardworking and trustworthy to run and managed the processing center. At the barangay level, the municipal treasurer deputized the barangay treasurer to collect taxes and to undertake a sustained tax collection campaign.

The newly constructed Municipal Hall of Cabuyao


4

Project Description: Doing More with Less

How exactly does the One-Stop Shop work? The one-stop shop opens at the beginning of the year and operates until the bulk of the applications are done. From the initial training on business permit processing given by the LGU, employees from various departments and offi ces were selected to comprise the one-stop shop staff. These include employees from the treasurer’s offi ce, the fi re departments offi ce, the municipal health offi ce, the assessor’s offi ce, the engineering offi ce.

These employees are assigned temporarily to the one-stop shop during the peak season for business permit processing. A large offi ce space is provided for the one-stop shop’s operations at the municipal hall, clearly marked to ensure easy visibility for business permit applicants. During this peak season, almost all the Barangay Chairpersons are also stationed at the League of Barangays Hall next to the town hall, so that they are easily available for the issuance of Barangay clearances, one of the requirements for applying.

Inside the One-Stop Shop

Inside the one-stop shop, the following procedure is followed by staff and clients:

One-Stop Shop Procedure

First of all, a waiting area for clientele is provided where snacks are served to promote a business-friendly atmosphere.

1. Client orientation, briefi ng and fi ling. At the entrance of the One-Stop-Shop Center, an information personnel distributes applications for securing and renewal of business permits. The information personnel briefs the client/s on what to do and what requirements to comply with before they are given a priority number.

The following are the initial requirements for fi ling applications:

Liga ng mga Barangay/ DILG Offi ce Building

Cabuyao, Laguna

5

Table 1. Requirements for Filing Business Permits

New Applicant Renewal

Barangay Business Clearance Barangay Business Clearance

DTI (Single Proprietor) DTI (single prop)

Sec. Registration (Corporation) Sec Registration

Residence Certifi cate (Individual) Statement of gross receipt

Residence Certifi cate (Corporation) Quarterly percentage tax or Financial statement

Certifi cate of Occupancy Previous Mayor’s permit

Health Certifi cate Health Certifi cate

2. Receiving and Initial Screening. After fi lling out the application form in three copies and attaching the requirements given above, the applicants are called according to their priority number. When called, the applicant submits her/his application to the Receiving Section. The Receiving Clerk checks and verifi es all the information contained in the application form and attached documents. After receiving, the applicant proceeds to the Permit and License Section for Business Application Assessment.

3. Assessment of Application. The assessment is based on the line of business indicated in

the application form and in accordance with the existing guidelines. The following are the examples in assessing the amount to be paid by the client:

a. Manufacturing Gross Receipt x 1% x 37.5 % = amount to be paid

b. Retailing Gross Receipt x 2%

c. Services In excess of P2M x 1% x .5O% = amount to be paid

After the assessment, the Licensing Offi cer will indicate the amount to be paid in the Order of Payment Form and signed by the same offi cer.

4. Review of the Assessment. With the Order for Payment Form, the applicant proceeds to the Treasurer’s Offi ce for review and validation of the assessment. The review is undertaken by the Assistant Treasurer.


6

5. Fire Department and Engineering Assessment.

a. Fire Inspection Fee. Depending on the applicant’s business, the representative from the Fire Department will assess the amount to be paid by the applicant. The assessment is in line with the Fire Code of the Philippines and Regulations (PD 1185). The applicant will be issued an Order of Payment for Fire Inspection Fee. Inspection is done after the processing of business permit has been completed or issued to the applicant.

b. Engineering Assessment. The Engineering Department reviews the Certifi cate of Occupancy and Environmental Compliance Certifi cate (ECC). If found defi cient, notation shall be indicated.

c. Business Application Recommendation for Approval. At this stage, the fi nal review of the document is conducted, after which it is endorsed for the Mayor’s Signature. The Mayor’s Offi ce Representatives endorses the application for approval/disapproval by signing in the portion allotted for the Mayor’s Offi ce.

d. Payment and Issuance of Receipt. The applicant pays all the fees at the Treasurer’s Offi ce and obtains Offi cial Receipt.

e. Permit and License Processing. The applicant shall present the application and offi cial receipt to the Permit and License Section Clerk for the issuance of the business permit.

f. SSS Clearance. SSS clearance is being required to all applicants specially those who have employees. The applicant fi ll-out the SSS registration forms and will be given clearance.

g. Issuance of Sanitary Permit. The municipal health offi cer or representative checks and review the health certifi cate submitted by the applicant. S/he will then by given a sanitary permit.

h. Mayor’s Signature. The Mayor signs all the documents required for the issuance of business permit and business plate.

i. Permit and License Segregation and Distribution. The staff in charge segregates the documents and distributes them according to the following:

a. Green - Taxpayer b. Yellow - Treasurer c. Original - File (BPLO)

Cabuyao, Laguna

7

Table 2. Local Revenue

Year Business Licenses and Permits (P) Total Income (P)

1995 5,434,876.82 7,537,690.54

1996 30,281,326.70 75,982,867.60

1997 52,700,350.06 115,886,209.06

1998 73,644,791.49 144,046,412.23

1999 96,274,195.09 185,588,773.05

2000 141,714,239.30 291,562,977.34

2001 170,571,081.12 300,000,000.00

The whole process assumes that the requirements have been complied with. In cases when there are defi ciencies in the application and required supporting documents, the application will continue to be processed, but the business permit and license to operate will not be issued until the applicant has completed all the requirements.

When the peak season is over, all the staff detailed to the One-Stop-Shop returns to their own department/unit. They are also asked to join and participate in the tax information campaign in the Barangays.

Project Results: Faster Service Leads to Longer-lasting Results

The simple idea behind Cabuyao’s One Stop Shop has reaped a multitude of benefi ts – for the local government, local businesses and the community in general.

1. A more business-friendly system for processing business permitsAside from reducing the processing time from 3 days to 1 hour, the One-Stop Shop also help eliminate the presence of fi xers and the old system of “palakasan” and “lagayan” ( favoring one client over another because of political connections or use of grease money).

2. Increase in LGU income From 1995 when the One-Stop Shop was started, revenues from business permits have steadily gone up, resulting in a 149% increase. This made it possible for Cabuyao to become No. 1 in tax collection in the whole province of Laguna for two consecutive years. The revenue generated from the project accounts for almost one third of the total income of the municipality.


8

3. More LGU services due to bigger revenues In turn, the increase in income has enabled the LGU to provide additional services in the form of infrastructures and livelihood programs for its constituents, including the following:

• The “Ospital of Cabuyao”, a Municipal owned and operated hospital expanded its services to serve more patients. One of this services is the provision of ETO Kalusugan cards to indigent families wherein they were given free health services in the said hospital.

• LGU was able to construct a new building for the city hall, PNP, BFP, offi ce of senior citizens, and two-story buildings in 18 barangays and BJMP and the installation of air conditioning units in its offi ces.

• Purchase of fi re trucks, mobile patrols,

• Schoolbuildings, day care centers, health centers

• Road construction

4. Reduced expenses for business clients and the LGUThe establishment of the one-stop-shop program reduced expenses of the business establishments due to fast business permit processing and elimination of fi xers. The LGU, on the other hand, reduced its administrative expenses while serving about 1,800 commercial and industrial establishments because the personnel were drawn from the offi ces involved in the processing of business permits without hiring additional staff.

5. More Businesses attracted to Cabuyao Cabuyao also noted an increase in the number of local and foreign investors due to the convenience brought about by the system. This has, in turn, generated more job opportunities for residents.

6. Better relations between the LGU and the business communityFinally, the One-Stop Shop greatly improved relations between the local government and the business community, making businesses more inclined to pay taxes promptly and comply with other regulations. The result is a more conducive environment for business, governance and community life.

Cabuyao Academy of Science and Technology

Cabuyao, Laguna

9

REPLICATING THE ONE-STOP SHOP

Cabuyao’s “One-Stop-Shop can easily be replicated by 3rd and 4th class municipalities as long as the LGU and national line agencies are supportive and cooperative, and there is available space to house the one-stop shop (furnished with tables and chairs), and willing and competent staff to operate it.

Key Implementation Steps

Several local governments have set up similar one-stop shops, following the steps identifi ed in the implementation of the Cabuyao project.

1. Organize a committee

The committee will be responsible for conceptualization the project and customizing it to the needs of the area. It should consist of the following departments and offi ces :

• Permit and License Division• Treasurer’s Offi ce • Fire Department• Offi ce of the Mayor• Social Security System• Municipal Health Offi ce)

The committee will also be responsible for the selection of permanent employees who will be assigned to the one-stop shop.

2. Coordinate with the different national agencies involved in the issuance of business permits such as DTI, SSS, LLDA and BFD to enlist their support.

3. Consult the business community on the establishment of the one-stop shop and get their participation and support.

4. Obtain an Executive Order for the establishment of the One-Stop Shop.

5. Build capacities of one-stop shop personnel on business permit processing and conducting information campaigns.

6. Establish of “One-Stop-Shop” for the renewal and application of business permits.

7. Install a monitoring and evaluation system at the licenses and permits offi ce in coordination with the Offi ce of the Treasurer and Assessor’s Offi ce.


10

Table 3. Reference Matrix for Replication

Key Implementation Steps Timeline Estimated budget required

1. Formation of a Committee for the conceptualization of the program

1-3 days

2. Coordination with diff erent agencies involved in the issuance of business permits

1 week

3. Participation of the industrial and commercial establishment in the conception of the program through consultation and information dissemination (Tax campaign- 10 months)

2-3 weeks

4. Issuance of Executive Order 1-3 days Budget appropriation for personal services and admin cost embodied in the local annual budget.

5. Establishment of the One-Stop Shop with Client-friendly Facilities

2-4 weeks

6. Capacity building (trainings/orientation to enhance capability of municipal employees/offi cials on the implementation of the program)

1-2 weeks

7. Monitoring and Evaluation Throughout the fi scal year

ETOKALUSUGAN Health Card

Cabuyao, Laguna

11

Lessons and Insights in Replicating the Project

Based on Cabuyao’s experience, there are several key elements to a successful one-stop-shop for business permit processing.

1. Teamwork among LGU offi cials and employees including barangay offi cials and other agencies

2. Ensuring customer satisfaction through effi cient services for a more harmonious relationship between the business establishments and the local offi cials.

3. Commitment coupled with technical competence through training of the staff involved in the project

4. Maximizing existing resources through retraining and reassigning existing staff (As was noted by Cabuyao, minimal resources are needed as long as you have creativity)

One of the 20 Day Care Centers constructed by the Local Government


12

ANNEXESGET YOUR BUSINESS PERMIT IN ONE HOUR

AT CABUYAO’S ONE-STOP SHOP

Cabuyao, Laguna


14

Annex A: Application form for new and renewal of business permit

This form provides inform

ation to those applying for business permits, info outlined as follow

s:• N

ame

• A

ddress

• Line of business

• B

usiness Taxes • Tax and perm

it fees • A

nnual Inspection Renew

al fees

Cabuyao, Laguna

15

Annex B: Application for registration of business and permit to operate (Affi davit)

This form provides information on the business, form outlined as follows:• Name, age, residence, nationality, civil status, etc of owner• Nature or kind of business• Kind of ownership• Affi davit declaring the info are true and correct ( signed by the owner, signed for approval

by the License Inspector and the Municipal Mayor)


16

Appendix C: Order of Payment Form

This form provides data/information on applicant/owner; info outlined as follows: • Name • Kind of establishment• Place of business • Details on Permit Fees: Mayor’s, Sanitary, Health, Garbage

Collection, Sticker

Cabuyao, Laguna

17

Annex D: License to Operate (Tagalog Version)

This certifi cate shows the name of the owner, name and nature of business, date of issuance, and validity of license. Certifi cate is duly signed by the Municipal Mayor


18

Annex E: License to operate (English version)

This certifi cate has the following information:• Name of the owner • Name and nature of business• Date of issuance • Avalidity of license• Certifi cate is duly signed by the Municipal Mayor

Cabuyao, Laguna

19

Annex F: Sample Business License Plate

Cabuyao’s business license plate which contains info on : business license number and year of registration


20

Annex G: Sample follow-up letter/ letter of notice to delinquent taxpayers

Follow up letters are prepared and delivered through the municipal treasurer’s offi ce and deputized barangay treasurer to delinquent taxpayers

Cabuyao, Laguna

21

Annex H: Sample follow-up letter/ letter of notice to delinquent taxpayers (Tagalog version)

Follow up letters are prepared and delivered through the municipal treasurer’s offi ce and deputized barangay treasurer to delinquent taxpayers

202004

Documents

Transcript of 202004