DTI launches handbook on streamlining of business registration in LGUs

The handbook on Good Practices in "Streamlining of Business Registration in LGUs" was launched during the National Convention of League of Cities of the Philippines (LCP) held at the Manila Hotel on January 17 to 20.

In her launch message before the gathering of some 350 LGU executives and guests, DTI Undersecretary for SMED Development, Mel Alonzo said that the handbook is DTI's contribution to help local government units (LGUs) streamline their business registration and licensing procedures.

"This handbook is specifically designed to make it easy for LGUs to simplify their registration procedures so that micro, small and medium enterprises will be encouraged to formalize their business" she said. The development of the handbook was supported by GTZ (German Technical Co-operation), Asia Foundation as well as CIDA and IFC.

By formalizing their businesses, SMEs will be able to access programs offered by the government micro-credit, insurance, export guarantees and other business development services. In turn, the LGUs will be able to collect more revenues from business licenses, taxes, and fees. "This creates a "win-win" situation for both LGUs and government on one hand, and the business sector, particularly the SMEs on the other hand", Alonzo added. This was also testified by the Mayors from Ormoc and Bacolod in a respective audio-visual.

Under the broader economic reform program of the government, streamlining of registration and licensing procedures is part of the reduction the business transaction costs or anti-red tape campaign to increase the Philippines's competitiveness in attracting more foreign investments.

In response, Iloilo City Mayor and LCP National President Jerry P. Trenas thanked DTI and other organizations which helped in the production of the handbook. He emphasized that LGUs play a vital role in the promotion and development of SMEs that could become important drivers of economic development in the country. Recently, the Iloilo City government and the DTI Region 6 and the GTZ SMEDSEP Program signed a memorandum of agreement (MOA) for a technical assistance to streamline the city's business registration system.

GTZ Small and Medium Enterprise Development Sustainable Employment Program Manager Martina Vahlhaus noted that "streamlining of business registration and licensing is one aspect of business and investment climate reform under the donor agency's Private Sector Development Program in Asia Pacific region".

The handbook, together with case studies of streamlining done in the cities Bacolod and Ormoc in the Visayas, was presented in Bangkok during the business conference on enabling environment organized by various donor organizations in November and in the International Finance Corporation Conference in Hanoi in December last year. (PIA)