Cabuyao 2004 - LGRC DILG 10

“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 theuse, translation, adaptation and copying of this material for non-commercialuse, 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 liabilityfor any consequence arising from the use thereof or from any informationcontained herein.Printed and bound in Manila, PhilippinesPublished by:Philippines-Canada Local Government Support ProgramUnit 1507 Jollibee PlazaEmerald Ave., Pasig City1600 PhilippinesTel. Nos. (632) 637-3511 to 13www.lgsp.org.phThis project was undertaken with the financial support of the Government ofCanada provided through the Canadian International Development Agency(CIDA).

CONTENTSSummaryAbout Cabuyao, Laguna’s One Stop ShopProject HistoryProject DescriptionProject ResultsReplicating One Stop ShopKey Implementation StepsReference Matrix On Replicating One Stop ShopLessons And Insights In Replicating The ProjectAnnexes1334799101113

SummaryCabuyao, Laguna is a rapidly urbanizing 1st class city of 106,000 people, withmany investors and entrepreneurs attracted because of its proximity to MetroManila. Cabuyao has thus seen the rapid influx of businesses, and consequently,the resulting flood in applications for business permits and licenses.Initially ill-equipped to deal with the sudden rise in such transactions, processing businesspermits became a headache for the municipalgovernment and business people alike. Then theLGU came up with the idea for a One-Stop-Shopfor business permits processing.The one-stop-shop project aimed to achievethree objectives: 1) streamline the process ofissuing business permits, making it faster andmore efficient, 2) eliminate illegal fixers thatcharge exorbitant fees to facilitate processingand 3) improve tax collection.Get your BusinessPermit in One HourAt Cabuyao’s One-Stop ShopCabuyao, LagunaThe rationale behind Cabuyao’s initiative wascommon sense: since business permit application and processing usually peaks duringthe first 2-3 months of the year, the sensible solution was to put up a peak-seasonone-stop-shop, by 1) mobilizing staff from various departments to beef up the businesspermits and license personnel and 2) putting them all together in one large space tofacilitate the workFirst 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 nowonly take one hour to issue. Revenues from business permits and licenses have steadilyincreased, giving more funds to the LGU to undertake other projects. Investors andentrepreneurs in Cabuyao are more satisfied in doing business in the area and more andmore investors are seeing the advantages of a business-friendly LGU like Cabuyao’s.1

“Get your Business Permit in One Hour at Cabuyao’s One-Stop Shop”2

Cabuyao, LagunaABOUT CABUYAO, LAGUNA’S ONE STOP SHOPProject History: Setting up a Business-friendly Environment to Attract and SustainBusinessBefore Cabuyao put up its One-Stop Shop, a business permitusually takes an one to three daysto secure. Offices where some ofthe requirements are obtained aresituated far from each other, makingit time-consuming and physicallytaxing for applicants to go from oneoffice to another. Because of thedifficult paper route, illegal “fixers”have sprung up around the LGU,offering to ‘short-cut’ the processfor applicants in exchange forexorbitant fees. Fixers make money,while the LGU loses revenue andbusinesses pay more and waitlonger for their papers.The newly constructed Municipal Hall of CabuyaoIn 1995, the municipal government finally decided to do something about the problem. Acommittee was formed to study the problem and consult with the different agencies andoffices 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 byreducing processing time for business permits; and 2) establish a “One Stop Shop” where thebusiness community would be able to submit and process required documents in one settingand in one sitting.From these objectives, the local government then trained the municipal employees and thebarangay officials to enhance their capabilities to take part in the project. From the trained andpermanent employees, the municipal government selected those who were hardworking andtrustworthy to run and managed the processing center. At the barangay level, the municipaltreasurer deputized the barangay treasurer to collect taxes and to undertake a sustained taxcollection campaign.3

“Get your Business Permit in One Hour at Cabuyao’s One-Stop Shop”Project Description: Doing Morewith LessLiga ng mga Barangay/ DILG Office BuildingHow exactly does the One-Stop Shopwork? The one-stop shop opens at thebeginning of the year and operatesuntil the bulk of the applications aredone. From the initial training onbusiness permit processing given bythe LGU, employees from variousdepartments and offices wereselected to comprise the one-stopshop staff. These include employeesfrom the treasurer’s office, the firedepartments office, the municipalhealth office, the assessor’s office,the engineering office.These employees are assigned temporarily to the one-stop shop during the peak seasonfor business permit processing. A large office space is provided for the one-stop shop’soperations at the municipal hall, clearly marked to ensure easy visibility for business permitapplicants.During this peak season, almost all the Barangay Chairpersons are also stationed at theLeague of Barangays Hall next to the town hall, so that they are easily available for theissuance of Barangay clearances, one of the requirements for applying.Inside the One-Stop ShopInside the one-stop shop, the following procedure is followed by staff and clients:One-Stop Shop ProcedureFirst of all, a waiting area for clientele is provided where snacks are served to promote abusiness-friendly atmosphere.1. Client orientation, briefing and filing. At the entrance of the One-Stop-Shop Center,an information personnel distributes applications for securing and renewal of businesspermits. The information personnel briefs the client/s on what to do and what requirementsto comply with before they are given a priority number.The following are the initial requirements for filing applications:4

Cabuyao, LagunaTable 1. Requirements for Filing Business PermitsNew ApplicantBarangay Business ClearanceDTI (Single Proprietor)Sec. Registration (Corporation)Residence Certificate (Individual)Residence Certificate (Corporation)Certificate of OccupancyHealth CertificateRenewalBarangay Business ClearanceDTI (single prop)Sec RegistrationStatement of gross receiptQuarterly percentage tax or Financial statementPrevious Mayor’s permitHealth Certificate2. Receiving and Initial Screening. After filling out the application form in three copiesand attaching the requirements given above, the applicants are called according to theirpriority number. When called, the applicant submits her/his application to the ReceivingSection. The Receiving Clerk checks and verifies all the information contained in theapplication form and attached documents. After receiving, the applicant proceeds to thePermit and License Section for Business Application Assessment.3. Assessment of Application. The assessment is based on the line of business indicated inthe application form and in accordance with the existing guidelines. The following are theexamples in assessing the amount to be paid by the client:a. ManufacturingGross Receipt x 1% x 37.5 % = amount to be paidb. RetailingGross Receipt x 2%c. ServicesIn excess of P2M x 1% x .5O% = amount to be paidAfter the assessment, the Licensing Officer will indicate the amount to be paid in theOrder of Payment Form and signed by the same officer.4. Review of the Assessment. With the Order for Payment Form, the applicant proceeds to theTreasurer’s Office for review and validation of the assessment. The review is undertakenby the Assistant Treasurer.5

“Get your Business Permit in One Hour at Cabuyao’s One-Stop Shop”5. Fire Department and Engineering Assessment.a. Fire Inspection Fee. Depending on the applicant’s business, the representative from theFire Department will assess the amount to be paid by the applicant. The assessment isin line with the Fire Code of the Philippines and Regulations (PD 1185). The applicantwill be issued an Order of Payment for Fire Inspection Fee. Inspection is done after theprocessing of business permit has been completed or issued to the applicant.b. Engineering Assessment. The Engineering Department reviews the Certificate ofOccupancy and Environmental Compliance Certificate (ECC). If found deficient,notation shall be indicated.c. Business Application Recommendation for Approval. At this stage, the final review ofthe document is conducted, after which it is endorsed for the Mayor’s Signature. TheMayor’s Office Representatives endorses the application for approval/disapproval bysigning in the portion allotted for the Mayor’s Office.d. Payment and Issuance of Receipt. The applicant pays all the fees at the Treasurer’sOffice and obtains Official Receipt.e. Permit and License Processing. The applicant shall present the application and officialreceipt to the Permit and License Section Clerk for the issuance of the businesspermit.f. SSS Clearance. SSS clearance is being required to all applicants specially those whohave employees. The applicant fill-out the SSS registration forms and will be givenclearance.g. Issuance of Sanitary Permit. The municipal health officer or representative checksand review the health certificate submitted by the applicant. S/he will then by givena sanitary permit.h. Mayor’s Signature. The Mayor signs all the documents required for the issuance ofbusiness permit and business plate.i. Permit and License Segregation and Distribution. The staff in charge segregates thedocuments and distributes them according to the following:a. Green - Taxpayerb. Yellow - Treasurerc. Original - File (BPLO)6

Cabuyao, LagunaThe whole process assumes that the requirements have been complied with. In caseswhen there are deficiencies in the application and required supporting documents, theapplication will continue to be processed, but the business permit and license to operatewill 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 owndepartment/unit. They are also asked to join and participate in the tax information campaignin the Barangays.Project Results: Faster Service Leads to Longer-lasting ResultsThe simple idea behind Cabuyao’s One Stop Shop has reaped a multitude of benefits – forthe 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 helpeliminate the presence of fixers and the old system of “palakasan” and “lagayan” ( favoringone client over another because of political connections or use of grease money).2. Increase in LGU incomeFrom 1995 when the One-Stop Shop was started, revenues from business permits havesteadily gone up, resulting in a 149% increase. This made it possible for Cabuyao to becomeNo. 1 in tax collection in the whole province of Laguna for two consecutive years. Therevenue generated from the project accounts for almost one third of the total income of themunicipality.Table 2. Local RevenueYear Business Licenses and Permits (P) Total Income (P)1995 5,434,876.82 7,537,690.541996 30,281,326.70 75,982,867.601997 52,700,350.06 115,886,209.061998 73,644,791.49 144,046,412.231999 96,274,195.09 185,588,773.052000 141,714,239.30 291,562,977.342001 170,571,081.12 300,000,000.007

“Get your Business Permit in One Hour at Cabuyao’s One-Stop Shop”3. More LGU services due to biggerrevenuesIn turn, the increase in income hasenabled the LGU to provide additionalservices in the form of infrastructuresand livelihood programs for itsconstituents, including the following:Cabuyao Academy of Science and Technology• The “Ospital of Cabuyao”, aMunicipal owned and operatedhospital expanded its services toserve more patients. One of thisservices is the provision of ETOKalusugan cards to indigent familieswherein they were given free healthservices in the said hospital.• LGU was able to construct a new building for the city hall, PNP, BFP, office of seniorcitizens, and two-story buildings in 18 barangays and BJMP and the installation of airconditioning units in its offices.• Purchase of fire trucks, mobile patrols,• Schoolbuildings, day care centers, health centers• Road construction4. Reduced expenses for business clients and the LGUThe establishment of the one-stop-shop program reduced expenses of the businessestablishments due to fast business permit processing and elimination of fixers. The LGU, onthe other hand, reduced its administrative expenses while serving about 1,800 commercialand industrial establishments because the personnel were drawn from the offices involved inthe processing of business permits without hiring additional staff.5. More Businesses attracted to CabuyaoCabuyao also noted an increase in the number of local and foreign investors due to theconvenience brought about by the system. This has, in turn, generated more job opportunitiesfor residents.6. Better relations between the LGU and the business communityFinally, the One-Stop Shop greatly improved relations between the local government and thebusiness community, making businesses more inclined to pay taxes promptly and complywith other regulations. The result is a more conducive environment for business, governanceand community life.8

Cabuyao, LagunaREPLICATING THE ONE-STOP SHOPCabuyao’s “One-Stop-Shop can easily be replicated by 3rd and 4th class municipalitiesas long as the LGU and national line agencies are supportive and cooperative, and there isavailable space to house the one-stop shop (furnished with tables and chairs), and willingand competent staff to operate it.Key Implementation StepsSeveral local governments have set up similar one-stop shops, following the steps identifiedin the implementation of the Cabuyao project.1. Organize a committeeThe committee will be responsible for conceptualization the project and customizing it tothe needs of the area. It should consist of the following departments and offices :• Permit and License Division• Treasurer’s Office• Fire Department• Office of the Mayor• Social Security System• Municipal Health Office)The committee will also be responsible for the selection of permanent employees whowill be assigned to the one-stop shop.2. Coordinate with the different national agencies involved in the issuance of businesspermits 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 theirparticipation 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 conductinginformation 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 office in coordinationwith the Office of the Treasurer and Assessor’s Office.9

“Get your Business Permit in One Hour at Cabuyao’s One-Stop Shop”Table 3. Reference Matrix for ReplicationKey Implementation Steps Timeline Estimated budget required1. Formation of a Committee for theconceptualization of the program2. Coordination with different agenciesinvolved in the issuance of businesspermits3. Participation of the industrial andcommercial establishment in theconception of the program throughconsultation and informationdissemination (Tax campaign- 10months)1-3 days1 week2-3 weeks4. Issuance of Executive Order 1-3 days Budget appropriation forpersonal services and admin costembodied in the local annualbudget.5. Establishment of the One-Stop Shopwith Client-friendly Facilities2-4 weeks6. Capacity building (trainings/orientation to enhance capability ofmunicipal employees/officials on theimplementation of the program)1-2 weeks7. Monitoring and Evaluation Throughout thefiscal yearETOKALUSUGAN Health Card10

Cabuyao, LagunaLessons and Insights in Replicating the ProjectBased on Cabuyao’s experience, there are several key elements to a successful one-stopshopfor business permit processing.1. Teamwork among LGU officials and employees including barangay officials and otheragencies2. Ensuring customer satisfaction through efficient services for a more harmoniousrelationship between the business establishments and the local officials.3. Commitment coupled with technical competence through training of the staff involvedin the project4. Maximizing existing resources through retraining and reassigning existing staff (As wasnoted by Cabuyao, minimal resources are needed as long as you have creativity)One of the 20 Day Care Centers constructed by the Local Government11

“Get your Business Permit in One Hour at Cabuyao’s One-Stop Shop”12

ANNEXESGET YOUR BUSINESS PERMIT IN ONE HOURAT CABUYAO’S ONE-STOP SHOPCabuyao, Laguna

“Get your Business Permit in One Hour at Cabuyao’s One-Stop Shop”Annex A: Application form for new and renewal of businesspermitThis form provides information to those applying for business permits, info outlined as follows:• Name • Address • Line of business• Business Taxes • Tax and permit fees • Annual Inspection Renewal fees14

Cabuyao, LagunaAnnex B: Application for registration of business and permit tooperate (Affidavit)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• Affidavit declaring the info are true and correct ( signed by the owner, signed for approvalby the License Inspector and the Municipal Mayor)15

“Get your Business Permit in One Hour at Cabuyao’s One-Stop Shop”Appendix C: Order of Payment FormThis 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, GarbageCollection, Sticker16

Cabuyao, LagunaAnnex D: License to Operate (Tagalog Version)This certificate shows the name of the owner, name and nature of business, date of issuance,and validity of license. Certificate is duly signed by the Municipal Mayor17

“Get your Business Permit in One Hour at Cabuyao’s One-Stop Shop”Annex E: License to operate (English version)This certificate has the following information:• Name of the owner• Date of issuance• Certificate is duly signed by the Municipal Mayor• Name and nature of business• Avalidity of license18

Cabuyao, LagunaAnnex F: Sample Business License PlateCabuyao’s business license plate which contains info on : business license number and yearof registration19

“Get your Business Permit in One Hour at Cabuyao’s One-Stop Shop”Annex G: Sample follow-up letter/ letter of notice to delinquenttaxpayersFollow up letters are prepared and delivered through the municipal treasurer’s office anddeputized barangay treasurer to delinquent taxpayers20

Cabuyao, LagunaAnnex H: Sample follow-up letter/ letter of notice to delinquenttaxpayers (Tagalog version)Follow up letters are prepared and delivered through the municipal treasurer’s office anddeputized barangay treasurer to delinquent taxpayers21