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Slow Government Service: What the Ease of Doing Business Law Says

Quick answer

The Ease of Doing Business and Efficient Government Service Delivery Act of 2018 (Republic Act No. 11032, often called the anti-red tape law) sets maximum processing times for government transactions: 3 working days for simple ones and 7 working days for complex ones, from receipt of a complete application. If an office does not act in time on an original application for a license, clearance, permit, certification or authorization, the application is deemed approved. Complaints can go to the office's complaints desk, the Anti-Red Tape Authority (ARTA), the Civil Service Commission or the Ombudsman.

Which offices does the law cover?

Section 3 says the Act applies to "all government offices and agencies including local government units (LGUs), government-owned or -controlled corporations".

What is a Citizen's Charter?

Every office must post a Citizen's Charter for its services (Section 6). For each service, it must show:

  • the checklist of requirements;
  • the procedure;
  • the person responsible for each step;
  • the maximum time to finish the process;
  • the documents the applicant must present;
  • the fees, if any; and
  • the procedure for filing complaints.

The office may not go beyond its charter. The employee who receives an application must immediately point out any missing requirement, and the missing items "shall be limited to those enumerated in the Citizen's Charter" (Section 9(a)(2)). The applicant gets an acknowledgement receipt with the name of the responsible officer and the date and time of receipt.

What are the processing time limits?

Section 9(b)(1) sets these limits, counted from receipt of the complete application or request:

What are the processing time limits?
Type of transactionMaximum processing time
Simple (only ministerial action needed, or only minor issues)3 working days
Complex (needs evaluation of complicated issues)7 working days
Activities that pose a danger to public health, safety, morals or policy, or highly technical applications20 working days, or shorter if the office sets it
Applications that need the approval of the sanggunian (local council)45 working days, extendible by 20 working days

The time may be extended only once, for the same number of days. Before the time runs out, the office must notify the applicant in writing of the reason for the extension and the final date of release. Processing times are suspended in case of force majeure or system failure.

Other rules in Section 9:

  • No application may be returned "without appropriate action". If it is disapproved, the office must send a formal notice with the reason within the processing time.
  • A denial must be "fully explained in writing", with the name of the person who denied it and the grounds.
  • Documents need at most three signatures.
  • People inside the office before the end of working hours must be served, even during lunch break and after regular hours.
  • Each office must have a public assistance or complaints desk.

What does "deemed approved" mean?

Section 10 says that if an office "fails to approve or disapprove an original application or request for issuance of license, clearance, permit, certification or authorization within the prescribed processing time, said application or request shall be deemed approved". Two conditions apply: all required documents were submitted and all required fees were paid.

The acknowledgement receipt together with the official receipt for the fees "shall be enough proof or has the same force and effect" of the license, clearance, permit, certification or authorization. For renewals, the license is automatically extended.

Limits in the implementing rules:

  • automatic extension or renewal does not apply to licenses or permits that had already expired when the application was filed (Rule VIII, Section 3);
  • for offices performing quasi-judicial functions, automatic approval applies only to the issuance of a license, clearance, permit, certification or authorization (Rule VIII, Section 1(b));
  • on complaint, with the receipts, and after checking that all documents and fees were complete, ARTA issues a declaration of completeness and orders the office to issue the approval, extension or renewal (Rule VIII, Section 4).

Automatic approval covers only the documents the Act names. It should not be assumed for other kinds of requests.

What counts as a violation?

Section 21 says that any person who performs, or causes the performance of, these acts is liable:

  • refusing to accept a complete application without due cause;
  • imposing requirements not listed in the Citizen's Charter;
  • imposing costs not reflected in the Citizen's Charter;
  • not giving written notice of a disapproval;
  • not delivering the service within the processing time without due cause;
  • not attending to people inside the office before the end of working hours and during lunch break;
  • failing or refusing to issue official receipts; and
  • fixing, or colluding with fixers, for money or other advantage.

A fixer is any person who, with access to people working in a government office, "facilitates speedy completion of transactions for pecuniary gain or any other advantage or consideration" (Section 4(e)).

What are the penalties?

Section 22 sets these penalties:

What are the penalties?
OffensePenalty
First offenseadministrative liability with six months of suspension
Second offensedismissal from service, perpetual disqualification from public office, forfeiture of retirement benefits, imprisonment of 1 to 6 years and a fine of ₱500,000 to ₱2,000,000
Fixing or collusion with fixers (even the first time)the second-offense penalty

Under the implementing rules, the same act repeated counts as a second offense, while different acts done once each all count as first offenses (Rule XIII, Section 4).

Where can you complain?

The Act and its rules name these channels. The law itself does not give hotline numbers.

  • The office itself. Every office must have a public assistance or complaints desk, attended to even during break time, and must set up hotlines, SMS or other ways to receive complaints (Section 9(h); IRR Rule VII, Section 9). The Citizen's Charter must state the procedure for complaints.
  • Anti-Red Tape Authority (ARTA). Section 17 lets ARTA start an investigation on its own or upon a complaint, refer it to the proper agency, and assist complainants in filing cases with the Civil Service Commission, the Ombudsman and the courts. Under the rules, a complaint may be an initial complaint, or a formal complaint that is written, sworn to and supported by evidence. Anonymous complaints may be given due course if detailed enough (IRR Rule XIV).
  • Civil Service Commission and Ombudsman. Section 24 vests administrative jurisdiction over violations in the CSC or the Office of the Ombudsman. The rules say the CSC receives, hears and decides complaints against erring government employees (IRR Rule XI, Section 2).

Has the Supreme Court applied the Act?

Yes. In Independent Electricity Market Operator of the Philippines, Inc. v. Energy Regulatory Commission (2022), the Court ordered a government commission to act on an application and said an email that did not fully explain the grounds could not count as a denial "as required under Section 9(c) of R.A. No. 11032". In Quezon for Environment v. Medialdea (2024), the Court upheld an automatic approval rule for energy projects and pointed to the Act as its "statutory anchor".

How does this work in real life?

These are made-up examples to show how the rules work. They are not advice for any real case.

Grace applies for a certificate at a city office with complete documents and pays the fee. The Citizen's Charter lists it as a simple transaction, so the office must act within 3 working days, extendible once with written notice (Section 9(b)(1)). If the office does not act on her original application in time, it is deemed approved, and her acknowledgement receipt and official receipt have the same force and effect as the certificate (Section 10).

Ramon is told at a municipal office to bring a document that is not in the Citizen's Charter. Imposing a requirement not listed in the charter is a violation under Section 21(b). He can bring it up at the office's complaints desk or with ARTA.

When do you need a lawyer?

The implementing rules let ARTA act on complaints received in any form, including electronic means. Talk to a lawyer if a denied or delayed permit is costing your business money, if you want to file a formal administrative or criminal complaint against an official, or if you need a court order to make an office act. For the steps of getting a business permit and barangay clearance, see Barangay clearance for a business permit and our government guides.

If you cannot afford a lawyer, see Free legal help in the Philippines.

Frequently asked questions

How long can a government office take to process my application?

Under RA 11032, no longer than 3 working days for simple transactions and 7 working days for complex ones, counted from receipt of the complete application. Applications on activities that pose a danger to public health, safety or morals, or that are highly technical, may take up to 20 working days. The time may be extended once, with written notice before it lapses.

What happens if the office does not act within the processing time?

Section 10 says an original application for a license, clearance, permit, certification or authorization is deemed approved if all required documents were submitted and all fees paid. The acknowledgement receipt with the official receipt has the same force and effect as the license or permit.

Can an office ask for documents not listed in its Citizen's Charter?

No. Imposing requirements other than those in the Citizen's Charter, or costs not reflected in it, is a violation under Section 21 of the Act.

Where can I complain about red tape?

The law names the office's own public assistance or complaints desk and the complaint procedure in its Citizen's Charter, the Anti-Red Tape Authority, which can investigate complaints and help file cases, and the Civil Service Commission and the Office of the Ombudsman for administrative cases.

What is the penalty for a government employee who violates the Act?

For a first offense, administrative liability with six months of suspension. For a second offense, or for fixing, dismissal from service, perpetual disqualification from public office, forfeiture of retirement benefits, imprisonment of 1 to 6 years and a fine of ₱500,000 to ₱2,000,000.

What does the law say about fixers?

Section 21(h) makes any person who engages in fixing or colludes with fixers liable, and Section 22 applies the heavier second-offense penalty even to a first act of fixing. The Act defines a fixer as anyone who, with access to people working in a government office, speeds up transactions for money or other advantage.

General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.

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