Stamping out red tape long coming
‘Corporations’ reportorial and other regulatory requirements provide vital information and insights to policymakers, regulators, law enforcers, businesses, investors, and other stakeholders.’
Red is a significant symbol to celebrate the start of the Christmas festivities all over the world. Yet, when it comes to businesses, red tape is a major obstacle to investment in the Philippines.
It is estimated that businesses spend an average of 100 days and at least 11 percent of their revenue on compliance with government regulations.
Primarily, this set a negative precedent across local businesses, which, in turn, made it difficult for them to compete in the global marketplace — not to mention its effect on dwindling foreign investment.
The Anti-Red Tape Authority or ARTA is a government agency responsible for reducing red tape in the Philippines.
It was created in 2011 by President Benigno Aquino III to make it easier for businesses to start and operate in the country.
ARTA has made significant progress in reducing red tape in the Philippines. In 2016, the country ranked 109th out of 190 countries in the World Bank's Doing Business report. By 2020, the Philippines had climbed to 95th place.
ARTA's efforts have been praised by businesses and investors. In a 2018 survey by the Philippine Chamber of Commerce and Industry, 90 percent of respondents said that ARTA had made it easier for them to do business in the Philippines.
ARTA is still a relatively young agency, and there is still more work to be done. However, it has made significant progress in reducing red tape and making the Philippines a more business-friendly environment.
Notably, in the local capital market, the Securities and Exchange Commission or SEC made it easier for corporations to comply with their reportorial requirements by integrating certain reportorial requirements with the registration process and providing for the automatic enrollment of newly registered corporations in the Commission's online submission portal.
Last 18 December, the Commission issued SEC Memorandum Circular 23, Series of 2023, which provides for the Integration of newly registered corporations' compliance with SEC Memorandum Circular 28, Series of 2020 or MC 28 and SEC Memorandum Circular No. 1, Series of 2021 or MC 1 with the SEC Electronic Simplified Processing of Application for Registration of Company or eSPARC and the SEC Electronic Filing and Submission Tool or eFAST.