E-Blms

Chapter I

INTRODUCTION

A. Project Context

Doing business in the Philippines, either as single proprietorship, partnership or corporation, calls for licenses or permits from the government. All business persons need to obtain a business license in the locality where they will establish their business and every locality mandates that all business owners should acquire business permits and licenses in order for the business to operate legally. This is in accordance with the Local Government Code of 1991, or otherwise known as the Republic Act No. 7160, which establishes the system and powers of provincial, city and municipal governments. It empowers the local governments to enact local tax measures, including real property taxes. Furthermore, it assures the local governments a share in the national internal revenue.

Section 130 of the Local Government Code of 1991, further states that each local government unit shall, as far as practicable, evolve a progressive system of taxation and Business Permit and Licensing System (BLPS). This BPLS refers to the procedures followed by cities and municipalities in processing business permits (more commonly known as Mayor’s Permit) which must be secured by business persons to operate legally. As a rule, business licensing is part of its compliance and accountability to its stakeholders, which can include local, country, state and federal government as well as customers and vendors. Depending on the business location, the licensing process can be difficult and costly, tense with liability exposure for the business owner. On top of that, it may not be easy for the new business to find out about licenses, permits and registrations, it needs just to open its door and to keep its door open. The licenses, permits, registrations vary by location of the business including where its products are produced and sold and by the business' industry (Companies Incorporated, 1877).

Two surveys have been commissioned in recent years to assess...