With just three months to go before the November 1, 2026 deadline, local government units, including the 11 municipalities in Catanduanes, will have to digitize the issuance of business permits or face legal action from the Anti-Red Tape Authority (ARTA).
As of last week, only 129 LGUs out of the 149 cities and 1,493 municipalities have already implemented fully online, end-to-end business permitting systems, ARTA Director General Ernesto Perez said in a media interview.
Among the Bicol region’s seven (7) cities and 107 municipalities, only two LGUs – Naga City and Legazpi City – have complied with Republic Act 12254, or the E-Governance Act, which gave local governments until Oct. 31, 2026, to operationalize their Electronic Business One-Stop Shop (eBOSS) platforms, with enforcement beginning Nov. 1.
Perez disclosed that the agency has began filing administrative cases before the Ombudsman against LGUs that failed to comply with the law, especially those which completely ignored the notice to explain.
An initial batch of complaints has been filed, he added, with around 400 more LGUs under legal review.
The eBOSS is a digital platform that allows applicants to submit documents, pay fees, and receive a printable mayor’s permit without visiting a government office.
Digitalization is the most effective tool against red tape and corruption, DG Perez stated, with eBOSS as a fundamental example of applying a streamlined and digitalized process.
He cited Lapu-Lapu City in Cebu province as a model for processing a business permit in under five minutes.
In some Metro Manila cities – including Mandaluyong, Valenzuela, Quezon City and Marikina – business permits, including renewals, can now be processed in as little as 10 minutes, a benchmark which he said is comparable to Singapore.
Businesses registered through a fully eBOSS-compliant LGU receive a mayor’s permit with a unique QR code for instant verification.
The QR code feature encourages voluntary business registration and tax compliance, ARTA stated, with all LGUs with operational eBOSS platforms reporting increased business registrations and revenue collection.
A free system called eLGU is available through the Department of Information and Communications Technology (DICT) at no cost to LGUs but those who use third-party providers must ensure their systems integrate with eLGU and the Bureau of Fire Protection (BFP) before the deadline.
The eBOSS push is part of the mandate under Republic Act 11032, or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, which created ARTA and requires government agencies to streamline and digitalize public services.
Last week, the Department of the Interior and Local Government (DILG) said it is accelerating digital transformation across LGUs nationwide, advancing President Ferdinand R. Marcos, Jr.’s directive to create a more business-friendly environment, attract investments, and stimulate economic growth in communities.
In support of the President’s directive and in compliance with Republic Act No. 11032, or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, the DILG reported that 1,414 or 92.18 percent of the country’s 1,534 cities and municipalities are compliant with the prescribed Business Permitting and Licensing System (BPLS) standards for new applications, while 1,429 or 93.16 percent comply with the Building Permits and Certificate of Occupancy (BPCO) standards for renewal applications.
The Department said the high compliance rates translate to faster, more efficient, and more predictable business permitting and licensing services, making it easier for entrepreneurs and investors to establish and expand their operations while helping increase local revenues and generate employment opportunities.
The DILG likewise recognized the commitment of LGUs to embrace digital innovation and continuously improve public service delivery, noting that their efforts have not only enhanced the ease of doing business but also made government services more accessible and convenient for the public.
To further strengthen digital governance, the Department reported that 1,030 LGUs have already adopted the e-LGU System, allowing citizens to conveniently access government services online, including applications for business permits and licenses, payment of local taxes and fees, civil registry services, and other frontline transactions.
Jointly launched by the DILG and the Department of Information and Communications Technology (DICT) in July 2023, the e-LGU System serves as a unified, people-centered digital platform that enables faster, more transparent, and more efficient government transactions.
At the barangay level, more than 25,000 barangays have also been oriented on the Barangay Information Management System (BIMS), a free digital platform designed to improve data accuracy, strengthen reporting, and support more efficient day-to-day governance through streamlined administrative and operational processes.