GUIDELINES ON STREAMLINING OF LGU SYSTEMS AND

PROCEDURES ON BUSINESS AND NONBUSINESS-RELATED

SERVICES FOR CITIES AND MUNICIPALITIES
October 11, 2021

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BACKGROUND
• President Rodrigo Duterte’s priority reform is “increasing the country’s
competitiveness and ease of doing business.” This particular socio-economic
agenda is also reiterated in the Philippine Development Plan 2017-2022 under
the pillar of Malasakit (Enhancing the Social Fabric).
• The Philippine Development Plan 2017-2022 ensures people-centered, clean, and
efficient governance through seamless service delivery.
• In May 2018, President Duterte signed into law the Ease of Doing Business and
Efficient Government Service Delivery Act of 2018. It aims to simplify and
expedite processes of putting up and running a business in the country.
• Pursuant to Section 5 of Republic Act 11032, the Department of the Interior and
Local Government (DILG) issued Memorandum Circular 2018-214 on Re-
engineering of LGU systems and procedures.
PURPOSE
• To set standards in processing business and nonbusiness-related transactions of
local government units (LGUs) as well as to provide guidelines in the
streamlining of the relevant processes related thereto, consistent and in
compliance with existing laws.
• To promote simplification and inter-operability of government processes and
strengthen efforts toward transparency.
LEGAL COMPLIANCE
Section 16 General Welfare and Section 17 Basic Services and Facilities of
Republic Act 7160: Local Government Code of 1991.

Republic Act No. 11032: “An Act Promoting Ease of Doing Business and Efficient
Delivery of Government Services, Amending for the purpose Republic Act No.
9485, Otherwise known as the Anti-Red Tape Act of 2007.”

ARTA Memorandum Circular No. 2020-02, “Issuance of Order of Automatic

Approval or Automatic Extension for Pending Transactions beyond the Prescribed
Processing Time of 3-7-20 Working Days”
LEGAL COMPLIANCE
DILG-ARTA Joint Memorandum Circular (JMC) No. 2019-01 dated 10 December
2019, “Guidelines on the Regulatory Reform for LGUs Pursuant to the Ease of
Doing Business and Efficient Government Service Delivery(EODB-EGSD) Act of
2018.”
ARTA Memorandum Circular No. 2019-002-A dated 2 December 2019, “Guidelines
on the Implementation of the Citizen’s Charter in Compliance with Republic Act
No. 11032, Otherwise Known as the ‘Ease of Doing Business and Efficient
Government Service Delivery Act of 2018’, and its Implementing Rules and
Regulations (IRR)”
DILG Memorandum Circular No. 2019-177 dated 17 October 2019, “Guidelines in
the Integration of the Issuance of Barangay Clearance in the Permitting Processes of
Cities and Municipalities”
LEGAL COMPLIANCE
DILG-DTI-DICT Joint Memorandum Circular (JMC) No. 2016-01 dated 31 August
2016. “Revised Standards in Processing Business Permits and Licenses in all Cities
and Municipalities”

DTI-CSC-ARTA Joint Memorandum Circular (JMC) No. 2019-001 dated 17 July

2019, “The Implementing Rules and Regulations of RA 11032 otherwise known as
the Ease of Doing Business and Efficient Government Service Delivery Act of
2018.”

DILG Memorandum Circular No. 2018-214 dated 27 December 2018,

“Reengineering of LGU Systems and Procedures in Compliance to EODB-EGSD
Act of 2018.”
LEGAL COMPLIANCE
DILG-DPWH-DTI-DICT Joint Memorandum Circular (JMC) No. 2018-01 dated 04
January 2018, “Guidelines in Streamlining the Issuance of Building Permits and
Certificates of Occupancy.”

DILG-DOF Joint Memorandum Circular (JMC) NO. 2019-01 dated 17 March 2019,
“Guidelines for the Review, Adjustment, Setting, and/or Adoption of Reasonable
Regulatory Fees and Charges of Local Government Units”

SONA DIRECTIVE No. 2020-007, subject: Making Government Transactions Available

Online.

ARTA-DTI-DILG-DICT Joint Memorandum Circular No. 1, Series of 2021, dated 13

April 2021, “Guidelines for Processing Business Permits, Related Clearances and
Licenses in All Cities and Municipalities”
LEGAL COMPLIANCE
ARTA Memorandum Circular No. 2020-07 Series of 2020, dated September 30,
2020, “Guidelines on the Designation of a Committee on Anti-Red Tape (CART) in
the Agencies Concerned in Compliance with Republic Act (RA) No. 11032,
Otherwise Known as the “Ease of Doing Business and Efficient Government
Service Delivery Act of 2018”, and Its Implementing Rules and Regulations (IRR)”

ARTA-DICT-DILG-DHSUD-BFP-DPWH-CAAP-NTC-DOH-FDA Revised Joint

Memorandum Circular No. 1 Series of 2021, dated June 11, 2021, “Revising and
Expanding Joint Memorandum Circular No. 01 S. 2020 or the “Streamlined
Guidelines for the Issuance of Permits, Licenses, and Certificates for the
Construction of Shared Passive Telecommunications Tower Infrastructure (PTTIs)”
SCOPE AND COVERAGE
This Joint Memorandum Circular covers all Cities and
Municipalities, LGU Department Offices, and DILG Regional
and field offices, Lone Fire District Offices/ Fire Stations, and
others concerned.
POLICY CONTENT AND GUIDELINES
LGUs shall undertake the following:

I. REVISIT ITS CURRENT SYSTEMS AND

PROCEDURES
(1) review their current processes;
(2) undertake cost compliance analysis;
(3) conduct time and motion studies; and
(4) ensure that the flow of transactions is compliant on the following:
DOCUMENTARY
REQUIREMENTS
Documents or requirements to be prescribed must be based on the following:

1. National Law
2. Policy issued by National Government Agencies
3. ARTA-DTI-DILG-DICT Joint Memorandum Circular No. 1, Series of 2021,
dated 13 April 2021, “Guidelines for Processing Business Permits, Related
Clearances and Licenses in All Cities and Municipalities”
4. Ordinance by the Province provided it is prescribed by a National law or
National Government Agencies, otherwise it will not be considered.
PRESCRIBED
STEPS
CLIENT ACTION LGU ACTION
Step 1: Submission of requirements Step 1: Receive and Assessment
 
Before processing the application/ request on the backroom/
One-Stop-Shop, the following shall be done by the
receiving personnel from the LGU:
 
Step 1.1: A Unified Application Form (UAF) shall be
adopted by the LGU particularly for the issuance of
Building and Business Permits following JMC --- and JMC
---respectively. LGUs may also design a unified form for
other business and non-business- related transactions.
CLIENT ACTION LGU ACTION
Step 1.2: Accept applications/ requests and requirements.
All documents submitted by applicants shall be accepted.
 
Step 1.3: Perform Preliminary Assessment. The receiving
clerk shall assess the completion of the requirements
including application form, if any. Assessment shall be done
within 5 minutes. If the documents are not complete, these
should be returned immediately to the client and indicate in
the checklist the lacking documents for compliance together
with notice slip indicating the reason for non-processing,
time received, and time returned.
CLIENT ACTION LGU ACTION
Step 1.4: For application with complete requirements,
assign a unique identification number. The receiving
clerk must assign a unique number as bases for accepting
the documents and waiting for processing.

Step 1.5: Issue an acknowledgment receipt –

Acknowledgment receipt shall contain the following:
• Seal of agency
• Name of responsible officer
• Unit and designation
• Date and time of receipt
• Date of claim
 CLIENT ACTION LGU ACTION
Step 2: Payment Step 2: Receive payment and Issuance of
Official Receipt
Step 3: Claim Step 3: Release
ADOPTION OF ZERO CONTACT
POLICY
Government officers/employees may communicate with them through (1) Short Message
Service (SMS), (2) e-mails, (3) and/or official website or social media accounts of the
LGU.

1. Automation/computerization is also the key for a zero contact policy.

2. The LGUs may opt to utilize courier services in receiving and delivery of requested
documents by the applicant/s or the requesting party.
• One-window One-Stop-Shop
• Two-window One-Stop Shop
3. Interactions that are considered strictly necessary, as provided by Rule V, of the IRR of
RA 11032 Section 2, include the following:
• Payment and application of fees
• For complex and/or highly technical transactions

4. Whole-of-Government Approach
 refers to the ability of government agencies to work together to provide ease of access
and use by the citizens.
• Data Sharing
• End-to-end Transaction

5. Automatic Approval or Automatic Extension of License

6. Adoption of Reasonable Fees and Charges

POLICY CONTENT AND GUIDELINES
LGUs shall undertake the following:

II. CONDUCT OF REGULATORY IMPACT ASSESSMENT

(RIA)
Pursuant to Section 5 of RA 11032 and subject to the Guidelines/National Policy on
Regulatory Management System to be issued by the Authority, all regulations shall
undergo regulatory impact assessment to establish if the proposed regulation does not
add undue regulatory burden and cost to these agencies and the applicants or
requesting parties: Provided that when necessary, any proposed regulation may
undergo pilot implementation to assess regulatory impact.
POLICY CONTENT AND GUIDELINES
LGUs shall undertake the following:

III. CONDUCT OF REGULATORY REFORM OR REPEAL OF

POLICIES
All LGUs shall review and analyze their respective business and nonbusiness-related
local ordinances, issuances and resolutions, and repeal the same if deemed outdated,
redundant, cumbersome and adds undue regulatory burden to the transacting public,
in compliance to DILG-ARTA Joint Memorandum Circular (JMC) No. 2019-01 dated
10 December 2019 or the Guidelines on the Regulatory Reform for LGUs Pursuant to
the Ease of Doing Business and Efficient Government Service Delivery (EODB-
EGSD) Act of 2018.
POLICY CONTENT AND GUIDELINES
LGUs shall undertake the following:
IV. UPDATE THE CITIZENS’ CHARTER
• Citizen’s Charter shall be posted on information billboards and shall be uploaded in
the official website of the LGU, if applicable.
• It shall describe in detail the:
1. comprehensive and uniform checklist of requirements for each type of transaction
2. procedure,
3. person/s responsible,
4. maximum time to conclude the process,
5. documents to be presented by the applicant/ requesting party,
6. if necessary, and amount of fee/s.
POLICY CONTENT AND GUIDELINES
LGUs shall undertake the following:
V. COMMITTEE ON ANTI-RED TAPE (CART) AS THE REENGINEERING
TEAM• Citizen’s Charter shall be posted on information billboards and shall be uploaded in
the official website of the LGU, if applicable.
• It shall describe in detail the:
1. comprehensive and uniform checklist of requirements for each type of transaction
2. procedure,
3. person/s responsible,
4. maximum time to conclude the process,
5. documents to be presented by the applicant/ requesting party,
6. if necessary, and amount of fee/s.
ADOPTION OF THE PROVISIONS OF
THIS JMC BY LGUs
In consideration of existing laws, policies, and regulations, all Local
Chief Executives and their respective Sanggunians are hereby
encouraged to issue a local ordinance adopting the provisions of this
JMC in their respective jurisdictions.
CAPACITY DEVELOPMENT
The conduct of capacity development, trainings, seminars or any
activity in relation to the implementation of this Joint Memorandum
Circular shall be charged from LGU funds, or unless otherwise funded
by national government agencies or cost sharing.
MONITORING AND EVALUATION

• A monitoring and evaluation system will be developed to monitor

the implementation and compliance of the Local Government
Units (LGUs) to this Joint Memorandum Circular.

• An announced visit or audit and assessment will be conducted

anytime of the year by concerned national government agencies
to ensure the compliance of the LGUs on this JMC and RA11032.
ROLES AND RESPONSIBILITIES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
(DILG)
• Disseminate this JMC to DILG Regional and Field Offices and Local
Government Units (LGUs)
• Develop a monitoring and evaluation tool (M&E) to determine the
compliance of LGUs in the provisions of Republic Act No. 11032 otherwise
known as the Ease of Doing Business and Efficient Government Service
Delivery (EODB-EGSD) Act of 2018
• Develop a system for the monitoring, evaluation and reporting of this
JMC through Information Systems and Technology Management Service
(ISTMS) in coordination with BLGD
ROLES AND RESPONSIBILITIES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
(DILG)
• Conduct necessary orientations, workshops, and capacity buildings to DILG
Field Offices and LGUs on the streamlining of their systems and procedures in
coordination and assistance from the Anti-Red Tape Authority (ARTA)
• Continuously update the status of the implementation of this JMC through
DILG Regional Offices maximizing the monitoring and evaluation system to be
developed by ISTMS.
• Ensure that LGUs are compliant on this JMC and RA11032 through DILG
Field Offices
• Ensure submission of the necessary reports by the LGUs through Regional
Offices that are required by ARTA or DILG including the online monitoring report
once the system is developed
ROLES AND RESPONSIBILITIES

ANTI-RED TAPE AUTHORITY

(ARTA)
• Assist the DILG in conducting the necessary orientations, workshops, and
capacity buildings to DILG Field Offices and LGUs on the streamlining of
their systems and procedures;
• Provide technical assistance or training to LGUs regarding the implementation
of ARTA’s Reengineering Manual;
• Assist the DILG in monitoring the compliance of LGUs in this JMC.
ROLES AND RESPONSIBILITIES
LOCALGOVERNMENT UNITS
(LGUs)
• Ensure compliance in this Joint Memorandum Circular and issue the
necessary ordinance adopting the provisions of this JMC in their respective
jurisdictions;
• Attend the orientations, workshops, and capacity buildings to be conducted by
the DILG or ARTA in streamlining LGU systems and procedures;
• Submit the necessary report as provided in this JMC or requested by DILG and
ARTA.
VIOLATIONS, PENALTIES, AND
LIABILITIES
The provisions of Sections 21, 22, and 23 of R.A. No. 9485, as
amended by R.A. No. 11032, are applicable in case of violations
concerning applications or requests for permits, licenses, clearances,
authorizations or certifications covered by this JMC.
dilg.gov.ph
lfrdd.official@gmail.com
(02) 8925-0356