Duterte signs law providing assistance to startup businesses
Credit to Author: Tempo Desk| Date: Thu, 18 Jul 2019 08:50:04 +0000
A measure providing subsidies and other benefits to strengthen and develop new innovative businesses has been signed into law by President Duterte.
Republic Act No. 11337, also known as the “Innovative Startup Act,” creates the Philippine Startup Development Program that includes facilitating a startup venture fund, easier business registration processes, and training programs.
The law declared the State’s policy “to foster inclusive growth through an innovative economy by streamlining government and non-government initiatives, in both local and international spheres, to create new jobs and opportunities, improve production, and advance innovation and trade in the country.”
“To this end, the State shall provide incentives and remove constraints aimed at encouraging the establishment and operation of innovative new businesses, business crucial to their growth and expansion, and to strengthen, promote, and develop an ecosystem of business and government and non-government institutions that foster an innovative entrepreneurial culture in the Philippines,” the law said.
Under the law, the Department of Science and Technology, Department of Information and Communications Technology, and Department of Trade Industry will be the lead agencies to monitor, develop, and expand the startup development program.
The law allows innovative startups to enjoy full or partial subsidies in the application of business permits as well as use of government facilities, equipment, and spaces; endorsement of host agency for expedited processing of applications; and grants-in-aid for research, development, training, and expansion projects.
For those participating in local and international startup events, they can enjoy expedited processing of travel documents; full or partial subsidy for government fees for travel, baggage allowance, and roundtrip airfare; and per diem allowance.
The law also directed the Philippine Economic Zone to promote the creation of Philippine Startup Ecozones while the DTI must develop a “startup investment development plan.” (Genalyn Kabiling)