BUSINESS name registration in Cebu for the first quarter of 2015 was lower than that of last year during the same period, data from the Department of Trade and Industry Cebu showed.
From 4,157 business names issued from January to March 2014, the figure has dropped to 3,919 business names this year. This accounts to a five percent decrease.
Employment generated from these businesses has also dropped accordingly. From 8,574 workers in the first three months of 2014, it declined to 6,995 this quarter, roughly 20 percent lower.
While this is the case, capitalization of these businesses has increased in the first quarter of this year, hitting P563.4 million. This is roughly 15 percent higher than the P472.8 million in capitalization in the first quarter of 2014.
According to DTI Cebu, the dropped in the number of business names registered could be attributed to the nature of business established.
“Business name registration starting October 15, 2008 are for single proprietorship only, as corporations are no longer required to register their business names with DTI,” the agency said. Corporations and partnerships have to be registered with the Securities and Exchange Commission instead.
DTI Cebu Consumer Welfare and Business Regulation Chief Zaide Bation previously said that it is expecting an increase of business name registration in 2015, citing an increase in economic activity this year.
Last year, DTI Cebu issued a total of 13,770 business names in Cebu, the second highest registered in the past 14 years. The year 2011 registered the highest at 14,050 business names. In 2013, business names issued was at 12, 261.
Less steps
The national government is expecting an increase in economic activity this year, signing a memorandum of agreement with eight government agencies on Monday to simplify the process of setting up a business in the Philippines. From the existing set-up requiring 16 steps and 34 days, the process is cut to six steps and eight days for corporations.
Also part of the package of reforms is to make payroll-related payments to Pag-IBIG and PhilHealth easier by moving it online for companies employing more than 10 employees starting this month.
For single proprietorship businesses in Cebu, Bation said it usually takes five days to set it up, from getting a mayor’s permit, registering a business name and complying with requirements of Social Security System, Bureau of Internal Revenue, and the Home Development Mutual Fund (Pag IBIG).
The reform is part of the government’s goal to improve its “Ease of Doing Business” ranking, as measured annually by the World Bank and International Finance Corporation (IFC).
Trade Secretary Gregory Domingo, in a news report, said that the reforms would likely enable the Philippines to achieve its target of getting into the top third quartile in the World Economic Forum’s Global Competitiveness Ranking (WEF GCR) this year, one year ahead of its target which is in 2016.
Improvements
However, data from the World Bank in its website showed that Philippines fell from 86 to 95, a nine-point drop. WB adopted a new methodology for its 2015 Ease of Doing Business Report.
Competitiveness rankings of the Philippines by other organizations have improved in the last four years.
In WEF’s GCR, the country rose by 33 places while in Transparency International’s Corruption Perception Index, it is up by 49 places. The Heritage Foundation’s Economic Freedom Index shows the Philippine improved by 33 places.
The Department of Finance earlier said the initial roll-out of reforms will begin at the SEC’s Manila office starting this month, where most companies are incorporated. Roll-outs will continue in succeeding months across all SEC offices and a full on-line system will be made available next year.