Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

‘Twentieth Congress
First Regular Session

HOUSE BILL NO. 601

Introduced by Rep. Edwin C. Ongchuan

EXPLANATORY NOTE

Micro business enterprises (MBEs) play a crucial role in the Philippine economy. In
2023, the Philippine Statistics Authority recorded a total of 1,246,373 business
enterprises operating in the country, 90.43% of which are MBEs. However, it is evident
that MBEs continue to face considerable barriers to formally establishing their
businesses, primarily due to insufficient access to capital, key resources, products, and
support services.

in furtherance of the objectives set forth under Republic Act No. 10644 otherwise known
as the “Go Negosyo Acf’ and Republic Act No. 9178 or the “Barangay Micro Business
Enterprises (BMBEs) Act of 2022,” this proposed measure seeks to establish Green
Lanes for regulatory and compliance permit applications or renewals to be issued to
qualified MBEs within offices of relevant government-owned and controlled corporations
(GOCCs) and national government agencies, specifically designed to address the
unique needs of MBEs and enhance ease of doing business.

Considering the vital role played by MBEs in driving national economic development,
the passage of this bill is earnestly sought.

Aa
Ge
EDWIN C. ONGCHUAN

Representative
Second District, Northern Samar


Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

‘Twentieth Congress
First Regular Session

HOUSE BILL NO. 601

Introduced by Rep. Edwin C. Ongchuan

AN ACT ESTABLISHING GREEN LANES FOR MICRO BUSINESS ENTERPRISES
TO STREAMLINE REGULATORY PERMITS AND COMPLIANCE REQUIREMENTS

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Short Title - This Act shall be known as the “MBE Green Lane Act of 2025”

‘SECTION 2. Declaration of Policy - It is hereby declared the policy of the State to promote,
support, strengthen, and encourage the growth and development of micro business
enterprises (MBEs). Toward this end, the State shall establish Green Lanes in offices of key
government agencies and government-owned and controlled corporations (GOCCs) to
streamline and expedite MBE compliance with regulatory requirements, thereby reducing
regulatory burdens for MBEs.

SECTION 3. Coverage - The following GOCCs and government agencies are directed to
designate and implement Green Lanes specifically serving MBEs in all their offices
nationwide:

. Social Security System (SSS);
. Philippine Health Insurance Corporation (PhitHealth);
. Home Development Mutual Fund (Pag-IBIG Fund);
|. Bureau of Internal Revenue (BIR)
.. Department of Trade and Industry (DTI)

Department of Labor and Employment (DOLE)
. Securities and Exchange Commission (SEC)

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The Green Lanes shall handle transactions including, but not limited to:

a. Employer registration and enrollment;

b. Employee reporting and remittance enrollment;
c. Certification and clearance insurance;

d. Taxpayer registration and updates;

e. Other regulatory and compliance requirements.

SECTION 4. Definition of Terms - As used in this Act, the following terms shall mean:


a. “Micro Business Enterprises” or “MBEs” - refer to any business entity or enterprise
engaged in industry, agribusiness and/or services, whether single proprietorship,
cooperative, partnership or corporation whose total assets, inclusive of those arising
from loans but exclusive of the land on which the particular business entity's office,
plant and equipment are situated, shall not be more than Three Million Pesos (PhP
3,000,000.00).

For purposes of this Act, “services” shalt exclude those rendered by any one who is,
duly licensed by the government after having passed a governmental licensure
examination, in connection with the exercise of one’s profession.

The above definition shall be subject to review and adjustments by the Micro, Small
and Medium Enterprises Development (MSMED) Council under Section 6 of Republic
Act No. 9501 otherwise known as the “Magna Carta for Micro, Small and Medium
Enterprises” or upon recommendation of sectoral organizations concerned, taking
into account inflation and other economic indicators.

b. “MBE Green Lanes” - refer to dedicated service channels, counters, or processes
within the offices/branches of covered agencies for the streamlines, expedited, and
prioritized processing of applications, registrations, permits, and other regulatory
requirements of MBEs.

c. “Certificate of Authority” - refers to the certificate issued by the Department of Trade
and Industry, through the Negosyo Center in the city or municipal tevel, pursuant to
Republic Act No. 10644 or the “Go Negosyo Act”, granting the authority to the
registered MBE to operate and be entitled to the benefits and privileges accorded
thereto.

‘SECTION 5. MBE Green Lanes - The covered GOCCs and government agencies, including
their regional and provincial offices when applicable, shall designate MBE Green Lanes
within their offices which shall expedite and streamline the processes and requirements for
the registration and issuance of regulatory permits and licenses of MBEs. The MSME Green
Lanes shall not be duplicative of the existing Negosyo Centers established pursuant to the
Go Negosyo Act.

SECTION 6. Proof of Eligibility - Access to the MBE Green Lanes shall be granted upon
presentation of a duly issued and valid Certificate of Authority from the Department of Trade
and Industry, processed through the Negosyo Center.

SECTION 7. Registration and Issuance of Regulatory Permits and Licenses — The covered
GOCCs and government agencies shall act on the registration or applications for the
issuance of regulatory permits and licenses of MBEs within the prescribed processing time
provided in the concerned agency's Citizen Charter, which shall not be longer than three (3)
working days in the case of a simple transaction, seven (7) working days in the case of
complex transactions, and twenty (20) working days for highly technical transactions from
the date the complete application was received. In all cases, denial of such application or
registration shall be made in writing the same period prescribed.

SECTION 8. Endorsement to ARTA - After the lapse of the period provided in Section 7 of
this Act, the covered GOCC or government agency shall issue the registration or requested
permit or license, otherwise, the Department of Trade and Industry- Board of Investments
shall endorse the case to the Anti-Red Tape Authority (ARTA).


Upon receipt of the endorsement, together with the presentation of the acknowledgement
receipt of the payment of the necessary fees and other transaction costs, and upon due
investigation and verification that the applicant MBE has indeed fully submitted all
necessary documents and paid all the required fees, the ARTA shall issue a declaration of
completeness and order the concerned office or agency to issue the appurtenant
registration, approval, extension or renewal of the regulatory permit or ticense, which shall
be deemed approved pursuant to Section 10 of Republic Act No. 9485, as amended.

SECTION 9. Agency Support - All concerned GOCCs and government agencies and other
government instrumentalities, shall directly coordinate with each other to ensure the
successful implementation of this Act.

SECTION 10. Appropriations — The funds necessary to support the operation of MBE Green
Lanes shall be sourced from the existing budget of the concerned agencies or offices. The
funding requirements for succeeding years shall be duly incorporated into their respective
annual budgets, in accordance with the regular budgetary process.

SECTION 11. Sanctions — Failure to comply with the provisions of this Act shall be a ground
for administrative or disciptinary sanctions as provided under existing laws and regulations,
without prejudice to criminal, civil or other related liabilities under existing taws.

SECTION 12. Separability Clause - If any provision of this Act shall be held unconstitutional
or invalid, the provisions not affected thereby shall remain in full force and effect.

SECTION 13. Repealing Clause - Existing laws, presidential decrees, executive orders,
proclamations or administrative regulations that are inconsistent with the provisions of this
Act are hereby amended, modified, superseded or repealed accordingly.

SECTION 14, Effectivity - This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,