Republic Act No. 1137, previously signed by President Duterte on April 26, has finally been released to the media, aiming to 鈥渟trengthen, promote, and develop鈥 the Philippine startup ecosystem.
Also known as the Innovative Startup Act, this legislation will create the Philippine Startup Development Program, set to offer 鈥減rograms, benefits, and incentives鈥 for both startups and enablers (entities that offer them crucial support). It was initially proposed聽by Senator Paolo Benigno 鈥淏am鈥 Aquino IV in 2017 but was approved just last April 26, 2019.
Tasked to lead the project are the Department of Science and Technology (DOST), the Department of Information and Communications Technology (DICT), and the Department of Trade and Industry (DTI).
These host agencies will coordinate with the Board of Investors (BOI) to create a Startup Investment Development Plan, which aims to 鈥渟pur investment in, and promote the growth and development of, startups and startup enablers鈥.
Promoting ease of business
Part of the act鈥檚 benefits is entitlement to various privileges which will make it easier for the beneficiaries to run their businesses.
Startups and enablers can enjoy subsidies for business registration application costs and facilities, equipment, and services from both the private and public sector.
The host agencies will also be coordinating with local government units (LGU) to facilitate their registration in Philippine Startup Ecozones, Special Economic Zones declared by the Philippine Economic Zone Authority (PEZA).
Investors, enablers, and foreign owners and employees of locally-registered startups will be issued special startup visas by the Department of Foreign Affairs (DFA). These visas will further exempt them from securing an Alien Employment Permit (AEP) typically issued by the Department of Labor and Employment (DOLE).
Encouraging innovation
There are also various programs and incentives to help encourage innovation across and among different fields.
Each host agency will have a Startup Grant Fund meant to provide initial and supplemental support to qualified applicants. DTI and the National Development Company (NDC) will also administer a Startup Venture Fund to match investments from selected investors to local startups.
To further promote participation in local and international startup events, startups and enablers may be endorsed for prioritized processing of travel documents and subsidized for various airfare costs. Per diem allowance will also be provided.
As for the academe, the Department of Education (DepEd), Commission on Higher Education (CHED), and Technical Educational and Skills Development Authority (TESDA) are tasked to develop entrepreneurial programs to 鈥渇oster an environment conducive to innovation鈥. They may also extend incentives to academic institutions that help fund related research.
There are also various programs and incentives to help encourage innovation across and among different fields.
Each host agency will have a Startup Grant Fund meant to provide initial and supplemental support to qualified applicants. DTI and the National Development Company (NDC) will also administer a Startup Venture Fund to match investments from selected investors to local startups.
To further promote participation in local and international startup events, startups and enablers may be endorsed for prioritized processing of travel documents and subsidized for various airfare costs. Per diem allowance will also be provided.
As for the academe, the Department of Education (DepEd), Commission on Higher Education (CHED), and Technical Educational and Skills Development Authority (TESDA) are tasked to develop entrepreneurial programs to 鈥渇oster an environment conducive to innovation鈥. They may also extend incentives to academic institutions that help fund related research.
