By Joyce Pangco Pa?ares

METRO Manila?s mayors have agreed on a simplified application form to cut the steps needed to start a business to seven from 19 and eliminate red tape.

?This is our little contribution to help keep the economy afloat by encouraging more businesses,? League of Cities president and Mandaluyong Mayor Benhur Abalos said after presenting the plan to the Cabinet yesterday.

He said the simplified form was a response to a World Bank report on doing business in 181 countries in September, where it ranked the Philippines 140th in how conducive its business regulations were to potential investors.

?Imagine: Rwanda was even ranked higher than us!? Abalos said.

?That was a wakeup call, especially now that we are facing a global economic crisis and we have to do everything to try to insulate our country from its effects.?

Abalos, also president of the Union of Local Authorities of the Philippines, said Metro Manila?s chief executives would start implementing the so-called unified business application form next month.

?We will have a one-stop shop where all the requirements to start a business can already be found, from licensing to engineering to inspection,? he said.

?Whereas before you needed at least 19 steps before you could get a business permit, now you will need only seven.

?Investors shy away from doing business in Metro Manila because of the pathetic bureaucracy and red tape that we have.?

Abalos said businessmen would also benefit from a one-time payment once the League of Cities signed the deal on the plan with the Trade and Interior Departments on Feb. 19.

Local government units would also strictly enforce the Anti-Red Tape Act, which sets 10 days as the maximum number of days to process a business permit, he said.