The government hopes to see the creation of at least 1,000 innovative businesses by 2022 as the implementing rules for Republic Act 11337 were recently signed.
The new law, known as the “Innovative Startup Act,” defines benefits for startups or startup enablers in the country. It also provides a framework for the national government to assist in the processing of permits.
“The passage of RA 11337 in April has already been a momentous feat for the Philippine startup community, but with the signing of the law’s IRR, we are now equipped with a framework needed to fully realize the goals and objectives of the law,” Gregorio Honasan II, secretary at the Department of Information and Communications Technology, said in a statement.
The rules were signed together with Trade Secretary Ramon Lopez and Fortunato de la Peña, secretary of the Department of Science and Technology. Under the provisions of the law, the DICT will develop the Startup Philippines website that will serve as the primary source of information on statistics, events, programs, benefits and incentives for startups and their enablers.
A startup enabler is any domestic entity registered under the Philippine Startup Development Program that provides support, whether financial or via services, crucial in the operations and growth of startups.
The DICT will also keep a joint database of all programs as well as startups and startup enablers who availed themselves of the benefits and incentives granted by the host agencies.
One of the key features of the law is the creation of a startup venture fund under the Department of Trade and Industry.
The fund will be administered by DTI-attached National Development Co. (NDC). Funds will be used to match investments by selected investors in local startups and will be included in the budget of NDC under the annual General Appropriations Act.