Program Benefits And Incentives
Section 7. General Registration and Operational Benefits and Incentives. -Host agencies shall be authorized to provide the following benefits and incentives to startups and/or startup enablers who have passed their selection and application process:
(a) Full or partial subsidy for the registration and cost in the application and processing of permits and certificates required for the business registration and operation of an enterprise with the appropriate local or national government agencies;
(b) Endorsement of the host agency for the expedited or prioritized processing of applications with other government agency;
(c) Full or partial subsidy for the use of facilities, office space, equipment, and/or services provided by government or private enterprises or institutions;
(d) Full or partial subsidy in the use of repurposed government spaces and facilities of the host agency as the registered business address; and
(e) Grants-in-aid (GIA) for research, development, training, and expansion projects.
Provided, That the full or partial subsidies provided by the host agency may be incorporated in the approved GIA of the startup or startup enabler, or may be issued through vouchers issued by the host, agency.
The DTI shall be the agency tasked to initiate and coordinate with national and local government agencies involved with the registration, licensing, certification, including those who levy fees and charges for services subsidized by host agencies, and such other regulatory process to be undertaken by startups and startup enablers endorsed by host agencies.
Section 8. General Benefits for Participation in Local and International Startup Events. -Host agencies shall be authorized to provide the following benefits and incentives in order to support members of startups and/or startup enablers who have passed their respective selection and application process for the purpose of participating in local or international startup events or competitions:
(a) Endorsement of the host agency for the expedited or prioritized processing of travel documents, such as, but not limited to, passport and/or visa application;
(b) Full or partial subsidy for fees and charges incurred in the application for pertinent travel documents;
(c) Full or partial subsidy for baggage allowance for materials, equipment, and/or products pertinent to the participation in the local or international startup event:
(d) Full or partial airfare subsidy for roundtrip airfare; and/or
(e) Per diem allowance.
Section 9. Philippine Startup Ecozones. -
PEZA, in consultation and coordination with the DTI, DOST, and DICT, shall pursue and promote the creation of Philippine Startup Ecozones, or Special Economic Zones to spur the growth and development of startups and startup enablers through either private initiative, local government initiative with the assistance of the national government, and/or national government initiative consistent with the provisions of Republic Act No 7916, as amended by Republic Act No. 8748, otherwise known as “The Special Economic Zones Act of 1995”, and its implementing rules and regulations. Investment Promotion Agencies (IPAs) are hereby authorized to extend applicable benefits to startups and/or startup enablers subject to the respective rules and regulations promulgated by the IPA for the effective implementation of this provision.
The DTI, DICT, DOST, and other host agencies, through their respective regional and provincial offices, shall promote and facilitate the registration of qualified startups and startup enablers in appropriate Special Economic Zones in the Philippines.
The PEZA and IPAs extending benefits to startups and/or startup enablers shall assist the DTI, DICT, and DOST in training their respective personnel assigned to assist startups and startup enablers in meeting standards and regulations for registration and compliance requirements in Special Economic Zones.
Section 10. Startup Investment Development Plan. -The DTI, in coordination with the DICT, DOST, and Board of Investments (BOI) shall spearhead initiatives to develop the short, medium, and long-term strategies in order to spur investment in, and promote the growth and development of, startups and startup enablers in the Philippines.
The DTI, in coordination with the BOI, shall promote and facilitate the provision of applicable benefits to current and prospective investors of startups and startup enablers.
The BOI shall assist the DTI. DICT, DOST, and other host agencies in training their personnel tasked with assisting current and prospective startups and startup enablers to access and maximize benefits and incentives which may be extended consistent with the powers and mandate of the BOI.
Section 11. Startup Grant Fund
There is hereby created a Startup Grant Fund (SGF) under each of the following agencies:
(a) Department of Science and Technology:
(b) Department of Information and Communications Technology: and
(c) Department of Trade and Industry.
Each agency shall use its respective SGF to provide initial and supplemental GIA for startups and startup enablers that have passed its selection and application process.
Each agency shall propose and include in its respective budget under the annual General Appropriations Act the initial and succeeding appropriations for the creation and replenishment of its SGF.
Section 12. Startup Venture Fund
This is under the DTI, to be administered in coordination with the National Development Company (NDC).
The SVF shall be used to match investments by selected investors in startups based in the Philippines.
The NDC and DTI shall jointly develop and issue the appropriate rules and regulations for the selection of investors and the effective management and utilization of the SVF.
The initial and succeeding appropriations for the SVF shall be proposed by the DTI and included in the budget of the NDC under the annual General Appropriations Act.