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Innovative Startup Act
Republic Act No. 11337
April 26, 2019
Case Overview and Summary
Summary of Republic Act No. 11337 (Innovative Startup Act)General Provisions
- Declares the policy of fostering inclusive growth through an innovative economy by streamlining government and non-government initiatives to create jobs, improve production, and advance innovation and trade. (Section 2)
- Defines key terms such as "startup", "innovation", "startup enabler", "research and development", etc. (Section 3)
- Creates the Philippine Startup Development Program composed of programs, benefits, and incentives for startups and startup enablers. (Section 4)
- Sets objectives of the Program, including supporting R&D, promoting access to development programs, facilitating participation in events and competitions, supporting collaboration, and developing policies to promote ease of doing business. (Section 5)
- Outlines general roles and responsibilities of host agencies (DOST, DTI, DICT, etc.) in implementing the Program. (Section 6)
Program Benefits and Incentives
- Authorizes host agencies to provide the following benefits and incentives to startups and startup enablers: (Section 7)
- Full or partial subsidy for registration, permits, and certificates
- Endorsement for expedited processing of applications
- Full or partial subsidy for use of facilities, office space, equipment, and services
- Full or partial subsidy for use of repurposed government spaces as business address
- Grants-in-aid (GIA) for research, development, training, and expansion projects
- Authorizes host agencies to provide benefits and incentives for participation in local and international startup events, including: (Section 8)
- Endorsement for expedited processing of travel documents
- Full or partial subsidy for travel document fees and charges
- Full or partial subsidy for baggage allowance
- Full or partial airfare subsidy for roundtrip airfare
- Per diem allowance
- Promotes the creation of Philippine Startup Ecozones or Special Economic Zones to spur the growth and development of startups and startup enablers. (Section 9)
- Requires the DTI, in coordination with DICT, DOST, and BOI, to develop strategies to spur investment in and promote the growth and development of startups and startup enablers. (Section 10)
- Creates a Startup Grant Fund (SGF) under DOST, DICT, and DTI to provide initial and supplemental GIA for startups and startup enablers. (Section 11)
- Creates a Startup Venture Fund (SVF) under the DTI, administered with NDC, to match investments by selected investors in startups based in the Philippines. (Section 12)
Startup Visas
- Requires the DFA to create the following startup visas: (Section 13)
- Startup owner visa (for foreign owners of startups or startup enablers)
- Startup employee visa (for foreign employees of startups or startup enablers)
- Startup investor visa (for foreign investors of startups or startup enablers)
- These visas have an initial 5-year validity and may be renewed for 3 years.
- Multiple-entry interim startup visas valid for 6 months to 1 year shall be issued for free upon endorsement of a host agency.
- Bearers of the visa are exempt from securing an Alien Employment Permit (AEP) from DOLE.
- Allows bonafide Filipino executives of qualified startups to apply for an APEC Business Travel Card (ABTC). (Section 14)
Final Provisions
- Requires the DICT, in consultation with DTI and DOST, to develop and maintain a Startup Philippines website as the primary source of information on statistics, events, programs, and benefits for startups and startup enablers. (Section 15)
- Directs the Department of Education, Commission on Higher Education, and Technical Education and Skills Development Authority to develop and integrate entrepreneurial programs in their respective curricula. (Section 16)
- Requires the DBM to undertake the assessment and creation of positions in host agencies to provide administrative and technical capacity for implementing the Act. (Section 17)
- Appropriates the necessary funds for initial implementation from the current budget of DOST, DICT, and DTI, and subsequent funds to be included in the General Appropriations Act. (Section 18)
- Requires the DOST, DICT, and DTI to promulgate the necessary implementing rules and regulations within 60 days from the effectivity of the Act. (Section 19)
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Law
Innovative Startup Act
Republic Act No. 11337
•April 26, 2019
REPUBLIC ACT NO. 11337
AN ACT PROVIDING BENEFITS AND PROGRAMS TO STRENGTHEN, PROMOTE AND DEVELOP THE PHILIPPINE STARTUP ECOSYSTEM
CHAPTER 1
General Provisions
SECTION 1. Short Title. — This Act shall be known as the "Innovative Startup Act."
SECTION 2. Declaration of Policy. — It is hereby declared the policy of the State to foster inclusive growth through an innovative economy by streamlining government and nongovernment initiatives, in both local and international spheres, to create new jobs and opportunities, improve production, and advance innovation and trade in the country.
To this end, the State shall provide incentives and remove constraints aimed at encouraging the establishment and operation of innovative new businesses, businesses crucial to their growth and expansion, and to strengthen, promote, and develop an ecosystem of businesses and government and nongovernment institutions that foster an innovative entrepreneurial culture in the Philippines.
SECTION 3. Definition of Terms. — As used in this Act, the following terms shall mean:
(a) Host agency — the Department of Science and Technology (DOST), Department of Trade and Industry (DTI),...
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