DDEC announces streamlining of permit procedures to facilitate business operations in PR

The reforms respond to the public’s demand for a government that listens, simplifies, and meets their needs, said governor Jenniffer González Colón.

By The Star Staff

In a joint press conference, Governor Jenniffer González Colón, Secretary of the Department of Economic Development and Commerce (DDEC) Sebastián Negrón Reichard, and Assistant Secretary of the Permit Management Office (OGPe) Norberto Almodóvar, announced a comprehensive package of reforms aimed at transforming various permitting procedures to facilitate the opening, operation, and expansion of businesses on the island.

These measures, effective July 1, are part of a public policy designed to create a more agile, reliable, and competitive business environment.

The transformation includes regulatory, operational, and technological changes intended to reduce the burden on businesses, modernize procedures, and enhance the legitimacy of processes. These reforms address structural flaws in the previous system, redistribute responsibilities, and establish new oversight and validation tools.

“Puerto Rico needs a permitting system that aligns with the talent, initiative, and capability of our people to do business. These reforms respond to the public’s demand for a government that listens, simplifies, and meets their needs,” said Governor Jenniffer González Colón. “We are moving away from punitive bureaucracy toward a modern, agile, and responsible system, where the government plays its part and businesses can concentrate on growth.”

Among the key changes is the automation of notifications to businesses prior to the expiration of inspections or licenses. This will enable operational continuity without the need to initiate new procedures each year. Additionally, each permit will have a unique transaction number, ensuring a consolidated digital file for easier tracking. The requirement for inspections of residential administrative offices that do not pose public health or safety risks has also been eliminated, benefiting thousands of small businesses and professionals.

Another significant reform is the formal transfer of responsibility for conducting inspections to the State within a 90-day period. If the inspection is not completed within that timeframe, the business will not incur charges, reversing the previous “prepayment without service” model. The system will also integrate artificial intelligence to validate unstructured documents and will strengthen procedural legitimacy through mandatory validation of the credentials of Authorized Professionals and Inspectors. Additional changes include the automatic creation of permit scrolls once the process is completed and the publication of a new Professional Regulation Regulation, which has been updated for the first time since 2014.

DDEC Secretary Sebastián Negrón Reichard emphasized that this reform is part of a broader strategy to position Puerto Rico as a competitive destination for investment and business development.

“Transforming the permit system is not just about making existing processes more efficient; it is about redesigning those that have failed. It aims to tackle punitive bureaucracy at its roots. These measures correct distortions, eliminate redundancies, and, most importantly, restore trust between the State and the business sector,” Negrón Reichard stated. “Now it is the government’s turn to act with the same agility that has always been expected from the citizenry.”

Moreover, it was announced that the DDEC and the Department of Health will establish a collaborative agreement to delegate low-risk inspections to OGPe, allowing the Department of Health to focus on higher-priority cases. From now until July 1, an intensive orientation phase will be activated for citizens, merchants, and interagency staff to ensure a smooth transition and full utilization of the new tools.