Related article: The Barangay Micro Business Enterprise (BMBE)

The 2018 List of Establishments of the Philippine Statistics Authority (PSA) recorded a total of 1,003,111 business enterprises operating in the country, of these, micro enterprises constitute 887,272. Despite the vast number of micro enterprises in the country, only a few of them avail the benefits provided by Barangay Micro Business Enterprise Law or RA 9178.

What is a Barangay Micro Business Enterprise?

Barangay Micro Business Enterprise (BMBE) refers to any business entity or enterprise engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading and services, whose total assets including those arising from loans but exclusive of the land on which the particular business entity’s office, plant and equipment are situated, is not be more than Three Million Pesos (P3,000,000.00).

Who Are Eligible to Register as BMBE?

Any person, natural or juridical, such as partnership, corporation, association and cooperative, having the qualifications and none of the disqualifications shall be eligible to register as BMBES.

What Are the Qualifications for Registering As BMBE?

A person applying to be registered as a BMBE must meet the following qualifications:

1. With
   an asset of not more than Three Million Pesos (PhP3,000,000.00) excluding land;
   
2. Engaged
   in the production, processing or manufacturing of products or commodities,
   including agro-processing, trading and services;
3. Registered
   with the Department of Trade and Industry (DTl) for sole proprietorships; for
   juridical persons: with the Securities and Exchange Commission (SEC), for
   corporations and associations; and with the Cooperative Development Authority
   for cooperatives.

Who Are Disqualified In Registering For BMBE?

Entities rendering services in connection with the exercise of one’s profession by a person duly licensed by the government after having passed a government licensure examination are disqualified from applying for BMBE Certificate of Authority.

Where Can One Register For BMBE?

Applications for BMBE Certificate of Authority shall be filed with the Negosyo Centers established in each province, city, or municipality or in the DTI offices where Negosyo Centers have not been set up.

What Are The Requirements For Registration?

The following shall be submitted in support of the duly filled up BMBE application form:

1. Certificate
   of Business Name Registration from the Department of Trade and Industry (DTl),
   or
2. Certificate
   of Registration from the Securities and Exchange Commission (SEC), or
3. Certificate
   of Registration from the Cooperative Development Authority (CDA)

What Is The Procedure For Registration?

The applicant shall follow the steps herein enumerated in applying for BMBE Certificate of Authority (CA):

1. Accomplish
   and file the application form for BMBE Certificate of Authority;
2. The
   DTl, through the Negosyo Center, evaluates the application for purposes of
   determining the eligibility and qualification as a BMBE;
3. The
   DTl, after finding the applicant to be eligible and qualified, issues the BMBE
   Certificate of Authority within fifteen (15) working days from receipt of
   application with complete requirements; otherwise, the BMBE Certificate of
   Authority shall be deemed approved (where in such case, it becomes ministerial
   on the part of DTI to issue the BMBE Certificate of Authority). The BMBE
   Certificate of Authority shall be effective for a period of two (2) years
   commencing from the date of issuance. The CA may be renewed for the same period
   of two (2) years and every two (2) years thereafter subject to the applicant’s
   continued compliance with the eligibility requirements.

How Much Would Be The Fees And Charges?

The registration and issuance of the CA shall be free of charge.

What Are Incentives and Benefits in Registering A Business In BMBE?

1. Exemption
   from Taxes and Fees

All BMBEs shall be exempt from tax for income arising from the operations of the enterprise.

2. Exemption from the Coverage of the Minimum Wage Law

The BMBEs shall be exempt from the coverage of the Minimum Wage Law however their employees are entitled to the same benefits given to any regular employee such as social security and healthcare benefits.

3. Special Credit Window for The Financial Needs of BMBE Registered Enterprises
4. Technology Transfer, Production and Management Training, and marketing Assistance
5. Trade and Investment Promotions

The data gathered from business registration shall be made accessible to and shall be utilized by private sector organizations and non-government organizations for purposes of business matching, trade and investment promotion.

In Case of Transfer of Ownership of The Business What Should Be Done?

The BMBE shall report to the DTI through the Negosyo Center of any change in the status of its ownership structure and shall surrender the original copy of the BMBE Certificate of Authority for notation.

Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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