Barangay Micro

Business Enterprise
What is BMBE?

 A BMBE is defined under the BMBE

Law, RA. 9178 Act of 2002 as “any business
enterprise engaged in production,
processing, or manufacturing of products,
including agro-processing, as well as
trading and services, with total assets of
not more than P3 million.
The BMBE Law

 President Gloria Macapagal-Arroyo signed

the Act into law on November 13, 2002, to
encourage the formation and growth of
BMBEs by granting them incentives and
other benefits.
Objective of the BMBE Law

 The BMBE Act aims and promotes creation

and expansion of small businesses by
providing benefits and incentives that will help
BMBE enterprises to grow and succeed.
Incentives for BMBE Registration

 The following incentives are available for registered

BMBEs:

 Tax exemption - Accredited enterprises are waived of

paying income taxes arising from their operating
expenses. This, however, does not include the
exemption in transaction taxes such as value-added tax
(VAT) and other percentage taxes, among others.
Furthermore, BMBE-accredited enterprises are still
required to regularly file their regular income tax returns.

 
Incentives for BMBE Registration
 Minimum wage exemption - BMBE-registered
enterprises are also allowed to pay below the
statutory minimum wage which is otherwise
not permitted by law. However, they are still
required to pay for their employees' benefits
such as PhilHeath, SSS, and HMDF.
Incentives for BMBE Registration
 Credit priority - Financial institutions
are given incentives in providing loans
to BMBE-registered business
enterprises. They are also required to
provide a special credit window for
BMBEs. Technology transfer, production
and management training, and marketing
assistance programs for BMBE
beneficiaries.
Incentives for BMBE Registration
 Aside from these, the LGUs may also reduce
the amount of local taxes, fees, and charges
imposed or exempt the BMBEs from local
taxes, fees, and charges.
Incentives for BMBE Registration
 Growth assistance - To provide technical
support, the government has allotted funds to
agencies supporting BMBEs such as DTI
Negosyo Centers, UP Institute for Small Scale
Industries (UP-ISSI), and the Department of
Science and Technology (DOST).
Requirements for a BMBE Registration

 Both your first-time BMBE registration and

its renewal must take place at the Office of
the Treasurer of the city or municipality
where your business is located.

 The requirements for first-time registration

differs depending on the value of your
assets.
Requirements for New Applicants

 a. Duly filled out application form (BMBE

Form 01) in triplicate, signed by the owner
or manager of the entity applying for
registration; and,

 b. Three passport size ID pictures.

Requirements for new applicants:

 a. For those with assets worth three hundred

thousand pesos (P300,000) and less

 1. Registration as a business entity or enterprise

from the appropriate government agency (e.g.,
Securities and Exchange Commission (SEC)
registration in the case of corporation, or
association; Cooperative Development Authority
(CDA) registration in the case of cooperative;
Department of Trade and Industry (DTI) business
name registration in the case of sole
proprietorship); and
Requirements for new applicants:
 2. Mayor’s Permit or City/ Municipal Business
Permit.
 b. For those with assets worth more than three
hundred thousand pesos (P300, 000) up to three
million pesos (P3, 000,000.00)
 1. Registration as a business entity as explained
above in item no 1.
 2. Taxpayer Identification Number (TIN);
 3. Certificate of Registration from the Bureau of
Internal Revenue (BIR);
 4. Mayor’s Permit or City/Municipal Business Permit;
Requirements for new applicants:
 5. Sworn affidavit executed by the sole proprietor or
the President of the enterprise, as the case may be,
that the enterprise is barangay-based and micro-
business in nature and scope;
 6. Sworn Statement of Assets and Liabilities supported
by pertinent documents;
 7. Pictures of the place of business and its assets,
other than cash, receivables and intangibles;
 8. Copy of Loan Contract/s, if any, and duly-notarized
Certification of Amortization Payments on the Loan;
and
 9. Income Tax Return (ITR).
BMBE Registration Procedures

 a. Accomplish BMBE Form 01 in triplicate and

submit to the Office of the Municipal or City
Treasurer.
 b. The Municipal or City Treasurer evaluates the
application. The application shall be processed
within 15 working days upon submission;
otherwise, the BMBE shall be deemed registered.
 c. A registered BMBE shall be issued a Certificate
of Authority as proof of registration, effective for
two years. The application is renewable every two
years.
Cost of BMBE Registration

 The registration and issuance of the

Certificate of Authority of the LGU is free and
must be done promptly. However, LGUs are
allowed to charge a fee not exceeding P
1,000.00 to defray administrative costs.
 As a solopreneur operating a small business

on your own, registering as a BMBE will

provide you with many benefits.