The Philippine Government’s objective is to strengthen the Barangay Micro Business Enterprises (BMBE) in the country and provide incentives and other benefits, more jobs, livelihood, and better quality of life to every Filipinos.
BMBE as defined under the Republic Act 9178 is any business enterprise engaged in production, processing or manufacturing of products with total assets not exceeding three million pesos (Php 3,000,000.00), exclusive of the land where the business is located. One of the main advantages of a business that would be classified as a BMBE is that it would be exempt from paying income tax.
There are distinctions concerning the requirements for the different types of business entities, which are the following: a DTI registration for sole proprietors; SEC registration for corporation, partnership or association; and a CDA registration for cooperatives.
BASIC BMBE REQUIREMENTS
New and existing enterprises can apply as BMBE at the City Office of the Treasurer. The basic requirements that need to be submitted are the following:
- Download BMBE form 01 and fill it up in triplicate copy; and
- Three copies of passport ID size pictures.
Aside from the basic requirements, the City Treasurer would also require the registrant to submit additional requirements in order to fully process the application as a Barangay Micro Business Enterprise.
The additional requirements are as follows:
- Registration with SEC or DTI;
- Mayor’s Permit;
- BIR Registration;
- Sworn Statement or Affidavit stating that the enterprise is micro in nature and based in Barangay;
- Sworn Statement of Assets and Liabilities, image of the place of business, image of the assets except cash, receivables and intangibles, copy of contracts of Loan if any; and
- Income Tax Return.
A Certificate of Authority will be issued to the BMBE applicant as proof of registration and it is effective for two-year period. This application is renewable every two years. The registration is free of charge.