What is Barangay Micro Business Enterprise Online Registration System or BMBE-ONLINE?
The BMBE-ONLINE is part of the DTI commitment to improve ease of doing business by streamlining and automating the Department's key services which is pursuant to the Republic Act No. 11032 or the Ease of Doing Business Law.
The BMBE-ONLINE is a web-based mechanism which allow remote application and automated processing for BMBEs. The portal aims to:
(1) make available the BMBE registration and renewal process online 24/7
(2) provide a more convenient application process
(3) ensure faster processing of application
What is Republic Act No. 9178 as amended by Republic Act No. 10644 or the Barangay Micro Business Enterprises (BMBEs) Act of 2002?
The "BMBEs Act of 2002" encourages the formation and growth of barangay micro business enterprises (BMBEs) by granting them incentives and other benefits.
Also, the Act primarily aims to integrate micro enterprises in the informal sector into the mainstream of the economy. Strengthening BMBEs would mean more jobs and livelihood, and a better quality of life for Filipinos.
A BMBE is defined as any business enterprises 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. Such assets shall include those arising from loans but not the land on which the plant and equipment are located.
For the purpose of the Act, "services" shall exclude those rendered by any one, who is duly licensed by the government after having passed a government licensure examination, in connection with the exercise of one's profession (e.g. Account, Lawyer, Doctor etc.).
What are the incentives granted to BMBEs?
Registered BMBEs can avail of the following incentives:
Income tax exemption for income arising from the operation of the enterprise;
Exemption from the coverage of the Minimum Wage Law (BMBE employees shall be entitled to the same social security and health care benefits as other employees);
Priority to a special credit window set up specifically for the financing requirements of BMBEs; and
Technology transfer, production and management training, marketing assistance programs for BMBE beneficiaries;
The LGUs are also encouraged either to reduce the amount of local taxes, fees and charges imposed or to exempt the BMBEs from local taxes, fees and charges.
What are the documentary requirements in registering as a BMBE?
(1.) BMBE Online Application Form
(2.) Certificate of Business Name Registration (issued by the Department of Trade and Industry, Securities and Exchange Commission, or Cooperative Development Authority).
How much will it cost to register?
The registration and issuance of the Certificate of Authority is FREE of charge.
What is the validity period of the BMBE Certificate of Authority registration?
The BMBE Certificate of Authority shall be effective for a period of two (2) years commencing from the date of issuance. The Certificate of Authority 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 prescribed by law and DTI Department Administrative Order (DAO) No. 16-01 Series of 2016.