QuestionsQuestions (DTI ADMINISTRATIVE ORDER NO. 01, s. 2003)
To hasten economic development by encouraging formation and growth of Barangay Micro Business Enterprises (BMBEs) that serve as seedbeds of Filipino entrepreneurial talents, integrate the informal sector into the mainstream economy, rationalize bureaucratic restrictions, provide government intervention at the local level, and grant incentives to generate employment and alleviate poverty.
A business engaged in production, processing, manufacturing, agro-processing, trading, or services whose total assets (including those from loans but excluding the land where office/plant/equipment are located) do not exceed P3,000,000, subject to review and upward adjustment by the SMED Council.
Yes. “Services” exclude those rendered by a person who is duly licensed by the government after passing the government licensure examination in connection with the practice of one’s profession.
Any person (natural or juridical), cooperative, or association that: (a) has an asset size not more than P3,000,000 excluding land before applying; and (b) is engaged in business activities defined in Sec. 2(b) of the IRR.
The Office of the City or Municipal Treasurer, where it registers BMBEs and issues the Certificate of Authority (CA), for the principal place of business of the BMBE.
The applicant must submit a duly filled-up application (BMBE Form 01) in triplicate, signed by the owner or manager.
The application shall be processed within fifteen (15) working days upon submission of complete documents.
If not processed within fifteen (15) working days upon submission of complete documents, the BMBEs shall be deemed registered.
The CA is effective for two (2) years and is renewable for two (2) years for every renewal.
Yes, the LGU shall issue the CA promptly and free of charge; however, to defray administrative costs, the LGU may charge a fee not exceeding P1,000.
It must report the change to the city or municipality and surrender the original copy of the CA for notation of the transfer.
BMBEs are exempted from income tax for income arising from the operation of the enterprise.
They are exempt from the coverage of the Minimum Wage Law, provided that employees covered under the Act are entitled to the same benefits given to any regular employee such as social security and healthcare benefits.
LBP, DBP, SBGFC, and PCFC must set up special credit windows; GSIS and SSS must also set up special credit windows for their respective member-employees who wish to establish a BMBE.
Loans granted to BMBEs under the Act are considered part of alternative compliance and are computed at twice the amount of the face value of the loans.
Interests, commissions, and discounts derived from loans by LBP, DBP, PCFC, and SBGFC as well as loans extended by GSIS and SSS to their member-employees under the Act are exempt from gross receipts tax (GRT).
They can avail of technology transfer, production, production/management training, and marketing assistance of agencies such as DTI, DOST, UP-ISSI, CDA, TESDA, TLRC, and other concerned agencies.
It is an endowment of P300,000,000 from PAGCOR and administered by the SMED Council.
Upon conviction: fine of not less than P25,000 but not more than P50,000 and imprisonment of not less than six (6) months but not more than two (2) years.
If there is non-compliance with the provisions of Sec. 9 of the Act, the BSP shall impose administrative sanctions and other penalties on the concerned government financial institutions, including a fine of not less than P500,000.