QuestionsQuestions (Republic Act No. 9178)
The short title is the “Barangay Micro Business Enterprises (BMBEs) Act of 2002.”
To hasten economic development by encouraging the formation and growth of BMBEs, integrating them from the informal sector into the mainstream economy, rationalizing bureaucratic restrictions, enabling active government intervention at the local level, and granting incentives/benefits to generate employment and alleviate poverty.
It must be engaged in production, processing, or manufacturing (including agro-processing), trading, or services, and must have total assets not exceeding Php 3,000,000.00 (including those arising from loans, but excluding the land where the office, plant, and equipment are situated).
Yes. “Assets” refers to all kinds of properties, real or personal, owned by the BMBE and used for the conduct of its business as defined by the SMED Council; but for tax/fee exemption purposes, it includes all lands/properties owned and/or used by the BMBE for the conduct of its business.
No. “Services” exclude those rendered by any person who is duly licensed by the government after passing a government licensure examination, in connection with the exercise of one’s profession.
It is the certificate issued granting authority to the registered BMBE to operate and to be entitled to the benefits and privileges under the Act.
The Office of the Treasurer of each city or municipality registers the BMBEs and issues the Certificate of Authority.
Applications processed within 15 working days upon submission of complete documents; otherwise, the BMBEs shall be deemed registered.
Effective for two (2) years and renewable for two (2) years for every renewal.
LGUs must issue the Certificate of Authority promptly and free of charge. However, to defray administrative costs, LGUs may charge a fee not exceeding Php 1,000.00.
Any person (natural or juridical), cooperative, or association that meets the qualifications in Section 3(a) may apply for registration as a BMBE.
The BMBE must report any change in its ownership structure to the city or municipality and surrender the original Certificate of Authority for notation of the transfer.
All BMBEs are exempt from income tax for income arising from the operations of the enterprise.
BMBEs are exempt from the coverage of the Minimum Wage Law, but employees covered under the Act are entitled to the same benefits as regular employees, such as social security and healthcare benefits.
LBP, DBP, SBGFC, and PCFC; and likewise GSIS and SSS for their members who wish to establish a BMBE.
Loans granted to BMBEs are computed at twice the amount of the face value of the loans.
Fine of not less than Php 25,000 but not more than Php 50,000 and imprisonment of not less than 6 months but not more than 2 years.