Barangay Micro Business Enterprise

Barangay Micro Business Enterprise (BMBE)
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. Such assets shall include those
arising from loans but not the land on which the plant and equipment are located.”
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 country recognizes that small businesses are essential to the economic development of the
country. Supporting the growth of BMBEs will increase jobs, provide livelihood, and a better
quality of life for Filipinos. The Act then aims to “integrate micro-enterprises in the informal
sector into the mainstream of the economy.”
Incentives for BMBE Registration
The following incentives are available for registered BMBEs:

• Income tax exemption from income arising from the operations of the enterprise;
• Exemption from the coverage of the Minimum Wage Law (BMBE employees will still receive
the same social security and health care benefits as other employees);
• Priority to a special credit window set up specifically for the financing of BMBEs; and
• Technology transfer, production and management training, and marketing assistance programs
for BMBE beneficiaries.
• 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.
Eligibility for a BMBE Registration
Based on the BMBE Law, your business or activity is eligible to apply as a BMBE if it meets the
following criteria:
• It is engaged in production, processing, or manufacturing of products, including agro-

processing, as well as trading and services
• It has total assets of not more than P 3 million, including those arising from loans but not the
land on which the plant and equipment are located.
• The business or service provider, in connection with the exercise of his or her profession, is
not a professional duly licensed by the government after having passed a government licensure
examination, such as accountants, lawyers, doctors, and the like.
• It is not a branch, subsidiary, division, or office of a large-scale enterprise and its policies and
business modus operandi are not determined by such enterprise or by persons who are not
owners or employees of said enterprise, as mandated by the Department of Finance Order No.
17-04.
Solopreneur 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.
I. Basic requirements for new applicants and BMBEs applying for renewal of registration:
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.
II. Additional 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
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. II.a.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;
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).
III. Additional requirements for the renewal of BMBE registration:

a. For those with assets worth three hundred thousand pesos (P300,000) and less
1. Documents previously listed in item II.a.1 for new applicants with assets worth three hundred
thousand pesos and less; and
2. Annual Information Return (for the year immediately preceding the renewal of registration)
duly filed with the BIR, together with its attachments.
b. those with assets worth more than three hundred thousand pesos (P300,000) up to three
million pesos (P3,000,000.00)
1. Documents previously mentioned in item II.b (1-8); and
2. Annual Information Return (for the year immediately preceding the renewal of registration)
duly filed with the BIR, together with its attachments.
BMBE Registration Procedures

The process for registration is as follows:
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.

Barangay Micro Business Enterprise

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Barangay Micro Business Enterprise (BMBE)

President Gloria Macapagal-Arroyo

Objective of the BMBE Law

Incentives for BMBE Registration

The following incentives are available for registered BMBEs:

Eligibility for a BMBE Registration

• It is engaged in production, processing, or manufacturing of products, including agro-

Solopreneur Requirements for a BMBE Registration

II. Additional requirements for new applicants:

2. Mayor’s Permit or City/ Municipal Business Permit.

1. Registration as a business entity as explained above in item no. II.a.1

III. Additional requirements for the renewal of BMBE registration:

1. Documents previously mentioned in item II.b (1-8); and

BMBE Registration Procedures

c. A registered BMBE shall be issued a Certificate of Authority as proof of registration, effective

Cost of BMBE Registration

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