REPUBLIC ACT NO. 9178 of 2002.
This Act refers to any business entity or enterprise engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading and services, whose total assets including those arising from loans but exclusive of the land on which the particular business entity’s office, plant and equipment are situated, shall not be more than Three Million Pesos (P3,000,000.00).
Incentive and Benefits:
• Exemption from Taxes and Fees. - All BMBEs shall be exempt from income tax for income arising from the operations of the enterprise.
• Exemption from the Coverage of the Minimum Wage Law. The BMBEs shall be exempt from the coverage of the Minimum Wage Law. Provided, That all employees covered under this Act shall be entitled to the same benefits given to any regular employee such as social security and healthcare benefits.
• Credit Delivery. - Upon the approval of this Act, the Land Bank of the Philippines (LBP), the Development Bank of the Philippines (DBP), the Small Business Guarantee and Finance Corporation (SBGFC), and the People’s Credit and Finance Corporation (PCFC) shall set up a special credit window that will service the financing needs of BMBEs registered under this Act
• Technology Transfer, Production and Management Training, and Marketing Assistance. - A BMBE Development Fund shall be set up with an endowment of Three Hundred Million Pesos (P300,000,00) from the Philippine Amusement and Gaming Corporation (PAGCOR) and shall be administered by the SMED Council.
The DTI, in coordination with the private sector and non-government organizations (NGOs), shall explore the possibilities of linking or matching-up BMBEs with small, medium and large enterprises, and likewise establish incentives therefor. The data gathered from business registration shall be made accessible to and shall be utilized by private sector organizations and non-government organizations for purposes of business matching, trade and investment promotion.
Application Requirements:
To determine the value of the assets of the business entity or enterprise applying for registration as a BMBE, the Office of the City or Municipal Treasurer shall require the submission of the following documents:
1. Duly-accomplished Application for Registration or BMBE Form ( secure copy from the Municipal/City Treasurer’s Office)
2. 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, partnership or association; Cooperatives Development Authority (CDA) registration in the case of Cooperative; Department of Trade and Industry (DTI) business name registration in the case of sole proprietorship);
3. . Taxpayer Identification Number (TIN);
4. Certificate of Registration from the Bureau of Internal Revenue (BIR);
5. . Mayor’s Permit or City/Municipal Business Permit;
6. 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,;
7. Sworn Statement of Assets and Liabilities showing the values of assets owned and to be used in the conduct of business, which shall be supported by pertinent information such as the date of acquisition, acquisition cost and depreciated value. In case of asset acquired during the year of registration, it shall be supported by any of the following:
a. invoice
b. official receipt
c. contract document or deed
8. Pictures of the place of business and its assets, other than cash, receivables and
intangibles;
9. Copy of Loan Contract/s, if any, and Duly-Notarized Certification of Amortization Payments on the Loan; and
10. Income Tax Return (ITR) with proof that it has been duly filed with the BIR, including attachments, if any, (for an existing business only).
Registration and Operation:
The Office of the Treasurer of each city or municipality shall register the BMBEs and issue a Certificate of Authority to enable the BMBE to avail of the benefits under this Act. The LGUs shall issue the Certificate of Authority promptly and free of charge. However, to defray the administrative costs of registering and monitoring the BMBEs, the LGUs may charge a fee not exceeding One Thousand Pesos (P1,000.00). The Certificate of Authority shall be effective for a period of two (2) years, renewable for a period of two (2) years for every renewal.
As much as possible, BMBEs shall be subject to minimal bureaucratic requirements and reasonable fees and charges
Incentive and Benefits:
• Exemption from Taxes and Fees. - All BMBEs shall be exempt from income tax for income arising from the operations of the enterprise.
• Exemption from the Coverage of the Minimum Wage Law. The BMBEs shall be exempt from the coverage of the Minimum Wage Law. Provided, That all employees covered under this Act shall be entitled to the same benefits given to any regular employee such as social security and healthcare benefits.
• Credit Delivery. - Upon the approval of this Act, the Land Bank of the Philippines (LBP), the Development Bank of the Philippines (DBP), the Small Business Guarantee and Finance Corporation (SBGFC), and the People’s Credit and Finance Corporation (PCFC) shall set up a special credit window that will service the financing needs of BMBEs registered under this Act
• Technology Transfer, Production and Management Training, and Marketing Assistance. - A BMBE Development Fund shall be set up with an endowment of Three Hundred Million Pesos (P300,000,00) from the Philippine Amusement and Gaming Corporation (PAGCOR) and shall be administered by the SMED Council.
The DTI, in coordination with the private sector and non-government organizations (NGOs), shall explore the possibilities of linking or matching-up BMBEs with small, medium and large enterprises, and likewise establish incentives therefor. The data gathered from business registration shall be made accessible to and shall be utilized by private sector organizations and non-government organizations for purposes of business matching, trade and investment promotion.
Application Requirements:
To determine the value of the assets of the business entity or enterprise applying for registration as a BMBE, the Office of the City or Municipal Treasurer shall require the submission of the following documents:
1. Duly-accomplished Application for Registration or BMBE Form ( secure copy from the Municipal/City Treasurer’s Office)
2. 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, partnership or association; Cooperatives Development Authority (CDA) registration in the case of Cooperative; Department of Trade and Industry (DTI) business name registration in the case of sole proprietorship);
3. . Taxpayer Identification Number (TIN);
4. Certificate of Registration from the Bureau of Internal Revenue (BIR);
5. . Mayor’s Permit or City/Municipal Business Permit;
6. 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,;
7. Sworn Statement of Assets and Liabilities showing the values of assets owned and to be used in the conduct of business, which shall be supported by pertinent information such as the date of acquisition, acquisition cost and depreciated value. In case of asset acquired during the year of registration, it shall be supported by any of the following:
a. invoice
b. official receipt
c. contract document or deed
8. Pictures of the place of business and its assets, other than cash, receivables and
intangibles;
9. Copy of Loan Contract/s, if any, and Duly-Notarized Certification of Amortization Payments on the Loan; and
10. Income Tax Return (ITR) with proof that it has been duly filed with the BIR, including attachments, if any, (for an existing business only).
Registration and Operation:
The Office of the Treasurer of each city or municipality shall register the BMBEs and issue a Certificate of Authority to enable the BMBE to avail of the benefits under this Act. The LGUs shall issue the Certificate of Authority promptly and free of charge. However, to defray the administrative costs of registering and monitoring the BMBEs, the LGUs may charge a fee not exceeding One Thousand Pesos (P1,000.00). The Certificate of Authority shall be effective for a period of two (2) years, renewable for a period of two (2) years for every renewal.
As much as possible, BMBEs shall be subject to minimal bureaucratic requirements and reasonable fees and charges