Government policies designed to attract business and industry, such as direct subsidies, preferential taxes, loans with below market interest rates, development of physical infrastructure, such as roads and buildings, and job training.
Omnibus Investments Code
Barangay Micro Business Enterprises (BMBE) Law
The BMBE Law (Republic Act No. 9178) was enacted in 2003 for the purpose of encouraging the formation and growth of barangay micro business enterprises in order to hasten the country's economic development. This can hopefully be achieved by rationalizing bureaucratic restrictions, by providing active government intervention specially at the local level, and by the granting of incentives and benefits to generate much needed employment and alleviate poverty.
A BMBE is 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 P3 million. Services include: (1) repair and maintenance of business/personal/household goods (e.g. motorcycle repair); (2) hotels and restaurants; (3) transport, storage and communication; (4) financial intermediation; (5) real estate; (6) education; (7) health and social work, and (8) other similar activities.
( Note: Services exclude those rendered by anyone who is duly licensed by the government after having passed a government licensure examination, in connection with the exercise of one's profession .)
Any person, natural or juridical, a cooperative or association, existing or startup, having the qualifications of a BMBE (as defined) may apply for registration.
Where to Apply
Application forms may be obtained from, and submitted to, the Office of the Treasurer of the municipality or city where the BMBE has its principal place of business. Applications shall be processed within 15 working days upon submission of complete documents. Otherwise, BMBEs shall be deemed registered. The Treasurer's Office shall issue a Certificate of Authority to enable the BMBE to avail of incentives under the Act.
- Application Form (Form 01) duly signed by the owner or manager of the entity applying for registration.
- One (1) picture of the owner, in case of a single proprietorship, or the manager, in case of other types of business entity.
- Sworn statement of assets owned and/or to be used for the conduct of its business (in triplicate).
- Tax Identification Number (TIN) of the applicant.
- In case of a juridical person, a copy of its articles of incorporation/cooperation or partnership.
Incentives and Benefits
A. Exemption from Taxes and Fees
All BMBEs shall be exempt from income tax for income arising from the operations of the enterprise.
B. Exemption from coverage of Minimum Wage Law
All BMBEs shall be exempt from the coverage of the Minimum Wage Law provided that all employees covered under the Act shall be entitled to the same benefits given to any regular employee such as social security and health care benefits. Thus, BMBEs with Certificates of Authority (CA) shall be granted exemption upon registering with the appropriate Regional Tripartite Wage and Productivity Board.
C. Credit Delivery
Government Financing Institutions (GFIs) will set up a special credit window that will service the financing needs of BMBEs registered under the Act. The GSIS and SSS shall likewise set up a special credit window that will serve the financing needs of their members who wish to establish a BMBE.
D. Technology Transfer, Production and Management Training and Marketing Assistance
A P300M fund sourced from PAGCOR shall be set up and administered by the SMED Council. The fund can be availed of by DTI, DOST, UP-ISSI, CDA, TESDA and TLRC.
The City or Municipal Treasurer may charge a fee not exceeding One Thousand Pesos (P1,000.00) to defray the administrative costs of registering and monitoring BMBEs.
Duration of BMBE Certificate of Authority.
The BMBE Certificate of Authority shall be valid for a period of two (2) years for every renewal as provided in the Act.
Transfer of Certificate of Authority.
The BMBE shall report within five (5) working days to the BMBE Registration Officer any change in the status of its ownership structure, provided, that in the case of an individual, he shall surrender the original copy of the BMBE Certificate of Authority for proper notation of the transfer.
A BMBE may establish branches. However, for monitoring purposes, registered BMBEs which have opened branches in the same municipality or city after the issuance of the BMBE Certificate of Authority shall notify the BMBE Registration Officer of such opening within five (5) working days from the establishment of such branch/es. The assets of such branch/es shall be considered as part of the assets of the registered BMBEs.