Register Your Sole Prop Business as BMBE

There are plenty of benefits when you register your sole prop business as BMBE or Barangay Micro Business Enterprise. A BMBE is defined under the BMBE LawRA. 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.”

Here are some benefits that you will enjoy when you are registered as BMBE:

  1. Income tax exemption from income arising from the operations of the enterprise;
  2. 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);
  3. Priority to a special credit window set up specifically for the financing of BMBEs; and
  4. Technology transfer, production and management training, and marketing assistance programs for BMBE beneficiaries.
  5. 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.

Who can register as BMBE?

Based on the BMBE law, you are eligible to register as one if your business falls under these criteria:

  1. It is engaged in production, processing, or manufacturing of products, including agro-processing, as well as trading and services
  2. 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.
  3. 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.
  4. 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.

Requirements for BMBE Registration

This year, the registration was appointed to the DTI before it was from the City’s Treasurer’s Office. I bet the requirements differ every LGU but for mine (Antipolo City), I was just asked for the following:

  1. DTI certificate of the business
  2. Financial Statement
  3. ORs from last year
  4. Certificate of Registration from the BIR

That’s it.

Procedure for BMBE Registration

I just went to the DTI office near me, submitted the documents stated above and filled up a form.

Less than 10 mins, I have my BMBE certificate. It was fast, smooth and most of all, FREE. I did not pay for anything at all.

I’d love to hear your thoughts about BMBE and if you have already applied, how was it in your area? Let me know! 

About the author

Renz Mom to 2 beautiful girls, Peaches & Luzy. WAHM for almost 9 years and then I opened a small condo and office cleaning business. That's just the start. Follow me as I walk along my entrepreneurial journey.

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Comments

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    http://www.raellarina.net
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