LAW 101: Get to know the BMBE (Barangay Micro Business Enterprises)

What for? Only because it’s exempt from income tax & the Minimum Wage Law (!)

Who can register? Any business engaged in the production, processing or manufacturing of goods, trading & services, whose total assets - including those arising from loans but exclusive of the land on which the business office, plant & equipment are situated - are not more than P3M.

Requirements? Go to your LGU. Oh alright, since we’re here to help, here they are:
1. registration with the SEC(if corp.)/DTI(if sole prop)/CDA (if coop)
2. TIN
3. BIR registration
4. Business Permit
5. Sworn affidavit by the sole proprietor or the President of the enterprise that the enterprise is barangay-based & micro-business in nature and scope (a form is provided by the LGU)
6. Sworn Statement of Assets and Liabilities showing the values of assets owned and to be used in the business, supported by information such as date of acquisition, acquisition cost & 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, or c) contract document or deed.
7. Pictures of the place of business & assets except cash, receivables & intangibles;
8. Copy of Loan Contract/s, duly-Notarized Certification of Amortization Payments on the Loan; and
9. duly filed ITR including attachments, if any.

Fees? There shouldn’t be any for 1st time applicants.

Every now and then, the government remembers the little ones and legislates in their favor. Seems like this is one of those rare times.

Sources:

R.A. 9178 (An Act To Promote The Establishment Of Barangay Micro Business Enterprises (BMBEs), Providing Incentives And Benefits Therefor, And For Other Purposes);

LGU's list of requirements