Registering a Business under BMBEs Law


Registering a business under Barangay Micro Business Enterprises (BMBEs) Law, RA 9178 Act of 2002

The BMBEs Act of 2002 encourages the formation and growth of BMBEs by granting them incentives and other benefits.

The Act was signed into law by President Gloria Macapagal-Arroyo on November 13, 2002.

A BMBE is defined 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.

For the purpose of the Act, “services” shall exclude those rendered by any one, who is duly licensed by the government after having passed a government licensure examination, in connection with the exercise of one’s profession (e.g., Accountant, Lawyer, Doctor, etc.)

The Department of Finance (DOF) Department Order (DO) No. 17-04 provides that an enterprise can only qualify for registration if 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 a large-scale enterprise or by persons who are not owners or employees of the enterprise (i.e., franchises).

*Any person, cooperative, or association owning an enterprise that fits the description of a BMBE may register for the first time or renew its registration with the Office of the Treasurer of the city or municipality where the business is located. This was based on the guidelines under DTI Department Administrative Order (DAO) No. 01-03 and DOF DO No. 17-04 as amended by DO No. 31-05.

Source: DTI, Bureau of Micro, Small and Medium Enterprise Development (BMSMED)


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