Qualified Enterprises can now register as Barangay Micro-Business Enterprises (BMBEs) free of charge at the Department of Trade and Industry (DTI), through the Negosyo Center, after a Department Administrative Order was recently signed by Secretary Adrian Cristobal Jr.
The Department Administrative Order No. 16-01, signed last April 22, 2016, provides guidelines on registering enterprises as BMBEs at Negosyo Centers to encourage more micro enterprises so they can avail of the incentives that come with the full implementation of the BMBE Law.
“The recent signing of the Department Order is in line with the DTI’s full speed ahead. We encourage micro enterprises to register their businesses and avail of the incentives under the BMBE Law – as the BMBE registration is free,” DTI Regional Operations Group Supervising Undersecretary Zenaida Maglaya said of the DAO.
Registered BMBEs can avail of government incentives including exemption from the payment of income tax for income arising from the operation of the enterprise, exemption from the coverage of the minimum wage law, special credit window of government financing institutions that will service the needs of BMBEs, as well as technology and marketing assistance.
In Republic Act No. 9178 or the BMBEs Act of 2002, BMBE refers to as any business entity or enterprises engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading, and services whose total assets, excluding land, shall not be more than P3 million. Such assets shall include those arising from loans but not the land on which the plant and equipment are located.
Pursuant to the provisions of Republic Act 10644 or the Go Negosyo Act, the DTI will be the sole agency to issue a Certificate of Authority (CA) that shall entitle registered BMBEs to avail of the incentives.
Prior to its full implementation, registration of BMBEs is done at the Office of the Treasurer of the city or municipality where the business is located. But with the signing of the Department Administrative Order, BMBEs can register and obtain a Certificate of Authority (CA) at Negosyo Centers or DTI offices where Negosyo Centers have not been set up.
Republic Act 9178 or the BMBE Act of 2002 recognizes the role of BMBEs as essential driving forces for the country’s economic development. It sees them as ‘seedbeds of Filipino entrepreneurial talents and strengthening them would increase job generation, provide livelihood, and augment Filipinos’ quality of life.