Barangay Micro Business Enterprise Law

1. Application and Registration

a. Qualifications (Section 3a)
i. Any business entity or enterprise engaged in the production, processing or manufacturing of
products or commodities, including agro-processing, trading and services (professions that
require a government licensure examination in order to practice are excluded)
ii. Total assets not exceeding Php 3,000,000 but exclusive of the value of the land where the
business is situated
iii. Not a branch, subsidiary, division or office of a large scale enterprise or it is not a franchisee.
iv. Proof that a business is classified as a BMBE is the Certificate of Authority
b. Procedures and Requirements to be issued a Certificate of Authority
i. BMBE Form 01 - in triplicate, owner or authorized rep (flash na lang yung actual form)
ii. New applicants with assets worth three hundred thousand pesos (P300,000) and less
1. Registration as a business entity or enterprise from the appropriate government agency
(SEC Reg, CDA Reg, or DTI Reg)
2. Business Permit
iii. New applicants with assets worth more than three hundred thousand pesos (P300, 000) up to
three million pesos (P3, 000,000.00)
1. Registration as a business entity or enterprise from the appropriate government agency
(SEC Reg, CDA Reg, or DTI Reg)
2. Taxpayer Identification Number (TIN)
3. Certificate of Registration from the Bureau of Internal Revenue (BIR)
4. Business Permit
5. Sworn affidavit executed by the sole proprietor or the President of the enterprise, as the
case may be, that the enterprise is barangay-based and micro-business in nature and
scope
6. Sworn Statement of Assets and Liabilities supported by pertinent documents;
7. Pictures of the place of business and its assets, other than cash, receivables and
intangibles;
8. Copy of Loan Contract/s, if any, and duly-notarized Certification of Amortization Payments
on the Loan
9. Income Tax Return (ITR)
iv. Process
1. Fill out BMBE Form 01 in triplicate then submit to the Office of the Municipal or City
Treasurer along with the other documents
2. The municipal or City Treasurer evaluates the application within 15 working days upon
submission otherwise, the BMBE is deemed registered
3. Registered BMBE shall be issued a Certificate of Authority as proof of registration,
effective for 2 years. Renewable every 2 years.
c. Cost to Register
i. LGUs shall issue the Certificate of Authority free of charge
ii. Fees may be charged for renewal not exceeding Php 1000
d. Validity Period
i. 2 years, renewable every 2 years
Skit
Exception from the Coverage of Minimum Wage Law and Income Tax

Odette Pipin pays his factory workers daily. And then, one day…
(Narrator)

Pipin Ian, ito sweldo mo para sa araw na ‘to.

Ian *Counting*
Ano ba ‘to! Ang baba ng sweldo ko. May minimum wage law ah. Bakit mas mababa yung atin? Hindi
ka na nga nagbabayad ng income tax eh. Kung hindi mo tataasan sweldo ko at hindi ka magbabayad
ng tax, magreresign na ako! Ito sweldo ko - saksak mo sa baga mo!

Pipin Teka lang, wag ka mag-resign. According to the BMBE law, hindi kami required mag-comply sa
minimum wage at magbayad ng income tax. Nag apply ako ng maayos at nag submit ng mga
requirements para dito sa BIR Revenue District Office. Binibigyan naman kita ng SSS at health care
benefits ha, ano pag gusto mo?

Ian Ang gusto ko mataas na sweldo!

Pipin Sige na nga, basta wag ka magresign...

Penalty

Narrator After 5 years, Pipin’s business grew and decided to invest in more assets to produce more calculators
but Ian is still dissatisfied with his boss Pipin’s treatment with him...

Ian Hmm… Nakakainis talaga yung boss ko… Ano pa bang pwede kong isumbong…

Ah! Hindi ba may bagong factory plant… Alam ko worth more than 2 million yun… So 5 million na
yung assets niya… Nasilip kong habang naglilinis ako ng office niya. Tapos hindi pa rin siya
nagbabayad ng income tax kahit hindi na siya exempted.

Ian Hoy Pipin! Lampas 3 million na yung assets mo, bakit hindi ka pa rin nagbabayad ng income tax?
Alam mo ba na you may punished by a fine of not less than P25,000.00 but not more than P50,000.00
and suffer imprisonment of not less than 6 months but not more than 2 years.

Pipin Bakit andami mong alam?

Ian NAGBASA NA AKO NG BMBE LAW! Finally pwede ka nang makulong!

Pipin Tumahimik ka na lang. Dodoblehin ko sweldo mo…

Ian Ah okay, goods na tayo.