Barangay Micro Business Enterprises (BMBEs)In summary, Republic Act No. 9178 is called Barangay Micro Business Enterprises (BMBEs) Act of 2002. This Act refers to any business entity or enterprise engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading and services, whose total assets including those arising from loans but exclusive of the land on which the particular business entity's office, plant and equipment are situated, shall not be more than Three Million Pesos (P3,000,000.00).
Incentive and Benefits:Exemption from Taxes and Fees. - All BMBEs shall be exempt from income tax for income arising from the operations of the enterprise.
Exemption from the Coverage of the Minimum Wage Law. The BMBEs shall be exempt from the coverage of the Minimum Wage Law. Provided, That all employees covered under this Act shall be entitled to the same benefits given to any regular employee such as social security and healthcare benefits.
Credit Delivery. - Upon the approval of this Act, the Land Bank of the Philippines (LBP), the Development Bank of the Philippines (DBP), the Small Business Guarantee and Finance Corporation (SBGFC), and the People's Credit and Finance Corporation (PCFC) shall set up a special credit window that will service the financing needs of BMBEs registered under this Act
Technology Transfer, Production and Management Training, and Marketing Assistance. - A BMBE Development Fund shall be set up with an endowment of Three Hundred Million Pesos (P300,000,00) from the Philippine Amusement and Gaming Corporation (PAGCOR) and shall be administered by the SMED Council.
The DTI, in coordination with the private sector and non-government organizations (NGOs), shall explore the possibilities of linking or matching-up BMBEs with small, medium and large enterprises, and likewise establish incentives therefor. The data gathered from business registration shall be made accessible to and shall be utilized by private sector organizations and non-government organizations for purposes of business matching, trade and investment promotion.
Registration and Operation:The Office of the Treasurer of each city or municipality shall register the BMBEs and issue a Certificate of Authority to enable the BMBE to avail of the benefits under this Act. The LGUs shall issue the Certificate of Authority promptly and free of charge. However, to defray the administrative costs of registering and monitoring the BMBEs, the LGUs may charge a fee not exceeding One Thousand Pesos (P1,000.00).
The Certificate of Authority shall be effective for a period of two (2) years, renewable for a period of two (2) years for every renewal.
As much as possible, BMBEs shall be subject to minimal bureaucratic requirements and reasonable fees and charges.
For additional information, visit http://www.globalpinoys.netRead the full RA9178 text here