Barangay Micro Businesses Act
Dear Atty. Chris,
I'd like to open a small business here in our barangay. I'd like to sell processed foods and rice by kilograms and hope to employ some of my neighbors. Are there laws that can protect me in establishing this business? Thank you.
Mark
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Dear Mark,
Republic Act 9178, otherwise known as the Barangay Micro Business Enterprises Act of 2002, tries to speed up the country's economic development by encouraging the formation and growth of barangay micro business enterprises. The law effectively serves as the seedbed of Filipino entrepreneurial talents and integrating those in the informal sector with the mainstream economy, through the rationalization of bureaucratic restrictions, and the active intervention of the government, especially in the local level.
BMBE refers to any enterprise or business entity engaged in the production, processing or manufacture of goods or commodities, including agro-processing, trade and services, all assets of which, including those derived from financing, related business excludes real estate where, company offices, plants, and equipment shall not exceed P3,000,000.
In line with this policy, any person, natural or juridical, or cooperative, or association, as defined therein may apply for registration as BMBE. To register as BMBE, you may apply before the Office of the Treasurer of the city or municipality where you reside or where you intend to conduct business for the issuance of a Certificate of Authority. The processing shall be for 15 working days upon the submission of the complete documents required.
The basic documents consist of duly filled out application form (BMBE Form 01) and three passport-size ID pictures. The additional requirements would vary on the value of the asset of the BMBE, in which case, you must be registered with the appropriate government agency, (SEC, DTI, etc.,) and a Mayor's permit. A minimal fee of P1,000 may be charged for the Certificate of Authority, which if issued, shall be effective for a period of two years and renewable for a period of two years.