With the rapid rise of online selling and freelancing in the Philippines, many digital entrepreneurs are asking:
Can I register as a Barangay Micro Business Enterprise (BMBE)?
The short answer? Yes — if you meet the requirements.
Let’s break it down.
What is BMBE?
The Barangay Micro Business Enterprise (BMBE) program, under Republic Act No. 9178, was created to support micro-businesses by offering:
Income tax exemption on business income
Access to government loans and training programs
Simplified registration through local government units (LGUs)
Potential exemption from the minimum wage law (optional)
BMBE is designed for Filipino-owned businesses with total assets not exceeding ₱3 million (excluding land).
Can Online Sellers Qualify for BMBE?
Yes — online sellers can qualify for BMBE status as long as they meet the following conditions:
You are legally registered.
You have a DTI business name registration (for sole proprietors)
You operate as a legitimate business, not just a hobby or side hustle
Your business assets are under ₱3 million.
This includes your laptop, inventory, tools, equipment, and cash on hand (excluding land)
You are Filipino-owned.
The business must be 100% owned by a Filipino citizen.
Examples of eligible online businesses:
Online clothing or accessories shops
Dropshipping businesses
Food delivery or home kitchen services
Facebook Marketplace or Shopee sellers
Can Freelancers Qualify for BMBE?
It depends.
Freelancers can qualify for BMBE if they operate like a business — meaning they offer services for profit, manage clients, and use tools or systems to run their operations.
Qualified Freelancers May Include:
Graphic designers
Social media managers
Virtual assistants
Web developers
Online tutors or coaches
But there are two important conditions:
1. You must register your freelancing as a business.
Get a DTI registration for your business name
Secure a Mayor’s Permit or Barangay Clearance
Register with BIR and get your TIN
2. You must demonstrate you operate as a microenterprise.
Provide a sworn statement showing your assets (e.g., laptop, printer, software subscriptions)
Your assets must not exceed ₱3 million
Required Documents for BMBE Application
Whether you're an online seller or freelancer, you’ll typically need the following to apply for BMBE status:
Duly accomplished BMBE Application Form
DTI Registration Certificate (for sole proprietors)
Mayor’s Permit or Barangay Business Permit
Sworn Statement of Assets, if newly started
Financial Statement, if already operating
Copy of valid government-issued ID
Submit these to the City or Municipal Hall where your business is based.
What Are the Benefits of BMBE for Online Sellers and Freelancers?
Benefit | How It Helps |
---|---|
Income Tax Exemption | Keeps more earnings in your pocket |
Access to Loans | Qualify for low-interest microloans |
Government Training | Join free DTI and TESDA programs |
Lower Compliance Costs | Registration is free or low-cost |
Business Legitimacy | Boosts trust with clients and partners |
What You Still Need to Comply With
Even with BMBE status, you’re still required to:
File tax returns with BIR (but indicate you're exempt from income tax)
Pay percentage tax or VAT, if applicable
Renew your BMBE certificate every 2 years
Provide mandatory benefits if you hire staff (SSS, PhilHealth, Pag-IBIG)
Final Thoughts
Yes — online sellers and freelancers can register as a BMBE, provided they follow the right steps and meet the basic qualifications. This status can help reduce tax burdens, improve access to credit, and boost your business credibility.
Whether you’re running a thriving online shop or managing clients as a solo freelancer, registering as a BMBE is a smart step toward building a legit, scalable, and supported business in the Philippines.
Want to register your online business or freelancing services as a BMBE?
Check out our full guide: How to Register Your Business as a BMBE in the Philippines
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