If you're a micro entrepreneur in the Philippines, registering your business as a Barangay Micro Business Enterprise (BMBE) can help you enjoy tax exemptions, easier access to loans, and government support. It’s a great way to legitimize your small business while reducing operational costs.
In this guide, we’ll walk you through the step-by-step process of registering your business as a BMBE, including requirements, benefits, and some tips to make the process smoother.
What Is a BMBE?
Under Republic Act No. 9178 (the BMBE Act of 2002), micro enterprises in the Philippines can register as BMBEs to avail of tax incentives and other benefits. To qualify:
The business must have total assets of ₱3 million or less (excluding land).
It must be locally owned and operating in the Philippines.
It must not be a branch, subsidiary, or franchise of a large company.
Benefits of BMBE Registration
Income tax exemption for income from business operations
Priority access to government microfinance programs
Simplified business registration and renewal process
Exemption from minimum wage law (with conditions, subject to DOLE rules)
Step-by-Step Guide to BMBE Registration
Step 1: Prepare Your Documents
Here’s what you’ll typically need:
BMBE Application Form – Available at your local DTI or City/Municipal Hall.
Certificate of Business Name Registration (DTI, SEC, or CDA)
Mayor’s Permit or Barangay Business Clearance
Latest Financial Statement (if existing business) or Sworn Statement of Assets (if new)
Proof of Asset Size (inventory list, receipts, etc.)
Valid Government ID
2x2 ID photo (optional in some LGUs)
Step 2: Submit Application to the Local Government Unit (LGU)
Go to your City or Municipal Treasurer’s Office, where BMBE registration is handled. Submit the documents and fill out the official BMBE application form.
Tip: Some LGUs have a dedicated BMBE Desk or business one-stop-shop.
Step 3: Wait for Approval and Receive Your BMBE Certificate
If your documents are in order, approval can take anywhere from 1 to 15 working days, depending on your LGU. Once approved, you will receive a Certificate of Authority, valid for 2 years, and renewable.
Step 4: Notify the BIR
Although BMBEs are exempt from income tax, you still need to:
Register with the BIR (if you haven’t yet)
File income tax returns and indicate BMBE exemption
Continue paying other applicable taxes like VAT or percentage tax, unless also exempt
How Long Does Registration Take?
Document preparation: 1–3 days
LGU processing: 5–15 working days
BIR notification: 1–2 days
Who Should Register as a BMBE?
Online sellers
Home-based food businesses
Freelancers with a small team
Local crafters and artisans
Neighborhood service providers (e.g., sari-sari stores, tailoring, carinderia)
When and How to Renew
BMBE Certificates are valid for 2 years. Renewal typically requires:
Updated financial statements
Proof you still meet the ₱3 million asset threshold
Reapplication through your LGU
Mark your calendar to avoid lapses!
Final Thoughts
Registering your business as a BMBE is a smart move if you're just starting out or managing a small enterprise. It saves you money, gives you access to support, and strengthens your business legitimacy. Best of all, the process is simple and free in most areas.
Got questions about your specific business type? Drop them in the comments or contact your local DTI or City Hall for guidance.
إرسال تعليق