Start up Barangay Micro-Business Enterprises (BMBEs) has been deterred from registering their business and availing government incentives from the past for fear of paying humongous fees. The good news is, with the Republic Act 10644 or the Go Negosyo Act, BMBEs can now register free of charge at the Negosyo Centers of the Department of Trade and Industries (DTI).
The Republic Act No. 9178 or the BMBEs Act of 2002, defines a BMBE as “Any business entity or enterprises engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading, and services whose total assets, excluding land, shall not be more than P3 million. Such assets shall include those arising from loans but not the land on which the plant and equipment are located.”
The issued Certificate of Authority (CAO) by the DTI is renewable every two years but subject to eligibility requirements of the law. BMBEs with this certificate can avail all the benefits provided under RA 9178 which includes the following:
- Income tax payment exemption for the first two years of operation.
- Exemption from the coverage of the minimum wage law, special credit window of government financing institutions that will service the needs of BMBEs, as well as technology transfer, production, management
- Special credit window of government financing institutions that will service the needs of BMBEs, as well as technology transfer, production, management training and marketing assistance.
- Technology transfer, production, management training, and marketing assistance.
The Department Administrative Order (DAO) No. 16-01 issued by the DTI last April 22, 2016 provides a clear guideline on how to register BMBEs at Negosyo Centers.
Through the BMBE act, DTI believes that supporting micro-enterprises would result with the creation of more jobs and livelihood. This is one key to the country’s economic development.