HOW TO GET BMBE CERTIFICATE IN BAGUIO CITY?

by: Aether 

Have you ever wonder what is BMBE all about?

How does it help you and what are the benefits of acquiring one?

What are the requirements? and etc...  

I got my BMBE Certificate last July 2018 at DTI one-stop shop in  Baguio City Hall.

I will share with you guys, on how I got one, but before that let's know first if what is BMBE?

 BMBE is known as Barangay Micro Business Enterprise. It is defined under the BMBE law, RA.9178 Act of 2002 as "any business enterprise engaged in production, processing, or manufacturing of products, including agro-processing, as well as trading and services, with total assets of not more than Php 3,000,000. Such assets shall include those arising from loans but not the land on which the plant and equipment are located."

The DTI issued Department Administrative Order (DAO) No. 16-01 last April 22, 2016 which provides guidelines on registering BMBEs at Negosyo Centers. Under DAO 16-01, DTI is the sole agency which shall issue a Certificate of Authority (CA) to registered BMBEs at Negosyo Centers or at DTI offices where Negosyo Centers have not been set up.

ELIGIBILITY OF BMBE APPLICATION

Any person, natural, or juridical, such as partnership, corporation, association, and cooperative, having the qualifications and none of the disqualifications shall be eligible to register as BMBEs.

QUALIFICATIONS OF BMBE 

A person applying to be  registered as a BMBE shall meet the following qualifications:

a) With an asset of not more than 3 Million Pesos (PhP3,000,000.00) excluding land;

b) Engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading, and services:

c) Registered with the Department of Trade and Industry (DTl) for sole proprietorships; for juridical persons: with the Securities and Exchange Commission (SEC), for corporations and associations; and

with the Cooperative Development Authority for cooperatives. 

However, entities rendering services in connection with the exercise of one's profession by a person duly licensed by the government after having passed a government licensure examination are disqualified from applying for BMBE Certificate of Authority.

REQUIREMENTS FOR REGISTRATION:

a) Certificate of Business Name Registration from the Department of Trade

and Industry (DTl), or

b) Certificate of Registration from the Securities and Exchange Commission

(SEC), or

c) Certificate of Registration from the Cooperative Development Authority

(CDA).

STEP BY STEP PROCEDURE:

1. Accomplish and file the application form for BMBE Certificate of Authority;

2. The DTI, through the Negosyo Center, evaluates the application for purposes of determining the eligibility and qualification as a BMBE;

3. The DTI, after finding the applicant to be eligible and qualified, issues the BMBE Certificate of Authority  within fifteen (15) working days from receipt of application with complete requirements; otherwise, the BMBE Certificate of Authority shall be deemed approved (wherein such

a case, it becomes ministerial on the part of DTI to issue the BMBE

Certificate of Authority). The BMBE Certificate of Authority shall be effective for a period of two (2) years commencing from the date of issuance. The CA may be renewed for the same period of two (2) years and every two (2) years thereafter subject to the applicant's continued compliance with the eligibility requirements as prescribed by law and this DAO.

I thought it's hard to apply, but from the requirements itself, it's easy as long as you are eligible.  You just need to go and fill up the application form from DTI Negosyo Centers or you can download the form from DTI's website.

Here is the sample of the form:

 

Fill up three copies of the application form, then submit to DTI booth in Baguio City Hall One- Stop Shop. If you are renewing or applying for your business permit it's recommended to go to One - Stop Shop for less hassle.

If your business is new, you need to register first your Trade Name to DTI. I fill up an application form for business name registration consisting of two copies.

(For further details about how to get Certificate of Business Registration from DTI, click this link: https://hubinfo101.blogspot.com/2018/07/registering-business-name-in-dti-baguio.html )

We need to have the Certificate of Business name  Registration first before you can apply for BMBE.   For my case, I applied for both at the same time. I got first my CBNR after a day and got my BMBE Certificate after 2 days. 

*note: applying for BMBE is totally free 

My business is a Sari-sari Store and it is under Trading (wholesale/retailer) which is eligible for BMBE.  I declared less 50k as my starting capital (As wise men say, " declare a lesser amount than your actual capital..." I will share my article link, Tips on How to pay a lesser amount  on processing your business permit? so keep updated) 

This is the sample of BMBE Certificate that I got:

Then, what's the use of having BMBE Certificate?

BENEFITS AND INCENTIVES OF BMBEs

• Exemption from taxes and fees.                                                                                                    -All BMBEs shall be exempted from income tax for income arising from the operation of the enterprise.                                                                                                                                        -The Local Government Units (LGUs) are encouraged either to reduce the amount of local taxes, fees and charges imposed or to exempt the BMBE from local taxes, fees, and charges.

•  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 the Act shall be entitled to the same benefits given to any regular employee such as social security and healthcare benefits.

• Credit Delivery                                                                                                                           
  - the Land bank of the Philippines (LBP), the Development Bank of the Philippines
  (DBP), Small Business Guarantee and Finance Corporation (SBGFC),
  and People’s Credit and Finance Corporation (PCFC) shall set up a
  special credit window that will service the financing needs of BMBEs
  registered under the Act consistent with the BSP policies, rules and
  regulations. The Government Service Insurance System (GSIS) and
  Social Security System (SSS) shall likewise set up a special credit window
  that will serve the financing needs of their respective members who wish
  to establish a BMBE.
• Technology transfer, production, and management training and marketing assistance programs for BMBE Beneficiaries.

* In order to know, if you are qualified, visit DTI Baguio for further assessment. Onlineshop, dry goods, clothing, sari-sari store, buy and sell and etc... are qualified as what I know. I will update soon if BIR will accept my BMBE Certificate and exempt me from paying income tax.


If you have your own experience, comment it down below.

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REFERENCES: 

Retrieved  July 25, 2018 from https://www.dti.gov.ph/businesses/msmes/start-your-business#bmbe