Barangay Micro Business Enterprises Act

Topics: Business, Philippines, United States Congress Pages: 5 (1903 words) Published: June 17, 2013
Congress of the Philippines Twelfth Congress Second Regular Session REPUBLIC ACT NO. 9178 AN ACT TO PROMOTE THE ESTABLISHMENT OF BARANGAY MICRO BUSINESS ENTERPRISES (BMBEs), PROVIDING INCENTIVES AND BENEFITS THEREFOR, AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: PRELIMINARY PROVISIONS SEC. 1. Short Title. – This Act shall be known as the “Barangay Micro Business Enterprises (BMBEs) Act of 2002”. SEC. 2. Declaration of Policy. - It is hereby declared to be the policy of the State to hasten the country’s economic development by encouraging the formation and growth of barangay micro business enterprises which effectively serve as seedbeds of Filipino entrepreneurial talents, and integrating those in the informal sector with the mainstream economy, through the rationalization of bureaucratic restrictions, the active intervention of the government specially in the local level, and the granting of incentives and benefits to generate much-needed employment and alleviate poverty. SEC. 3. Definition of Terms. – As used in the Act, the following terms shall mean: (a) “Barangay Micro Business Enterprise,” hereinafter referred to as BMBE, refers to any business entity or enterprise engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading and services, whose total assets including those arising from loans but exclusive of the land on which the particular business entity’s office, plant and equipment are situated, shall not be more than Three Million Pesos (P3,000,000.00). The above definition shall be subject to review and upward adjustment by the SMED Council, as mandated under Republic Act No. 6977, as amended by Republic Act No. 8289. For the purpose of the Act, “services” shall exclude those rendered by any one, who is duly licensed by the government after having passed a government licensure examination, in connection with the exercise of one’s profession. (b) “Certificate of Authority” is the certificate issued granting the authority to the registered BMBE to operate and be entitled to the benefits and privileges accorded thereto. (c.)“Assets” refers to all kinds of properties, real or personal, owned by the BMBE and used for the conduct of its business as defined by the SMED Council: Provided, That for the purpose of exemption from taxes and fees under the Act, this term shall mean all kinds of properties, real or personal, owned and/or used by the BMBE for the conduct of its business as defined by the SMED Council.

(d) “Registration” refers to the inclusion of BMBE in the BMBE Registry of a city or municipality. (e) “Financing” refers to all borrowings of the BMBE from all sources after registration. REGISTRATION AND OPERATION OF BMBEs SEC. 4. Registration and Fees. - The Office of the Treasurer of each city or municipality shall register the BMBEs and issue a Certificate of Authority to enable the BMBE to avail of the benefits under the Act. Any such application shall be processed within fifteen (15) working days upon submission of complete documents. Otherwise, the BMBEs shall be deemed registered. The Municipal or City Mayor may appoint a BMBE Registration Officer who shall be under the Office of the Treasurer. Local government units (LGUs) are encouraged to establish a One-Stop-Business Registration Center to handle the efficient registration and processing of permits/licenses of BMBEs. Likewise, LGUs shall make a periodic evaluation of the BMBEs’ financial status for monitoring and reporting purposes. The LGUs shall issue the Certificate of Authority promptly and free of charge. However, to defray the administrative costs of registering and monitoring the BMBEs, the LGUs may charge a fee not exceeding One Thousand Pesos (P1,000.00). The Certificate of Authority shall be effective for a period of two (2) years, renewable for a period of two (2) years for every renewal. As much as...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • The Formation, Management and Dissolution of Business Enterprises Essay
  • Business and Enterprise Essay
  • Essay about Small Business Enterprise
  • Small Business Enterprises Essay
  • Essay about Business
  • Business Essay
  • Business Essay
  • micro enterprises Essay

Become a StudyMode Member

Sign Up - It's Free