BARANGAY MICRO BUSINESS ENTERPRISE ACT OF 2002
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BARANGAY MICRO BUSINESS ENTERPRISE ACT OF 2002
Republic Act No. 9178
November 13, 2002
Case Overview and Summary
Barangay Micro Business Enterprises (BMBEs) Act of 2002Declaration of Policy (Section 2):
- Promote economic development by encouraging BMBEs as seedbeds of entrepreneurship and integrating the informal sector into the mainstream economy.
- Rationalize bureaucratic restrictions and grant incentives/benefits to generate employment and alleviate poverty.
Definition of Terms (Section 3):
- BMBE: Business entity/enterprise with total assets (excluding land) not exceeding P3,000,000; excludes licensed professionals.
- Certificate of Authority: Certificate issued to registered BMBE to operate and receive benefits.
- Assets: Properties owned/used by BMBE for business, as defined by SMED Council.
- Registration: Inclusion of BMBE in city/municipality registry.
- Financing: Borrowings of BMBE from all sources after registration.
Registration and Operation of BMBEs (Sections 4-6):
- City/municipality treasurer to register BMBEs and issue Certificate of Authority within 15 working days; deemed registered if delayed.
- LGUs to establish One-Stop Registration Center and periodically evaluate BMBEs' financial status.
- Certificate of Authority issued free of charge but renewal fee allowed to cover administrative costs; valid for 2 years, renewable.
- Minimal bureaucratic requirements and reasonable fees/charges for BMBEs.
- Any natural/juridical person, cooperative, or association meeting qualifications can register as BMBE.
- BMBEs to report ownership changes and surrender Certificate for notation.
Incentives and Benefits (Sections 7-11):
- BMBEs exempt from income tax arising from operations (Section 7).
- LGUs encouraged to reduce/exempt BMBEs from local taxes, fees, and charges (Section 7).
- BMBEs exempt from Minimum Wage Law; employees entitled to social security and healthcare benefits (Section 8).
- Financial institutions to set up special credit windows for BMBE financing needs (Section 9).
- BMBE loans considered alternative compliance to Agri-Agra Law and Magna Carta for SMEs; computed at twice face value (Section 9).
- SBGFC and QUEDANCOR to provide credit guarantee programs for BMBEs (Section 9).
- BMBE Development Fund of P300,000,000 from PAGCOR for technology transfer, training, and marketing assistance (Section 10).
- DTI to explore linking/matching BMBEs with SMEs and large enterprises, and establish incentives (Section 10).
- Business registration data accessible for trade/investment promotion (Section 11).
Information Dissemination (Section 12):
- PIA, DOLE, DILG, and DTI to ensure proper information dissemination of the Act's contents and benefits, especially at the barangay level.
Penalty (Section 13):
- Willful violation: Fine of P25,000 to P50,000 and imprisonment of 6 months to 2 years.
- Non-compliance with Section 9: BSP to impose administrative sanctions and fine of at least P500,000 on concerned government financial institutions.
Miscellaneous Provisions (Sections 14-18):
- DILG, DTI, and BSP to submit annual report to Congress on implementation status (Section 14).
- DTI, in consultation with DILG, DOF, and BSP, to issue implementing rules and regulations within 90 days (Section 15).
- Separability clause (Section 16).
- Repealing clause for inconsistent laws/regulations (Section 17).
- Effectivity 15 days after publication in Official Gazette or newspapers (Section 18).
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BARANGAY MICRO BUSINESS ENTERPRISE ACT OF 2002
Republic Act No. 9178
•November 13, 2002
Republic of the Philippines
Congress of the Philippines
Metro Manila
Twelfth Congress
Second Regular Session
Begun and held in Metro Manila, on Monday, the twenty-second day of July, two thousand two.
Republic Act No. 9178 November 13, 2002
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
Section 1. Short Title – This Act shall be known as the "Barangay Micro Business Enterprises (BMBE's) Act of 2002."
Section 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 intergranting those in the informal sector with the mainstream economy, through the rationalization of bureaucratic restrictions, the active granting of incentives and benefits to generate much-needed employment...
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