An Answer to Problems in Your Start-Up Business
June 6, 2010 by BizMind
Filed under Small Business Start up Guide
An Answer to Problems in Your Start-Up Business – IF you want to start a business or have already started but worried on how to raise the needed capital and where to seek guidance on management and marketing or skills training for manufacturing, smile now and take a breath. A five year old law whose benefits have yet to be fully utilized will answer your problems so that you can sail smoothly in your entrepreneurial journey.
Although not a very popular piece of legislation and many current or would-be entrepreneurs specially in the countryside are not aware of the benefits, Republic Act No. 9178 or the “Barangay Micro Business Enterprises (BMBEs) Act of 2002” is a great help to you.
The law provides an impressive array of incentives for budding entrepreneurs engaged in producing, processing of manufacturing of products or commodities, including agro-processing, trading and services. If you have an asset size of P3,000,000 and below including those arising from loans but excluding the land on which your office, plant and equipments situated, you are qualified to register as a BMBE, entitled to the following:
1. Exemption from income tax for income arising from the operation of your enterprise.
2. Exemption from coverage of the Minimum Wage Law on the condition that your employees are provided social security and healthcare benefits.
3. Special credit window that will service financing needs provided by government financial institution such as the Land Bank of the Philippines, the Development Bank of the Philippines, the Small Business Guarantee and Finance Corporation and the People’s Credit and Finance Corporation. Also, if you are a member of Government Service Insurance System or Social Security System, similar privilege is extended to you.
4. You can ask production and management training as well as marketing assistance from the Department of Trade and Industry, the Department of Science and Technology, the University of the Philippines Institute for Small Scale Industries, the Cooperative Development Authority, the Technical Education and Skills Development Authority and the Technology Resource Center (formerly Technology and Livelihood Resource Center or TLRC).
To obtain these privileges:
1. Simply drop by the Office of the Treasurer in the city of municipality where your business is situated.
2. Secure an application form that needs to be accomplished in triplicate.
3. Submit the accomplished form together with the two documents: a) registration as business concern (e.g. DTI, SEC, CDA Certificate); and b) Mayor’s permit the BMBE Registration Officer or the One Stop-Business Registration Center Officer who handles efficient registration and processing of permits/licenses of BMBEs.
4. The application shall be evaluated within fifteen working days upon submission of your complete documents for a processing fee no greater that P1,000.00 which the local government may charge to defray administrative costs. Though, some LGU’s waved it outright.
5. A Certificate of Authority will be issued free of charge to you within the said period, otherwise, your business will be deemed registered. The Certificate is effective for two years, renewable for the same length of time for every renewal.
It is the intention of the law to make the requirements simple and the procedure speedy, subject only to minimal bureaucratic requirements and reasonable fees and charges.
So, what are you waiting for? Go to your city of municipal treasurer’s office and apply as a BMBE member now!
Good luck to your business success!
This sounds so easy. Does anyone have experience? I am not sure whether I should try or not, since it is so much bureaucracy. Of course one should try to get from the government whatever is possible. But still I doubt if it works out properly.