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Friday, April 14, 2006
DTI simplifies registration of micro-enterprises
THE Department of Trade and Industry (DTI) has simplified documentation requirements for the registration of micro business enterprises to encourage them to register with the government.
Under the modified implementing rules and regulations of the Barangay Micro Business Enterprises (BMBE) Act of 2002, BMBE registrants with an asset size of P300,000 and below are required to submit only two requirements—-the registration as business entity and municipal business permit.
However, BMBE registrants with assets worth more than P300,000 to P3 million are required to submit nine documents.
Requirements
These are the registration as business identity, tax identification number, Bureau of Internal Revenue certificate and city or municipal business permit.
Registrants also need to submit a sworn affidavit that the enterprise is barangay-based and micro-business in nature, sworn statement of assets and liabilities, pictures of the place of business and its assets, copy of loan contracts, duly notarized certification of amortization payments and income tax returns.
The BMBE Act or Republic Act 9178 defines BMBE as a business “engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading and services” with total assets not exceeding P3 million.
Total assets exclude the land where the business entity’s office, plant and equipment are situated.
The BMBE Act aims to encourage micro enterprises, considered to belong in the underground economy, to register with the government so they could be counted in the measurement of the performance of the country’s economy.
Seedbeds
“It is the policy of the government to hasten the country’s economic development by encouraging the formation and growth of BMBEs that effectively serve as seedbeds of Filipino entrepreneurial talents and integrating those in the informal sector with the mainstream economy,” DTI said in a statement.
The law assures registered BMBEs of the government’s help in financing their operations by mandating various financial institutions, such as the Land Bank of the Philippines, Development Bank of the Philippines, Small Business Guarantee and Finance Corp. and the People’s Credit and Finance Corp., to set up special credit windows for BMBEs.
Earlier, DTI-Cebu Province Director Nelia Navarro said only few BMBEs have responded to the call of the new law due to its stringent registration requirements.
The DTI said the Department of Finance has granted the request of the Small and Medium Enterprise Development Council to ease the requirements for BMBE registrants.
The local government units are also encouraged to either reduce the amount of local taxes, fees and charges imposed or to exempt BMBEs from these business costs. JBN
For Bisaya stories from Cebu. Click here. (April 13, 2006 issue)
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