How to Register Your Business as Barangay Micro Business Enterprise (BMBEs)

woman teaching on how to register BMBE

Are you a business owner looking to register your business as BMBE in the BIR 2022? Look no further, because this guide will tell you everything you need to know. In this guide, we will cover the basics of registering your business as BMBE, including the requirements and procedures. So read on to learn more!

Do you own a business? Did you know they can exempt your business from paying income tax or no tax at all? Businesses are usually subject to two types of taxes, which are business tax and income tax in the Philippines. There are tax benefits given to the SME or having a small business in the Philippines. These are Marginal Income Earner (MIE) and Barangay Micro-Business Enterprises (BMBEs). In this article, we will help how to register as BMBE (Barangay Micro-Business Enterprise)

how to register as bmbe 2021

In this article, I will discuss the benefits and how to register your business as BMBE in the Philippines. If you just started your business and you’ve recently registered your business as subject to the income tax rate and business tax, don’t worry, it’s not yet the end of the world. Let me tell you first what is BMBE!

What is Barangay Micro Business Enterprise?

how to register as BMBE

Any business enterprise engaged in processing, manufacturing of products, including Agro-processing, as trading and services and production, which the total asset is less than 3 million, including assets from loans but not including the value of land which the business or equipment are located.

Services that are rendered who are duly licensed by the government or to exercise professions like Accounts, Lawyer, Doctors, and Engineers, etc.

Also, the Department of Finance also provides information that is qualified to avail of these benefits. It includes a branch, subsidiary, division, or office of a large-scale enterprise and its policies and franchise.

BMBE Law Objectives

The primary objective of this is to create more employment and livelihood for the Filipinos. It helps many entrepreneurs to be creative and successful. Finally, to have a better quality of life for many Filipinos.

BMBE Benefits

Any person who registered a business will be exempted from income tax and exempted from paying a minimum wage but will receive the same social security and health care benefits. It also gives other benefits to BMBE beneficiaries like technology transfer, production and management training, and marketing help programs. Above all, there’s a priority window for financing.

What do you think about these benefits? Are you not yet satisfied with these benefits? There’s more! It also encourages the local government unit to minimize the amount of local taxes, charges impose, or they may grant exemptions from taxes, fees, or costs. What are waiting for, apply now!

BMBE Processing and Requirements

Once you qualify as a BMBE beneficiary, you may apply or renew your registration in the Office of the Treasurer of the city or municipality where the business is located.

BMBE Requirements

Here are the basic requirements for processing your registrations.

  • BMBE application form (BMBE Form 01)
  • Passport size ID pictures
  • DTI, SEC, CDA registrations, and Mayor’s Permit for those assets of 300, 000 or less

However, if your business has a total asset beyond 300 000 but not over 3 million, you must submit these requirements.

  1. Taxpayer Identification Number (TIN).
  2. Certificate of Registration from the BIR.
  3. Certificate of Registration from the DTI, SEC or CDA
  4. Mayor’s Permit of Municipal Business Permit
  5. An affidavit by the owner that the business qualifies as BMBE, including the Sworn statements of Assets and Liabilities with supporting documents attached.
  6. Photos of the building and its assets (equipment and plants), not including cash, receivables, and other intangible assets.
  7. Loan Contract, if any
  8. Lastly, the Income-tax Return (ITR)

BMBE Procedures to Process

how to register as BMBE

Once the requirements are completed, proceed to the Office of the Municipal or City Treasurer.

  1. Get three copies of the BMBE Form 01 that is signed by you or any allowed person to process your registration.
  2. Submit Form 01, together with all the requirements listed above, to the Office of the Treasure and wait for further notice. It processes the application within fifteen days (15 working days) from submission. If no rejection received within those days, they consider your application as approved.
  3. Get your Certificate of Authority as proof of registration. The validity of this registration is only up to two years.

How much is to Pay to Register?

Registration and issuance of the Certificate of Authority of the Local Government Unit are free of charge. However, they may a charge fee not exceeding one thousand (1,000) for the cost of administrative costs of registrations and monitoring.

Do you want to earn dollars up to $10 per day without website? Click here to learn!

Those amounts are only for processing in the Office of Treasurer, but it doesn’t include the processing fee in the DTI or the BIR. For more information regarding the cost of registration in the BIR and DTI, click here.

How to Register BMBE in BIR

Register your business in the Bureau of Internal Revenue (BIR) and secure the Certificate of Registration. Apply as a Sole Proprietorship that is subject to Income tax and business tax either a percentage tax of 1% or a value-added tax rate of 12%.

How To Renew BMBE Registration

BMBE registration is set only for two years then you need to renew your registration. Therefore, failure to register will nullify or revoked your BMBE registration.

So, what are the additional requirement for the renewal of BMBE registration?

DTI/Office of Treasurer/Municipality

If your assets is less than three hundred thousand pesos, then you need to provide the annual information return for the last year return. It should be duly filed with the BIR, together its attachments.

So, if your assets is more than three hundred thousand pesos (300,000) but not more than three million pesos (3,000,000), you need also the income tax return filed to the BIR.

Finally, here are the procedures to follow upon renewal of BMBE registration.

First, Accomplish BMBE Form 01 in three copies (3) and submit to the DTI or office of the Municipality or City Treasurer.

Second, Wait until it is approved. If no feedback within fifteen days upon registration will be considered as approved.

Lastly, Get your Certificate of Authority (COA) as proof of registration and will last again for two years. 

Bureau of Internal Revenue (BIR)

Follow the same process as you did in your first application with the BIR. However, you need to submit the following documents:

  1. Summary of Inventory list and Other Requirements.
  2. Annual Information Return of Income Taxes Withheld on Compensation (If applicable)
  3. Sworn Statement of assets/ Capital

Do I need to pay Income Tax?

Even though exemption from Income tax is one of the benefits of BMBE, but you’re still required to file the annual income tax return with a zero amount to be paid.

BMBE is required to submit an Annual Information Return in exchange for an income tax return. Submit on or before the 15th day of the fourth month after the close of the taxable year. It also includes data from financial statements and Sworn Statements of Assets owned and used.

How to Avail Income Tax Exemption in the BIR?

In filing the annual income tax return, you must bring these documents:

  1. Copy of the BMBE’s Certificate of Authority
  2. Sworn Statement of Assets of the BMBE and other documents needed.
  3. Latest Audited Financial Statements
  4. Certified list of branches, sales outlets, places of production, warehouse, and storage facilities.

Is BMBE business will always be Income Tax Exempt?

Once your business is registered as BMBE, it will exempt you from paying income tax, but does it mean that you will always be exempted from income tax? The answer is NO! Being BMBE doesn’t mean you will be permanently exempted from income tax.

Here are the situations where BMBE will no longer be exempted from income tax:

  1. Change of total assets. Once your business exceeded the threshold amount of 3 million, you’ll lose your BMBE benefits.
  2. Change of place of business
  3. Death of the registered individual owner of the BMBE
  4. Combination of business, which is not qualified as BMBE
  5. False documents submitted or falsified documents.
  6. Not operating the business within one year.
  7. Selling or transferring the BMBE business to an individual without the legal process.

Conclusion

To register as BMBE, you need to know first the total assets of your business. Make an inventory to compute the total amount of assets, excluding the value of the land. BMBE benefits include income tax exempted, and no required minimum wage, and received training from respective agencies.

Once you’ve registered your business as BMBE, it still requires you to file your annual income tax and pay the quarterly business taxes. There are other ways to reduce your taxes on your business. Read to know more.

If you have questions about processing your BMBE, we’ll be happy to assist you.

Recommended: How to Start Sari sari Store in the Philippines?

80 Replies to “How to Register Your Business as Barangay Micro Business Enterprise (BMBEs)”

  1. I just registered with DTI a single prop consumer goods trading enterprise under a barangay classification but there was no BMBE markings, because the classification was national, regional, municipality and barangay.

    In the form you showed in this online learning, there is this APPLICATION FOR REGISTRATION AS
    BARANGAY MICRO BUSINESS ENTERPRISE (BMBE). Can we still change our registration to become a BMBE? How to do it? Thanks.

  2. Good day! Sir it is mentioned above that if you will register as BMBE first you need to make inventory of the business total assets except land. would that inventory includes my personal car if I have one. or that would be separate from my business.

      1. I registered my business as BMBE ang get approved by bir. What other taxes I need to pay.

        details about my business
        -Renting
        -sole proprietorship
        -banana retailer

          1. Hi Sir, as BMBE are we required to file Quarterly ITR or only the Annual ITR? Thank in advance for your reply.

  3. Two queries:
    (1) Is there a maximum company or business age to qualify for BMBE? Is this applicable only to, say, 1 year old or younger businesses?
    (2) Clarification: The very first government office to approach would be the Municipal Treasurer, right? And they would be the one to approve/disapprove our application as BMBE?
    Thank you!

  4. For clarification lang po, since na BMBE registered na yung business at Tax exempt na do I need to submit the 1701Q kahit Zero payment?

  5. Gud eve po. Base on my COR income tax and Percentage tax monthly. til now Im still confused of what form to be use in filing of tax po. As an individual po 1701 Q? what is 2551M use for po? Or can i pay annually? our sales is not exceeding 3m po. Please help po. BMBE

    1. Since you’re registered as BMBE, you’re required to pay your monthly percentage tax then regarding sa income tax return, file the quarterly income tax return with zero tax then at the end of the year, file the annual tax return using 1701 again zero tax since BMBE and it is exempted from tax but make sure your BMBE certificate is still valid.

      1. Thank you po sa reply. Opo valid pa po til August 2021. Clarify ko lng po upon declaring zero sa 1701Q and 1701A. Wala na po bang i input na amount as sales po? Sa percentage tax malinaw na po sa akin?
        Thanks po ulit.

      2. Good morning po
        What about the percentage tax 2551q? I need to file of i am bmbe registeres?Then what about the sawt? Do i need to submit it electronically every quarter? When can i submit the dvd-r? End of the year?

  6. Hi, good day! I’m planning to franchise a business that is under BMBE. The owner said that we will no longer need to process any papers in DTI coz were going to use their DTI permit number. We just have to submit a permit to operate a business in our barangay. Is it true? Different municipality by the way

  7. ask ko lang po sir, about sa sworn statement meaning notaried po? at need po ba tlaga na audited fs kasi small busineas lang naman po wla po kasi kaming bookkeeper ako lang ang nag rerecord ng sales at purchase at expenses namim

  8. Hi and good day, we applied for BMBE last year po, mga May-June 2020 and approved by July 3, 2020. Since then, wala na po kaming binayaran na tax. Hindi na rin po kami ulit nakabalik ng BIR Valenzuela to confirm na wala ba talaga kaming babayaran tax? Nagtanong na rin kami mismo sa mga personel ng BIR mismo kung alam ba talaga nila itong BMBE, wala pong nakakaalam. Sa ngayon, mga business permit na lang po ang binabayaran namin. Baka magulat na lang din kami na baka may penalty na kami. 100% po ba na wala talagang babayarang tax?

    Salamat po

    1. Hi, that’s not true that when you’re BMBE you are exempted from tax. You still have to pay the percentage tax of 1% quarterly. Please check your Certificate of Registration (COR). It will explain what you should pay.

  9. Hello, do you also do BMBE registration? I’m actually looking for someone to help me apply for BMBE. Any leads would also help 🙂

  10. Hi, required pa po ba magapply ng Mayor’s Permit pag meron ng BMBE Cert and BIR? TIA

  11. Hi! I am looking for someone who can help me apply for BMBE. I am from Cainta. Can someone help po? Thank you.

  12. hi, if meron na akong COR from BIR tapos apply as BMBE, mauupdate din ba yan this year or next year na?

  13. I am BMBE approved by BIR po ito po nakalagay sa COR ko hindi po nila nireprint kaya hindi malinaw saken. kung anong dapat ifile at mga hindi na need bayaran.

    Income tax * percentage- tax quarterly
    withholding tax-expanded oth

    at anong pa po bang other tax na need kong bayaran and ifile. sorry for many question new business po kasi and sole proprietorship po last year lang ko lang po itinayo.

  14. Hi. Pwde din po ba sa bmbe ang food business? At same din po ba na pagka below 300k ang puhunan ay dti,sec,etc ang requirements?at need po ba na 10 ptaas ang tauhan pra maging qualified sa bmbe?

  15. Ask lang po sana nag apply kami ng BMBE pero meron po nakalagay sa COR na I701,1701Q, 2551Q at 0605 pano po eto mag pa file at pay parin po ba kami neto kahit naka BMBE kami?salamat po hope you to hear your feedback po

      1. Hi sir naconfirm napo b n no need npo mGfile ng 1701q kPG bmbe n. Nung nagkaCOR ako wala ako bmbe need ko lang masure po kung ok lng na wala n 1701q

  16. Hi Sir, since we are registered as BMBE, are we required to file a Quarterly Income tax or Only the Annual Income Tax? Thank you in advance.

  17. Hi Sir, ask ko lng po. What if andito xa sa Pinas pero IT sya sa ibang bansa (Canada). Hindi po xa binabawasan ng tax po, sabi ni employer nya, dito nlng daw xa magbabayad total andito nmn po xa sa Pinas..Ndi nmn po aabot ng 3M ang annual income nya. Pde po ba xa ifile as BMBE..Aug 2021 po nagstart. Thank you 🙂

  18. Hello po,
    Ask ko lng po. Ang sabi excluded ang land as asset. Ung mortgage po ng building namin is 6m plus, pero ang ginagamit lng po ng buisness ay ung ground floor then ung 2nd and 3rd floor po ay residence na. Qualified po ba kami mag apply as BMBE? Bigasan retailing po ang businessnamin at ang puhunan nami n inluding equipment etc mga 100k. Since na doon n kami nakatira sa building, we decided na gamitin nlng ung first floor sa negosyo.
    May chance po ba ma aporb as BMBE if hindi n nmin ideclare ung building?

  19. Hello sir. Good day. Alin po kayang Annual Information Return ang tinutukoy dito sa nasa ibaba?

    Do I need to pay Income Tax?
    Even though exemption from Income tax is one of the benefits of BMBE, but you’re still required to file the annual income tax return with a zero amount to be paid.

    BMBE is required to submit an Annual Information Return in exchange for an income tax return. Submit on or before the 15th day of the fourth month after the close of the taxable year. It also includes data from financial statements and Sworn Statements of Assets owned and used.

    Thank you in advance and more power!

  20. Our company is BMBE registered since January 2, 2021. What if my assets exceeds to P3M for the month of December 2021 (Jan to November 2021 below P3M assets), what period do I need to file the income tax for?

  21. hi, i’m about to renew my DTI registration, I only get barangay permit as I do part-time home-based cooking business only, can I still apply for BMBE? Will there be penalties (since I don’t have Mayor’s Permit)?

  22. Hello sir, I’m about to renew my DTI registration, can I still apply for BMBE? I’ve only been getting barangay permit as I am not really fully engaging in the business and I wasn’t aware of this BMBE until very recently from a newspaper article I read. Will there be penalties?

  23. 3 years running na po yung business, balak ko po sana iregister sa bir. Nagregister ako sa dti as bmbe, magkano po kaya penalty ko sa bir for late registration, printing shop po.

      1. Bali 2019 pa po naissue yung dti pero yung bmbe ngayon jan 2022 palang. Ibabase po ba ng bir sa dti ko for late registration of business.

          1. Kung sakali po kaya i cancel ko yung dti ngayon tapos kumuha bagong dti, hahabulin pa po kay ako ng bir kung sakali yung bago lang iregister ko. O mas maigi mag late registration penalty nalang po ako. Patulong po sana, di ko alam gagawin ko po kasi

  24. Hi! Nagregister po ako sa DTI para sa business ko and they offered na baka daw gusto ko na din magparegister sa BMBE, para daw po sa exemption ng tax, so I agreed and gave me a certification, they also gave me a duplicate para daw pag nagapply ako sa BIR. Months pa nung nairegister ko ang business ko sa BIR at nawala po sa isip ko na ipasa yun kay BIR, nung release day po ng COR ko saka ko lang naibigay kay BIR ang BMBE certification ko.. wala naman sinabi si BIR at inaaccept lang ang BMBE cert ko tapos inattach lang sa mga documents ko sa kanila.
    Question 1, makakaapekto po ba sa schedule at tax type na nakalagay sa COR ko given sa dun sa case na binanggit ko above?
    question 2, sang blank sa form 2551Q ko pa ba makikkita ung menu para mapalagay na BMBE member ako at magautomatic compute na zero tax po ako?(note, online filing po ang tinutukoy ko using ebirform)

    1. 1. Yes, in that case, your business is not register as BMBE because in your COR there must be indication that you’re BMBE certified.
      2. No, 2551Q is for business taxes whereas 1700 is filing for annual income tax return.

  25. question po.. may BMBE na po kami na naefile with DTI and BIR nadin po.. now mag open po kami ng isa pang branch.. pasok pa din po ba sa BMBE yun? hindi pa din naman po umabot sa 3M ung assets namin kahit na maging 2 na ung branch ng food cart.. salamat po

  26. Hi, ask ko lang if BMBE po ako and nag exceed na ko 3m threshold, may bearing po ba at makakaaffect ba sa pagfile ko ng Annual Income Tax Rerturn?

  27. Good day po. BMBE registered po ako. Nagpasa po ako upon registration ng business sa BIR pero wala po nakaindicate sa COR. sabi para maindicate, irereprint po ng bir. Ibig sabihin po ba nun hindi po ako registered as bmbe sa kanila? Salamat po

  28. “BMBE is required to file an Annual information Return in exchange for an Income Tax return”

    What form is Annual Info Return? I cant find it in google.

    Also, does the word BMBE Registered need to be annotated on face of COR and Mayor’s Permit?

    Thank you!

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