Registering An I-Café As BMBE
BMBE stands for Barangay Micro Business Enterprise, an establishment being provided with incentives and benefits under Republic Act No. 9178 promulgated sometime in 2002. As defined under such law, 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).
Based on the definition and according to feedback by an owner who had availed of the incentives and benefits, an i-café is qualified for registration as BMBE under the category of “services”. After the usual registration or renewal of business permit, the owner of an i-café must apply for BMBE registration with the Office of the Treasurer of their city or town together with a fee of not more than P1,000. Upon successful registration, an LGU shall issue the Certificate of Authority which shall be effective for a period of two (2) years and renewable every two (2) years thereafter.
A BMBE shall be exempt from income tax for income arising from the operations of the enterprise so the i-cafe owner must coordinate his business registration as such with the BIR. It shall also be exempt from the coverage of the Minimum Wage Law provided but all employees of a BMBE shall be entitled to the same benefits given to any regular employee such as social security and health care benefits.
The BMBE Law and a more thorough discussion about it can be read on the indicated links. Interested i-café owners are advised to contact their LGU, more specifically the Office of the Treasurer regarding the documents required in applying for the incentives and benefits under R. A. No. 9178.
Thanks for clearing this up. RA 9178 is a lanshop owner’s right, and should be availed.
Hopefully, the savings in taxes will be used by lanshop owners to get themselves fully legit in permits and softwares.
No more excuses…
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