New BMBE Implementing Rules and Regulations (First Part)


This article wishes to share the detailed DTI Administrative Order No. 16-01, series of 2016, entitled “Amending Article II, DAO No. 01 S. or 2003, on the implementing Rules and Regulations of Republic Act. No. 9178,  otherwise known as the Barangay Micro Business Enterprises Act of 2002, and Rule 4, Sections 1 (b) ii and Sec. 3 of the IRR of RA No. 10644, otherwise known as the Go Negosyo Act” for the information and reference of all concerned and interested Micro, Small and Medium Enterprises and PCCI Members of the North Luzon Area who wants to avail of the BMBE of 2002.

WHEREAS, the “BMBEs Act of 2002” was issued on November 13, 2002 and Implementing Rules and Regulations thereof was issued on February 7, 2003 as DTI Department Administrative Order No., 1, series of 2003”;

WHEREAS, DTI, through the Bureau of Small and Medium Enterprise Development (BSMED), is mandated to promote and develop Micro, Small and Medium Enterprises (MSMES) in the country by initiating and implementing programs and projects addressing the specific needs of MSMES in areas concerning entrepreneurship development, institutional strengthening, and productivity improvement.  Further, it is tasked to review and formulate policies and strategies geared towards the advancement of MSMES;

WHEREAS, RA No. 10644, otherwise known as “Go Negosyo Act” provided for the establishment of Negosyo Centers in all provinces, cities and municipalities, nationwide and for a unified and simplified business registration;

WHEREAS, under the Go Negosyo Act, the DTI through the Negosyo Center in the City/Municipality level, shall have the sole power to issue the Certificate of Authority (CA) for BMBEs to avail of the benefits provided by RA No. 9178;

WHEREFORE, this Department Administrative Order is hereby issued to effectively and efficiently meet the objective/s of the BMBEs Act of 2002 and the Negosyo Act.

Section 1. Rule II of DAO No. 01, Series of 2003 dated February 7, 2003 on Registration of BMBE is

hereby amended to read as follows:

“Sec. 3. Who are eligible to apply as BMBE – Any person, natural or juridical, such as   partnership, corporation, association and cooperative, having the qualifications and none of the  disqualifications shall be eligible to register as BMBEs.

Sec. 4.  Qualification of a BMBE – A person applying to be registered as a BMBE shall meet the following qualifications:

a).  With an asset of not more than Three Million PESOS (Ph3,000,000.00) excluding land.

b).  Engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading and services.

  1. c) Registered with the Department of Trade and Industry (DTI) for sole proprietorships, for juridical persons; with Securities and Exchange Commission (SEC) for corporations and associations, and with the Cooperative Development Authority for Cooperatives.

However, entities rendering services in connection with the exercise of one’s profession by a person duly licensed by the government after having passed a government licensure examination are disqualified from applying for BMBE Certificate of Authority. (PCCI Press Releases)