REVENUE MEMORANDUM CIRCULAR NO. 63-2018 issued on July 20, 2018 circularizes the full text of Department Administrative Order (DAO) No. 16-01, Series of 2016 issued by the Department of Trade and Industry (DTI), which amends Article II, DAO No. 01 S. of 2003, on the Implementing Rules and Regulations of Republic Act (RA) No. 9178, otherwise known as the “Barangay Micro Business Enterprises Act” of 2002, and Rule 4, Sections 1 (b) ii and Section (3) of the Implementing Rules and Regulations of RA No. 10644, otherwise known as the “Go Negosyo Act”.
Based on the amendment in Rule II of DAO No. 01, S. of 2003, any person, natural or juridical, such as partnership, corporation, association and cooperative, who meets the following qualifications shall be eligible to register as Barangay Micro Business Enterprise (BMBE):
- With an asset of not more than Three Million Pesos (P3,000,000.00) excluding land;
- Engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading and services;
- Registered with the DTI, for sole proprietorships; and for juridical persons – with the Securities and Exchange Commission (SEC), for corporations and associations; and with the Cooperative Development Authority (CDA), 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.
The applications for BMBE Certificate of Authority shall be filed with the Negosyo Centers established in each province, city, or municipality or in the DTI offices where Negosyo Centers have not been set up. The registration and issuance of the Certificate of Authority shall be free of charge.
The DTI shall issue the BMBE Certificate of Authority to eligible and qualified applicant within fifteen (15) working days from receipt of application with complete requirements; otherwise, the BMBE Certificate of Authority shall be deemed approved (where in such case, it becomes ministerial on the part of DTI to issue the BMBE Certificate of Authority).
The BMBE Certificate of Authority shall be effective for a period of two (2) years commencing from the date of issuance. It may be renewed for the same period of two (2) years and every two (2) years thereafter subject to the applicant’s continued compliance with the eligibility requirements.
The BMBE shall report to the DTI through the Negosyo Center of any change in the status of its ownership structure and shall surrender the original copy of the BMBE Certificate of Authority for notation.