Amending Certain Provisions of the Implementing Rules and Regulations of RA No. 9178 (Barangay Micro Business Enterprises Act of 2002) and RA No. 10644 (Go Negosyo Act)

April 22, 2016

DTI DEPARTMENT ADMINISTRATIVE ORDER NO. 16-01, S. 2016

 

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, Republic Act 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/municipal 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 Go Negosyo Act: TIADCc

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. Qualifications 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 (PhP3,000,000.00) excluding land;

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

c) Registered with the Department of Trade and Industry (DTI) for sole proprietorships; for juridical persons: with the 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. cSEDTC

Sec. 5. Place of Registration. — 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.

Sec. 6. Requirements for Registration. — The following shall be submitted in support of the duly filled up BMBE application form (see Annex "1"):

a) Certificate of Business Name Registration from the Department of Trade and Industry (DTI), or

b) Certificate of Registration from the Securities and Exchange Commission (SEC), or

c) Certificate of Registration from the Cooperative Development Authority (CDA).

Sec. 7. Procedure for Registration. — The applicant shall follow the steps herein enumerated in applying for BMBE Certificate of Authority (CA):

1. Accomplish and file the application form for BMBE Certificate of Authority;

2. The DTI, through the Negosyo Center, evaluates the application for purposes of determining the eligibility and qualification as a BMBE;

3. The DTI, after finding the applicant to be eligible and qualified, issues the BMBE Certificate of Authority (see Annex "2") 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. The CA 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 as prescribed by law and this DAO.

Section 8. Fees and Charges. — The registration and issuance of the CA shall be free of charge.

Section 9. Transfer of Ownership. — 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."

SECTION 2. Rule 4, Section 1 (b) ii of DTI-DAO No. 14-5, Series of 2014 is hereby superseded by this DAO.

SECTION 3. Use of the BMBE Fund. — Only the interest earnings as may be realized from the BMBE fund, it being given with an endowment, shall be used for technology transfer, production and management training, marketing assistance pursuant to RA No. 9178, the BMBEs Act of 2002, and as source of Start-up Fund for MSMEs pursuant to RA No. 10644 or the Go Negosyo Act.

SECTION 4. Repealing Clause. — All orders, issuances, rules and regulations pertaining to the registration of BMBEs that are inconsistent herewith are hereby repealed or modified accordingly.

SECTION 5. Effectivity. — This Order shall take effect after fifteen (15) days from its Publication in a newspaper of general circulation.

Issued this 22nd day of April 2016 in Makati City, Philippines. SDAaTC

Approved by:

(SGD.) ADRIAN S. CRISTOBAL, JR.Secretary

Recommended by:

(SGD.) ZENAIDA C. MAGLAYAUndersecretary

ANNEX 1

Application for Registration as Barangay Micro Business Enterprise (BMBE)

ANNEX 2

BMBE Form 02

Published in The Philippine Star on May 11, 2016.