BMBE - The Barangay Micro Business Enterprises

A few months ago, some friends and myself included planned on putting up a business through a franchise. During our brainstorming a lot of questions arise and some of them are issues such as our working capital, taxes to be paid, wage of employees and other future overhead that we had to consider. Much stress has been given to the taxes and the wage of workers. That was the time when I read about the BMBE or Barangay Micro Business Enterprise or Republic Act No. 9178.

BMBE offers sevaral advantages to the small entrepreneur. Some of the advantages of the BMBE law are:

1. Exemption from Income Tax
2. Exemption from the Minimum Wage Law
3. Assistance from Government Owned or Controlled operations (I assume lending and training)

An excerpt from the law says:

"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)."

Which I guess the businesses that would fall under this business law are the likes of Sari-Sari stores, Computer Shops, Franchised Food carts/food stalls, small restaurants and the likes. While I'm not very comfortable of the minimum wage law that the BMBE gives, it surely is an advantage for those who want to start a small business but don't have enough capital to pay workers. To know more about the Barangay Micro Business Entreprises please read my references below.