Doing Business in BARMM: What the Bangsamoro Government Can and Cannot Regulate

Doing business in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) means dealing with two levels of government. Under Republic Act No. 11054, the Organic Law for the Bangsamoro Autonomous Region in Muslim Mindanao, the Bangsamoro Government has its own set of powers over business and economic matters, but it is not supreme within its territory. Powers not granted to it by the Constitution or national law remain with the National Government. The President also exercises general supervision over the Bangsamoro Government. For investors and entrepreneurs, the practical question is which approvals, registrations, and regulations sit with the region and which remain national.

The Bangsamoro Government's powers over business and economy

Section 2, Article V of RA 11054 lists the matters the Bangsamoro Government may exercise authority over. Several of these directly affect business operations:

• Business name registration
• Trade and industry
• Economic zones, industrial centers, and free ports
• Cooperatives and social entrepreneurship
• Barter trade and countertrade
• Islamic banking and finance
• Loans, credits, and other forms of indebtedness
• Public utilities operations and power sector investments
• Regulation of the manufacture and distribution of food, drinks, drugs, and tobacco
• Labor, employment, and occupation
• Tourism development
• Agriculture, livestock, and food security
• Fishery, marine, and aquatic resources
• Urban and rural planning development, and urban land reform and use
• Water supply and services, flood control, and irrigation systems
• Creation of sources of revenues

This list is not exhaustive of every commercial activity, but it shows the breadth of regional authority. A business operating in BARMM may need to deal with the Bangsamoro Government on registration, sector regulation, and local economic policy in addition to national requirements.

What the Bangsamoro Government cannot regulate

Section 1, Article V states the default rule: all powers, functions, and responsibilities not granted by the Constitution or by national law to the Bangsamoro Government are vested in the National Government. This means the region cannot claim authority over matters outside the enumerated list.

Section 1, Article IV also confirms that BARMM is an integral, indivisible, and inseparable part of the territory of the Republic of the Philippines, and that the Bangsamoro people owe allegiance to the Republic. The region exercises self-governance, but within the framework of the Constitution and national sovereignty.

There are also specific limits. Under Section 10, Article VI, the Bangsamoro Government cannot create legislative districts. Its authority over local government units must be exercised in accordance with the Organic Law and a Bangsamoro local government code, and privileges already enjoyed by local government units under the Local Government Code of 1991 cannot be diminished.

How the Bangsamoro Government exercises these powers

The Parliament holds legislative authority. Under Section 3, Article VII, it may enact laws on matters within the powers and competencies of the Bangsamoro Government. Section 5 of the same Article allows the Parliament to regulate the grant of regional franchises and concessions, and to empower the Chief Minister to grant leases, permits, and licenses over agricultural lands and for forest management.

Executive authority is exercised by the Cabinet, headed by a Chief Minister elected by the Parliament. For businesses, this means that implementing rules, permits, and administrative decisions will come from Bangsamoro ministries and offices, not from national agencies alone.

Coordination between the Bangsamoro Government and the National Government

RA 11054 creates several mechanisms to manage overlap and disagreement. Section 2, Article VI establishes the National Government-Bangsamoro Government Intergovernmental Relations Body to coordinate and resolve issues through consultation and negotiation. Unresolved issues go to the President through the Chief Minister.

There is also an Intergovernmental Fiscal Policy Board, an Intergovernmental Infrastructure Development Board, and an Intergovernmental Energy Board. These bodies matter to businesses in infrastructure, energy, and public utilities, where national and regional plans must be synchronized.

General supervision and the limits of regional autonomy

The President exercises general supervision over the Bangsamoro Government to ensure that laws are faithfully executed. Under Section 1, Article VI, the President may suspend the Chief Minister for a period not exceeding six (6) months for willful violation of the Constitution, national laws, or the Organic Law.

This supervisory power is a reminder that regional autonomy operates within the national legal system. A business dealing with the Bangsamoro Government is still dealing with an entity subject to national law and presidential oversight.

Frequently asked questions

Do I need to register my business with the Bangsamoro Government or the national government?

Business name registration is among the powers of the Bangsamoro Government under Section 2, Article V of RA 11054. However, national registration requirements may still apply depending on the nature of the business. The specific process depends on the Bangsamoro local government code and implementing laws.

Can the Bangsamoro Government create its own rules for economic zones?

Yes. Economic zones, industrial centers, and free ports are among the matters within the Bangsamoro Government's authority under Section 2, Article V. The Parliament may enact laws and the Cabinet may implement them.

What happens if the Bangsamoro Government and a national agency disagree on a business regulation?

The Intergovernmental Relations Body created under Section 2, Article VI is the mechanism for resolving such issues. If unresolved, the matter is elevated to the President through the Chief Minister.

Practical takeaways

• The Bangsamoro Government has authority over a defined list of business-related matters under Section 2, Article V of RA 11054, including business name registration, trade and industry, economic zones, and labor.
• Powers not granted to the Bangsamoro Government remain with the National Government under Section 1, Article V.
• The President exercises general supervision and may suspend the Chief Minister for up to six months for willful violation of the Constitution, national laws, or the Organic Law.
• Intergovernmental bodies exist to coordinate and resolve conflicts between national and regional authorities.
• Businesses operating in BARMM should confirm both regional and national requirements, as the two levels of government may both have a role.

Primary sources

The rules discussed above are drawn from the following primary sources, as published in the Official Gazette and the national statute book.

• REPUBLIC ACT NO. 11054 - AN ACT PROVIDING FOR THE ORGANIC LAW FOR THE BANGSAMORO AUTONOMOUS REGION IN MUSLIM MINDANAO, REPEALING FOR THE PURPOSE REPUBLIC ACT NO. 6734, ENTITLED "AN ACT PROVIDING FOR AN ORGANIC ACT FOR THE AUTONOMOUS REGION IN MUSLIM MINDANAO," AS AMENDED BY REPUBLIC ACT NO. 9054, ENTITLED "AN ACT TO STRENGTHEN AND EXPAND THE ORGANIC ACT FOR THE AUTONOMOUS REGION IN MUSLIM MINDANAO" (REPUBLIC ACT No. 11054)

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.