Go Negosyo

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RONALD R.

CRUDA LLB-1
Statutory Construction

Republic of the Philippines


Congress of the Philippines
Metro Manila
Sixteenth Congress
First Regular Session
Begun and held in Metro Manila, on Monday, the twenty-second day of July, two
thousand thirteen.
[REPUBLIC ACT NO. 10644]

TITLE

AN ACT PROMOTING JOB GENERATION AND INCLUSIVE GROWTH THROUGH


THE DEVELOPMENT OF MICRO, SMALL AND MEDIUM ENTERPRISES

ENACTIN
G CLAUSE

Be it enacted by the Senate and House of Representatives of the Philippines in


Congress assembled:

PURVIEW
OF THE
STATUTE

SECTION 1. Title. This Act shall be known as the Go Negosyo Act.


SEC. 2. Declaration of Policy. It is hereby declared, the policy of the State to foster
national development, promote inclusive growth, and reduce poverty by encouraging the
establishment of micro, small and medium enterprises (MSMEs) that facilitate local job
creation, production and trade in the country. MSMEs increase income for poor
households and build both business equity and personal assets over a period of time. To
this end, the State shall develop plans and initiate means to ease the constraints on the
establishment of MSMEs in order to rationalize the existing bureaucratic regulations,
providing greater incentives and benefits to MSMEs, and strengthening the Micro, Small
and Medium Enterprise Development (MSMED) Council.
SEC. 3. Establishment of Negosyo Centers. There shall be established under the
supervision of the Micro, Small and Medium Enterprise Development (MSMED) Council,
a Negosyo Center in all provinces, cities and municipalities. The MSMED Council shall
encourage public-private partnerships in the establishment and management of Negosyo
Centers. In applicable areas, the existing MSME Centers shall continue to operate as
Negosyo Centers subject to the provisions of this Act. The Negosyo Centers shall be
responsible for promoting ease of doing business and facilitating access to services for
MSMEs within its jurisdiction. The MSMED Council through the regional offices of the
Department of Trade and Industry (DTI) shall perform oversight functions and shall
assign personnel to fulfill the functions of the Negosyo Centers.
SEC. 4. Functions of the Negosyo Centers. Negosyo Centers shall have the following
functions:
(a) Promote ease of doing business and access to services for MSMEs within its
jurisdiction;
(b) Coordinate and facilitate processes of government related to the set-up and
management of MSMEs;
(c) Accept and facilitate all registration application of MSMEs;
(d) Coordinate with the respective local government units (LGUs) and liaise with
concerned government agencies to process the duly accomplished forms submitted by
the MSMEs;
(e) Integrate a unified business process system for MSMEs;
(f) Monitor and recommend business-process improvement for MSMEs;

(g) Encourage government institutions that are related to the business application
process to help promulgate information regarding the Negosyo Center;
(h) Provide information and services in training, financing and marketing;
(i) Support private sector activities relating to MSMEs development;
(j) Co-organize with the local chambers of commerce and other business organizations a
mentoring program for prospective and current entrepreneurs and investors;
(k) Build local support networks and establish market linkages for MSME development;
(l) Coordinate with schools and organizations on the development of youth
entrepreneurship program;
(m) Encourage women entrepreneurship by giving women access to information, support,
training and credit facilities;
(n) Facilitate access to grants and other forms of financial assistance, shared service
facilities and equipment, and other support for MSMEs;
(o) Ensure management guidance, assistance and improvement of the working
conditions of MSMEs;
(p) Establish a databank which shall be a source of all information necessary for project
monitoring, research and policy studies and informal dissemination campaigns;
(q) Map out all information and services essential to prospective entrepreneurs and
prospective investors especially in key value chains and economic subsectors within its
jurisdiction;
(r) Establish a feedback mechanism among the MSMEs in the respective jurisdiction of
Negosyo Centers: and
(s) Conduct other programs or projects for entrepreneurial development in the country
aligned with the MSMEs development plan.
SEC. 5. Registration.
(a) Registration of MSMEs
(1) A unified and simplified business registration form shall be developed by the DTI and
shall be made available in all Negosyo Centers. The unified business registration form
shall contain all necessary information for the business application process of MSMEs.
The DTI shall be responsible for regularly updating and maintaining the unified business
registration forms.
(2) The Negosyo Center of each city or municipality shall facilitate and expedite the
business application process of MSMEs in coordination with the LGUs and other
concerned agencies.
(3) Should the concerned business permits and licensing offices fail to process the
application within fifteen (15) days, the MSME shall be deemed registered for a period of
one (1) year: Provided, however, That within a period of thirty (30) days from the date of
application of an MSME, any business permit or licensing office shall have the authority
to revoke the permit or license upon determination that an MSME has not met the
requirements and qualifications imposed by the office.
(4) Thereafter, MSMEs shall renew their registration annually.
(b) Certificate of Authority for Barangay Micro Business Enterprises (BMBEs) The DTI,
through the Negosyo Center in the city or municipal level, shall have the sole power to
issue the Certificate of Authority for BMBEs to avail of the benefits provided by Republic
Act No. 9178, otherwise known as the Barangay Micro Business Enterprises (BMBEs)

Act of 2002. Upon the approval of registration of the BMBE, the Negosyo Center shall
issue the Certificate of Authority, renewable every two (2) years. The DTI, through the
Negosyo Center may charge a fee which shall not be more than One thousand pesos
(P1,000.00) to be remitted to the National Government.
(c) Philippine Business .Registry Databank A Philippine Business Registry Databank
(PBRD) shall be established under the DTI to serve as a repository of information of all
business enterprises in the Philippines.
SEC. 6. Eligibility. Any person, natural or juridical, having the qualifications as defined
in Section 3(a) of Republic Act No. 9178 may apply for registration as MSME.
SEC. 7. Start-up Funds for MSMEs. Aside from the existing benefits for MSMEs, the
MSMED Council, through the DTI, the Department of Finance (DOF) and the appropriate
financing institutions, shall establish a Start-up Fund for MSMEs to be sourced from the
MSME Development Fund and BMBE Fund to provide financing for the development and
promotion of MSMEs in priority sectors of the economy as specified in the MSMED Plan.
SEC. 8. Technology Transfer, Production and Management Training, and Marketing
Assistance. The Negosyo Centers shall provide assistance to MSMEs in the availment
of technology transfer, production and management training programs and marketing
assistance of the DTI, Department of Science and Technology (DOST), University of the
Philippines-Institute for Small-Scale Industries (UP-ISSI), Cooperative Development
Authority (CDA), Technical Education and Skills Development Authority (TESDA) and
other agencies concerned.
SEC. 9. Composition of the Micro, Small and Medium Enterprises Development
(MSMED) Council. The members of the Council shall be the following:
(a) The Secretary of Trade and Industry as Chair;
(b) The Secretary of Agriculture;
(c) The Secretary of the Interior and Local Government;
(d) Three (3) representatives from the MSME sector to represent Luzon, Visayas and
Mindanao with at least one (1) representative from the microenterprise sector;
(e) One (1) representative from the .women sector designated by the Philippine
Commission on Women;
(f) One (1) representative from the youth sector designated by the National Youth
Commission; and
(g) The Chairman of Small Business Corporation.
A. Advisory Unit. There shall be an Advisory Unit to the Council, which shall consist of
the following:
(a) The Secretary of Science and Technology;
(b) The Governor of the Bangko Sentral ng Pilipinas;
(c) The President of the Land Bank of the Philippines;
(d) The President of the Development Bank of the Philippines;
(e) The Director General of the National Economic and Development Authority;
(f) One (1) representative from the labor sector, to be nominated by accredited labor
groups;
(g) A representative from the private banking sector to serve alternatively between the
chamber of thrift banks, and the Rural Bankers Association of the Philippines (RBAP);

(h) A representative of the microfinance nongovernment organizations (NGOs);


(i) A representative of the University of the Philippines-Institute for Small Scale Industries
(UP-ISSI); and
(j) The President of the Credit Information Corporation.
The MSMED Council may consult the Advisory Unit in its regular meetings and other
activities of the Council. However, no voting rights shall be granted to the members of the
Advisory Unit.
SEC. 10. Additional Functions of the MSMED Council. Aside from its existing functions
as mentioned under Section 7-B of Republic Act No. 9501, otherwise known as the
Magna Carta for Micro, Small and Medium Enterprises (MSMEs), the MSMED Council
shall have the following additional functions:
(a) Coordinating and Oversight Body for the Negosyo Center. The MSMED Council,
through the DTI, shall act as the coordinating and supervising body for all the agencies
involved in the establishment and operation of the Negosyo Centers. Further, the
MSMED Council shall monitor and assess the progress of the Negosyo Centers, which
shall be included in its annual report submitted to the Congress.
(b) Provision of a Compliance Guide. For each rule or group of related rules issued by
any government agency for compliance by MSMEs, the Council shall publish compliance
guidelines which shall be written in plain language or in the local dialect, if necessary.
The Council shall prepare separate compliance guides covering groups or classes of
similarly affected MSMEs and shall cooperate with industry associations to develop and
distribute such compliance guides. The publication of each compliance guide shall
include the posting of the guide in an easily identified location on the website of the
agency, and distribution of the guide to known industry contacts, such as small entities,
associations or industry leaders affected by the rule. The issuing government agency
shall publish and disseminate the compliance rules within ninety (90) days from the date
of issuance.
(c) Conduct of Research on Women Entrepreneurship. The Council shall conduct
research to support women entrepreneurship including, but not limited to entrepreneurial
behavior, barriers, participation and cessation rates, discriminatory practices and
contribution to the national economy and growth.
(d) Policy Formulation on Women Entrepreneurship. The Council shall provide policy
direction towards recognizing womens propensity in doing business as well as establish
linkages that will enable more opportunities for women to engage in entrepreneurship.
(e) Development of Entrepreneurial Education and Training. The MSMED Council shall
develop, in coordination with the Department of Education, TESDA and CHED, a course
curriculum or training program in entrepreneurship that will promote entrepreneurial
culture and competence. Entrepreneurship shall be integrated in the curriculum of
educational and training institutions in all levels.
SEC. 11. Information Dissemination. The Philippine Information Agency, in coordination
with the DTI and the Department of the Interior and Local Government (DILG), shall
ensure the proper and adequate information dissemination of the contents and benefits of
this Act to pertinent media entities and all cities, municipalities and barangays.
SEC. 12. Appropriations. The amount necessary to carry out the initial implementation
of this Act shall be sourced from the current budget of the DTI. Thereafter, such sums as
may be necessary for the continued implementation of this Act shall be included in the
succeeding General Appropriations. Act.
SEC. 13. Implementing Rules and Regulations. The Secretary of the DTI, in
consultation with the appropriate agencies as may be deemed necessary, shall formulate
the necessary rules and regulations to implement the provisions of this Act within ninety
(90) days after its approval. The rules and regulations issued pursuant to this Section
shall take effect fifteen (15) days after its publication in a newspaper of general
circulation.

SEPARAT
ORY
CLAUSE
REAPEALI
NG
CLAUSE

SEC. 14. Separability Clause. If any provision of this Act shall be held unconstitutional,
the remainder of this Act not otherwise affected shall remain in full force and effect.

EFFECTIV
ITY
CLAUSE

SEC. 16. Effectivity. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

SEC. 15. Repealing Clause. Section 4 of Republic Act No. 9178 is hereby repealed.
Sections 7-A and 7-B ofRepublic Act No. 6977, as amended by Republic Act No. 8289
and Republic Act No. 9501, are hereby amended. Section 12 of Republic Act No. 9178 is
also hereby amended. All other existing laws, presidential decrees, executive orders,
proclamations or administrative, regulations that are inconsistent with the provisions of
this Act are hereby amended, modified or repealed accordingly.

Approved,

AUTHORI
ZED
SIGNATU
(Sgd.) FELICIANO BELMONTE JR.
Speaker of the House
of Representatives

PROMULGATI
ON DATE

(Sgd.) FRANKLIN M. DRILON


President of the Senate

This Act which is a consolidation of Senate Bill No. 2046 and


House Bill No. 4595 was finally passed by the Senate and the
House of Representatives on June 11, 2014 and June 10,
2014, respectively.

(Sgd.) MARILYN B. BARUA-YAP


Secretary General
House of Representatives

(Sgd.) OSCAR G. YABES


Secretary of the Senate

Approved: JUL 15 2014


(Sgd.) BENIGNO S. AQUINO III
President of the Philippines

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