SIXTI(I(NTII (,ON(;I{Ir;SS

IU(PIIIlLIC OF '1'111'; PIIILlPPINI':S

I"il'st Session
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'13 UEC 17 r
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3 :08
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S J<: N A' IJ.::
S.H. 6
HECEIVED BY, 'r
(Ill substitutioll oj' Sellllte lIill Nos, 1m, 25], 615, lOn, 1254 and 15'n)
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I'r"pared by the ('olllillittee on Trade, C0111111el'Ce and Entrepreneurship joint with the
( 'Oil 11 11 i 011 I ,(lea I (JO t; Banks) I,'j nunc in I I tlSl.i t ut ions and C;urrcl.1cics; Ways and
Means; I'COllOlllic Am,irs; & I:inance with Senators OSl11Gi)a 111, Recto, Aquino IV, Santiago,
and I ':stl'ada J Vas authors thereor.
POe VOlar <f=
AN ACT
PROMOTlN(; TIll': RlmliCTION OF POVERTY THROUGIl Tim DEVI':i,Ol'MENT
OF MIClW, SMALL AND MEDIUM ENTI<:RPRISES
/I" il ('IIIH'f<'d hy Ihc SelJille lind I fOllsc oj'lIef!l'esel1ll1lives of'the l'hilippines in Congress.
(Is.\'elll hi CI I:
SI';CTION l. Short Title." This I\d shall be known as the "(;0 Negosyo Act of2013."
3 SI TION 2. Ilec\aratioll of Po\icy. It is hereby declared the policy 01' the State to [()ster
4 natioll,tl developnlellt. promote inclusive growth, and reduce poverty by encouraging the
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5 cstahlislunellt oj' micro, small and medium el)terprises (MSMI,s) that i'aei,litate 10ealjob creation
(, and prmluctiun in the country, MSMI':s increase income ror poor households and build both
7 business equity 1llld personal assets over a period or time. To this end, tile State shall develop
X phtlls and initiate means to case the constraints on the establisllll1cnt or MSl'vl1,s in order to
'J rntillilalize the existing bureaucratic regulations, providing greater incentives and bend!ts to
10 MSIvILs, and strengthening the Micro, Small and Medium Hnterprisc Development (MSMED)
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II SI'TTION 3. I':stablishmcllt of Ncgosy .. CCllters. - There shall be established under the
14 supervision 01' the Micro, Small and Medium I':nterprises Development (MSMED) Council a
15 "Negosyo ('enter" in all provinces, cities and municipalities. The MSMED Council shall
16 eneollrage 1'1lhlie"l'rivatc partnerships in thcestablislnnent and management or Negosyo Centers.
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In applienhlc nren", the existing Micro, Small and Medium i':nterprise (MSMI':) Centers shal!
2 continue to operale ns Negos),,, ('ellters subject to thc provision" 0[' this Ae\, The Negosyo
3 Centers sh,,1! be responsihle ["r prOllloting ca"e or doing bu"iness and [aei [itating access to
4 scrvtccs ["r MSivll,s withill its jurisdiction. The MSMI:n Council, through the region'll omces
5 of the Department o[ Trade nnd Industry (IHI) shall per[(lI'Il1 oVCJ'sight ['unctions allli sh'll! assign
6 personnel to Ill[11l1thc Illllc\iOIiS urthe Negosj" CCllters,
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8 SI'X:T10N 4. Functiolls of Centers, Negosyo Centers shall have the [()llowing
9 functions:
10 (a) Promote case or doing husiness and acccss to servIces felt MSMI's within its
11 jurisdiction;
12 (h) Coordinatc and [ilcilitatc processes or government related to tire SlOt-up and
13 managemcnt 01' tviSMI ':s;
14 (c) Accept 'lild act on all registration applications or MSMFs;
15 (d) ('oortiinatc with the respective local goverlllllcnl unils am! liaise with concerned
16 goverlllllclli agencies 10 process the duly aceonlplished 1(>rIlls suhmitted by the
17 ivl S ivl Jo:s ;
18 (e) Integnrlc a unilicd husiness processing system [()r MSMI':s;
19 (!') I ':ncotlnlgc government institutions lhal arc rduted to the husiness application process
20 to help promulgate jnl'ormutioll regarding the Ncgusyo Center;
21 (g) SlJPply III [(Jrmalioll and services in trailling, illlHncing alld marketing;
22 (h) Support private seelor activities relating to ivlSMI: devclopment;
23 (i) ('o-organi/.e wilh the local chambers or commerce and other business organizatiolls a
24 lllcJltoring program lex prospcclivc and current entrepreneurs Hnd
(j) Illliid local sLipportnctworks and establish lllarketlinkagcs Illr MSl\i/l': development;
2 (k) Coordinatc with schools and on the clevelopment of a youtli
3 enlreprellellrship training program;
4 (I) 1"lcililale access to grants and other lilrl11S of IInaneial assistance, shared service
5 Iileilitie,s and equipmcnt, and other support for MSMI,:s;
6 (1ll)1':nslirc guidnncc, assistmlcc and improvelllent of the working
7 cOlllliliul\S ul' MSI'vII ':s;
8 (n) J.:stablish a dntnhank which shnll he a source 01' all inii)['lnation necessary lilr project
9 lllonitoring, alld policy studies and inC()l'l1lation dissClllinatiolJ campaigns;
10 (0) I'vInp oul all inli)['lnnlion and services essential to prospective entrepreneurs and
11 prospective investors especially in key value chains and ccol1Olnic sllhsectors within
12 itsjurisdiclion;
13 (p) Lstnhlish n Icc<ibnck llIcehnllism nl1long thc I'vISI'vIEs in Ibe respectivejurisdietion of
14 the Ncgusyo ('enters; ,mei
15 ('I) ('onduc! olher programs or projects IlH entrepreneurial development in the country
16 aligned with Ihe MSMI: development plan,
17 SII:<:TlON S. Registration.-
18 (a) Mitrn, SlIIall and MediulIl I':n(crpriscs
19 I, J\ uni Ii cd husiness registration lil\'ln shall be created by the UTI and shall be made
20 available in all Negosy" Centers, The unified business registralion iimn shall
21 ' eonUJi" all necessmy ini'lI'Inaliot1 I"l' the business application process of MSML's,
22 The IHI shall be responsible I'l!' regularly updating and maintaining the unilied
23 busincss registration iill'll!.
24, 7, MSI'vII)s shall undertHkc the business applieHtion process will) the Negusyo Center
25 01' CHell city or Illunicipality hy sublllitting the necessary documentary
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requirclllcnls. The Negosyo CClller may deny the applicalion oC MSMEs lhal lilil
10 SUllillil eompicted requirelllents or meet the necessary crileria under Seclion 5
oC I{epublie Act No. 917X, olherwise known as the "Ilarangay Micro Business
Lntelp,isc (IHvllll':) Act of' 2002," and Section 4 of Republic Act No. <)501,
kllown as lhe "Magna Carta Ill!' Micro, Small and Mediulll Lnlerprises."
\. Should the Neg()syo Center nlillo process the applieatioll within III'tcen (15) days,
the MSMI': slrall be deemed registered j(,l' a period 0)' one (I) year. In this case,
the Negusyo ('enler shall have the authority to revoke the registration witllin a
period oC thirty (10) days upon determination that the MSML has not mel the
necessary reqlliretllents and ljllalilicatiolls.
4. There,aller, MSMI:s shall rcnew its regislration annually.
(h) I<:asc of Rcgistr"ltion for Micro l(n1crllriscs The Negosyo Ceoter in the eity or
nnillicipal level shall have the sole power to issue the Certilicate oj' Authority to
JIlicro enterprises in accordance with Republic Act No. C)] 7X. To delhly the
administrative costs of' registering and monitoring the micro enterprise, the Ncgosyo
('enler lllay charge a ke ol'not lllore than I"ive Illlndred Pesos (I'hp SilO. 00)
(c) Philippinc Busincss Regist!')' The I'hilippiLle Illlsincss Registry (PllR) Kiosk shall
he housed lInder Ihe Negosyo Center, if available, li.lr usc 01' MSMEs to expedite
registration with cOllcerned licensing orllccs.
21 SECTION 6. Start-uJl Fund 1'01' - /\side /i'0111 the existing benelits Iln' MSMFs, the
22 MSMfo:J) Council, lhrough I HI and the appropriate financing institutions, shail establish a Start-
23 up Fund f()r MSMI:s to provide illlalleing \'or lhe developmenl and proll1otion or MSMhs in
24 priority sectors oJ'the eeononlY as speciJicd in the MSMI':J) Plan.
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26 SITION 7. Composition or the Micro, Small and Mediulll Ente!'prise Developlllent
27 COllnl'i1 (MSMI<:U). - '['0 ensure grcater representation by the sectors involved, the members or
28 the Coullcil slrall he tire il,ilowillg:
29 (a) Secretary 01 Trmle and Industry as Chairman;
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(11) Secretary or Agriculture;
2 (e) Secrclary or Ihc I ':nvirollll1cnt ami Nalural I{csourees;
3 (d) Secretary or the Inlcrior and I,oeal (/ovcrlllilent;
4 (c) Secretary oj' Science alld Technology;
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(I) Secrelary ol"j'oLiriStIl;
6 (g) Director (ieneral oJ'Nationall':cLlnol1lie ()evclopnlent ALitilority;
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(h) (/OVCrtl()J' 01' Ihe Ilwlgl<O Seiliral Ilg I'ilipillas;
(i) Chairman oJ'Snwllllusincss Corpor<)tion;
9 (j) Three ell representatives I'rom the IYISIYII' sector to represent l.u/,on, Visayas, and
10 lYIindallao with at least one rcprcselltative Il'om the micro enlerprisc sector;
11 (1<) Onc reprl'scnlativc Ihlill thc youtil sector to I(Jeus on the promotion or youth
12 (:l1t reprenL:ul'sh i J1;
13 (I) One represclltative II'OIll the labor sector, to be nominated by accredited labor groups;
14 (Ill)A represcntative I'rolll the private hanking sector: to serve alternately amollg the
15 ('hmuher ()t"I'hril't Ilanks; the Rural Bankcr's Association oJ'tlle Philippines (RllA!');
16 and the Ilankers' Associatioll of tile Philippines (IlA);
17 (n) A rcpresentative o[,tvIicrol'illallcc NOll-C,ovcrnll1enl Organizations (NUOs);
18 (0) Chairperson oj' the Senate COllllllittce Oil Trade, ('ollltllCrCC and 1':ntreprcncurshi1';
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20 (1') Chairperson oj' the Iiouse Committec on Small Business and l'ntreprcllcurship
21 I kvcloJllncnl.
22 The members may elect from alllong themselves a Vicl>chairlllHll to preside over the ('oundl
23 meetings ill the absellce or the ('Iwirmall.
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SECTION X. FUlldiolls of MSIVJIt:D Conncil. _. The MSMl-:J) Council shali have the /(lliowing
2 additional functions:
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(a) !l11I1 ()l'cl'siglil /iody fiJi' Ihe NeglJ.\yo Cel1lcl' MSMFD Council,
tli['()ugli the 1)'1'1, shall act ,to the coordinating lInci supervising body li,r all tile
agencies involved in Ihe eSlablishment and opcration orthe Ncgosyo Ccntcrs.
(h) j'ml'i.l'ioll of" ('ollll'lilln"" ei/lidc - h)J' each rule or group or rdated rulcs issueci by
any govcl'lullcnt agency li)J' compliance by MSMEs, the Council shall publish
eOll1pli'lIlee guides entitled 'Micro, Snlall and Medium l':nterprises COlllpliance
('uidc.' The Council shall ensurc that the cOlllpliance guide shall bc written in plain
language 0)' ill the lochl dialect, i r necessary.
The ('ouncil shall preparc separate cOlllpliance guides covering groups or classes oC
silllilariy arll:c1ed MSMEs alld shall coo{Jemte with industry associations to develop
alld distribute such eOl11pliHnce guidcs. The publication 0[' cach compliance guide
shall illclude tire posting or tile guide in an easily ic1cnti[ied location on the websitc or
the agency; '111d distribution or the guide to known industry contacts, suclr as smail
entities, associations, or imlust!'y leaders alTected by the rule. The issuing govemrnent
Hgencies shall publish and disseminate thc cOlllpliance rules within ninety (00) days
[i'OI11 the date or issnance.
19 SECTION 9. Information Dissemination. Tile Philippinc In[il1'1nation Agency, through the
20 OUice or I'nblic Inlil1nliltion in each city or lllunicipality, in coordination with DTI, Bangko
21 Scntralng I'ilipilws ([lSI'), Ilcpmtment or Labor and Fmploymcnt (DOLI':), and Departmcnt or
22 Interior and Local (iovemlllcnt (DIU;) shall ensure tile proper and adequate inrormation
23 dissemination oj' the contcnts Hlld bcnci!ts or this Act to the general public especially to its
24 intended heneflciaries speci[lcally ill {he harangay level.
25 SI'XTION ltl. Appropriations. - The anlount neccssmy to carry out the initial impicmentati011
26 of Ihis Act shall be charged to tbe 1),1'1. Thcrcalkr, such SI1111s as may be necessary for the
continued illlplemeutiition 01' this J\et shall be included in the succeeding (;eneral Appropriations
2 Act.
3 SI(CTION II. Ruft.s and ., The Secretary or tile IlTl, in
4 consultation with the approprintc agencies ns \TIny be decmed nccessary, shall Itmnulate the
5 ncccssary rules and regulations to implelllcnt the provisions or this Act within ninety (90) days
6 alkr its approval. The rilles and regulations issued pursuant to this Act shall take elleet J111ecn
7 (15) days aller its pUhlicatiou in a uewspapcr or gcneral circulation,
8 SI.:CTION 12. Scparahility Clallsc. - -Irany provision of this Act shall be held unconstitutional.
') the remainder "I' the Act not otherwise allectcd shall rClllain in Itdl jtllTe and lOCrecl.
10 SECTION 1.3. Rcpcaling (,Iallsc. Section 4 01' Republic Aet No. 9178 is hereby repealed.
11 Scctions 7A and 711 01' I{epublic Aet No. 6977, as amcnded by Republic Act No. X2X9 ami
12 Republic Act No. ')501, arc hereby amended. Section 12 or Republic Act No. 9178 is alsll
13 hereby amended. All other existing laws, presidential decrees, executive orders, proclamations or
14 admillistrative regulatiolls that nrc inconsistent with the provisio1ls oj' this Act arc herehy
15 amended, lIIodilled or reJlealed accordingly.
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17 SI.:CTION 14. I':ffcdivity. This Act shall lake d'J(,ct 1iHeen (15) days aller its pUblication in
18 the OJ'lleial (ia/.elle or ill al least two (7) lIewspapers oj' general circulation.
19 Approved,
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