Republic of the Philippines
CONGRESS OF THE PHILIPPINES
Metro ManilaSixteenth Congress
First Regular SessionBegun and held in Metro Manila, on Monday, the twenty-second day of July, two thousand thirteen.
REPUBLIC ACT NO. 10644
AN ACT PROMOTING JOB GENERATION AND INCLUSIVE GROWTH THROUGH THE DEVELOPMENT OF MICRO, SMALL AND MEDIUM ENTERPRISES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Title. – This Act shall be known as the "Go Negosyo Act".
Section 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...
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Republic Acts
Go Negosyo Act
Republic Act No. 10644
Summary of Republic Act No. 10644 ("Go Negosyo Act")
Title and Policy Declaration (Sections 1-2):
- Known as the "Go Negosyo Act".
- Aims to foster national development, promote inclusive growth, and reduce poverty by encouraging micro, small and medium enterprises (MSMEs) that facilitate local job creation, production and trade.
Establishment of Negosyo Centers (Section 3):
- Negosyo Centers to be established in all provinces, cities and municipalities under the MSME Development (MSMED) Council.
- Existing MSME Centers to operate as Negosyo Centers.
- Negosyo Centers to promote ease of doing business and facilitate access to services for MSMEs.
Functions of Negosyo Centers (Section 4):
- Promote ease of doing business and access to services for MSMEs. (Section 4a)
- Coordinate and facilitate government processes related to setting up and managing MSMEs. (Section 4b)
- Accept and facilitate registration applications of MSMEs. (Section 4c)
- Coordinate with LGUs and government agencies to process MSME applications. (Section 4d)
- Integrate a unified business process system for MSMEs. (Section 4e)
- Monitor and recommend business process improvements for MSMEs. (Section 4f)
- Encourage government institutions to promulgate information about Negosyo Centers. (Section 4g)
- Provide information and services on training, financing and marketing. (Section 4h)
- Support private sector activities related to MSME development. (Section 4i)
- Co-organize mentoring programs for entrepreneurs and investors. (Section 4j)
- Build local support networks and establish market linkages for MSMEs. (Section 4k)
- Coordinate with schools and organizations on youth entrepreneurship programs. (Section 4l)
- Encourage women entrepreneurship by providing access to information, support, training and credit. (Section 4m)
- Facilitate access to grants, shared facilities, equipment and other support for MSMEs. (Section 4n)
- Ensure management guidance, assistance and improvement of working conditions for MSMEs. (Section 4o)
- Establish a databank for project monitoring, research, policy studies and information dissemination. (Section 4p)
- Map out essential information and services for prospective entrepreneurs and investors. (Section 4q)
- Establish a feedback mechanism among MSMEs in their jurisdiction. (Section 4r)
- Conduct other programs or projects for entrepreneurial development. (Section 4s)
Registration (Section 5):
- A unified and simplified business registration form to be developed by DTI. (Section 5a1)
- Negosyo Centers to facilitate and expedite MSME business application process. (Section 5a2)
- If not processed within 15 days, MSME deemed registered for 1 year. (Section 5a3)
- MSMEs to renew registration annually. (Section 5a4)
- Negosyo Centers to issue Certificate of Authority for Barangay Micro Business Enterprises (BMBEs), renewable every 2 years, with fee not more than P1,000. (Section 5b)
- Philippine Business Registry Databank to be established under DTI. (Section 5c)
Eligibility (Section 6):
- Any natural or juridical person qualified under Section 3(a) of RA 9178 may apply as MSME.
Start-up Funds for MSMEs (Section 7):
- MSMED Council to establish a Start-up Fund for MSMEs from MSME Development Fund and BMBE Fund.
Technology Transfer, Training and Marketing Assistance (Section 8):
- Negosyo Centers to provide assistance to MSMEs in availing technology transfer, production and management training programs, and marketing assistance.
Composition of MSMED Council (Section 9):
- Chaired by DTI Secretary, with members from other government agencies and MSME sector representatives.
- Advisory Unit to consist of representatives from government agencies, private sector and labor groups.
Additional Functions of MSMED Council (Section 10):
- Coordinate and oversee Negosyo Centers. (Section 10a)
- Publish compliance guides in plain language for rules issued to MSMEs. (Section 10b)
- Conduct research on women entrepreneurship. (Section 10c)
- Provide policy direction on women entrepreneurship. (Section 10d)
- Develop entrepreneurial education and training curriculum. (Section 10e)
Information Dissemination (Section 11):
- Philippine Information Agency to disseminate information on the Act.
Appropriations (Section 12):
- Initial implementation funded by DTI budget, thereafter included in General Appropriations Act.
Implementing Rules and Regulations (Section 13):
- DTI Secretary to issue IRR within 90 days.
Separability Clause (Section 14), Repealing Clause (Section 15), Effectivity (Section 16)
Title and Policy Declaration (Sections 1-2):
- Known as the "Go Negosyo Act".
- Aims to foster national development, promote inclusive growth, and reduce poverty by encouraging micro, small and medium enterprises (MSMEs) that facilitate local job creation, production and trade.
Establishment of Negosyo Centers (Section 3):
- Negosyo Centers to be established in all provinces, cities and municipalities under the MSME Development (MSMED) Council.
- Existing MSME Centers to operate as Negosyo Centers.
- Negosyo Centers to promote ease of doing business and facilitate access to services for MSMEs.
Functions of Negosyo Centers (Section 4):
- Promote ease of doing business and access to services for MSMEs. (Section 4a)
- Coordinate and facilitate government processes related to setting up and managing MSMEs. (Section 4b)
- Accept and facilitate registration applications of MSMEs. (Section 4c)
- Coordinate with LGUs and government agencies to process MSME applications. (Section 4d)
- Integrate a unified business process system for MSMEs. (Section 4e)
- Monitor and recommend business process improvements for MSMEs. (Section 4f)
- Encourage government institutions to promulgate information about Negosyo Centers. (Section 4g)
- Provide information and services on training, financing and marketing. (Section 4h)
- Support private sector activities related to MSME development. (Section 4i)
- Co-organize mentoring programs for entrepreneurs and investors. (Section 4j)
- Build local support networks and establish market linkages for MSMEs. (Section 4k)
- Coordinate with schools and organizations on youth entrepreneurship programs. (Section 4l)
- Encourage women entrepreneurship by providing access to information, support, training and credit. (Section 4m)
- Facilitate access to grants, shared facilities, equipment and other support for MSMEs. (Section 4n)
- Ensure management guidance, assistance and improvement of working conditions for MSMEs. (Section 4o)
- Establish a databank for project monitoring, research, policy studies and information dissemination. (Section 4p)
- Map out essential information and services for prospective entrepreneurs and investors. (Section 4q)
- Establish a feedback mechanism among MSMEs in their jurisdiction. (Section 4r)
- Conduct other programs or projects for entrepreneurial development. (Section 4s)
Registration (Section 5):
- A unified and simplified business registration form to be developed by DTI. (Section 5a1)
- Negosyo Centers to facilitate and expedite MSME business application process. (Section 5a2)
- If not processed within 15 days, MSME deemed registered for 1 year. (Section 5a3)
- MSMEs to renew registration annually. (Section 5a4)
- Negosyo Centers to issue Certificate of Authority for Barangay Micro Business Enterprises (BMBEs), renewable every 2 years, with fee not more than P1,000. (Section 5b)
- Philippine Business Registry Databank to be established under DTI. (Section 5c)
Eligibility (Section 6):
- Any natural or juridical person qualified under Section 3(a) of RA 9178 may apply as MSME.
Start-up Funds for MSMEs (Section 7):
- MSMED Council to establish a Start-up Fund for MSMEs from MSME Development Fund and BMBE Fund.
Technology Transfer, Training and Marketing Assistance (Section 8):
- Negosyo Centers to provide assistance to MSMEs in availing technology transfer, production and management training programs, and marketing assistance.
Composition of MSMED Council (Section 9):
- Chaired by DTI Secretary, with members from other government agencies and MSME sector representatives.
- Advisory Unit to consist of representatives from government agencies, private sector and labor groups.
Additional Functions of MSMED Council (Section 10):
- Coordinate and oversee Negosyo Centers. (Section 10a)
- Publish compliance guides in plain language for rules issued to MSMEs. (Section 10b)
- Conduct research on women entrepreneurship. (Section 10c)
- Provide policy direction on women entrepreneurship. (Section 10d)
- Develop entrepreneurial education and training curriculum. (Section 10e)
Information Dissemination (Section 11):
- Philippine Information Agency to disseminate information on the Act.
Appropriations (Section 12):
- Initial implementation funded by DTI budget, thereafter included in General Appropriations Act.
Implementing Rules and Regulations (Section 13):
- DTI Secretary to issue IRR within 90 days.
Separability Clause (Section 14), Repealing Clause (Section 15), Effectivity (Section 16)