Question & AnswerQ&A (CDA Memorandum Circular No. 2015-01)
The State's declared policy is to foster the creation and growth of cooperatives as practical vehicles for promoting self-reliance and harnessing people power towards economic development and social justice.
A cooperative is an autonomous and duly registered association of persons, with a common interest, who voluntarily join together to achieve social, economic, and cultural needs by making equitable contributions to capital, patronizing products and services, and sharing risks and benefits according to cooperative principles.
Cooperatives defined under Chapters XII, XIII, XVI, and XVII of Republic Act No. 9520 are excluded from the coverage of these revised guidelines.
At least fifteen (15) natural persons who are Filipino citizens, having a common bond of interest and residing or working in the intended area of operation are required.
The authorized share capital must be provided in the Articles of Cooperation; at least 25% must be subscribed by members, and at least 25% of the subscribed shares must be paid before registration. The paid-up capital must be at least P15,000 for primary cooperatives, except multipurpose cooperatives which require at least P100,000 or an amount based on feasibility study, whichever is higher.
The bond of membership refers to the condition where members associate to attain common goals, categorized into residential, occupational, associational, and institutional bonds. A cooperative should adopt only one common bond or field of membership.
Documents include Cooperative Name Reservation Notice, Economic Survey, Articles of Cooperation and By-laws signed by members, Treasurer's Affidavit, Surety Bonds of accountable officers, Certificate of Pre-Membership Seminar, Undertakings to comply with audit and other regulatory requirements, endorsements or feasibility studies if applicable, and the registration fee.
The name must include the word 'Cooperative' (or 'Kooperatiba' or 'Kooperatiba'), not be identical or confusingly similar to existing cooperatives, and must not include words like 'Incorporated', 'Corporation', 'Company', 'Federation', or 'Union' for primary cooperatives except in specific cases. All names should not be in all capital letters except acronyms.
Accountable officers such as chairperson, treasurer, manager, warehouseman, loan/deposit collectors, signatories of financial instruments, and others handling assets must submit surety bonds to guarantee faithful performance of their duties. The adequacy of the bond is determined by the board based on the cooperative’s net worth.
The Authority shall dispose of the registration application within sixty (60) days from filing complete documents; otherwise, the application is deemed approved unless the delay is the applicant's fault.