Law Summary
Declaration of Policy
- State policy prioritizes national development, inclusive growth, poverty reduction.
- Encourages establishment of MSMEs to facilitate local jobs, production, and trade.
- Recognizes MSMEs' role in increasing income and building assets for poor households.
- State mandated to ease constraints, rationalize regulations, enhance incentives, and strengthen MSMED Council.
Establishment of Negosyo Centers
- Negosyo Centers to be established in all provinces, cities, municipalities.
- Supervised by MSMED Council with encouragement for public-private partnerships.
- Existing MSME Centers may continue as Negosyo Centers.
- Responsible for promoting ease of doing business and access to MSME services.
- Oversight by MSMED Council through DTI regional offices.
Functions of Negosyo Centers
- Promote ease of doing business and MSME service access.
- Coordinate government processes related to MSME setup and management.
- Accept and facilitate MSME registration applications.
- Coordinate with LGUs and government agencies for MSME process forms.
- Integrate unified MSME business process systems.
- Monitor/recommend business-process improvements.
- Disseminate Negosyo Center info among government institutions.
- Provide training, financing, marketing information/services.
- Support private sector MSME development activities.
- Organize mentoring with chambers of commerce.
- Build support networks and market linkages.
- Coordinate youth entrepreneurship programs.
- Encourage women entrepreneurship.
- Facilitate access to grants, shared facilities, and support.
- Ensure management guidance and improve MSME working conditions.
- Establish databank for monitoring, research, policy studies.
- Map services/info for prospective entrepreneurs/investors.
- Create feedback mechanisms with MSMEs.
- Conduct entrepreneurial development programs aligned with MSMED Plan.
Registration Procedures
- Unified and simplified business registration form developed by DTI, available in Negosyo Centers.
- Negosyo Centers to expedite and facilitate MSME business application with LGUs/agencies.
- Failure to process permits within 15 days results in deemed MSME registration for one year.
- Business permits can be revoked within 30 days if qualifications unmet.
- Annual renewal of MSME registration is mandatory.
Certificate of Authority for Barangay Micro Business Enterprises (BMBEs)
- DTI Negosyo Centers have sole power to issue BMBE Certificates.
- Certificates allow advantages under RA 9178.
- Certificates renewable every two years.
- DTI may charge issuance fees up to P1,000.
Philippine Business Registry Databank
- A centralized databank under DTI for all Philippine business enterprises.
Eligibility for Registration
- Natural or juridical persons meeting RA 9178 qualifications may register as MSMEs.
Start-up Funds for MSMEs
- MSMED Council, through DTI, DOF and financing institutions, to establish Start-up Fund.
- Fund sourced from MSME Development Fund and BMBE Fund.
- Focus on priority economic sectors per MSMED Plan.
Assistance in Technology, Training, Marketing
- Negosyo Centers coordinate with DTI, DOST, UP-ISSI, CDA, TESDA, and other agencies.
- Provide MSMEs with access to technology transfer, production, management training, and marketing assistance.
Composition of MSMED Council
- Chair: Secretary of Trade and Industry.
- Members include Secretaries of Agriculture, Interior and Local Government.
- Three MSME sector reps from Luzon, Visayas, Mindanao (including microenterprise rep).
- Reps from women and youth sectors designated by PCW and National Youth Commission.
- Chairman of Small Business Corporation.
Advisory Unit to MSMED Council
- Consists of various government and private sector officials including:
- Secretary of Science and Technology
- BSP Governor
- Presidents of Land Bank and Development Bank
- Director General of NEDA
- Labor, banking, microfinance NGO, UP-ISSI, Credit Information Corporation representatives
- Advisory Unit consults MSMED Council but without voting rights.
Additional Functions of MSMED Council
- Coordinating and overseeing Negosyo Centers’ establishment and operation.
- Monitoring progress and reporting annually to Congress.
- Publishing plain-language compliance guides for MSMEs about government regulations.
- Conducting research and formulating policy to support women entrepreneurship.
- Developing entrepreneurial education and training curricula with DepEd, TESDA, and CHED.
Information Dissemination
- Philippine Information Agency, with DTI and DILG, ensures dissemination of Act's benefits and provisions.
Appropriations
- Initial funding from DTI's current budget.
- Subsequent funding included in General Appropriations Act.
Implementing Rules and Regulations
- Secretary of DTI to formulate rules within 90 days of approval.
- Rules effective 15 days post-publication in a newspaper of general circulation.
Separability Clause
- Invalid provisions do not affect remaining provisions which remain effective.
Repealing Clause
- Specific sections of RA 9178 and RA 6977 amended or repealed to align with this Act.
- All inconsistent laws, decrees, orders are amended, modified, or repealed accordingly.
Effectivity
- Act takes effect 15 days after publication in Official Gazette or newspaper of general circulation.