Guidelines for New Cooperative Registration

The State promotes the creation and growth of cooperatives to foster self-reliance and economic and social development.

Ensure cooperatives are viable and meet registration requirements and Authority policies.

Applies to all types of cooperatives except those under Chapters XI, XII, XIII, and XV of the Cooperative Code (R.A. 6938).

Authority: Cooperative Development Authority.
Cooperative: Registered association with a common bond and equitable capital contributions.
Primary Cooperative: Members are natural persons.
Secondary Cooperative: Members are primary cooperatives.
Tertiary Cooperative: Members are secondary cooperatives or apex organizations.
Federation: Primary/secondary cooperatives in the same economic activities.
Cooperative Unions: Non-business function cooperatives representing various types.
Laboratory Cooperative: Managed by minors, affiliated with registered cooperatives.
Common Bond: Pre-existing condition linking members.
Area of Operation: Territory of cooperative activities.
Share: Unit of capital with minimum value of P1.00.
Defines various cooperative types (Credit, Consumers, Producers, Marketing, Service, Multi-Purpose).
Business and non-business cooperative functions defined.

Extension Offices register primary and local secondary cooperatives.
Central Office registers inter-regional/national secondary and tertiary cooperatives and special cooperatives except credit cooperatives.

Primary cooperatives require at least 15 Filipino natural persons with a common bond.
Secondary/tertiary cooperatives require at least 15 cooperatives; permit 5 initially if 15 achieved within 3 years.

Share capital mandatory; 25% of authorized capital must be subscribed and 25% of subscribed paid upon registration.
Primary cooperatives minimum paid-up capital is P2,000.
Secondary/tertiary capitalization depends on economic survey.

Submit: Economic Survey, notarized Articles and By-Laws, Treasurer's Affidavit on capital, bonds for accountable officers, and registration fee.

Common shares preferred; preferred shares allowed but not exceeding 25% of authorized capital.
Rights of preferred shareholders must be in By-Laws.
Subscription and paid-up requirements apply to common shares only.

Entities aiding cooperative organization must assist pre- and post-registration up to self-reliance.

Chairman or representative must execute undertaking to change cooperative name if prior right exists.

Four categories: Residential, Institutional, Associational, Occupational; only one bond adopted per cooperative.

By-laws must allow members of existing same-type cooperatives in same area to be members, provided they resign from former.

Conversion into cooperatives allowed upon registration application and document submission; audited financial statements substitute economic survey.

Submit 4 copies of amended Articles/By-Laws with underscored changes, certified by Secretary and board majority.
Pay registration fee.

Bond required for Treasurer, Cashier, Manager, warehouseman, check signatories, and similar custodians.
Acceptable bonds: Real estate, cash, surety/performance.
Bond amount based on cooperative net worth at registration.
Board determines adequacy.

Registration decided within 30 days; deemed approved if delayed without applicant fault.
Denial appealable to Office of the President within 90 days.
Failure by President's Office to act within 90 days means approval.