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Cooperative Development Authority - Digital Negosyo Consultant | Help & Support | Globe

Cooperative Development Authority FAQs

What's a cooperative?

A cooperative is an association of persons who voluntarily join together for economic, social or educational purposes.

Are there different types of cooperatives?

Yes. These are the different types of cooperatives:

  • Credit cooperative: Promotes thrift and savings among its members, and creates funds in order to grant loans for productivity
  • Consumer cooperative: Procures and distributes commodities to members and non-members
  • Producers cooperative: Undertakes joint productions, whether agricultural or industrial
  • Service cooperative: Engages in medical and dental care, hospitalization, transportation, insurance, housing, labor, electric light and power, communication and other services
  • Multi-purpose cooperative: Combines 2 or more of the business activities of the different types of cooperatives

How are cooperatives categorized?

Cooperatives are categorized according to membership and territory.

In terms of membership, a cooperative can be categorized as primary, secondary or tertiary.

  • Primary: The members are natural persons
  • Secondary: The members are primaries
  • Tertiary: The members are secondary cooperatives

Cooperatives are also categorized according to their areas of operation, which may or may not coincide with the political subdivisions of the country.

What privileges do cooperatives usually enjoy?

Cooperatives are able to:

  • Deposit sealed cash boxes or containers, documents or any valuable papers in public safes for free
  • Have preferential right to supply government institutions and agencies rice and other grains, fish and other marine products, and other agricultural commodities produced by their members
  • Have preferential treatment in the allocation of fertilizers and in rice distribution
  • Have preferential rights in management of public market and/or lease of public market facilities, stall or spaces

In addition, cooperatives organized among government employees enjoy the free use of any available space in their agency.

Credit cooperatives are entitled to loans, credit lines, rediscounting of loan notes, and other illegible papers with the Development Bank of the Philippines (DBP), the Philippine National Bank (PNB), and other financial institutions except the Central Bank of the Philippines (CB).

How many persons are needed to organize a cooperative?

At least 15 persons are needed to organize and register a cooperative. They must have a common bond of interest.

What are the qualifications for those who want to establish a cooperative?

Organizers must be Filipino citizens and residents of or working in the area where the cooperative will operate.

Can minors organize a cooperative?

Yes. Cooperatives organized by minors are considered laboratory cooperatives and must be affiliated with a registered cooperative. It's governed by special CDA guidelines.

What's authorized capital share?

This is the money paid or required to be paid for a cooperative's operations.

What are a cooperative's sources of capital?

A cooperative's capital can be acquired through:

  • The members' share capital
  • Loans and borrowings, including deposits
  • Revolving capital consisting of deferred payment of patronage refunds or interests on share capital
  • Subsidies, donations, legacies, grants, aids, and other assistance from local or foreign institutions, whether public or private

Is a cooperative required to keep books or records?

Yes. The following books, records of account, and documents should be kept in the cooperative's main office:

  • A copy of the Code and all other laws pertaining to cooperatives
  • A copy of the regulations of the CDA
  • A copy of the articles of cooperation and by-laws
  • A register of members
  • Books of the minutes of the general assemblies, and of the meetings of the board of directors and committees
  • Share books, where applicable
  • Financial statements
  • Such other documents as may be prescribed by law or by the by-laws

Is there a sanction if a cooperative fails to submit an annual report?

Failure to prepare and submit an annual report is grounds for the revocation of a cooperative's Certificate of Registration or authority to operate.

What's the term of existence of a cooperative?

A cooperative has a basic term of 50 years from the date of registration.

Who are considered members of a cooperative?

A Cooperative has two kinds of members:

(1) Regular Member - one who has complied with all the membership requirements and entitled to all the rights and privileges of membership as stated in the Cooperative Code and the cooperative by laws.

(2) Associate Member - has no right to vote and be voted upon and is entitled only to such rights and privileges provided by the cooperative by laws.

When does an applicant for membership in a cooperative acquire his rights as a member?

An applicant becomes a cooperative member when his application is approved by the board of directors. He may exercise his rights as a member after he makes the payments that are due to the cooperative.

Can cooperative membership be terminated?

Yes, it can be terminated voluntarily, or involuntarily if the member fails to comply with the rules and regulations of the cooperative.

Can minors become members of a cooperative?

Yes, but only for laboratory cooperatives. Laboratory cooperatives serve as a training ground in preparation for membership in regular cooperative, and are affiliated with a registered cooperative.

Where do i register my cooperative?

You can register your cooperative in the CDA main office in Quezon City. Regional applications can be submitted in extension offices around the country.

How much does it cost to register a cooperative with CDA?

The initial registration fee is 1/10 of 1% of the authorized share capital or the basic fee below, whichever is higher:

  • Laboratory cooperative: No registration fee
  • Primary Cooperative (Regular): P500
  • Primary Cooperative (Express): P1,000
  • Secondary Cooperative: P2,000
  • Tertiary Cooperative: P3,000

Do I need to renew my CDA registration?

CDA registration doesn't need to be renewed. However, cooperatives registered under CDA are required to submit annual status reports.