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Republic of the Philippines oh
HOUSE OF REPRESENTATIVES.

Quezon City, Metro Manila

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SEVENTEENTH CONGRESS TIME:
First Regular Session

of «4838

Introduced by Representatives Peter “Sr. Pedro” M. Unabia,
Jocelyn S. Limkaichong, Rodrigo A. Abellanosa, Gil “Kabarangay” P. Acosta,
Alexandria P. Gonzales, Marisol C. Panotes, Carlito S. Marquez,
Salvador B. Belaro, Jr. and Bernadette Herrera-Dy

EXPLANATORY NOTE

One of the barriers to the growth and development of micro, small and
medium enterprises (MSMEs) in the country is poor business environment.
Republic Act No. 10644, otherwise known as the “Go Negosyo Act” was enacted
to address this problem, that is, to promote the ease of doing business and
facilitate access to government services for MSMEs through the Negosyo
Centers to be established in all provinces, cities and municipalities nationwide.
One such assistance of the Negosyo Centers is in the area of business
registration.

However, business registration in the Philippines still involves a series of
processes with different government offices or transaction windows. While
government agencies have internally addressed the need for a more efficient
process through anti-red tape measures, the fundamental flaw remains -
business registration requires several transactions with several agencies.
Addressing this bigger concern necessitates a confluence of agencies
cooperating for the greater good of providing an enabling environment to do
business.

Moreover, it is imperative for governments to recognize the importance of
formalization of businesses. Any enterprise that operates underground poses
several layers of danger to several sectors of society. Government stands to
lose fiscal revenues; consumers are put at risk from sub-standard products;
and employees are exposed to exploitative work environments, among others.
In order to address the need for the entry of enterprises into the formal
economy, there must be an enabling environment that promotes the case of
doing business. Doing so will provide benefits such as an increase in tax
collection so the government can spend more on public services; provision of
dignity to laborers by allowing access to social security; and ultimately bring
about inclusive growth

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There is therefore the need to amend Republic Act 10644 by expanding
the functions of the Negosyo Center in order for it to act as a Business One-
Stop Shop. This will go a long way in simplifying the registration procedures
and promoting the ease of doing business

Other proposed amendments to RA 10644 are: (1) filing of the income
tax return (ITR) can be done through the Negosyo Centers; (2)
institutionalization of the Mentor ME Program, a joint undertaking of the
Department of Trade and Industry (DTI) with the Philippine Center for
Entreprencurship (PCE), aimed at coaching the mentee-micro and small
enterprises (MSEs) on the different aspects of business operations; (3)
institutionalization of the business counsellors; and (4) requiring the local
government units (LGUs) to link up with the DTI for the Philippine Business
Registry Databank (PBRD)

The above-mentioned provisions of the proposed Act will work towards
the goal of the Micro, Small and Medium Enterprise Development (MSMED)
Plan 2017-2022 of supporting business start-ups and registration, and will be
in line with the following priority directions thereof:

* Creating a conducive business enabling environment;

* Capacity building and development of entrepreneurial culture: business
mentoring and access to technical advice;

* Improving coordination and service delivery to MSMEs in the regions
through the Negosyo Centers; and ,

* Ease in setting up business through easy registration procedures.

BARANGAY” P. ACOSTA

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SALVADOR B. BELARO, JR.

BE] ETTE -RA-DY


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS,
First Regular Session

7M 4838

HOUSE BILL NO.

Introduced by Representatives Peter “Sr. Pedro” M. Unabia,
Jocelyn S. Limkaichong, Rodrigo A. Abellanosa, Gil “Kabarangay” P. Acosta,
Alexandria P. Gonzales, Marisol C. Panotes, Carlito S. Marquez,
Salvador B. Belaro, Jr. and Bernadette Herrera-Dy

AN ACT
EXPANDING THE FUNCTIONS OF THE NEGOSYO CENTERS AND
REQUIRING THE LOCAL GOVERNMENT UNITS TO LINK UP WITH THE
DEPARTMENT OF TRADE AND INDUSTRY FOR THE PHILIPPINE
BUSINESS REGISTRY DATABANK, AMENDING FOR THE PURPOSE
REPUBLIC ACT NO. 10644, OTHERWISE KNOWN AS THE “GO
NEGOSYO ACT” IN ORDER TO PROMOTE THE EASE OF DOING
BUSINESS, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the
Philippines in Congress assembled:
CHAPTER I
GENERAL PROVISIONS
SECTION 1. Section 4 of Republic Act No. 10644, otherwise known as

the “Go Negosyo Act”, shall be amended to read as follows and the

subparagraphs renumbered accordingly:
“SEC. 4. Functions of the Negosyo Centers. - Negosyo Centers shall

have the following functions:

(a) xxx

(b) ACT AS A BUSINESS ONE-STOP SHOP (BOSS) WHERE MSMES CAN

REGISTER THEIR BUSINESSES AND PROCESS THE NECESSARY

PERMITS AND LICENSES. CONSEQUENTLY, THE GOVERNMENT

AGENCIES REQUIRING BUSINESS PERMITS SHALL EITHER:


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i, ASSIGN PERSONNEL TO THE NEGOSYO CENTERS TO MAKE IT
EASIER FOR THE MSMES TO TRANSACT BUSINESS WITH THESE
AGENCIES, INCLUDING BUT NOT LIMITED TO:
* DEPARTMENT OF TRADE AND INDUSTRY (DTI);
* SECURITIES AND EXCHANGE COMMISSION (SEC);
* COOPERATIVE DEVELOPMENT AUTHORITY (CDA);
* LOCAL GOVERNMENT UNITS (LGUS);
* BUREAU OF INTERNAL REVENUE (BIR);
+ SOCIAL SECURITY SYSTEM (SSS);
* DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE);
* HOME DEVELOPMENT MUTUAL FUND (HDMF); AND
* PHILIPPINE HEALTH INSURANCE CORP. (PHILHEALTH).
ii, AUTHORIZE THE NEGOSYO CENTERS TO SERVE AS POINT OF
CONTACTS BETWEEN THE REGISTRANT AND THE ACCREDITING
GOVERNMENT AGENCY.
() Coordinate and facilitate processes of government related to the set-up
and management of MSMEs;

2x
(i) RECEIVE THE INCOME TAX RETURNS (ITRS) OF MSMEs;
() Provide information and services in training, financing and marketing;

Xxx
() Co-organize with the local chambers of commerce and other business
organizations a mentoring program for prospective and current
entrepreneurs and investors;
(m) INSTITUTIONALIZE THE CONDUCT OF THE MENTOR ME
PROGRAM, A JOINT UNDERTAKING OF THE DEPARTMENT OF TRADE
AND INDUSTRY (DTI) WITH THE PHILIPPINE CENTER FOR
ENTREPRENEURSHIP (PCE), AIMED AT COACHING THE MENTEE-
MICRO AND SMALL ENTERPRISES (MSEs) ON THE DIFFERENT
ASPECTS OF BUSINESS OPERATIONS;

xXx

SEC. 2. A new section, Section 4-A, is inserted after Section 4 of


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Republic Act No. 10644, to read as follows:
THE BUSINESS COUNSELLORS WHICH HAVE BEEN TRAINED TO
PROVIDE BUSINESS REGISTRATION ASSISTANCE, BUSINESS
ADVISORY SERVICES, AND BUSINESS INFORMATION AND ADVOCACY
‘TO MSMES IN THE NEGOSYO CENTERS SHALL BE INSTITUTIONALIZED
AND BE MADE ORGANIC EMPLOYEES OF THE DTI.
SEC. 3. Section 5 of Republic Act No. 10644, otherwise known as the
“Go Negosyo Act”, shall be amended to read as follows and the
subparagraphs renumbered accordingly:
(a) xxx
(1) xxx
(2) 20x
(3) NEGOSYO CENTERS ARE GIVEN THREE (3) WORKING DAYS
TO TRANSMIT THE RECEIVED REGISTRATION DOCUMENTS
TO THE APPROPRIATE GOVERNMENT AGENCIES. IF THE
APPLICATION IS APPROVED BY THE ACCREDITING AGENCY,
THE NEGOSYO CENTER SHALL IMMEDIATELY RELEASE THE
CERTIFICATION OR ITS EQUIVALENT.
(4) xx
(8) 20x
(b) xx
(c} Philippine Business Registry Databank — xxx
THE LGUS SHALL BE REQUIRED/MANDATED TO LINK UP WITH
THE PBRD TO ENSURE ITS COMPLETENESS
SEC. 4. Implementing Rules and Regulations. - The DTI, in consultation
with the concerned agencies, shall formulate the necessary rules and
regulations to implement the provisions of this Act within ninety (90) days
after its approval. The rules and regulations issued pursuant to this Section
shall take effect fifteen (15) days after its publication in a newspaper of
general circulation.
SEC. 5. Separability Clause. - If any part or section of this Act is

declared unconstitutional, such declaration shall not affect in any manner
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other parts or sections hereof.

SEC. 6. Repealing Clause. - All laws, decrees, proclamations, issuances,
or ordinances that are contrary to or inconsistent with the provisions of this
Act are hereby amended, repealed or modified accordingly.

SEC. 7. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,