Registration and compliance
The Cooperative Development Authority (CDA) registers and supervises Philippine cooperatives. This article explains general formation, governance and accountability requirements; it does not certify Kapitala's registration or permitted activities. The actual certificate, Articles of Cooperation, By-Laws and current applicable issuances must be checked before confirming operating arrangements. Seminar attendance alone is not registration evidence.
Forming a cooperative
A primary cooperative may be organized by 15 or more Filipino citizens of legal age who share a common bond of interest and actually reside or work in the area the cooperative will serve (Philippine Cooperative Code of 2008, Article 10). Before registration, prospective members complete a Pre-Registration Seminar with the CDA, and before admission as a member, a person must complete a Pre-Membership Education Seminar.
The organizers file notarized Articles of Cooperation and By-Laws with the CDA, together with the required statements and an economic survey. The cooperative acquires legal personality only when the CDA issues its certificate of registration (Articles 16 and 17), and that certificate is the proof of registration.
One member, one vote
In a primary cooperative, each member has one vote, regardless of how many shares the member holds (Article 36). Members own the cooperative, and the cooperative answers to them.
The General Assembly and the Board
The General Assembly, the meeting of all members, is the cooperative's highest policy-making body (Article 33). Regular meetings and quorum follow the law and By-Laws (Articles 34 and 35). The Board of Directors, elected by the General Assembly, directs and manages the cooperative's business and affairs (Article 37). The By-Laws also provide for an audit committee, an election committee, a mediation and conciliation committee, and an ethics committee (Article 43).
Capital and shares
Philippine cooperative law sets requirements for capital, shares, member ownership limits and capital build-up (Articles 14 and 72 to 76). The cooperative's adopted governing documents and applicable law control. This website does not publish capital figures or a cooperative-specific economic model.
Where surplus goes
Philippine law governs reserves, member education, community purposes and the treatment of surplus (Article 86). Any cooperative-specific allocation must follow applicable law and adopted rules, not website wording. No distribution is guaranteed, and the project's economics remain unpublished while they are being finalized.
Credit operations
A credit cooperative is one that promotes and undertakes savings and lending among its members, pooling their funds to provide productive and provident financial assistance to them (Article 23). Member lending terms are set out in the cooperative's Board-approved credit policy and in each member's written loan documents, under the CDA's requirements for cooperatives engaged in credit services and Philippine consumer protection law.
Audit, reporting and training
Every registered cooperative is subject to annual financial, performance and social audits, and the financial auditor must be independent and accredited by the Board of Accountancy and the CDA (Article 80). Cooperatives file prescribed reports with the CDA within 120 days after the end of the calendar year, and program and activity reports must be made accessible to members (Article 53). The CDA issues a certificate of compliance to cooperatives that meet its annual reporting requirements, and officers must complete the training the CDA prescribes for their positions.
Tax treatment
Tax treatment depends on the activity, structure and applicable law, including Articles 60 and 61. It should be confirmed with qualified advisers. Registration is not a blanket claim that every activity is tax-exempt.
Where to read the law itself
- The Philippine Cooperative Code of 2008 (Republic Act No. 9520): lawphil.net
- The Cooperative Development Authority and its published guidelines: cda.gov.ph
Related reading
- The cooperative: what the cooperative is and what it does.
- The first program: the cooperative's first member financing program.
- Membership and eligibility: how participation is controlled.