Cooperative Development Authority (CDA): What You Need to Know

The Cooperative Development Authority (CDA) is a proactive and responsive government organization that promotes the continued expansion and complete development of cooperatives in the Philippines so that they may become instruments of social justice, equity, and balanced national progress. The goal of the CDA is to ensure that cooperatives are able to fulfill their potential as socially just, equitable, and progressive institutions.

By virtue of Presidential Decree No. 857, which is sometimes referred to as the “Cooperative Code of the Philippines,” the CDA was formally constituted in the year 1975. It is assigned with the mission of creating policies and implementing programs that support the viability and expansion of cooperatives in all national sectors. Specifically, it is tasked with this responsibility for all national agricultural cooperatives.

READ ALSO: Here are 5 Investments OFWs Must Consider

OFWs can benefit from joining cooperatives because these organizations enable members to combine their resources in order to achieve a common goal. In addition, cooperatives provide their members with opportunities for furthering their education and skills, in addition to providing them with social and financial support.

This makes it easier for OFWs to manage their finances and gain access to essential services, which ultimately improves the OFWs’ quality of life. For this reason, it is absolutely necessary to get further knowledge regarding the CDA in order to have an understanding of the role it plays in supporting cooperative growth in the Philippines.

CDA: What You Need to Know about the Cooperative Development Authority (CDA)

What is the Meaning of CDA?

CDA stands for Cooperative Development Authority in the Philippines.

What is the Purpose of CDA?

According to subsection 15 of article XII of the Philippine Constitution, the Cooperative Development Authority, also known as the CDA, is a government institution that is tasked with ensuring the continued existence of cooperatives as well as their continued expansion.

In addition to this responsibility, the CDA is responsible for conceptualizing, adopting, and carrying out integrated cooperative development plans and programs. The CDA is the primary institution that is accountable for ensuring that while being a part of the private sector, cooperatives continue to be partners of the government in the process of achieving sustainable development and economic prosperity.

The principal government agency in the Philippines tasked with fostering the expansion and maturation of cooperatives is known as the Cooperative Development Authority, or CDA for short. The purpose of this initiative is to facilitate the growth of cooperatives as widespread agents of social justice, equity, and well-rounded national advancement.

The Cooperative Development Association (CDA) offers various programs and services to cooperatives, including as research and development, technical help, and capacity building, in order to offer cooperatives assistance and support. In addition to this, it controls and oversees cooperatives to ensure that they are in compliance with the Philippines Cooperatives Code.

Businesses that are cooperatives are ones that are owned by their members, governed by their members, and run by their members. Members of a cooperative work together toward a common goal in order to run the cooperative. One member’s vote is equal to one vote in a cooperative, regardless of how much or how little money an individual member has invested in the business.

Co-ops are run in accordance with democratic principles. There are many different kinds of cooperatives, each one providing a unique combination of products and services to its members. The vast bulk of utility services in provinces are provided by large cooperatives such as Benguet Electric Cooperative, Inc. (BENECO), Ilocos Norte Electric Cooperative, Inc. (INEC), Bantayan Electric Cooperative, Inc. (BANELCO), and Mindanao Cooperatives Water Service Federation (MCWS).

Functions and Responsibilities of the CDA

The primary government agency in the Philippines tasked with promoting the expansion and maturation of cooperatives is known as the Cooperatives Development Authority (CDA). The following are some of the most significant roles that it plays:

  1. Formulation, issuance, and implementation of policies, rules, and regulations governing cooperative development.

This includes the creation and publication of policies, rules, and laws that will guide the development of cooperatives. Through the provision of technical help to cooperatives, the CDA also plays an important part in the implementation of the aforementioned laws and regulations.

  1. Registration and regulation of cooperatives

The CDA is in charge of both the cooperative registration process and cooperative regulation. Registers cooperatives, issues certificates of incorporation, and requires annual renewals of these documents every five years. In order to legally conduct business, a cooperative needs to get themselves registered with the CDA.

  1. Facilitation of the organization of cooperatives

Additionally, the CDA provides cooperatives with help in a technical capacity. The agency provides assistance in the development of cooperatives and provides guidance, information, and training on a variety of topics, such as accounting, health and safety standards, financial management, marketing strategies, and board formation. Additionally, the agency facilitates the formation of cooperative boards.

  1. Provision of technical assistance and capacity-building programs for cooperatives

Through its many different programmes, the CDA is able to offer cooperatives assistance in a technical capacity. These include the Rural Youth Development Program, which assists individuals between the ages of 15 and 35 in finding employment; the Cooperative Development Program, which assists women’s organizations in becoming self-sufficient; and the Community Development Project, which works to increase access to fundamental health care services.

  1. Monitoring and evaluation of cooperative development programs and projects.

Through its vast array of programs, the CDA offers cooperatives assistance in a variety of technical areas. These include the Rural Youth Development Program, which helps people between the ages of 15 and 35 find jobs, the Cooperative Development Program, which helps women’s organizations become self-sufficient, and the Community Development Project, which works to increase access to basic health care services.

List of Programs and Services of the CDA

The Cooperative Development Agency (CDA) provides a wide range of programs and services, all with the goal of fostering the development and growth of cooperatives. The following are examples of the kinds of programs and services provided by the CDA:

Cooperative Development Grants Program. Both newly formed and already existing cooperatives are eligible to receive financial assistance from this programme in order to accomplish a variety of goals, such as business planning, product development, marketing, and financial management. It is also possible to apply for grants in order to participate in collaborative development initiatives such as market research and feasibility studies. In addition, the CDA offers training programmes that could prove beneficial to the progress of your cooperative.

Technical Assistance Grants Program. Funding is made available to cooperatives through this program for a variety of objectives, including but not limited to company planning, product development, marketing, and financial management. Joint development activities are also eligible for funds, and some examples of these include feasibility studies and market research. In addition, the CDA offers training courses that could prove beneficial to the accomplishments of your cooperative.

Training and Outreach. The Cooperative Development Association (CDA) provides classes that participants can take to help further the growth of their cooperative. In addition, the CDA provides outreach services with the goal of educating customers and companies on the value that may be derived from cooperatives.

Technical Assistance for Cooperative Development Programs. The CDA offers cooperatives and other groups technical assistance so that they can begin or extend their cooperative development operations. This assistance can be used in a variety of contexts.

Grant Funding for Cooperative Development Projects. The CDA provides funding for cooperative development projects such as market research and feasibility studies.

Cooperative Business Planning Grant Program. The CDA provides funding for cooperative businesses to do feasibility studies and business plans.

Cooperative Technical Assistance Grants Program. The CDA provides funding for projects that help cooperatives improve their operations and business procedures by providing them with technical support.

Cooperative Development Resource Center (CDRC). The Cooperative Development Resource Center (CDRC) is a network for the development of cooperatives that provides training, technical help, and research.

Technical Assistance for Cooperative Development Programs (TACDP). Training, technical help, and research are all things that are provided by the TACDP, which is a network for the development of cooperatives.

Based on the CDA’s website, the agency also provides the following services to all of its cooperative development projects:

Technical Advisory Services. The CDA provides cooperatives of various stages of development, from those just starting out to those that have been around for decades, with access to technical consulting services. It assists cooperatives in overcoming obstacles in business, enhancing their operations, and growing their earnings. Assistance with Technical Matters Regarding Cooperative Development Programs (TACDP). The Texas Agricultural Cooperative Development Program (TACDP) is a cooperative development network that offers cooperatives research, training, and technical help.

Regulatory Services. In partnership with the municipal and state governments, the CDA conducts research and analysis on proposed cooperative legislation and regulations. In addition, it offers training, technical support, research aid, and regulatory assistance to both privately-owned credit unions and those that are managed by the state. Support for the Development of Cooperatives (CDP). The Cooperative Development Program (CDP) offers financial assistance to new or emerging cooperatives in the form of subsidies, which can be used for the development of business plans, the marketing of products or services, the acquisition of capital from financial institutions, or the securing of contracts with major purchasers of goods.

Online Services. The Cooperative Development Knowledge Network (CDKN), which is a searchable database of information on topics related to cooperative development; and the Cooperative Development Toolkit, which provides tools and resources to help cooperatives develop business plans, market their products or services, and obtain financing from financial institutions or secure contracts from large purchasers of goods or services. Both of these resources are available online through the CDA.

Developmental Services. The Cooperative Development Authority (CDA) offers a wide range of development services to cooperatives, including the preparation of business plans, aid with cooperative marketing, market analysis and feasibility studies, and financial assistance. In addition, the CDA offers guidance on how to develop a business plan that would pique the interest of potential investors as well as financial institutions.

Video: Programs, Services and Accomplishments of the Cooperative Development Authority (CDA)

Since its establishment in 1970, the Cooperative Development Authority (CDA) has been working to foster the growth and development of cooperatives in the Philippines. Through its programs and services, the agency has helped cooperative businesses to thrive and become an important part of the country’s economy. The CDA’s accomplishments include assisting in the establishment of over 12,000 cooperatives, providing training and technical assistance to cooperative members, and helping to finance cooperative businesses.

Frequently Asked Questions

1. What is cooperative?

To achieve their social, economic, and cultural needs and aspirations by making equitable contributions to the required capital, patronizing their products and services, and accepting a fair share of the risks and benefits of the undertaking in accordance with the universally accepted cooperative principles, the members of a cooperative form an autonomous and duly registered association. This association is comprised of people who share a common bond of interest and who have voluntarily united to achieve their goals.

2. What are the objectives and goals of cooperatives?

The enhancement of the members’ standard of living should be the major focus of any and all cooperative organizations. In order to accomplish this goal, the cooperative will work toward achieving the following:

(a) Promote equitable distribution of net surplus by maximizing utilization of economies of scale, cost-sharing, and risk-sharing. Provide goods and services to its members to assist them in improving their income, savings, investments, productivity, and purchasing power. Provide goods and services to its members to assist them in improving their income, savings, investments, productivity, and purchasing power.

(b) Offer members the maximum possible benefits on both the social and economic fronts;

(c) Show them how to accomplish tasks in an efficient and cooperative manner;

(d) Encourage corporate practices that promote collaboration and innovative management tactics;

(e) Make it possible for those who have lower incomes and less privileges to obtain a larger proportion of the nation’s assets; and

(f) If you want to achieve any of the goals outlined above, you should work together with the government, other cooperatives, and organizations focused on helping people.

3. What are the types of cooperatives?

Any of the following types of organizations can operate as cooperatives:

(a) A Credit Cooperative is an organization that promotes its members to save money and offers its members with access to various financing services. It does this by establishing a communal fund that may be utilized by its members to offer monetary assistance and many other financial services for the purpose of achieving productive and provident goals.

(b) A consumer cooperative’s primary responsibility is to purchase and then disperse the products it sells to both its members and customers who are not members of the cooperative.

(c) An organization that engages in the production of agricultural or industrial goods on a cooperative basis is known as a Producers Cooperative. It was established and is managed by its members with the purpose of producing and processing finished or processed products from raw materials or goods produced by its members into products that may be sold to both members and non-members of the organization. Any final product or derivative thereof that is derived from the raw materials produced by its members and sold in the name and for the account of the cooperative shall be considered a product of the cooperative and its members. This includes any products that are sold in the name of the cooperative and for its account.

(d) A marketing cooperative is a type of cooperative that supplies its members with production inputs and advertises the items those members produce.

(e) A Service Cooperative is an organization that provides medical and dental treatment, hospitalization, transportation, insurance, housing, labor, electric light and electricity, communication, and other services.

(f) The Multi-Purpose Cooperative is a type of cooperative that combines the commercial endeavors of two (2) or more of the several types of cooperatives;

(g) Advocacy Cooperative: is a primary cooperative that promotes and advocates cooperativism among its members and the general public through socially-focused projects, education and training, research and communication, and other similar activities aimed at reaching its target beneficiaries. Advocacy Cooperative is a primary cooperative that promotes and advocates cooperativism among its members and the general public.

(h) An Agrarian Reform Cooperative is a cooperative that was established by marginal farmers, the vast majority of whom are beneficiaries of agrarian reform, with the intention of establishing an adequate system of land tenure, land development, land consolidation, or land management in the context of agrarian reform-regions most affected.

(i) A financial institution whose primary objective is to offer a wide range of financial services to cooperatives and the members of those cooperatives. This type of institution is known as a cooperative bank.

(J) Dairy Cooperative: an association whose members produce fresh milk with the potential to be processed into other dairy products and/or sold as such;

(k) Education Cooperative: Contrary to the provisions of Republic Act No. 9155, also known as the Governance of Basic Education Act of 2001, a cooperative that was established with the primary intention of owning and operating licensed educational institutions;

(l) Electric Cooperative: A cooperative organization that was established with the primary objective of engaging in power generation from renewable sources, including hybrid systems, as well as the acquisition and operation of sub transmission or distribution to its members.

(m) Financial Service Cooperative: an institution the primary mission of which is to give customers access to a variety of financial services, including savings accounts and credit lines.

(n) Fishermen Cooperative: is a group of underprivileged fishermen in a particular area that works together to market their catch either in its raw form or after being processed;

(o) Health Services Cooperative: is one that has been established with the primary intention of provide medical, dental, and various other types of health services;

(p) Housing Cooperative: is a group that is structured to offer assistance or access to housing for the benefit of its regular members who actively participate in the savings program for housing. This type of group is referred to as a housing cooperative. It is co-owned by its members, and each member has equal authority over it;

(q) Insurance Cooperative: is a person who makes their living by providing protection against loss of life and property to members of cooperatives;

(r) Transport Cooperative: is one that incorporates both land and sea transportation but is restricted to vessels of a certain size, as defined or classified by the maritime laws of the Philippines, and is structured in accordance with the rules of RA 9520;

(s) Water Service Cooperative: is a group that has been organized to own water systems, run those systems, and administer them in order to provide and distribute drinkable water to its members and their families;

(t) Workers Cooperative: is a type of business that is owned and operated by its employees, which might include those who are self-employed. This type of business is known as a worker cooperative. The provision of employment and business possibilities to its members, as well as the management of the organization in accordance with cooperative principles, is its primary objective; and

(u) Other types of Cooperatives: according to whatever standards are set by the Authority.

4. What are the categories of cooperatives?

The classification of cooperatives will be determined by taking into account membership and geographic factors. Cooperatives are going to be divided into the following categories according to their membership:

Primary-the members of which are natural persons.

Secondary-the members of which are primaries.

Tertiary-the members of which are secondary cooperatives.

Those individuals who are members of cooperatives are therefore deemed to be federations or unions, depending on the context. Cooperatives are to be classified according to their regions of operation, which may or may not coincide with the political subdivisions of the nation’s territory, in terms of the land they cover. Those that are organized by minors will be deemed a laboratory cooperative and will be required to have ties to a cooperative that is already registered. It is regulated by a unique set of guidelines that were established by the CDA.

5. Who can be members of a cooperative?

There are two types of members that can join a cooperative: regular members and associate members.

A person is considered to be a regular member of the cooperative if they have satisfied all of the membership requirements and are eligible for all of the rights and privileges of membership as outlined in the Cooperative Code and the by laws of the cooperative.

An associate member is solely entitled to the rights and privileges that are specified by the bylaws of the cooperative. This means that an associate member does not have the right to vote or be voted upon.

6. What are the privileges of a cooperative?

The following are the privileges that are available to cooperatives that have been registered in accordance with R.A. 9520:

(1) The privilege of depositing cash boxes or containers, documents, or any valuable papers in the safes of municipal or city treasurers and other government offices at no cost to the cooperatives shall be afforded to them, and the custodian of such articles shall issue a receipt acknowledging the articles received that has been duly witnessed by another individual. This privilege shall be accorded to the cooperatives in accordance with the provisions of this section. ;

(2) Regardless of any legislation or rule to the contrary, employee cooperatives that are organized within government agencies are entitled to free use of any available space in their agency, regardless of whether the facility is owned by the Government or rented by the Government;

(3) Cooperatives that provide specialized services and facilities, such as cold storage, ice plants, electricity, transportation, and other such services and facilities, are required to obtain a franchise in order to do so. Additionally, cooperatives that provide these types of services and facilities are required to make membership available to anyone who is qualified to work in their respective areas of operation;

(4) The preferential right to supply government institutions and agencies with rice, corn and other grains, fish and other marine products, meat, eggs, milk, vegetables, tobacco, and other agricultural commodities produced by their members shall be granted to the cooperatives concerned in areas where appropriate cooperatives exist. This right is to be granted in areas where appropriate cooperatives exist;

(5) Cooperatives are to be given preferential treatment by the appropriate government authorities in the distribution of fertilizers and rice. Also, cooperatives are to be given priority in the allocation of fertilizers;

(6) Treatment that is both preferential and equitable in terms of the allocation or regulation of bottomries aboard commercial shipping vessels in relation to the transport of goods and products produced by cooperatives ;

(7) Cooperatives and their federations, such as market vendor cooperatives, shall have preferential rights in management of public markets and/or lease of public market facilities, stall, or spaces;

(8) Credit cooperatives and/or federations shall be entitled to loans, credit lines, rediscounting of their loan notes, and other eligible papers with the Development Bank of the Philippines, the Philippine National Bank, the Land Bank of the Philippines, and other financial institutions besides the Central Bank of the Philippines. The exception to this rule is the Central Bank of the Philippines;

(9) Cooperatives that do business with the government of the Philippines, any of its political subdivisions, or any of its agencies or instrumentalities, including government-owned and controlled corporations, are exempt from the pre-qualification bidding requirements. This exemption applies to all bids submitted by the cooperative; and

(10) Except in cases where the Republic of the Philippines is the opposing party, cooperatives are entitled to the cost-free privilege of having the office of the provincial or city fiscal or the Office of the Solicitor General defend them in court proceedings.

(11) Except in cases where the Republic of the Philippines is a party to the dispute, cooperatives are entitled to the cost-free privilege of having their legal matters handled by the province or city fiscal or the Office of the Solicitor General;

(12) shall be granted a preference in the management of the canteen and any other services that are directly relevant to the operation of the educational institution in which they are employed: cooperatives that are organized by members of the teaching staff and other staff members of educational institutions Providing, however, that such services are carried out inside the physical boundaries of the aforementioned educational institution ; and

(13) It is the responsibility of the relevant housing agencies and government financial institutions to establish a dedicated channel for the financing of housing projects carried out by cooperatives. This channel should offer interest rates and terms that are on par with or even more favorable than those offered for socialized housing projects. This funding will be provided to qualified cooperatives in the form of blanket loans, which will eliminate the requirement for individual processing.

7. How to organize a cooperative?

Organizing a cooperative can be complex and simple. It requires an understanding of the basic needs of the prospective cooperative members. It demands patience from the organizer who must make the cooperative’s long-term goals and objectives, and its visions a real part of the members’ lives.

But it can be too easy because the Cooperative Code of the Philippines (RA 6938) has devised very clear-cut steps for the cooperative organizer and members. The following are the basic information that the prospective members should understand before organizing a cooperative.

There are nine (9) steps suggested in setting up a cooperative.

FIRST. Get your act together. To be able to accomplish that, you need to have at least 15 members. Determine right away the common issues that you would like to have resolved and the fundamental requirements that you would like to have met through a cooperative. You can wish to add things like raising your output, promoting your produce, obtaining credit aid, generating power, banking, or insurance, and meeting any other needs that are comparable.

You will be able to better categories the kind of cooperative you will be creating if you first identify the issues and requirements you have. Even before a cooperative is formally established, there must first be a committed core group of members who will do all of the organizational and paper work. It is possible that working communities will emerge from this core group in order to get things rolling. One or more of these committees could be membership, finance, executive, or secretariat, to name just a few possible examples.

SECOND. Your proposed name for the cooperative has been held in reserve. Get a hold of and complete the Name Reservation Request Form for Cooperatives (CNRRF). This document needs to be sent to the CDA Central Office or any of its Extension Offices. There will be a cost associated with the reservation. Please click the tab labelled “Name Reservation.”

THIRD. Create what’s called an economic survey — it’s a generic statement. The Economic Survey is an all-encompassing declaration that details, among other things, the composition of the proposed cooperative as well as its goals. A bookkeeper is required to be part of both the framework and the actual staffing pattern. In a format supplied by the Authority, this should indicate the area of operation, the size of membership, and any other important data.

FOURTH. Create the cooperative’s rules of operation. The cooperative’s operation is governed by a set of rules and regulations that are outlined in the cooperative’s by-laws.

FIFTH. Make the necessary preparations for the articles of collaboration. The following provisions of the articles of cooperation are required to be included:

(a) the name of the cooperative, which must include the word “cooperative”;

(b) the purpose or purposes and scope of business for which the cooperative is to be registered;

(c) the term of existence of cooperative;

(d) the area of operation and the postal address of its principal office;

(e) the names, nationality, and the postal addresses of the registrants;

(f) the common bond of membership;

(g) The list of names of the directors who shall manage the cooperative; and

(h) The total amount of the cooperative’s share capital, the names and addresses of those who have contributed to it, and a declaration of the cooperative’s status as either primary, secondary, or tertiary. Before a public notary, the articles of collaboration must be signed by each of the organizers and recognized by them if they are natural persons. If the organizers are juridical entities, the articles of cooperation must be signed and acknowledged by the chairpersons or secretaries.

SIXTH. Secure bond of accountable officer(s). A surety bond should be secured from a duly registered insurance or bonding company. Every director, officer and employee handling funds, securities, or property on behalf of the cooperative shall be covered by this. The board of directors shall determine the adequacy of such bonds.

SEVENTH. Execute Treasurers Affidavit. Execution of a sworn statement by the treasurer elected by the subscribers that at least twenty-five per centum (25 percent) of the authorized share capital has been subscribed, and at least twenty-five per centum (25 percent) of the total subscription has been paid, should be attached to the articles of cooperation. This statement should show that at least twenty-five per centum (25 percent) of the authorized share capital has been subscribed. The paid-up share capital must be at least fifteen thousand pesos and cannot be less than that (P15,000.00).

EIGHTH. Finish the Pre-Membership Education Seminar before you can join (PMES). A person who is interested in becoming a member of a primary cooperative needs to first attend and successfully complete a Pre-Membership Education Seminar (PMES). You can seek assistance with the technical aspects of your prospective cooperative by getting in touch with the regional or extension office that serves your area.

NINTH. Create an account with the Cooperative Development Authority to register your cooperative (CDA). Please submit the following documents in a total of four (4) copies each:

Four (4) copies each of the Economic Survey, Articles of Cooperation and By-Laws duly notarized;

  1. Economic Survey;
  2. Articles of Cooperation and By-Laws;
  3. Surety bond of acountable officers;
  4. Treasurer’s Affidavit;
  5. Approved Cooperative Name Reservation Slip;
  6. Certificate of PMES;

8. Where do we register cooperative, and how much should be paid for the registration of cooperative?

The only government organization with the responsibility of registering different kinds of cooperatives is called the Cooperative Development Authority (CDA). The address of the organization’s head office is 827 Aurora Boulevard, Immaculate Concepcion, Quezon City. This authority, which pertains to the registration of primary cooperatives, has been delegated to the several Regional or Extension Offices.

Cooperatives-to-be are required to deliver their applications to the CDA Extension Office located in the county in which the prospective cooperative will have its primary office. The amount of Php 300.00 must be paid as a cooperative’s registration fee.

9. What are the requirements for the registration of cooperative?

The following are the requirements for the registration of cooperative:

  • Articles of Cooperation and By-Laws with proper notarization;
  • List of Officers with their Addresses and Contact Numbers;
  • Certificate of Attendance in Seminar on Cooperative Principles and Practices from any CDA Accredited Organization;
  • Audited Financial Statement for the Past Three (3) Years (Original and Two (2) Photocopies); and
  • Any Other Relevant Information That May Be Required by the Authority.


The Cooperative Development Authority (CDA), which is the lead government agency for the promotion of sustained growth and full development of cooperatives in the Philippines, has set a goal for these organizations: to become broad-based instruments of social justice, equity, and balanced national progress.

This objective was established with the intention of making the CDA the primary government agency for the promotion of sustained growth and full development of cooperatives in the Philippines. The CDA is a leading government organization that is both aggressive and responsive. They provide cooperatives with assistance in the form of technical assistance in order to facilitate the cooperatives’ registration and growth.

This is very important to all Filipinos, but especially overseas Filipino workers (OFWs), because OFWs regularly find themselves working in businesses that are run by cooperatives. In addition, the CDA educates prospective members on the numerous benefits of becoming a part of a cooperative and oversees registered cooperatives to ensure that they are in conformity with regulations imposed by the government.

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Contact Information

Address: 827 Aurora Blvd., Service Road, Brgy. Immaculate Conception Cubao, 1111 Quezon City, Philippines
Telephone Number:
(02) 725-3764
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