Guide to the Magna Carta for Micro Small and Medium Enterprises

number of employees, equity capital and asset size.”Sec. 2. Sec. 4 of Republic Act No. 6977 is hereby amended toread as follows:“Sec. 4. Eligibility for Government Assistance. - To qualifyfor assistance, counseling, incentives and promotion under this Act,businesses falling under the above definition must be:“(a) duly registered with the appropriate agencies as presentlyprovided by law: Provided, That in the case of microenterprises as defined herein, registration with the office ofthe municipal or city treasurer shall be deemed sufficientcompliance with this requirement;“(b) one hundred percent (100%) owned and capitalized byFilipino citizens if single proprietorship or partnership. If theenterprise is a juridical entity, at least sixty percent (60%) ofits capital or outstanding stocks must be owned by Filipinocitizens.“(c) a business activity within the major sectors of theeconomy, namely: industry, services, including the practiceof one’s profession, the operation of tourism-relatedestablishments, and agri-business, which for purposes ofthis Act refers to any business activity involving themanufacturing, processing, and/or production of agriculturalproduce, excluding farm level agriculture/crop production; and“(d) it must not be a branch, subsidiary or division of a largescale enterprise nor may its policies be determined by alarge scale enterprise or by persons who are not owners oremployees of the enterprise.“However, this requirement shall not prelude a small andmedium enterprise from accepting subcontracts from large enterpriseor firms joining in cooperative activities with other small and mediumenterprises.“Programs of the financing corporation as provided insubsequent Sec.s of this Act shall be exclusively targeted to medium,small, and micro-sized enterprises.“Registered small enterprises shall be entitled to a share ofat least ten percent (10%) of total procurement value of goods andservices supplied to the Government, its bureaus, offices and agencies93