Philippine Business Guide: SEC Company Registration

The Philippines is a growing economy and has a strategic location in Southeast Asia. These are some of the reasons many companies want to establish a business in the country. You might already be planning to invest in the Philippines to leverage expansion opportunities. The Securities and Exchange Commission (SEC) is the Philippine government’s regulatory agency that supervises the corporate sector of the country. Before you can start operations, you’ll need to adhere to SEC company registration procedures and submit documents.  

Registration with the SEC is a requirement. Registering legitimizes its business entity and enables companies to issue receipts, benefit from certain rights, and legally operate.   

What is the process of SEC company registration? 

SEC company registration is a straightforward process. However, the requirements might differ depending on the business entity you want to establish and the type of activities you conduct. The general requirements are as follows: 

1. Visit this website https://esparc.sec.gov.ph/application/index and choose either OneSEC Processing or Regular Processing.  
2. You’ll have to give your consent to collect various information such as full name, gender, birthday, tax identification number, mobile phone number, address, email address, and nationality. 
3. You’ll have to fill out the application form with information for the chosen processing office, applicant or authorized representative contact details, company type, and company name.  
4. Prepare the documents you need to submit based on the entity you want to register such as the Articles of Incorporation and By Laws, and Treasurer’s Affidavit.  
5. Provide the reservation payment confirmation. 
6. Provide the joint undertaking to change name. 
7. Provide a cover sheet. 
8. Submit notarized documents. 

After going through the entire SEC company registration process, you’ll get the certificate you need. You can then proceed to the next steps by securing the necessary permits and licenses from relevant government agencies. 

What are the functions of the SEC? 

1. The SEC has the power to reject, suspend, revoke, and approve registration licenses. 
2. The agency can impose sanctions for any violations. 
3. They can secure the support and aid of military, government, or civil enforcement agencies and firms, associations, corporations, private institutions, and individuals to implement its functions.  
4. The SEC can supervise, investigate, and/or regulate an entity’s activities under its jurisdiction to comply with its laws, regulations, and policies. 
5. The SEC can compel an association’s or registered corporation’s officers to call a meeting of stockholders or members and supervise it.   
6. After hearing and proper notice, the agency can revoke or suspend a certification of registration given to associations, corporations, or partnerships within the scope of the law.   

What types of business entities need to accomplish SEC company registration? 

1. Domestic Corporation 
2. One Person Corporation 
3. Foreign Corporations 

·         Representative Office 

·         Branch Office 

4. Partnerships 
5. Non-Stock Corporations 

Why invest in the Philippines? 

The Philippines is an attractive investment because of the following reasons: 

1. The working population has a high English proficiency. You can easily communicate with employees without misunderstanding each other. You don’t have to translate manuals and training materials because of the employees’ language proficiency. 
2. The skilled workforce can take on a variety of tasks such as bookkeeping, accounting, auditing, engineering, finance, IT, marketing, sales, and others. You’ll pay less to get similar quality output. This allows your company to save more money and maximize profits.  
3. The Philippines is strategically located in the region. You can use the country as a hub for your other business entities. You can easily visit your other offices from the country. 
4. Government agencies such as PEZA provides incentives for investors to do business in the Philippines. 
5. Laws and regulations are in place to make doing business in the country simple and easy such as the EODB Law (Ease of Doing Business and Efficient Government Service Delivery). This aims to reduce corruption and red tape. 
6. The TRAIN Law or the Tax Reform for Acceleration and Inclusion Act reduces taxes for companies and individuals. It also simplifies the process of doing business in the country. 
7. The Public Service Act allows foreigners to own 100% of public services in the Philippines.  

These government initiatives and benefits make the country an investment destination for foreign-owned companies. You can leverage these opportunities to expand your business in the Asia Pacific Region. Consider outsourcing services regarding establishing a business in the Philippines. 

Why outsource services? 

Establishing a business entity and going through the SEC company registration process is a time-consuming endeavor. You’ll need the assistance of local experts so that you’ll comply with laws, rules, and regulations and avoid incurring penalties that can jeopardize your operations. Outsourcing to an experienced local team makes it easier for you to establish your company. Some of the advantages of doing so include: 

1. Identify the documents you need to submit and their deadlines.  
2. Pay the fees on time to avoid penalties. 
3. Identify the appropriate government agencies to procure certifications and licenses. 
4. Learn about the cultural differences in doing business in the Philippines. Doing so enables you to manage your outsourced team effectively. You’ll get the most out of your team and they’ll be able to meet your performance standards. 
5. Identify the benefits of registering with certain government agencies such as BOI or PEZA. You might be able to reduce costs and maximize profits. 

Identify the right partner so that you can transition your operations in the Philippines smoothly. We at Manila Bookkeepers can assist you in establishing a business entity in the Philippines. Our team can guide you through the process of SEC company registration in the country. We can assist you establish a branch office, domestic subsidiary, or a representative office. We can guide you through the procurement of required documents. We can help you register with PEZA or BOI so your company can benefit from multiple fiscal and non-fiscal incentives.  

We also provide our clients with first-rate accounting and bookkeeping services. Our team can review accounting entries, prepare financial reports, reconcile bank accounts, and process accounts payable and receivable among others. We also assist in local tax compliance and transfer pricing.