Whether you’re a local or a foreign incorporator who is planning to establish your dream business in the Philippines, it’s very important to take in mind that you are required to register your business entity with the Securities and Exchange Commission before you can conduct business activities.
If you want to participate in the country’s securities market to buy or trade shares of stock, bonds, interests in a company, and other types of financial assets, please make sure that your business is legally registered.
In case you don’t know, the Securities and Exchange Commission or SEC is a national government agency with the task of regulating and running the business sector here in the Philippines. It is also mandated to formulate policies and recommendations on issues concerning the securities market, as well as make advice to Congress and other government agencies regarding all aspects of the securities market.
Is it really important to register your business with the SEC?
As mentioned above, it is legally required or compulsory to register your business with the SEC. Aside from this step will give you more breadth due to your business being formally legalized, registration with the SEC grants the entity with the corporate franchise or juridical personality to operate and transact business in the Philippines.
What should you keep in mind when registering your business with SEC?
Keep in mind that SEC registration requirements differ based on the business type that you want to register. The general requirements would be:
- Original business name
- Completed application form from SEC
- Drafted compulsory papers of Articles of Incorporation and By-Laws, as well as Treasurer’s Affidavit
- Minimum paid-up capital requirement
- Obligatory licenses or permits from appropriate government agencies
Another thing to keep in mind is the state powers and functions of the SEC. Following Section 5 of the Securities Regulation Code, the SEC has the major functions and powers including the following:
- Approve, reject, suspend or revoke registration license applications;
- Regulate, investigate or supervise the activities of entities under its jurisdiction to ensure compliance;
- Enlist the aid and support of enforcement agencies of the government, civil or military as well as any private institution, corporation, firm, association, or person in the implementation of its powers and functions;
- Compel the officers of any registered corporation or association to call meetings of stockholders or members thereof under its supervision;
- Impose sanctions for the violation of laws, rules, regulations, and orders; and
- Suspend, or revoke, after proper notice and hearing the franchise or certificate of registration of corporations, partnerships, or associations, upon any of the grounds provided by law.
Aside from that, their powers and functions that are mentioned above Eare provided by the following laws:
- Securities Regulation Code (Republic Act 8799)
- Corporation Code of the Philippines (Batas Pambansa 68)
- Presidential Decree No. 902-A, as amended (except for sections repealed by RA 8799)
- Investment Houses Law (Presidential Decree 129 as amended by RA 8366)
- Investment Company Act (RA 2629)
- Financing Company Act (RA 5980 as amended by RA 8556)
- Credit Information System Act (RA 950)
The processing time for your SEC registration is a minimum of 1 week once documents are accomplished. And once your business has been registered, you’re now on your way to acquire a barangay clearance and a business permit.
Need assistance with your business registration with SEC? Contact us today by calling +632 8251-3404 / +632 8716-3392 / +63 906 415 1218. You may also send a message below.
We at Yap, Kung, Ching & Associates Law are looking forward to hearing from you.