Digital push brings business registrations to new high

MANILA, Philippines  —The number of firms enlisting with the Securities and Exchange Commission (SEC) reached a record high last year thanks to company registrations made more accessible through digital platforms.

The SEC said in a statement on Tuesday that 46,445 firms registered via the regulator’s digital platform from January to November 2023 alone.

This was 8 percent more than the 42,936 that signed up during the full year 2022.

“In the past five years, the SEC has fiercely advocated for digital transformation to achieve efficiency and accessibility in the corporate sector,” SEC Chair Emilio Aquino said.

“The back-to-back record highs seen in 2022 and 2023 for company registration prove that we are succeeding in making doing business easier in the Philippines,” Aquino said.

READ: SEC company registrations hit record high in 2022

In April 2021, the SEC launched the Electronic Simplified Processing of Application for Registration of Corporation (eSPARC) initiative, intended to help reduce the application period from 34 days to three days.

Also in 2021, the regulator introduced the Electronic Filing and Submission Tool, facilitating the submission of digital copies of reportorial requirements like annual financial statements and general information sheets.

Automated processes

About three-quarters or 74 percent of the newly registered companies last year were domestic stock corporations.

About one-fifth or 21 percent were local non-stock entities while 5 percent were partnerships. The rest were foreign stock and non-stock corporations.

More than a third or 36 percent of the domestic stock corporations have less than five incorporators. Meanwhile, 14 percent were one-person corporations (OPC).

READ: BIZ BUZZ: SEC working wonders

The enactment of the Revised Corporation Code of the Philippines in 2019 allowed for the establishment of corporations with less than five incorporators.

More than a third of the registered companies last year were based in Metro Manila. This was followed by Calabarzon with 16 percent and Central Luzon with 11 percent.

In terms of industry, 85 percent came from the service sector.

“As we start a new year, the SEC is ready to further take advantage of automated processes in place, as well as develop new systems, to ensure the smooth delivery of services to the transacting public,” Aquino said.