SEC to ease registration of new firms

MANILA, Philippines — The Securities and Exchange Commission (SEC) is looking to ease requirements for registration of new corporations.

In particular, the SEC may further relax the requirements for the authentication of the articles of incorporation.

The move is just among different steps taken by the SEC to help improve the ease of doing business in the Philippines and subsequently bolster the economy as the country battles the coronavirus disease 2019 or COVID-19 pandemic.

In a draft memorandum, the SEC said it would accept for registration articles of incorporation that are accompanied by a certificate of authentication signed by all incorporators in the form prescribed by the SEC.

The SEC is waiving the requirement to have these documents notarized or consularized. 

Nonetheless, the SEC said incorporators may choose to acknowledge the articles of incorporation before a notary public. 

If executed outside the Philippines, the articles of incorporation may be notarized or authenticated by a Philippine diplomatic or consular officer.

The proposed guidelines align with Section 13 of Republic Act 11232 or the Revised Corporation Code of the Philippines.

According to the law, corporations must file with the SEC the articles of incorporation, duly signed and acknowledged or authenticated, in such form and manner as may be allowed by the SEC.

Furthermore, the SEC said liability for such offenses shall be separate from any other administrative, civil or criminal liability under the Revised Corporation Code and other laws.