SEC Requirements


As part of the powers and functions provided by Presidential Decree No 902-A, the Securities and Exchange Commission is given absolute “jurisdiction, supervision and control over all corporations, partnerships, or associations, who are the grantees of primary franchise and/or a license or permit issued by the government to operate in the Philippines.”

The entities or juridical persons referred to above include the following:

Stock corporations are corporations that engage in income-generating activities and are permitted to declare dividends. They have shareholders that are given a portion of the ownership of the business through shares of stock. Stock corporations include both domestic stock corporations and foreign stock corporations.

Non-stock corporations are corporations with no authorized capital stock, which means they don’t issue shares of stock. These corporations’ incomes are not distributable as dividends to their members, trustees, or officers. 

According to the SEC, non-stock corporations in the Philippines may be organized for a range of purposes, including charitable, religious, educational, professional, cultural, fraternal, literary, scientific, social civil service, and others of the sort. Like stock corporations, non-stock corporations can also be either domestic or foreign.

Another legal type of business operation in the Philippines is a partnership, which is set up between two or more individuals who will have equal share of both management of—and profits from—the business. A partnership can take the form of any of the following: professional partnership, general partnership, or limited partnership.

Unlike a corporation, partners or co-owners in a partnership are taxed according to their individual incomes (instead of being subject to a corporate rate), and legally, they may be personally liable to the debts and obligations of the business. This means that the assets of individual owners in a partnership may be used to pay off the debts of the business, whereas with corporations, stockholders are liable only to the extent of their subscribed capital stock.

One key difference between corporations and partnerships that you need to be aware of is that a corporation becomes a juridical person only after the business is registered with the SEC, while a partnership becomes one from the time the agreement between partners is finalized. Furthermore, corporations cannot exist beyond a period of 50 years, whereas partnerships can exist for as long as the partners or owners decide to keep their contract in effect.

It is also important to note that if you own a business where you are the sole proprietor, you will have to register your business with the Department of Trade and Industry (DTI) instead of the SEC.

To obtain a Certificate of Registration from the SEC, you have to undergo the following steps or requirements:
  • Secure an original business name through SEC’s online services portal
  • Complete the Application Form from SEC
  • Draft the compulsory papers required for the specific business entity you intend to register, which are as follows:
  1. Articles of Incorporation and By-laws
  2. Treasurer’s Affidavit
  • Deposit the minimum paid-up capital requirement
  • Attain obligatory licenses or permits from appropriate government agencies (for regulated industry sectors and business activities)

Navigating the business landscape in the Philippines can be both rewarding and intricate. Whether you’re embarking on a new venture or scaling up, ensuring that your corporate endeavors are in line with local regulations is paramount.

At CBOS Business Solutions Inc., we pride ourselves on simplifying these processes for our clients. As a seasoned professional services company, we offer comprehensive assistance with SEC Registration, Visa processing, and a myriad of other essential business requirements. Our team of experts is dedicated to ensuring that your business is compliant, well-established, and ready to thrive in the Philippine market.

Why venture into the complexities of business registration and compliance alone? Allow our team to guide you every step of the way. After all, your success is our commitment.

Get in touch today and let us be your partner in achieving your business goals in the Philippines.

Email Address:

Mobile No.: +639270032851

You can also click this link to schedule a meeting.






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