The Securities and Exchange Commission (SEC) is considering speeding up registration of companies and partnerships by accrediting service providers and agents who may assist the public in processing applications and other transactions.

On Dec. 12, the corporate watchdog released for public comment the proposed rules on the accreditation of company service providers (CSP) and company service agents (CSA) who can assist the transacting public in the registration of partnerships and corporations, as well as the filing of reportorial requirements.

The same practice is currently observed in other jurisdictions such as Singapore, whose Accounting and Corporate Regulatory Authority has institutionalized the accreditation of registered filing agents.

The initiative seeks to limit and regulate a smaller filing group who will be responsible for the overall compliance of business entities in a timely manner, in order to avoid late fees and penalties.

The accreditation also seeks to help the transacting public in need of assistance from legal and financial experts on the application for registration for partnerships or domestic corporations, as well as highly technical applications.

The draft rules define a CSP as an accredited SEC-registered corporation or partnership or an entity registered with the Department of Trade and Industry in good standing that provides services such as assistance in the application for registration of a partnership, corporation, or business management consultancy, as indicated in its Articles of Partnership or Incorporation.

Meanwhile, a CSA is a natural person who may be independent or employed with a CSP, and is duly accredited by the SEC to assist in the registration of a partnership and/or all kinds of corporations, and/or other services that may be determined by the Commission. A CSP must employ an SEC-accredited CSA who will also act as its duly authorized representative.

Applications submitted and processed through CSPs or CSAs could see faster turnaround times, as accredited service providers will be given a separate lane to access the SEC Electronic Simplified Processing of Application for Registration of Company (eSPARC).

Moreover, they will be deemed complete and correct, and will no longer be subjected to pre-processing by the SEC Company Registration and Monitoring Department (CRMD).

Under the proposed rules, prospective CSAs must pass an online accreditation examination designed to determine their competency in the registration proceedings for corporations and partnerships.

The accreditation exam will consist of four categories. Category A will cover the registration of partnerships or domestic corporations that are wholly Filipino-owned; with foreign stock holdings up to 40 percent.

Category B will cover the registration of domestic corporations under Category A and domestic corporations under the Foreign Investment Act with more than 40 percent foreign equity, while Category C will include registrations under categories A and B, plus applications that require a secondary license.

Meanwhile, Category D will cover the licensing of foreign corporations, such as branch/representative offices and regional area headquarters/regional operating headquarters.

All CSAs are required to undergo a continuing learning program consisting of at least 20 hours of SEC trainings/seminars as approved by the Commission within their three-year accreditation period.

In addition, prospective CSAs must secure registration with the Anti-Money Laundering Council (AMLC) or its equivalent, and provide an affidavit of undertaking, aside from other personal and business information.