The Securities and Exchange Commission (SEC) has launched the third wave of its digital initiatives consisting of five new services that will make company registration more efficient and promote data sharing for enhanced tax administration.
The Commission on July 17, 2024, unveiled the SEC Zuper Easy Registration Online (ZERO), Electronic Submission Authentication Portal (eSAP), SEC Foreign Investments Registration Station (FIRST) Green Lane Unit, Electronic Application For Modification Of Entity Name And Data (eAMEND), and Swift Corporate and Other Records Exchange (SCORE) Protocol.
The rollout of the new digital services is part of the Commission’s observance of SEC Sustainability Week 2024, which is in line with its thrust to pursue sustainability by going digital.
“We are harnessing digital technologies not only to improve the ease of doing business,” SEC Chairperson Emilio B. Aquino said in his opening remarks during the launch of the new services at The SEC Headquarters in Makati.
He added that “ultimately, the SEC is harnessing digital technologies to champion sustainability and help accelerate the attainment of the Sustainable Development Goals.”
The new digital platforms build on the Commission’s zero-contact policy and paperless transactions while adhering to Finance Secretary Ralph G. Recto’s marching orders to the SEC to collaborate with the Bureau of Internal Revenue (BIR) to improve tax collection efficiency.
SEC ZERO is a service under the Electronic Simplified Processing of Application for Registration of Company (eSPARC) that allows applicants to digitally authenticate system-generated forms through the eSAP platform.
eSAP is integrated with SEC ZERO for digital document authentication, removing the need to affix wet signatures and submit hard copies of registration requirements. It uses one-time passwords to proceed with the electronic authentication of the documents.
Digitally authenticated forms have the same validity as the original certificate, eliminating the need for physical signing and notarization of the registration documents.
With digital authentication, SEC ZERO and eSAP enable applicants to register their companies anytime and from anywhere, even abroad.
To boost foreign investments in the country, the Commission created the SEC FIRST Green Lane Unit, which will cater to entities under the Foreign Investment Act and foreign and multinational companies. The SEC FIRST Green Lane Unit will process registration, licensing, and amendment of covered entities, among other things.
Foreign-owned applications will no longer have to be queued with all other online registry applications, as they will be redirected to a special lane of the SEC FIRST unit, making the processing time more efficient.
Meanwhile, eAMEND will serve as the online portal that will facilitate the acceptance, processing and approval of payment for amendment applications of corporations.
The platform facilitates the issuance of the digital copy of the Certificate of Amendment of Domestic Stock and Non-stock Corporation almost instantly for certain transactions.
The Commission also developed the SCORE Protocol, which will handle requests of partner regulatory and enforcement agencies for company information such as their articles of incorporation, general information sheet, and audited financial statements.
Alongside the launch of the digital services, the SEC signed a Memorandum of Agreement and Data Sharing Agreement with the BIR to officially commence their partnership on the SCORE Protocol.
Under the partnership, the SEC will provide the BIR access to documents needed to support its mandate to make tax assessments and collect national internal revenue taxes, fees and charges, and enforcement activities.
The BIR, meanwhile, shall provide the SEC with Tax Identification Number Verification for the Commission’s online digital services, helping boost its identity validation and monitoring of the corporate sector and the capital market.
The partnership will support the implementation of the government’s 2024 National Tax Campaign, which aims to generate funds through the timely payment of correct taxes to drive economic recovery and development.
Following the inaugural collaboration for the SCORE Protocol, the Commission is targeting to expand the partnership with other government agencies. It is currently in talks with the Bureau of Customs to leverage corporate data to improve the collection of customs duties, excise and other taxes.
The SEC is also looking at partnering with the Bureau of Immigration to help monitor foreign nationals doing business in the country, as well as the Philippine Government Electronic Procurement System to ensure the legitimacy of corporations participating in the government procurement process.