More Filipinos are going into business, with the Securities and Exchange Commission (SEC) reporting record-high registrations of new companies in 2024.
In a statement, the SEC said registrations for new companies hit an all-time high last year on the back of innovative and advanced digital platforms that continue to make doing business easier in the Philippines.
The commission said it registered 52,304 new companies in 2024, up by six percent from 49,506 in 2023. This brings the total number of active SEC-registered companies to 527,710 at year-end.
“Digital transformation has always been one of the top priorities of the SEC to improve the efficiency of our services. Surpassing the 50,000-mark in company registrations serves as a testament that we are on the right track in encouraging entities to legitimize their operations through registration with the Commission,” SEC Chairperson Emilio B. Aquino said.
He added that “in 2025, we will capitalize on the success of our digital transformation journey and explore other strategies that will bring our services closer to the public to contribute to the further improvement of ease of doing business in the Philippines.”
Stock corporations accounted for 75 percent, or 39,146, of the newly registered companies, while non-stock corporations comprised 21 percent, or 10,782. The remaining four percent, or 2,376, were partnerships.
Meanwhile, newly registered one-person corporations posted a 27 percent growth to 8,640 in 2024 from 6,794 in 2023.
Nearly 40 percent, or 20,231, of the new registered companies were based in Metro Manila, followed by Region IV-A (CALABARZON) at 8,226 (16 percent), and Region III (Central Luzon) at 6,141 (12 percent).
The services sector dominated the new registrations at 86 percent, or 44,872, with the wholesale and retail trade, and repair of motor vehicles and motorcycles segment recording 12,479 new registrants.
The SEC has consistently set records in the past three years in terms of company registration, following the start of its digital transformation journey in 2020.
In 2021, at the height of the pandemic, the commission launched the SEC Electronic Simplified Processing of Application for Registration of Corporation (eSPARC), reducing the registration process from 34 days to three days.
The One Day Submission and Electronic Registration of Companies (OneSEC), a subsystem of eSPARC, has enabled applicants to register their company in just one minute and 14 seconds, from the start of the application to the receipt of a digital certificate of incorporation.
In July 2024, the SEC launched the third wave of digital initiatives which included the SEC Zuper Easy Registration Online (ZERO), Electronic Submission Authentication Portal (eSAP), and SEC Foreign Investments Registration Station (FIRST) Green Lane Unit, aimed at making company registration more efficient.
SEC ZERO allows applicants to digitally authenticate system-generated forms through the eSAP platform, eliminating the need for wet signatures and submission of hard copies of registration requirements. The digital authentication allows businesses to register with the SEC anytime and from anywhere in the world.
The SEC FIRST Green Lane Unit, meanwhile, will be dedicated to the registration, licensing, and amendment, among others, of entities under the Foreign Investment Act, as well as foreign multinational firms, to boost foreign investments in the Philippines.
The third wave of digital initiatives also included the Electronic Application for Modification of Entity Name and Data (eAMEND) and the Swift Corporate and Other Records Exchange (SCORE) Protocol which enabled data sharing with other regulatory and enforcement agencies for improved tax administration.