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SEC eases rules on registering firms

The Securities and Exchange Commission (SEC) has started accepting registration of articles of incorporation that are accompanied by a certificate of authentication that are not notarized or consularized.

As per the SEC Memorandum Circular No. 16, Series of 2020 approved last Wednesday, the Commission decided to make registration easier for the corporations by accepting the aforementioned documents signed by all incorporators in the prescribed form.

However, incorporators may still choose to have their articles of incorporation notarized. If executed outside the country, they may be apostilled or notarized or authenticated by a Philippine diplomatic or consular officer.

For domestic corporations with more than 40% foreign equity, the application for registration of investments of non-Philippine nationals using SEC Form F-100 must be apostilled or notarized or authenticated by a Philippine diplomatic or consular officer if it is also executed outside the country.

This initiative is to encourage more businesses in the country by making it easier for businesspeople to register in the SEC.

“By easing the requirements for company registration, we hope to further encourage the formation of businesses and attract more investments that will subsequently generate more employment opportunities and support our economy’s overall growth,” SEC Chairperson Emilio B. Aquino said.

Those who acquired their certificate of registration through fraud or misrepresentation shall be revoked and penalized.

Persons involved shall face a fine of P200,000 to P2 million and if the violation was proven that it has affected the public or it was detrimental to the public, the fine becomes P400,000 to P5 million.

Those who willfully certify incomplete, inaccurate, false or misleading statements or reports shall be penalized with a fine of P20,000 to P200,000 and if the violation was proven that it has affected the public or it was detrimental to the public, the fine becomes P40,000 to P400,000.

The liability of involved individuals for such offenses shall be separate from any other administrative, civil or criminal liability provided under the Revised Corporation Code and other laws.

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