Tuesday, May 28, 2024

SEC: New registry system cuts filing time for incorporation

The Securities and Exchange Commission (SEC) has reported that reforms it launched last April have resulted in the improvement of the conduct of doing business in the country.

Photo credit: InterAksyon.com
Photo credit: InterAksyon.com

The agency said its Integrated Business Registry System (IBRS) has processed and approved 84.22% of corporations within one business day (24 hours or less). For applications not needing secondary licenses garnered, meanwhile, a success rate of 96.87% from April 15-30, 2015.

Incorporation at the SEC now includes registration with the social agencies (Pag-IBIG, PhilHealth, and the SSS) with a single step.

The SEC said the reforms reduced the steps and days to starting a business from 16 and 34 to 6 and 8, respectively. ?These were achieved through synergizing government transactions as well as establishing the technological infrastructure to support inter-connectivity across national, local, and social agencies,? it said.

The set of reforms announced last month expects to contain the process for registration or incorporation at the SEC to a single day (at 100% for applications not requiring secondary licenses) as the rollout nears completion this month.

Of the 1160 total applications processed from 15 to 30 April 2015, 626 corporations (53.97%) were approved within 8 hours, and another 351 corporations (30.26%) within one (1) business day (24 hours). This brings the total number of corporations processed within one day to 977.

Meanwhile, 148 corporations (12.76%), 17 corporations (1.47%), and 3 corporations (0.26%) were approved within 2, 3, and 4 business days, respectively.

In the first set of data compiled by SEC from the period 15-24 April, 646 out of 806 total applications were approved within a single day, registering an 80.15% success rate.

The second report submitted to the DOF, covering the period 27-30 April, 331 out of 342 applications were approved within a single day, resulting in a 96.78% success rate. Notably, for 22, 23, and 30 April, 289 of 289 or 100% of applications received their certificates of incorporation within 1 day.

?We are pleased to show that the IBRS, a flagship component of our Ease of Doing Business reforms, is delivering speedy service for our clients. We expect the figures to reach a consistent 100% as we perfect our systems and processes. The IBRS is an innovation in governance; we are encouraged by the results and will work harder to make starting a business here in the Philippines simpler, quicker, and better,? SEC chairperson Teresita Herbosa said.

Nervie Ternura of The Good Shepherd was the first individual to receive the certificate of incorporation with the Unified Registration Record (URR) form of the IBRS on April 17.

Approved on the day of the application, The Good Shepherd Shelter for Children, Incorporated operates in Cagayan and carries out the ministry of the Philippine Mission Churches of Christ of Northern Luzon, Inc. in establishing, maintaining, and operating charitable institutions for the care of the aged, orphans, the homeless, abused, and other persons needing charitable assistance.

Atty. Javier Flores of the Catindig, Flores, Palarca, and Ofrin Law Offices gave positive feedback on the implementation of the IBRS when they applied for the incorporation of the Camera Club of the Philippines Center.

Flores said he was ?pleasantly surprised? to receive the certificate of incorporation an hour after they paid the filing at 1:30pm on April 21, reporting that their ?paralegal was still in the premises of the SEC when it (the certificate of incorporation) was released.?

Flores added, ?We were likewise pleasantly surprised to receive along with the Company Registration Number, not just the Tax Identification Number, but also the registration numbers with Pag-IBIG, Philhealth, and the SSS. Obtaining these registration numbers from those government agencies usually take a lot of post-incorporation work hours.?

Finance Secretary Cesar V. Purisima, who brought together 12 different government institutions and led the push for the game-changing reforms, lauded the results from the SEC.

?We continue to make good on our promise to millions of enterprising Filipinos: that we will make the business of realizing your dreams ever easier, leveraging technology and synergy across government. Transforming the Philippines to a country of renewed opportunity for our young and ambitious population underpins our mission to simplify and improve the conduct of business in the country,” Purisima added.

Purisima also noted how Shinhan Bank, a Korean bank, filed their application for a Manila Branch Office last May 6, 2015, and subsequently had its certificate of registration and URR approved, released, and claimed within one business day, on May 7, 2015.

Shinhan Bank is one of the foreign banks allowed entry into the country following the reforms set by the signing of Republic Act (RA) 10641, or An Act Allowing the Full Entry of Foreign Banks in the Philippines.

“The SEC proved how it can deliver on single-day integrated incorporation with social agencies, whether the applicant is a charitable institution, a camera club, or a huge foreign bank. Reform and its benefits do not discriminate; everyone wins. I know the SEC, along with the other government institutions in the EODB initiative, will work harder to make it easier to do business here in the Philippines,” Purisima added.

The SEC previously had a Green Lane Unit in late 2014 where most applications were approved within 1 business day. The IBRS ensures the single business day incorporation to include registration with the social agencies (Pag-IBIG, PhilHealth, and the SSS).


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