SEC pushes reform for faster business kickoff
The Securities and Exchange Commission (SEC) in the Philippines is proposing a “One Business Start Date” initiative to streamline company operations. This reform would enable businesses to commence commercial activities immediately upon securing their SEC registration or primary regulatory license, even if other government permits are still being processed. The proposal is part of the SEC’s broader effort to reduce the time between company registration and the actual start of operations, aiming to improve the ease of doing business in the country. SEC Chair Francis Lim stated that automation and digitization of processes are key components of this reform push, which has already seen fee reductions and strict internal processing timelines implemented. As of July, the SEC recorded 28,724 newly registered corporations, bringing the total active corporations to 613,553.
The Philippines’ SEC is pushing a significant policy shift with its “One Business Start Date” proposal, allowing companies to begin operations after primary registration, even while other permits are pending. This move directly addresses a common hurdle for startups and new businesses across Southeast Asia: the often-protracted bureaucratic process that delays market entry. For the Philippines, this could translate into faster economic activity and more agile business growth, particularly for the 28,724 new corporations registered as of July. The real impact will be on how quickly this translates into tangible benefits for micro, small, and medium enterprises (MSMEs), which have already received P157.31 million in fee discounts. The parallel processing of permits, rather than sequential, could significantly cut operational lead times. However, the success hinges on the efficient coordination between the SEC and other government agencies to ensure that the parallel processing does not create new bottlenecks or regulatory ambiguities down the line. The SEC’s ongoing automation efforts and “deemed approved” policy for applications not acted upon within prescribed periods suggest a commitment to follow through on these reforms. Beyond business registration, the SEC is also working with the World Bank and Asian Development Bank on capital market reforms, including developing a Philippine Capital Market Master Plan. This broader push aims to position the country among Southeast Asia’s leading capital markets by 2030. The proposed IPOs of GCash parent Mynt and PLDT Inc.’s VITRO data center REIT, targeted for the fourth quarter, reflect the ongoing market development that these regulatory changes are designed to support.
