SEC Registration: 4 Things You Must Know

When people think of SEC registration, it means that a company is being formed. In the Philippines, a corporation is the highest form of business organization. It has the highest protection for investors or owners. Any local or foreign investor interested in doing business must register with the SEC before conducting business.

The SEC, or the Securities and Exchange Commission, is the governing body that regulates corporations. A company cannot operate without getting a permit from them. The commission also mandates policies and recommendations for any aspiring company. If this is your first time transacting with the SEC, here is what you need to know.

Obtaining An SEC Certification

Like any government office, corporations are required to get a certification. A requirement for SEC registration usually involves an application form. You state the business name, Treasurer’s Affidavit, and Articles of Incorporation and By-Laws in it. 

Since this is a full-fledged corporation, you also must pay the minimum capital required. This varies depending on the type of business you will run. Furthermore, the company should secure permits from other government agencies for specific industries. 

Required Types of Business For SEC Registration

The SEC oversees many types of business. Since the field is vast, the governing body is in charge of many entities, such as:

• Stock Corporations – These corporations intend to make a profit. Stock corporations have shareholders who hold ownership through shares. Examples include domestic corporations and resident foreign corporations.
• Non-Stock Corporations – Non-stock corporations do not issue stocks and are usually non-profit. They include Non-Governmental Organizations, foundations, and religious organizations. 
• Partnerships – It is another type of for-profit corporation, only established by two or more people who share profits among themselves. There are only two types, namely General Partnership and Limited Partnership. 

Company Officers

Corporations have a set corporate structure. Therefore, each department must have an officer overseeing the employees. Here is a list of officers that your corporation should have:

• President
• Chairman of Board of Directors
• Treasurer
• Secretary

One person can fulfill some roles, but some cannot. For example, a Treasurer can also be the Secretary. However, a President who is also a Treasurer, and a President who is the Secretary is impossible. This is to avoid a conflict of interest within the corporate structure. 

Naming Your Company

Naming the company is the most important aspect of the SEC registration process. It must be unique and cannot conflict with existing names. Check for names and brands that have not been registered yet. That way, you have a guideline on your company name.

The address should be set to a commercial address along with the company name. This is different from a residential address. If you set your company address as residential, it may get disapproved, and you will go through the process again. Therefore, you must find an ideal place to set up your company before registration.

Wrapping Up

Registering your company should go through the steps set by the SEC. Therefore, you must have all the documents, information, and place to set up your corporation. If you miss a step, it will delay your registration. Always review the available information to be registered. That way, you are right on track to run a company. 

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