Types of Business Entities Required to Register with SEC

by Bianca Cruz
1 year ago


Prior to engaging in business activities and taking part in the Philippine securities market, local and foreign investors who intend to do business in the Philippines and establish corporations, partnerships, or associations must register their business with the Securities and Exchange Commission (SEC). 


The SEC is the national government regulatory agency that regulates the Philippines' business community.


But if you’re a startup owner and still wondering what type of business you should establish, here’s a quick guide for you about the different business entities required to register with SEC.


Stock Corporations: These are profit business entities with shares of capital stock and the right to distribute dividends among its shareholders who hold ownership of the corporation through shares of stock

  • Domestic Corporations - a business that operates a business in the country where it was formed.

  • Resident Foreign Corporations: a foreign business with a legal permit to operate business or trade in the Philippines. You can check Registering a Business as a Foreigner. 


Non-Stock Corporation - This is a non-profit business and is a member-owned corporation that does not issue shares of stock because it has no shareholders and is therefore owned by its members.

  • Non-Governmental Organizations (NGOs): A non-stock, non-profit domestic corporation founded by a group of people with the intention of advancing the public, social, or political good of a country or the global community. 

  • Foundations: This is formed to give grants or charitable donations to support its objectives or raise money to achieve charitable, religious, educational, etc., with an initial contribution of not less than One Million Pesos (Php 1,000,000.00).

  • Associations: It is managed by executives and directors responsible for the membership. Even if an association isn't in the business of earning a profit or distributing dividends to its members, it is nonetheless accountable for managing a sizable budget and upholding the worth of its assets.

  • Religious Organizations: This can be incorporated by one or more people, and on a subnational level, these corporations are recognized and supervised by the law.


Partnerships: A profit business is established by two or more individuals that divide management and earnings among themselves.

  • General Partnership: This is formed when two or more partners agree to share the company's assets and income. By default, each partner is equally responsible for the company’s operation, including equal rights to profits and responsibilities. These are common for professional practice by people like lawyers and accountants.

  • Limited Partnership: Unlike a general partnership, it has limited partners who invest in the company but are not involved in daily operations. This is ideal for businesses that often need funding or investment from various sources or businesses with high startup costs.


The most significant advantages of incorporating your business are asset protection through limited liability. With that, your business can enjoy a perpetual existence, transfer ownership and able to raise more capital. You can read more about Sole Proprietorship or Corporation.


But if you are wondering whether you should incorporate your business or not, then you should read 6 Benefits of Incorporating your Business.


Consider getting a legal expert if you need additional assistance determining the appropriate course of action.

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