Business RegistrationSEC Registration Fee Discounts in 2026 for Growing Businesses in the Philippines

When setting up any corporate company in the Philippines, it is essential to understand and plan correctly. Starting up a corporate entity can provide many benefits such as legal protection, official access to credit, increased brand trust, and greater market opportunities. However, there are many costs involved when starting up a new company, one of which is the mandatory SEC fees required to register with the Securities and Exchange Commission. To assist domestic companies to grow, the SEC has produced various benefits to reduce the start-up costs. Corporate Directors, Executives, and Financial Officers who understand the current benefits can ensure they save on their initial costs, providing them with more cash flow and allowing them to grow their business in the long term.

Brief Background

The SEC plays an essential role in encouraging businesses to start up in the Philippines. They constantly review the requirements needed to start up a company to produce various benefits to encourage sole traders and new business partnerships to become fully registered stock companies.

• Background: The SEC follows Republic Act No. 9501 – ‘Magna Carta for Micro, Small and Medium Enterprises’. They have issued Memorandum Circular No. 13, Series of 2026. This sets out reduced fees for certain types of businesses to allow them to form their company more cheaply.
• Benefits Aimed at Increasing Economic Growth: The aim of these reduced fees is to increase the economy by getting more businesses to register. By reducing the basic registration fees, the SEC is encouraging growing businesses to become a corporate entity. This will increase the tax base, improve access to credit, and improve corporate governance.
• Types of Reduced Fees Offered: There are various types of fees offered by the government. The current discounts are applied to the initial incorporation fees, legal research fees, and security registration fees.
• Length of Benefits: The reduced fees will continue until 31 st December 2026. It is therefore important to plan the timeline for your business to ensure that you submit all of your company documents within the time frame. This will mean that you can take advantage of the reduced fees.
• Encouraging Growth in Different Areas: These reduced fees are not just aimed at the main business areas such as Metro Manila, Metro Cebu, and Metro Davao. They are focused on providing rural and provincial companies in areas such as Agriculture, eco-tourism, Local Logistics, and Trade with the opportunity to set up their company at a greatly reduced rate.
• Improved Corporate Governance: By becoming a corporate entity, businesses will have improved record-keeping, General Information Sheets (GIS), and regular audits. The financial benefits will reduce the initial costs to allow new businesses to easily comply with the requirements.
• In line with other Departments: The SEC is working alongside the Department of Trade and Industry (DTI) and the Department of Finance (DOF) to improve corporate governance, increase competition in different areas, and encourage investment.

Cost Breakdown for Incorporation in the Philippines

One of the first questions that entrepreneurs and finance officers will have when starting up a company in the Philippines is: how much is the SEC registration fee in the Philippines? Having a clear understanding of the standard fee structure will ensure that your initial group invests the correct amount of money.

• Basic Calculation: The basic incorporation fees for domestic stock companies are based upon the total authorized capital stock (ACS) of the company. The basic fee is 1/5 of 1% of the total authorized capital stock.
• Compulsory Additional Fees: On top of the basic fee, there are various costs that should be considered. This includes the Legal Research Fee (LRF), which is set at 1% of the basic fee, electronic processing fees, company name reservations, and company register fees.
• Scaling Costs: The fees will increase depending on the total capital of the company. If your company has a high authorized capital stock, then the initial registration fees will be higher.
• Savings from Reduced Processing Times: Compared to the standard historic rates, there are great savings to be had! By taking advantage of the reduced fees, the initial shareholders will have more cash to invest in their business. This can be used for purchasing stock, buying premises, purchasing technology, and employing staff.
• Understanding the Differences Between Authorized and Paid Up Capital: It is important to understand that authorized capital is the total amount of equity the company is allowed to issue. The SEC calculates the fees based upon the highest amount between the authorized capital and the amount actually paid.
• Additional Licensing Fees: If you are entering a regulated industry such as finance, investment, property development, or securities, then there will be additional license application fees. These follow a specific fee structure.
• Processing Fees: As everything is now processed online, there will be small fees to pay depending on what method you use. This could include online banking, bank partners and digital wallets.

What Are the Benefits?

To help reduce the increasing costs of starting up a new business, the SEC has created a reduced fee policy. This will provide an instant boost to your balance sheet and allow your growing business to invest its working capital into generating income.

• 20% Discount on Basic Incorporation: Stock companies who qualify will receive an instant 20% discount off the basic incorporation fees.
• 50% Discount on Security Registration: Medium-sized companies looking to raise capital through public offerings, private placements, or authorized crowdfunding sites will receive a 50% discount on their security registration. This reduces the costs of raising capital, making it easier to raise capital from within the country.
• Extended for Multiple Years: The reduced fees have been extended until 31 st December 2026 under Memorandum Circular No. 13, Series 2026. This means that your Executive team will have a stable environment to focus on growing their company.
• Targeted to Help Micro, Small and Medium Companies: The reduced fees are specifically designed to help true micro, small and medium companies. The SEC has ensured that only companies with a certain amount of assets will qualify for the reduced fees.
• Applicable to Stock Companies: The 20% discount will apply to all stock companies in the country. This can include Technology, Manufacturing, Trading, Service, Logistics, and Professional Service companies.
• Reduces Costs to Raise Capital: Traditionally, raising capital through issuing securities can be very costly. However, with a 50% discount on the security registration fees, it will make it much easier for medium-sized companies to issue commercial paper, equity, or crowdfund.
• No Changes During Process: If you submit your application whilst the policy is still valid (until 31 st December 2026), then you will receive the reduced fees.

How to Get the Reduced Fees

To receive the reduced fees, you must follow all the guidelines. It is important to understand how to get the benefits of the SEC registration fee discount. Ensure that your company fits within the asset limits and provide the correct documentation.

• Asset Sizes: You must fit within the asset size limits set out in Republic Act No. 9501. This does NOT include the land that your company will be using for its office, plant, or facility.
  • Micro – Total asset value up to ₱3,000,000.
  • Small – Total asset value between ₱3,000,000.01 and ₱15,000,000.
  • Medium – Total asset value between ₱15,000,000.01 and ₱100,000,000.
• Documentation Required: You will need to provide specific documentation. This will include a notarised Certification of Qualification signed by the company officers, verified opening balance sheets (or audited accounts), asset breakdown, and verified proof of company type.
• Minimum Capital Requirements for Security Registration: If you are registering using the fast-track option, you will need to meet the minimum paid-up capital requirements. You must have a minimum paid-up capital of ₱25,000,000. However, there are specific exceptions for agricultural businesses.
• Electronic Submission: All of your registration documents must be submitted using the online processing systems. This can include eSPARC – Electronic Simplified Processing of Application for Registration of Company, or at the Extension Offices. Ensure your documents are formatted correctly to ensure you receive the reduced fees.
• Ensure Land is Not Included: Your company treasurer must ensure that the assets are calculated correctly. This includes ensuring that the improvements, machinery and stock are included, but the land value should NOT be included. Including land within your sworn assets is a common reason for not receiving the reduced fees.
• Qualification Certification: The Certification of Qualification must be worded exactly as per the SEC circulars. If you miss any legal wording, the notarisation is incorrect, or the total assets are not verified, then your documents will be rejected.
• If Returned: If your documents are returned through the online process, you must ensure that you fix the issues within the required time frames. This will ensure that you still receive priority.

Registering Your Company with Expert Assistance

As there are many complexities involved with the regulations, asset calculations, and corporate documents, it is essential that you seek assistance from BusinessRegistrationPhilippines.com. We can help you with the complicated process of managing your corporate legal requirements. Our expert knowledge will ensure that your documents are not rejected, you do not incur any unnecessary taxes, your company will not suffer from any corporate issues, and you will not experience any delays.

• Understanding Complex Regulations: When dealing with the state, you must ensure that you understand the legal wording, create correct corporate charters, and calculate the correct capital. If you make any mistakes when completing your Articles of Incorporation, By-Laws, or asset certifications, then your application for the reduced fees will be rejected. This can cause delays to your incorporation.
• Trusted Source: BusinessRegistrationPhilippines.com is one of the leading business incorporation sites in the Philippines. We have lots of experience with the regulations and can make setting up your business, accounting, tax, and statutory requirements easy for both domestic and international clients.
• Avoid Issues with Regulations: Incorrectly submitting your incorporation can cause you to be cited for not being compliant. You could incur unexpected statutory fines, or your company may suffer from issues that will cause problems with raising equity, credit lines, or licenses in the future. Our professionals will thoroughly check your documents to ensure that they are fully compliant with the state.
• Focus on Running Your Business: By using our specialized corporate consultants, you can focus on running your business. Our professionals will deal with your documents, notarisation, dealing with agencies, and monitoring your progress until your certificates are issued.
• Optimize Your Capital Structure: Choosing the correct authorized capital can be tricky. Our experts can help you choose the best capital structure for your company to ensure you have maximum flexibility and make the most of the reduced fees.
• Initial Certificate of Incorporation: Once you have received your initial Certificate of Incorporation, you will need to complete various forms with the Local Government Unit (LGU), Bureau of Internal Revenue (BIR), and set up as an employer with SSS, PhilHealth, and Pag-IBIG. Our professionals can help you with this.

Key Takeaways

Setting up a solid company in the Philippines requires careful financial planning and thorough legal compliance. By making the most of an optimized SEC fee structure, qualifying companies can save on their working capital and set up a fully compliant company. By taking advantage of the current statutory reduced fees, ensuring accurate asset calculations, and using qualified corporate advisers, growing companies can ensure long-term success within the country.

Is Assistance Available?

Yes! We can help you calculate your SEC registration fees and make your whole company registration process easy. Contact us today to book an initial consultation with one of our experts.

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