A lot of businesses formed in the Philippines nowadays often do not have legal documents.

Some business owners reason out that it is due to the long processing time and because it can be
expensive. However, registering the business in the Security and Exchange Commission (SEC) is
mandatory not only to legitimize the company as a juridical organization but also to enable it to function
and participate legally in business, issue receipts, transfer financial assets, and claim certain rights under
the country's corporate and investment laws (“SEC Registration in the Philippines”, n.d.). It is ideal and
practical for businesses and corporations to register their company to avoid legal problems and build the
trust of potential clients, suppliers, and employees as a legitimate business. Registration of business also
helps the country to protect its interests as the Security and Exchange Commission oversees keeping
track of each corporate in the country. Meaning, they are responsible for the supervision, regulation,
and protection of both markets and investors. They also have records about the existence of the
company.

Although it can be costly and had a fairly long processing time before, it is now more convenient
as SEC now offers the online registration of the businesses. The online system of registration is
accessible and easy to use. This will attract and appeal to the business owners to register their company
as time is something that they value, and the new registration system is fast and easy to use. Online
registration processing has its advantages over manual registration processing. One of the pros is its
efficiency which saves time and money. It is also more accurate and is less prone to errors compared to
manual registrations which require passing the documents needed in person which may involve a lot of
traveling and disarrangement of papers. A lot of documents needed to be passed in the manual
registration processing may be forgotten which is a hassle, especially if the office is far. Aside from that,
accomplishing the forms and the passing of the documents needed require a shorter time rather than
manual registration processing. There are many steps for online registration processing and the
preparation of the requirements of the registration can be quite difficult especially for the business
owners who always must run their company’s papers and documents. Moreover, as mentioned earlier,
the process of registration of the business can be quite costly and everything has a price. Nonetheless,
the advantages and gains that a company can get from registering in SEC including being able to
participate legally in the market scene and the protection and rights it gets from the corporate and
investment laws are practical and beneficial. These benefits compensate and outweigh the
inconvenience and cost of the registration. Overall, companies and corporations need to register their
businesses to build a great and legitimate image for their potential partners and clients.

Many businesses emerge as the economy of the Philippines grows and advance. With that being
said, a lot of people start their small businesses without careful considerations and concrete plans that
end up being bankrupt after a few years. Starting a business was never easy and it is highly dependent
on the wise decision-making of the head of the company. It does not matter if it’s a small business or if
it’s a big corporation, it still has potential risks which can either be turned into an opportunity or a
disaster for the business. Registering in the Security and Exchange Commission is the first step in
ensuring the security, safety, legality, and prosperity of the company in the coming years.

SEC REGISTRATION IN THE PHILIPPINES. (n.d.). Retrieved from Philippines Business Registration :
https://philippinesbusinessregistration.com/company-registration/requirements/sec-
registration/