SEC Successfully Incorporates Within 1 Business Day
Eliminating fraud with Integrated Business Registration System
In less than 2 months since a dozen government institutions announced reforms to make doing business in the Philippines easier, the Securities and Exchange Commission (SEC) posted successful figures in incorporating businesses within one business day.
With its Integrated Business Registration System (IBRS), the SEC was able to incorporate 1572 of 1582 corporations within 1 business day, posting a 99.37% success rate. The data, submitted to the Department of Finance (DOF) covering the period of 4-22 May 2015, improves on the 96.87% success rate initially posted for the period of April 15-30.
Notably, 1518 corporations (95.95%) were approved within 8 hours, almost triple the number posted for the previous month. Meanwhile, 54 corporations (3.42%) were approved within 1 business day.
Finance Secretary Cesar V. Purisima lauded the SEC’s achievement saying, “Inertia is strong and heavy; staying put is the easiest way to go nowhere. We started these reforms to ease doing business knowing that momentum is key. Seeing how all legitimate applicants can incorporate very quickly with the SEC and even register with the social agencies is more than encouraging. We need to constantly beat performance expectations to leap forward.”
The utilization of the IBRS has advanced the SEC’s anti-fraud initiatives through stringent processes that can help pinpoint fraudulent applicants. The IBRS has allowed the SEC to capture more comprehensive and specific data in processing new corporations, as all applicants are highly encouraged to detail all relevant information regarding their businesses. Relevant information include the complete address of their operations and key contact particulars such as their telephone, mobile and fax numbers, along with their email address.
The various social agencies are likewise taking measured steps in the eradication of fraud within their respective operations. The SSS has implemented a policy wherein if no communication or document from the registered corporation is received within a period of 30 days upon registration, the SSS shall call or visit the newly registered corporation. Philhealth is expected to follow suit, while Pag-IBIG has a separate auditing policy in place.
The improved transparency and accountability of registering new corporations allow the SEC and the social agencies to accurately verify and determine the true nature of the corporation and if said corporation is legitimately in operation.
SEC Chairperson Teresita J. Herbosa vowed to continue governance innovations at the SEC saying, “The IBRS is proof par excellence of the government’s commitment to both good governance and good economics. We prevent fraud and enable businesses to start quickly and conveniently. The private sector can expect us to continue working hard as a partner in growth and prosperity.”
