Digital transformation has encouraged business formation, the Securities and Exchange Commission (SEC) said, as it recorded a significant rise in the number of local companies and partnerships. READ
“The launch of the Electronic Simplified Processing of Application for Registration of Company led to a sharp jump in the number of newly registered domestic corporations and partnerships in 2021, rising by 50.5% and 33.4%, respectively, despite the pandemic,” SEC said in a press release.
eSPARC is integrated with the SEC cashiering system and online payment portal, Electronic System for Payments to SEC, which provides the public a more convenient means to pay fees. It cited Republic Act No. 11232 or the Revised Corporation Code of the Philippines, which introduced OPCs, eased capital requirements, removed residency requirements for incorporators and directors, and allowed for the perpetual existence of corporations, among others.
“It is legal for a company to issue shares at a premium or over the par value of the shares as stated in its articles of incorporation, and for the subscribers of a corporation to pay more than the par value of the shares they subscribed as there is no law, rule or regulation that prohibits [it],” SEC said.