THE Securities and Exchange Commission (SEC) is slashing rates on certain filing fees for micro, small, and medium enterprises (MSMEs) to support their growth.
The corporate regulator issued Memorandum Circular (MC) No. 8 on July 16, which provides for lower rates on certain transactions involving MSMEs, with discounts ranging from 20% to 50%.
“MSMEs are the backbone of our business sector, accounting for more than 99% of all businesses in the country and generating millions of jobs for our fellow Filipinos,” SEC Chairperson Francisco Ed. Lim said in an e-mail statement on Thursday.
“This policy represents our strong resolve to help bring down barriers to entry for small businesses to ensure they can grow, thrive, and continuously contribute to economic growth,” he added.
Under the MC, the SEC announced a 50% discount on the registration of securities for MSMEs that will tap the capital market. This will be effective until June 30 next year.
The move is consistent with the commission’s commitment to further reduce friction costs for companies looking to go public, the SEC said.
Effective until Dec. 31 this year, the MC also provides that MSMEs planning to register as a corporation will be given a 20% discount on registration fees, while those looking to increase their capital stock by amending their articles of incorporation will receive a 25% discount on filing fees.
MSMEs are classified based on asset size, as provided under Republic Act No. 9501 or the Magna Carta for MSMEs.
Under the law, micro-sized businesses have assets of up to P3 million; small businesses, up to P15 million; and medium-sized enterprises, up to P100 million.
For capital stock increases and securities registration filings, the president or treasurer of the applicant company must issue a signed certification of qualification stating that the company’s total assets exclude the land on which the business entity’s office, plant, and equipment are located.
“The commission is committed to implementing strategic interventions tailored to MSMEs to encourage economic growth, create employment, and strengthen the Philippines’ self-sufficient industrial foundation,” the SEC said.
The reduced rates for MSMEs follow the SEC’s announcement earlier this month to cut the rates for corporate data requests by 50%.
The corporate regulator has also previously committed to strict timelines for processing applications for permits, licenses, registrations, certificates, clearances, and other authorizations, in order to eliminate delays and remove backlogs. — Revin Mikhael D. Ochave
