DAVAO CITY (MindaNews / 04 February) — The Securities and Exchange Commission (SEC) registered a total of 1,881 new business and non-stock corporations in its extension office here in 2015 on the back of an upbeat economy and stable political landscape.
This is an increase of 5.26 percent compared with 1,787 recorded in 2014 based on the data released by SEC-Davao. The extension office covers the five provinces of the region — Davao del Norte, Davao del Sur, Davao Occidental, Davao Oriental, and Compostela Valley and the cities therein (Davao, Panabo, Tagum, Samal, Digos, Mati) and Cotabato City, Maguindanao and Sultan Kudarat provinces.
Javey Paul Francisco, SEC-Davao extension head, told reporters at the Habi at Kabi at Abreeza Mall on Wednesday that some 55 percent of these entities are business corporations while 45 percent are non-stock, including non-profit organizations such as non-government organizations and foundations.
Also, at least 65 percent of these new corporations are reportedly based in Davao City while the rest are coming from other areas.
Francisco classified these business corporations as engaged in wholesale/retail trading, agricultural, and construction industries.
SEC-Davao also saw an increasing capital stock pegged at P7 billion in 2015, which increased by 40 percent as compared to P5 billion in 2014.
“There is more confidence in the local economy. Since Davao is business and financial hub of the region, there’s confidence in the stability and reliability of the institutions that we have here,” he said.
He also urged the non-stock and stock corporations to file their Audited Financial Statements (AFS) and General Information Sheets (GIS) before the May 23 deadline.
The SEC recently released the guidelines for the filing of AFS and GIS as mandated by the Corporation Code and the Securities Regulation Code.
Those with last numerical digits of 1 and 2 on its of SEC registration/license number can file from April 18 to April 22; 3 and 4 last numerical digits may file on April 25 to 29; May 2 to 6 for those with 5 and 6 last numerical digits; May 10 to 13 for 7 and 8; and May 16 to 20 for 9 and 0.
“So, they cannot just file their AFS and GIS anytime. We have a schedule for them,” he said,
For companies who miss the deadline, he said they can still submit AFS and GIS but they will impose fines depending on their net profit and the length of time of delay counted by years.
“We count by year. So, they did not submit reports for five years, we will backtrack to know how much is the fine. The longer the period they have failed to comply, the higher the fines will be,” he said.
He said that three to five years of non-filing can be ground for revocation of SEC registration.
SEC-Davao recorded a total of 7,500 AFS and 8,400 GIS filed last year. The agency is expecting around 8,000 AFS and over 9,000 GIS to be filed this year, he said.
Francisco added that the SEC registration for the non-stock corporations give these entities legal personality. He cited as example how funding agencies require NGOs to present their SEC registration. (Antonio L. Colina IV / MindaNews)