In April 2021, the Securities and Exchange Commission (SEC) implemented the Electronic Simplified Processing of Application for Registration of Company (eSPARC) as a replacement of the Company Registration System (CRS). The eSPARC system allows the applicants or their duly appointed representative to process the company registration application without needing to go through personally in the SEC’s headquarters or satellite offices. For a hassle-free application process, use this blog as your guide to navigate through the eSPARC system effectively.
SEC – eSPARC Online Company Registration System
The Electronic Simplified Processing of Application for Registration of Company (eSPARC) is an online system implemented by the Securities and Exchange Commission (SEC) for company registration in the Philippines. It processes registration applications for One Person Corporations (OPCs) and Domestic Corporations, whether stock or non-stock. It also caters registrations for entities with two or more incorporators, which can include natural persons, partnerships, associations or corporations, with a maximum of fifteen (15) incorporators. Additionally, eSPARC allows applicants or their duly authorized representatives to submit the proposed company names and provide the necessary details of the articles of incorporation for the Commission’s review.
Types of SEC – eSPARC Application Process
The SEC’s eSPARC has two (2) types of application process: Regular Processing and One-Day Submission and E-registration of Companies (OneSEC) Processing. The SEC usually takes seven (7) working days from the day of submission to review the application that was processed through Regular Processing. OneSec Processing is faster than the Regular Processing since SEC reviews the application immediately upon submission, allowing the applicants to complete their registration process within the same day.
Under the Regular Processing, the following types of companies can register:
- Stock Corporation;
- Non-stock Corporation;
- Partnership;
- Foreign Stock Corporation; and
- Foreign Non-stock Corporation.
On the other hand, domestic stock corporations are eligible to register under OneSEC Processing, provided they meet the following qualifications/requirements:
- All Filipino company classification, which means incorporators, directors, and subscribers of the corporation are natural persons and reside in the Philippines.
- The proposed company name must have a name descriptor based on its industry classification.
- The proposed company name shall not contain a Trade Name or any set of letters that act as an acronym, and shall not be subject to any name appeal.
- The company has a perpetual corporate term of existence.
- The company is not located in any economic zone.
- The company is able to pay registration fees immediately in the SEC Payment Portal.
- None of the company officers or members have pending/convicted criminal cases, administrative cases, or government sanctions.
Required Information for SEC – eSPARC
The Securities and Exchange Commission (SEC) requires personal information from applicants for company registration through its electronic system, eSPARC. This includes the applicant’s full name, Tax Identification Number (TIN), email address, home address, and nationality. This information is collected and processed electronically to facilitate the registration process. More importantly, the SEC ensures the security of collected information in compliance with the Data Privacy Act of 2012, employing measures to prevent unauthorized access, disclosure, or loss.
Application Process of SEC – eSPARC
To process an online application on SEC’s eSPARC, the applicant or their duly authorized representative must follow the following steps:
[1] Create an Account: The applicant or their authorized representative must create an account on the SEC’s website to log in to eSPARC.
[2] Select the Type of Registration: Once logged in to eSPARC, the applicant or its representative has an option to select the type of registration they are applying for, whether Regular Process or OneSEC Processing, based on the type of their company.
[3] Fill Out the Form: The applicant or its representative is required to provide the information needed. They shall ensure that the information given is accurate and complete.
[4] Upload the Documents: The applicant or their authorized representative must upload the supporting documents. These documents shall be authenticated or notarized if necessary.
[5] Review and Submit: Once the form is completed, it is advised for the applicant or its representative to review the documents and the provided information carefully to ensure accuracy and completeness. Any errors or missing information may delay the process. After reviewing, they must submit the application through eSPARC.
[6] Pay the Fees: The fees may vary depending on the selected type of the registration. Under the Regular Processing, the fees may be paid through Electronic System for Payment to SEC (eSPAYSEC), Over-the-Counter (OTC) of SEC Cashier Office, or Land Bank Over-the Counter. While under the OneSEC Processing, the fees may be paid via Debit, Credit, or Paymaya e-Wallet.
[7] Monitor the Status: After the submission, the applicant or their authorized representative will receive a confirmation of receipt from the SEC via email. A reference number will also be emailed in order for them to monitor the status of their application through the eSPARC system.
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