SEC Extends the ECIP Until December 31st, 2024

December 11, 2024

The Securities and Exchange Commission (SEC) is the primary regulatory authority overseeing the corporate sector in the Philippines. Tasked with enforcing laws to protect investors, maintain fair and efficient markets, and promote corporate transparency, the SEC plays a pivotal role in the Philippine business environment. It ensures that corporations, partnerships, and other registered entities comply with regulatory standards, fostering a robust and reliable corporate ecosystem.

What is the ECIP?

The Enhanced Compliance Incentive Program (ECIP) was established under SEC Memorandum Circular No. 17, Series of 2024. This initiative is designed to encourage compliance with regulatory requirements among registered entities. By adhering to the guidelines under the ECIP, businesses can access various benefits, such as reduced penalties and streamlined processing of corporate documents. Initially set for a limited period, the SEC has extended the program until December 31, 2024, allowing more businesses to take advantage of its provisions.

Understanding the GIS and AFS Requirements

The General Information Sheet (GIS) is a mandatory annual submission for all businesses registered with the SEC. This document provides detailed information about the corporation, including its officers, shareholders, and corporate structure. Filing the GIS ensures that the SEC has up-to-date records of the company, enabling it to monitor compliance and facilitate transparency.

In addition to the GIS, corporations must file an Annual Financial Statement (AFS) with the Bureau of Internal Revenue (BIR). The AFS outlines the business’s financial performance and position for the previous fiscal year. It is a critical component of a company’s tax compliance obligations, ensuring accurate reporting and payment of taxes.

PROCEDURE

The Commission provides the following reminders regarding the ECIP application process:

Filing of ECIP Application

The Commission will continue accepting an Expression of Interest (EOI) through a web-based application form available on the eFAST system until December 31, 2024.

Submission of Reportorial Requirements

Non-Compliant Corporations
- Corporations that still need to meet reportorial requirements must upload and submit their latest Annual Financial Statement (AFS) and General Information Sheet (GIS) via eFAST by December 31, 2024.
Suspended or Revoked Corporations
- Corporations with suspended or revoked Certificates of Incorporation are required to:
  - Upload their latest AFS, GIS, and a Petition to Lift Order (PLO) of Suspension/Revocation via eFAST.
  - Submit the following supporting documents via designated SEC email addresses based on jurisdiction:
    - Directors’ or Trustees’ Certificate
    - Latest AFS (including attachments), as received by the SEC and Bureau of Internal Revenue (BIR)
    - Latest GIS, as received by the SEC
    - Copies of the Certificate of Incorporation and any Certificates of Filing of Amended Articles or By-laws, along with the latest Articles of Incorporation and By-laws
    - Proof of registration of the stock and transfer book or membership book
    - Secretary’s Certificate of No Intra-Corporate Controversy
    - Sworn Certification by the External Auditor
    - Proof of ongoing operations, such as:
      - Audited Financial Statements
      - Income Tax Returns
      - Mayor’s or Business Permits
      - Contracts
      - Real Estate Tax payment receipts
      - Certifications, Recognitions, or Annual Convention documents
      - Other relevant documentation
  - Latest Mayor’s or Business Permit
  - BIR Certificate of Registration
  - Certification from the Corporate Secretary that the latest Financial Statement and Income Tax Return were received by the SEC and BIR, respectively
  - Compliance with SEC Memorandum Circular No. 28, Series of 2020
Payment of ECIP Fees
Non-Compliant Corporations
- ECIP fees must be paid through the Electronic System for Payment to SEC (eSPAYSEC).
- After submitting the EOI, the eFAST system will generate a Payment Assessment Form (PAF) amounting to Php 20,000.00.
Suspended or Revoked Corporations
- A PAF for Php 3,060.00 (petition fee) will be issued.
- After settling the petition fee and submitting complete requirements, a second PAF representing 50% of the total assessed fines and penalties will be sent to the registered email.
- An electronic Official Receipt (eOR) will be issued for every transaction via eSPAYSEC.
Forfeiture of ECIP Fees

Failure to submit the complete set of requirements within the prescribed period will result in the forfeiture of the following:

Php 20,000.00 ECIP fee for non-compliant corporations
50% of the total assessed penalties for suspended/revoked corporations
Php 3,060.00 initial petition fee for suspended/revoked corporations

Is Assistance Available?

Yes, assistance is available! Triple i Consulting is here to help your business stay compliant with SEC and BIR regulations. We specialize in filing GIS, AFS, and ECIP applications, ensuring a hassle-free experience for your company. Don’t wait until the deadline—act now to secure your compliance incentives and avoid unnecessary penalties. Contact us today to get started and let our experts handle the complexities of regulatory compliance.