The Securities and Exchange Commission (SEC) is on track to surpass last year’s record-high number of business registrations as it reaps the benefits of digital transformation launched during the pandemic, SEC Director for Records Atty. Gerry Del Rosario told THEPHILBIZNEWS in an exclusive interview.

Speaking from the SEC’s new headquarters in Makati, Del Rosario highlighted how the Covid-19 crisis became a turning point for the Commission, prompting major reforms in its registration system.

“Before the pandemic, we were still largely manual,” he recalled. “But under Chairman Emilio Aquino’s leadership, we re-engineered our processes. We hired IT experts, digitized our services, and launched automation initiatives that have significantly improved efficiency.”

In 2024 alone, the SEC registered over 52,000 new partnerships and corporations. For 2025, Del Rosario revealed that from January to May, nearly 21,000 entities have already been registered—setting the stage to break last year’s record.

Central to the SEC’s transformation is the eSECURE system, an identity verification platform designed to prevent fraudulent incorporations and ensure data integrity. Using the Philippine National ID system or two valid government-issued IDs, applicants undergo a liveness check to confirm authenticity.

“We’ve seen cases where individuals deny any involvement with a corporation, even if their name, TIN, or IDs appear in documents,” Del Rosario said. “eSECURE addresses that by making identity verification mandatory before registration.”

Digital registration has also eliminated the need for physical notarization or multiple printed copies, thanks to system-generated QR codes that serve as a digital signature. “It’s now a fully paperless process,” he noted.

Foreign investors get their own ‘green lane’

To boost foreign direct investment, the SEC established a dedicated division, the Foreign Investment Registration Station, for companies with over 40% foreign equity, as well as branch and representative offices.

“All foreign registrations now go through a single, specialized lane,” Del Rosario explained. “This is part of President Marcos Jr.’s push to provide a ‘red carpet, not red tape’ experience for investors.”

With apostille and consular authentication often proving cumbersome for foreign applicants, SEC’s digitized system now accepts online submissions with passport verification—another step toward ease of doing business in the Philippines.

(Apostille is an international certification that verifies the origin of a public document, such as a birth certificate or a power of attorney, for use in another country.)

The SEC’s innovation has not gone unnoticed globally. The Philippines was again recognized by the Corporate Registers Forum (CRF) for innovation in corporate credentialing. The awarding ceremony will take place in October this year.

“This is our second win,” Del Rosario said. “We’re proud to be at the forefront of registry modernization in the region.”

Del Rosario assured both local and foreign investors that the SEC remains committed to reform and efficiency.

“We now have 14 regional offices, and all are ready to process your applications quickly and securely,” he said. “We want your first step in doing business in the Philippines—your company registration—to be a pleasant one.”

In a news release, DTI said this initiative aims to automate frontline services and simplify regulatory compliance by streamlining business licensing and accreditation processes nationwide.

“Aligned with President Ferdinand Marcos Jr.’s call for a more responsive government, the DTI is leveraging digitization through this new FAI chatbot to cut red tape, improve access, and empower businesses under the ‘Bagong Pilipinas’ vision,” said DTI Secretary Cristina A. Roque.

Launched on June 9, this digital assistant leverages AI technology to provide real-time responses, eliminating the need for queuing, in-person visits, and time-consuming email correspondence.

This online service is now accessible 24/7 through the DTI’s Integrated Registration Information System website at https://iregis.dti.gov.ph/, where it provides instant responses to inquiries on key DTI-related services.

Assistant Secretary Leonila T. Baluyut underscored the vital contribution of MSMEs to the Philippine economy and highlighted the transformative potential of AI.

“MSMEs are the backbone of our economy, and this roadshow marks a crucial step toward ensuring they are equipped to thrive in the digital era. We want our enterprises to understand that AI is not here to replace jobs but to boost their business capabilities and open new doors. We must learn to work with technology to unlock its full potential,” Baluyut said.

Undersecretary Rafaelita M. Aldaba emphasized the importance of AI for businesses to understand their current situation and make plans. Aldaba urged companies to prioritize ethical considerations when implementing AI solutions, highlighting those businesses at all stages of technical maturity—from those starting with basic digitization to those integrating advanced AI—can benefit from well-planned adoption.

The roadshow also highlighted real-world success stories from local businesses of all sizes that use AI to enhance operations and improve business outcomes. “These stories show that AI isn’t just for tech giants; it is for businesses of all sizes. The key is starting small, learning by doing, and scaling over time,” said Dr. Erika Fille T. Legara, CAIR’s Chief AI and Data Officer.

The presenters included Lay Bare Waxing Philippines Head of Strategy Justine Cruz and Jeremiah 29 11 Corporation Sales and Marketing Manager Ivan Carlo Bañez. Their experiences demonstrate how AI can drive operational efficiency, enhance customer satisfaction, and fuel business growth.

Following the presentations, a panel discussion highlighted the importance of collaboration between government, industry, and academia in driving digital transformation. The panel featured NAST Academician Dr. Christopher Monterola and Professor Benjur Borja of the Asian Institute of Management.

In his closing remarks, CAIR’s Deputy Chief AI and Data Officer Dr. Sebastian Ibañez noted that the AI and Digitization Roadshow is just the first step in a larger nationwide initiative, with upcoming events planned for Visayas and Mindanao.

“The future is digital, and our goal is to ensure that every business—large to small—has the opportunity to thrive in this landscape,” Ibañez said.

This collaborative effort marks a significant step toward positioning the Philippines as a hub for AI-driven innovation. Through continuous learning and partnerships, CAIR aims to empower businesses with the tools they need to succeed in a competitive global economy.

Since the pandemic, a lot of enterprises have embarked on digitization and digitalization not just for health and safety reasons but even more so for efficiency.

The shift to paperless transactions across various industries has proven not just to be effective but also cost-efficient. For instance, the digitization of all cargo clearance processes will significantly benefit small and medium enterprises (SMEs) in the Philippines, which in turn can be a pathway to the overall economic development of the country, according to a new United Nations (UN) report.

The report from the UN Economic and Social Commission for Asia and the Pacific (ESCAP) points out that SMEs, which account for 99.5% of firms and 63.2 % of employment in the country, are the most vulnerable to unpredictable business climates, and will therefore gain immensely from the digitalization of customs procedures.

But for SMEs to better benefit from paperless trade, they have to be better connected and better resourced and have better visibility, said the report titled “National Feasibility Study on Cross-border Electronic Exchange of Trade-related Data and Documents: The Philippines. “

Unfortunately, awareness of paperless trade is still low among SMEs, who only know that manual processes are still prevalent in the handling and verifying of permits and certificates that Customs and trade regulatory government agencies or TGRAs need to expedite cargo shipments.

“Thus, it is important to focus on the underlying requisites of the SMEs by adopting cross-border paperless trade that can potentially reduce e-commerce transaction costs. This should in turn enable them to create a more seamless digital experience for their customers,” the study, issued this month, said.

It further noted that the number of businesses conducting retail sales via the internet in the Philippines has increased, but this also comes with an increase in the number of consumer complaints over delays in the clearance of goods.

“Digitalizing the permit and certificate processes will eliminate much of the need for tedious, manual data entry of supporting documents required by Customs and contribute to quicker clearance of goods, which would ultimately lead to a better experience for retail customers and thus facilitate business for SMEs,” the UN report said.

At the same time, ESCAP pointed out that the entering into force of the Regional Comprehensive Economic Partnership (RCEP) is an important development in the Asia-Pacific region that could translate into opportunities for SMEs to tap huge markets.

The Agreement, to which the Philippines is a party, holds the potential to help SMEs participate in the growing digital economy and leverage opportunities in increasing the export coverage for Philippine electronics and semiconductor manufacturers.

Importantly, the Agreement will reduce the prices of imported components and raw materials, and for the exported electronic goods. Moreover, imported components are often re-exported to other markets as intermediate products, further extending the economic distance between producers and the final consumer. Through greater market access enabled through RCEP, the Philippines is also aiming to attract investments that will enable it to move up the global value chain.

Said the report: “Overall, RCEP encourages inclusive, comprehensive, and mutually beneficial economic policies that aim to enable SMEs to trade within the region with greater ease and enhanced tariff concessions. It is hoped that these benefits would, eventually, allow Filipino SMEs—especially those in e-commerce—to be able to focus more on enhancing their businesses rather than dealing with cargo clearance issues. Realizing these benefits will require continued efforts to involve SMEs in paperless trade.”

Meanwhile, the paper recommended the development of an Authorized Economic Operator (AEO) program for SMEs to bring about positive impacts in efficiency, productivity and profits for participating firms.

“Faster customs checks, a global network of improved suppliers and a certificate of reliability and safety will have considerable benefits for any SME. AEO benefits should be transparent and meaningful to justify the additional costs sustained by economic operators in meeting AEO program requirements,” said ESCAP.

On a practical level, the AEO status means that items pass through customs as quickly as possible. It also means the following: It will be quicker and easier to obtain customs clearance; the AEO will be subjected to fewer physical and document checks at borders; if the traded item is selected at controls, priority will be given as an AEO consignment; and any certified AEO can request that a control be held at a different place.

The good news, said the paper, is that together with the DTI, the Bureau of Customs is exploring setting up an AEO program for SMEs by pushing for a pragmatic approach in accrediting MSMEs, as well as encouraging them to work together to pool their resources to achieve higher levels of production and better manufacturing processes.