SEC fasttracking process for foreign firms’ operations

MANILA, Philippines - The country’s corporate regulator is fasttracking the application process for foreign firms wanting to transact business in the Philippines.

In a memorandum, the Securities and Exchange Commission (SEC) issued the guidelines on Financial Statements to Support an Application for a License to Transact Business in the Philippines.

The move is in line with Administrative Order No. 38 on Ease of Doing Business Reforms, the SEC said.

“For those whose home country requires audited financial statements (AFS), the applicant shall submit the AFS as of date not exceeding one year immediately prior to the filing of the application,” SEC said.

SEC said the applicant’s financial statements must show that it is solvent and in sound financial condition.

But the regulator is giving leeway for foreign firms lacking necessary documents.

If the date of the AFS exceeds the one-year requirement, foreign companies can submit available AFS backed by unaudited financial statements (UFS) as of date not exceeding one year prior to the filing of the application.

“For those whose home country does not require audited financial statements, the applicant shall submit the UFS as of date not exceeding one year immediately prior to the filing of the application,” the SEC said.

This should be accompanied by a certification signed under oath by an officer of a responsible regulatory institution or by the applicant’s legal counsel.

The certification will ensure that the applicant is not required to prepare and submit AFS, the SEC said.

The SEC said the AFS and UFS must be signed under oath by the president or any other person authorized by the corporation.

“No authentication shall be necessary if the signatory to the said financial statements is the same as that in the corporation’s application,” it added.

Investors have come in droves to take advantage of higher returns given the robust economic growth of Southeast Asian countries like the Philippines, Indonesia and Vietnam.

In the first quarter, foreign direct investments (FDI) remained on positive territory with a net inflow of $1.303 billion, although this is 8.5 percent lower than a year ago.

But the Bangko Sentral ng Pilipinas expects FDI to reach $2.3 billion this year, up from $2.033 billion in 2012.