CEBU, Philippines - Local firms that the Securities and Exchange Commission Cebu office registered last year increased by almost 8 percent, showing signs of increasing business activity.
Official data obtained by The FREEMAN showed the number of registered corporations and partnerships rose by 7.9 percent in 2014 to 1,944 from 1,802 a year ago.
Last year, SEC Cebu registered 1,308 stock corporations, up by 1.1 percent from 1,294 in 2013. Registered non-stock companies also increased by 21.7 percent from 373 in 2013 to 454 in 2014. The number of partnerships (a business shared by two or more individuals) also grew 34.9 percent to 182 in 2014 from 135 a year ago.
SEC Cebu Director Lindeza Gavino said: “This also tells us the economy is growing with the increase in the number of registering corporations. That also means more people are investing not necessarily in stock market but are investing in business.”
The number of new firms is expected to significantly go up this year.
In an interview, Gavino noted around 80 percent what the local commission registers are stock corporations or those which have shareholders. Non-stock firms, on the other hand, are those that have no owners represented by shares of stock.
“It’s always increasing even the volume of investment, meaning the authorized capital stock,” she said.
The director explained business registrants could come from other regions.
“We’re not just limited to Regions 7 and 8,” she said. “We have registrants from Palawan where their principal office are. We also have registrants from Davao but maybe their stakeholders are based in Cebu.”
The corporate regulator has eight extension offices nationwide and the Cebu agency is the biggest in terms of coverage and registered investment companies, she said. An investment firm issues securities and is mainly engaged in the business of investing in securities.
In addition, the corporate watchdog does not cover cooperatives. While single proprietorship enterprises are registered with the trade agency, not with SEC. (FREEMAN)