Dear PAO,
I am a former OFW who wants to start a small corporation with my family. I was advised by my friend that I can apply for a discount on the company’s registration fees if its assets do not exceed a certain amount. Is this true?
Ivan
Dear Ivan,
The answer to your question is governed by the Securities and Exchange Commission (SEC) Memorandum Circular 2 dated Jan. 9, 2026 (SEC MC 02, s. 2026), otherwise entitled “Further Supporting the Growth and Expansion of Micro, Small, and Medium Enterprises (MSMEs) by Extending Discounted Rates for Certain Filing Fees.” The said circular became effective upon its publication in two newspapers of general circulation.
The issuance of the circular is anchored on Section 5 of Republic Act (RA) 9501, otherwise known as the “Magna Carta for Micro, Small, and Medium Enterprises,” which mandates the State to promote coherence in policies and programs that provide the necessary support and assistance to MSMEs. In furtherance thereof, the circular recognizes the vital and indispensable role of the MSME sector in fostering inclusive growth and sustaining the development of the Philippine economy.
Pursuant thereto, the SEC has extended preferential filing fee rates for qualified MSMEs. Specifically, applicants registering corporations may avail of discounted filing fees equivalent to 20 percent and 50 percent of the assessed fees.
For purposes of determining eligibility, an applicant shall be classified as an MSME, in accordance with Section 3 of RA 9501, based on asset size, as follows: Micro enterprises — with total assets not exceeding P3 million; Small enterprises — with total assets ranging from P3 million to P15 million; Medium enterprises — with total assets exceeding P15 million, subject to the applicable statutory thresholds. These corporations are entitled to a 20 percent discount on the registration fees until March 31, 2026.
Meanwhile, to qualify for the discounted fees for registering securities, applicants must comply with the following requisites: (a) Submission of a certification of MSME qualification, duly executed by the president or treasurer of the applicant corporation, attesting to the company’s total assets, inclusive of those arising from loans but exclusive of the land on which the business entity’s office, plant, and equipment are situated, in accordance with Section 3 of RA 9501; and (b) except in the case of agri-business corporations filing for the registration of securities pursuant to SEC Memorandum Circular 8, Series of 2023 (SEC FARMS), the applicant must have a paid-up capital of at least P25 million.
In your case, if the total assets of the proposed business do not exceed P3 million, the same shall be classified as a micro enterprise, thereby entitling it to a 20 percent discount on the applicable assessed filing fees. This incentive is granted by the government to encourage Filipinos to put up businesses and fuel the national economy.
We hope that we were able to answer your queries. This advice is solely based on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.
Thank you for your continued trust and support.
Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net
