SEC Extends 50% Securities Registration Fee Discount for MSMEs Until End-2026

On June 17, the Philippine Securities and Exchange Commission (SEC) issued Memorandum Circular №19, s. 2026, extending its securities registration fee incentive for micro, small, and medium enterprises (MSMEs).

Under the new circular, qualified MSMEs will continue to receive a 50% discount on securities registration assessment fees when registering securities with the SEC. The incentive has been extended until December 31, 2026.

1 | Securities Registration Fees Cut by 50%

The fee discount applies to qualified MSMEs registering securities for, among others:

• Power generation and electricity distribution companies;
• Real estate developers and property management companies registering securities related to rental pool agreements;
• Agricultural enterprises;
• Hospitals; and
• Other eligible businesses.

The incentive covers SEC securities registration, which refers to the process of registering securities such as shares, bonds, and other investment instruments before they are offered to investors.

It does not apply to company incorporation, annual filings, or other routine corporate compliance fees.

MSME Definition by New Age Digital

2 | Which Businesses Are Eligible?

The SEC determines MSME eligibility based on the Magna Carta for MSMEs (Republic Act №9501). Companies whose total assets (excluding the land on which business facilities are located) fall within the prescribed MSME thresholds may qualify for the incentive.

Note: The asset values exclude the land on which the business’s plant and equipment are situated, as provided under the Philippine Magna Carta for MSMEs (RA №9501).

To apply, companies must submit an MSME Certification signed by the company president or chief financial officer (CFO), confirming the company’s asset size.

With the exception of agricultural enterprises, applicants must also have at least PHP 25 million in paid-in capital.

3 | What Does This Mean for Businesses in the Philippines?

The extension is particularly beneficial for businesses planning to raise capital in the Philippines.

Companies intending to finance their operations through the issuance of shares, bonds, or other securities can reduce their upfront regulatory costs thanks to the lower SEC registration fees.

Foreign-owned companies incorporated in the Philippines may also qualify for the incentive, provided they meet the MSME asset requirements and other eligibility conditions. However, the incentive applies only to securities registration and does not cover company incorporation or routine corporate compliance obligations.

The extended incentive will take effect after completing the required publication process and will remain available until December 31, 2026.

Businesses planning fundraising activities, capital restructuring, or other capital market transactions are encouraged to assess whether they qualify as an MSME and prepare the necessary documentation in advance.

If you are planning to establish a company in the Philippines, structure your financing, or require assistance with SEC-related procedures, OCIC can help assess your eligibility and guide you through the application process.

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