Empowering MSMEs through incorporation

Micro, small, and medium enterprises (MSMEs) form the cornerstone of the economy, accounting for 99.5 percent of all business establishments.

However, despite their vital economic role, many of these enterprises still operate outside the formal sector, lacking a corporate identity, sufficient access to financing, and the legal protections afforded to registered corporate entities.

In response, the government, through the Securities and Exchange Commission (SEC), has undertaken bold reforms to make formalization more accessible, practical, and beneficial to entrepreneurs. At the heart of these reforms is the introduction of the One Person Corporation (OPC) under the Revised Corporation Code of the Philippines.

An OPC allows a single individual to form a corporation without the need for co-incorporators or directors.

This structural innovation grants the owner complete control over the enterprise while providing the advantages of a corporation, namely, limited liability, separate juridical personality, and enhanced credibility when dealing with banks, clients, suppliers, and investors.

The OPC structure is especially well-suited for sole proprietors in traditional and emerging sectors alike, including car repair shops, sari-sari stores, water refilling stations, online retailers, food carts, freelance professionals, and small-scale manufacturers, many of whom had long viewed incorporation as too complex or expensive.

Recent data confirms the growing appeal of this framework. In 2024, the SEC recorded a historic high of 52,304 new business registrations, reflecting a 6-percent increase from the previous year.

Of this total, 8,640 were OPCs, demonstrating a strong nationwide response from individual entrepreneurs eager to join the formal economy.

This upward trend is expected to accelerate thanks to the SEC’s groundbreaking digital initiatives that have made registration easier than ever.

Foremost among these is the SEC Zuper Easy Registration Online (ZERO), a fully digital solution that allows anyone to register a corporation entirely online, anytime, anywhere, and without a single physical visit.

The platform automatically generates the necessary corporate documents and enables digital authentication, removing the need for notarization or in-person submissions.

Whether one operates a car repair shop in Pampanga or runs an online crafts business in Cebu, SEC ZERO makes incorporation a fast, seamless experience. In fact, a digital Certificate of Incorporation can be issued in under two minutes.

By incorporating through the OPC model and registering via SEC ZERO, MSMEs are not just gaining legal status—they are securing a future with greater opportunity.

Formal registration enhances access to loans, expands eligibility for government support programs, improves branding, and builds trust with customers and partners. In a business environment increasingly shaped by formal contracts and digital transactions, these benefits are indispensable.

The SEC has made clear that these reforms are only the beginning. It remains committed to further streamlining corporate processes and investing in digital innovation to support businesses at every stage of their development.

Through initiatives like the OPC and SEC ZERO, the government is not only making it easier to do business, it is also building a more inclusive, empowered, and resilient economy for all Filipinos.