MSMEs still driving corporate growth
New registrations bring the total number of active companies to 584,324 as of 31 December 2025.
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New registrations bring the total number of active companies to 584,324 as of 31 December 2025.
Entrepreneurship in the Philippines continues to demonstrate quiet strength.
From January to December 2025, the Securities and Exchange Commission (SEC) recorded 49,283 newly registered companies, according to the SEC Data Analytics and Statistics Hub (DASH).
While slightly below the record-breaking figures of 2024, the number remains robust, especially in a year marked by infrastructure concerns, flood control issues, and persistent questions about economic direction.
More significantly, these new registrations bring the total number of active companies to 584,324 as of 31 December 2025. This figure sends a clear message: the Philippine corporate sector is not shrinking. It is expanding.
A closer look at the data shows where entrepreneurial energy is flowing. Of the 49,283 new companies registered in 2025, 10,755 (22 percent) were engaged in the wholesale and retail trade.
Another 3,797 (8 percent) were in accommodation and food service activities. Construction accounted for 3,138 (6 percent), while real estate comprised 2,805 (6 percent).
Meanwhile, 11,622 (24 percent) fell under other service activities, and 17,166 (35 percent) were classified under other industries.
The numbers confirm that the Philippines remains a service-driven and consumption-oriented economy.
Trade and service enterprises continue to dominate corporate formations, reflecting domestic demand and the adaptability of Filipino entrepreneurs.
Geographically, economic activity remains concentrated in key growth centers. Of the newly registered companies, 18,113 (37 percent) are located in the National Capital Region (NCR), followed by 7,617 (15 precent) in Calabarzon. Cumulatively, NCR accounts for 47 percent of all active companies nationwide, while Calabarzon represents 13 percent.
These figures reinforce NCR’s position as the country’s commercial hub while highlighting its sustained regional dynamism.
Behind these numbers lies a structural reality: 99.5 percent of businesses in the Philippines are micro, small, and medium enterprises. MSMEs are not peripheral players, they are the backbone of the national economy. They generate employment, stimulate household income, and sustain local supply chains.
Regulatory policy in 2025 moved in a direction that directly supports these enterprises. The SEC issued Memorandum Circular 06, reducing fees and charges for IT-related services, including requests for copies of Articles of Incorporation, By-Laws, and General Information Sheets.
By lowering compliance costs, the Commission made corporate documentation more accessible.
More notably, Memorandum Circular 08 introduced meaningful financial relief for MSMEs.
Registration fees for MSME corporations were discounted by 20 percent. Amendments to Articles of Incorporation and increases in capital stock received a 25-percent discount.
Registration of securities was discounted by 50 percent. These measures reduce barriers to formalization and expansion at a time when cost sensitivity is high.
Corporations remain the preferred vehicle for doing business because of their separate juridical personality and limited liability. Each new registration represents potential employment, expanded services, and greater competition. A growing corporate base fosters innovation, prevents market dominance, and improves consumer welfare.
In a year when public discourse often focused on constraints, the data tells a more balanced story.
Nearly 50,000 entrepreneurs still chose to formalize their ventures. The total number of active companies continued to climb. MSMEs continued to lead.
