The Enhanced Compliance Incentive Plan (ECIP), formalized under SEC Memorandum Circular No. 13, Series of 2024, was rolled out on Aug. 30, following the success of last year’s amnesty program.
“As a regulator, the SEC is committed to ensuring that entities under its supervision are compliant with all the laws, rules and regulations applicable to them,” Chairperson Emilio B. Aquino said.
“After the SEC Amnesty Program, the Commission has strictly imposed higher revised fines and penalties to encourage strict and habitual compliance with reportorial obligations and good corporate housekeeping. With the launch of ECIP, we are affording corporations under our supervision another opportunity to remedy their violations, at lower fees, and restore their good standing,” Aquino added.
Reduced penalties
The ECIP offers non-compliant corporations, including those classified as “delinquent,” the opportunity to settle their outstanding fines and penalties for a flat rate of P20,000. This represents a significant reduction in potential costs, providing a streamlined path for companies to regularize their status.
For corporations that have been suspended or had their certificates of incorporation revoked, the ECIP allows them to settle 50 percent of their assessed fines and pay a petition fee of P3,060.
However, payment of the ECIP fee alone does not automatically restore compliance or lift the suspension or revocation. Companies must also submit the necessary supporting documents to complete the process.
No automatic lifting of suspension
To regain compliant status, non-compliant and delinquent corporations must file their latest Annual Financial Statements (AFS) and General Information Sheets (GIS) through the SEC’s Electronic Filing and Submission Tool (eFAST). They are also required to update their official and alternate email addresses and mobile phone numbers via the MC28 Submission Portal.
Corporations seeking to lift a suspension or revocation must submit a Petition to Lift Order of Suspension/Revocation of Certificate of Registration, along with required documents such as their latest AFS and GIS, proof of MC28 compliance, a Secretary’s Certificate of No Intra-Corporate Controversy, the latest mayor’s or business permit, and their certificate of registration with the Bureau of Internal Revenue.
The SEC's ECIP initiative underscores the Commission’s commitment to fostering a compliant and transparent corporate sector, offering a practical solution for businesses to rectify their standing and continue operations without further legal complications.
