How to Verify If a Finance Company Is SEC-Registered in the Philippines

Last updated: October 5, 2025 (general legal guidance; not a substitute for advice from your counsel).

Why this matters

In the Philippines, companies that extend credit to the public—notably financing companies and lending companies—are regulated by the Securities and Exchange Commission (SEC). Operating without proper SEC authorization can be unlawful. Verifying status protects you from scams, abusive collection, and unenforceable contracts.

Key legal framework (plain-English)

Corporations Code (as amended): Sets corporate formation and reporting duties (e.g., Articles, By-laws, General Information Sheet or “GIS”).
Financing Company Act of 1998 (R.A. 8556): Governs financing companies (e.g., financing leases, installment credit, factoring). Requires a Certificate of Authority (CA) from the SEC to operate.
Lending Company Regulation Act of 2007 (R.A. 9474): Governs lending companies (granting loans from own funds). Also requires a CA from the SEC.
Financial Products and Services Consumer Protection Act (R.A. 11765) and SEC rules: Consumer protection standards (disclosures, fair collection, complaint handling) and SEC enforcement powers.
Data privacy, anti-money laundering, and tax rules also apply depending on activities and scale.

Two separate SEC approvals typically matter:

Primary registration (the corporation exists), and

Secondary license—the SEC Certificate of Authority to operate as a financing or lending company. A corporation may be duly incorporated yet not authorized to engage in financing or lending without a CA.

What exactly you need to see

Ask for clear, recent copies (or inspect through official SEC channels):

SEC Certificate of Incorporation (or amended certificates if renamed).
- Check exact corporate name, SEC registration number, and date.
SEC Certificate of Authority (CA) to operate as a Financing Company or Lending Company.
- Verify CA number, issue date, status (valid/suspended/revoked), and the authorized line of business matches what they actually do.
Latest stamped-received GIS (showing current directors/officers, principal office address).
Most recent audited financial statements with SEC/BIR receiving stamps (financial capacity can matter).
Business permits (mayor’s permit, BIR registration), which do not substitute for SEC authorization but are supporting evidence.

No DTI certificate: A corporation won’t have a DTI “Business Name” certificate—that’s for sole proprietors. SEC, not DTI, is the relevant primary registry for corporations.

Step-by-step verification checklist

Get the exact corporate name (punctuation, spelling, “Inc.” / “Corp.”). Variants can yield different entities.
Confirm primary SEC registration
- Look up the corporation on the SEC’s public search/records facility (or request a Certification or plain copy).
- Cross-check registration number, date, status (e.g., active, suspended, revoked), and principal office.
Confirm the secondary license (Certificate of Authority)
- The CA must expressly authorize either Financing Company or Lending Company activities.
- Ensure the CA is issued to the same exact corporate name you were given.
- Verify status (e.g., not revoked/suspended) and that there is no mismatch between CA scope and actual operations.
If it’s an online or app-based lender
- Verify that the operator (corporate entity) holds a valid CA and that any online lending platform/app it uses is properly notified/registered with the SEC in accordance with applicable circulars.
- Each app name shown to consumers should map back to its corporate operator. Beware of “doing business as” names that don’t match the corporate name on the CA.
Check SEC advisories and enforcement actions
- Scan for SEC advisories, cease-and-desist orders, revocations, or penalties against the entity or its related persons.
- A company can be incorporated yet still be flagged for unlawful lending/financing or unfair collection practices.
Match marketing claims to licenses
- If they claim deposit-taking or present themselves like a bank (savings accounts, time deposits), that is BSP-regulated, not SEC. A finance company cannot take deposits from the public.
- If they market investments/securities, they may need additional SEC securities licenses beyond a CA.
Cross-check corporate details
- Ensure principal office address on the documents matches what you’ve been given.
- Confirm the directors and officers in the GIS match the people you’re dealing with.
- Review audited FS to see if scale of operations aligns with claims (e.g., massive loan book but tiny capital is a red flag).
Capture evidence
- Keep screenshots, certified true copies, or official PDFs of records you relied on. Date your notes.

Special points often misunderstood

“Registered with SEC” vs. “licensed to lend/finance.” Incorporation alone is not permission to lend or finance. The CA is the key license.
Name mismatches The CA is issued to a specific corporate name. If you interact with a storefront or app brand, make sure that brand is traceable to the same corporate name with the CA.
Foreign ownership Foreign equity rules can differ between financing and lending companies and may be affected by the latest Negative List and sectoral rules. Treat foreign ownership as a legal diligence item, not an assumption.
Capitalization The law sets minimum paid-in capital thresholds (traditionally higher for financing companies than for lending companies). These are subject to change via statute or SEC circulars. Verify current thresholds when performing diligence.
Branch offices Some SEC rules require notification/approval for branches or OLPs. A valid head-office CA doesn’t automatically validate all branches/apps.

Red flags (treat as high-risk until disproved)

No CA presented; or claims that a mayor’s permit/DTI certificate is “enough.”
Corporate name on documents doesn’t match the brand you’re dealing with.
Revocation/suspension noted in SEC records, or presence in SEC advisories.
Unlawful collection tactics (harassment, public shaming, doxxing).
Promises of guaranteed returns, deposit-like features, or “bank-style” services by a non-bank.
Reluctance to share GIS, CA, or audited financials; or obviously altered documents.

How to validate documents you receive

Check the seals and signatures on SEC certificates; compare fonts and layouts with known SEC templates if you have samples.
Verify issuance dates and control numbers where available.
Corroborate with SEC public records or obtain certified true copies from the SEC.
Use independent contact channels (not the numbers/emails provided by the seller) to query the SEC on license status if something looks off.

What counts as “financing” vs. “lending” (quick guide)

Financing company: Typically engages in financing leases, installment financing, factoring, or similar credit arrangements for individuals or businesses.
Lending company: Grants loans from its own funds to the public, often cash loans/consumer loans.
Both must obtain an SEC CA. The precise classification matters for compliance, reporting, and consumer-protection duties.

Consumers: what to do if things go wrong

Document everything (contracts, receipts, payment proofs, messages, call logs).
File a complaint with the SEC (Enforcement/Investor Protection), especially for unregistered entities or abusive collection.
Escalate privacy abuses (e.g., phonebook scraping, doxxing) to the National Privacy Commission.
If criminal conduct is suspected (e.g., threats, extortion), report to law enforcement (PNP/ACG or NBI).
Consider civil remedies (e.g., nullity, damages) with counsel.

Businesses and counterparties: extra diligence tips

For vendors/partners/funders, require ongoing warranty/covenants: maintenance of valid CA, timely filings (GIS/AFS), and notice of any SEC action.
Include termination/suspension rights tied to license status.
For loan purchasers/investors, confirm the originator’s licensing scope, data-privacy compliance, and collection practices (your liability can be affected).

Practical scripts/templates

Email to a prospective lender/financier (document request)

Dear [Name], As part of our compliance checks, please provide the following:

SEC Certificate of Incorporation (and any amended certificates);

SEC Certificate of Authority (Financing/Lending Company), showing current status;

Latest stamped-received GIS;

Most recent audited financial statements;

Current mayor’s permit and BIR registration;

If you operate an app/online lending platform, the registered app name(s) and the operator entity. Thank you.

Internal verification log (what to record)

Date/time of check
Exact corporate name and SEC Reg. No.
CA number and status (active/suspended/revoked/unknown)
Principal office address (matches?)
Directors/officers (matches?)
Any SEC advisories or orders found
Copies or screenshots retained

FAQs

Q: The company is in SEC’s database, but I don’t see a CA. Is it okay? A: No. Incorporation isn’t enough. Lending/financing needs a valid CA.

Q: The firm says they’re “partnering with” a licensed company. A: The operator dealing with the public must itself be authorized; “borrowing” someone else’s license is not compliant.

Q: Are app store listings proof of SEC authorization? A: No. Always trace the app to its corporate operator and that operator’s CA.

Q: Do branches need separate approvals? A: Often, yes—at minimum notifications. Check the company’s filings; branch proliferation without filings is a red flag.

Bottom line

To verify a finance company in the Philippines, always confirm (1) corporate existence and (2) a current SEC Certificate of Authority for the specific business (financing or lending). Supplement with GIS, AFS, and checks for advisories/enforcement. Treat mismatches, missing CA, or adverse SEC actions as stop signs until resolved.

If you’d like, tell me the exact corporate name and what you’ve been shown, and I’ll walk through the verification checklist with you step-by-step.