How to Check the SEC Registration of a Lending Company in the Philippines (A Comprehensive Legal Guide, updated 29 May 2025)
1. Why SEC Registration Matters
Under Philippine law, no entity may engage in “lending” as a regular business unless it is duly organized as a corporation and expressly licensed by the Securities and Exchange Commission (SEC). Operating without a license is a criminal offense punishable by fine and imprisonment, and any loan contracts issued by an unlicensed lender are void and unenforceable.
Key statutes and rules:
| Source | Key Provision | Practical Effect |
|---|---|---|
| Republic Act 9474 (Lending Company Regulation Act of 2007) | Secs. 3–4 (licensing); Sec. 12 (penalties) | Corporation + SEC Certificate of Authority (CA) required. |
| SEC Memorandum Circular No. 19-2019 | Requires dedicated website/app disclosure, interest-rate ceiling compliance, consumer hotlines. | |
| SEC MC No. 28-2020 | Mandates registration of official contact e-mail and phone numbers; unregistered channels = illegal. | |
| Republic Act 11765 (Financial Products and Services Consumer Protection Act, 2022) | Gives SEC (and BSP, IC, CDA) visitorial & enforcement power; adds fines up to ₱2 million + daily penalties. |
2. What a Legitimate Lending Company Must Hold
- Certificate of Incorporation – shows the firm is a registered corporation.
- Primary License: Certificate of Authority to Operate as a Lending Company (CA) – this is the operative license under RA 9474.
- Secondary Licenses (if applicable): e.g., authority to offer credit via an online lending platform (OLP), registration as a financing company (if combined activities), or BSP registration for foreign-currency loans.
- Annual/periodic filings – General Information Sheet (GIS), Audited FS, and Amended GIS whenever ownership changes.
Tip: The CA has a control number and validity/date of issuance. Ask for a scanned copy or photo; compare details with SEC databases.
3. Step-by-Step: Verifying Registration
| Step | Where / How | What to Look For |
|---|---|---|
1. SEC CRS/Company Registration System (crs.sec.gov.ph) |
Use public “Search Registered Name” tool. Enter exact or partial corporate name. |
Presence of corporate record + SEC Registration Number (e.g., “CS2021-12345”). |
| 2. SEC iView / Express System (fee-based) | Create account → “Document Request” → Choose “Certificate of Authority – Lending Company”. | Downloadable copy of the CA and latest GIS. |
3. SEC “Advisories” page (www.sec.gov.ph/advisories-2025.html) |
Check for the firm’s name in blacklists or revoked/suspended lists. | If listed, operations are illegal or on hold. |
| 4. Request at SEC Main or Extension Offices | File a written request under SEC MC No. 6-2024 (Freedom-of-Information-aligned procedure). | Certified true copies of CA, latest audited FS; small fees apply. |
| 5. Cross-check with DTI Business Name Search (for single-proprietor “micro-lenders” – see Note below) | dti.gov.ph → Business Name Search. | But ⚠️ These cannot legally extend loans unless also incorporated and licensed by SEC; DTI registration alone is not enough. |
| 6. Consumer Hotlines & App Stores | Call posted numbers; search Google Play / App Store listing for the lender’s name. | Under MC 28-2020, official channels must match those filed with SEC. Mismatches = red flag. |
4. Reading the Documents
| Document | Critical Fields | Red Flags |
|---|---|---|
| Certificate of Authority (CA) | CA No.; effectivity & issue dates; remark “Valid unless earlier revoked.” | Expired dates; “Provisional” notation; alterations or poor scans. |
| General Information Sheet (GIS) | Current directors/officers; Filipino ownership ≥ 51 % (RA 9474 §6); primary purpose. | Bearer shareholdings, nominee layering, or unrelated purposes. |
| Audited Financial Statements | Capitalization (≥ ₱1 million paid-in, ₱2.5 m if ≥ 3 branches); loan portfolio. | Negative retained earnings, unusually high “service fees,” related-party loans. |
5. Consequences of Dealing with an Unregistered Lender
| Violation | Penalty (RA 9474, RA 11765, Revised Corp Code) |
|---|---|
| Operating without CA | Fine ₱10 000 – ₱500 000 + 6 mos.–10 yrs. imprisonment |
| Charging interest > 6 % /month on “salary/personal” loans without full cost disclosure | Charges void; money forfeited; administrative fines |
| Harassment / doxxing in collections (Data Privacy Act, RA 10173) | Fine ₱500 000 – ₱5 million per incident; possible closure |
| False advertising / Ponzi-type schemes | Criminal fraud; directors & officers personally liable |
6. Special Situations & 2023-2025 Updates
- Moratorium on New OLPs (SEC MC 10-2021, still in force 2025): No new online lending apps may launch unless granted specific SEC sandbox approval. Legitimate lenders should show an OLP Permit Number in-app.
- Anti-Predatory Lending Threshold (BSP & SEC Joint Circular 1-2023): Total cost of credit must not exceed 15 % of the amount borrowed per month for loans ≤ ₱10 000 and ≤ 4 mos. tenor.
- ESignature & E-KYC Rule (SEC MC 7-2024): Digital onboarding must keep video-KYC records for 5 years and integrate with DICT-verified e-signature providers.
- BDO Foundation “Lending Check” microsite (2025): Public–private partnership allowing SMS query “CHECK
” to 226633. Returns CA status instantly (pilot until Dec 2025).
7. Practical Checklist for Consumers & Counter-Parties
- Ask for the CA first, not the interest rate.
- Validate the CA number via SEC CRS or iView; take screenshots.
- Match corporate name vs. trade/brand name. The CA is issued to the corporate entity; many scams use only a “brand.”
- Get a copy of the loan disclosure statement (required by RA 11765 & BSP-SEC Circular 1-2023).
- Report red flags immediately to ✉ email complaints@sec.gov.ph or 📞 SEC Enforcement and Investor Protection Department hotlines (+632) 8818-6047 / 5322-7696.
8. Compliance Road-Map for Start-Ups Planning to Lend
| Stage | Filing | Timeline | Fees (as of 2025) |
|---|---|---|---|
| Incorporation | Articles + By-laws (Form L-1) | 3–7 working days | ₱2 020 basic, + ₱40/page |
| CA Application | Forms L-3 to L-5, sworn checklist, ₱1 m paid-in bank cert | 15 working days after SEC receives complete docs | ₱10 000 filing fee + ₱1 000 legal research fund |
| Post-Licensing | GIS, FS, CA renewal every 3 yrs., OLP permit | Ongoing | ₱5 000-₱15 000/yr. filings; ₱20 000 OLP permit |
Take-Away
The single most reliable proof of legality is the SEC-issued Certificate of Authority to Operate as a Lending Company. Verifying it now requires only a few minutes online; failure to do so exposes borrowers—and even investors—to void contracts, abusive practices, and criminal liability. Whether you are a consumer, a supplier, or a would-be lending entrepreneur, following the steps above will keep you on the right side of Philippine law in 2025 and beyond.