corporation

 

Corporations are juridical persons established under the Corporation Code and regulated by the Securities and Exchange Commission with a personality separate and distinct from that of its stockholders. The liability of the shareholders of a corporation is limited to the amount of their share capital. It consists of at least five (5) to fifteen (15) incorporators each of whom must hold at least one share and must be registered with the Securities and Exchange Commission (SEC). Minimum paid up capital: five thousand pesos ( 5,000.00).

A corporation can either be stock or non-stock company regardless of nationality. Such company, if 60% Filipino-40% foreign-owned, is considered a Filipino corporation; If more than 40% foreign-owned, it is considered a foreign-owned corporation.

There are two further types of corporations:

  • Stock Corporation - A type of corporation with capital stock divided into shares and authorized to distribute to the holders of such shares dividends or allotments of the surplus profits on the basis of the shares held.
  • Non-Stock Corporation - A type of corporation organized principally for public purposes such as charitable, educational, cultural or similar purposes and does not issue shares of stock to its members.

Requirements for Domestic Corporations

Listed below are the requirements for domestic corporations.

For Domestic Stock Corporations, following are the required shares in terms of ownership should it be paid up in cash:

  • 100% Filipino equity
  • 60% Filipino - 40% Foreign Equity
  • More than 40% Foreign Equity
  • Export-oriented corporaiton under PEZA and simiar zones

Types of Properties for Capital Contribution:

  • Real estate
  • Motor Vehicles, machinery, and equipment
  • Shares of stock
  • Inventories and furniture

Types of Domestic Non-Stock Corporations:

  1. Foundations, associations, and other non-stock organizations
  2. Religious corporations

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