Setting up a Business in the Philippines

Overview by Globlatrade.net:

Legal Forms of Companies

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability Registration Fees
The Corporation is a joint-stock company.
 
 

No minimum. 25% must be subscribed.
25% must be released at the incorporation.
Minimum 5 shareholders, maximum 15. A Majority of shareholders have to be Philippine residents. No maximum after the constitution.
 
 
Liability is limited to the amount contributed.
0.1% of the capital amount, with a minimum of PHP 200 and a maximum of PHP 100 000, that is to say USD 3,850 .
A Closed Corporation is a closed joint-stock company
 
 

No minimum. 25% must be subscribed.
25% must be released at the constitution.
Maximum 20
 
 
Liability is limited to the amount contributed.
0.1% of the capital amount, with a minimum of PHP 200 and a maximum of PHP 100 000, that is to say USD 3,850 .
Sole Partnership is a single-member company
 
 
No minimum capital.
Only 1 person
 
 
Liability is unlimited.
About PHP 110.
General Partnership
 
 
No minimum capital.
Minimum 2 partners
 
 
Liability is unlimited.
About PHP 110.
Limited Partnership
 
 
No minimum capital.
Minimum 2 partners
 
 
Liability is limited to the amount contributed.
About PHP 110.
 
 

Business Setup Procedures

Administrative Formalities
The procedure of registration of a company with foreign participation varies according to its legal form. A single-member company should be registered at the BTRCP (Bureau of Trade Regulation and Consumer Protection) linked with the DTI (Department of Trade and Industry). A Public Limited Company or a Limited Liability Company should be registered at the SEC (Securities and Exchanges Commission).
The Competent Organization
The Securities and Exchange Commission (SEC).
Time Necessary for Registration
It takes about 33 days and 8 procedures to register a company.
 

Recovery Procedures

Principle
The recovery of companies in difficulty allows them to maintain their activities and return to a viable situation. The Securities Regulation Code specifies that regular tribunals are competent.
Minimum Debt-to-Capital Ratio Triggering Liquidation
No legal minimum.
Bankruptcy Laws
Legislation on bankruptcy includes the Insolvency Law and many regulations and decrees, which make up an out of date and sometimes incoherent framework.
Reorganization and Rehabilitation Laws
The Rules on Corporate Rehabilitation define the conditions for restructuring.

Any Comments About This Content? Report It to Us.

Read more See less

No content has been posted to this folder yet.
Be the first to feature your expertise related to Setting up a Business in the Philippines!

  • Post any content you may have that features your expertise, such as a text article with business tips, presentation, market report, etc
  • By sharing your knowledge you gain more visibility for your profile not only on GlobalTrade.net but across the web

Post your content now by simply clicking on the button below.

Check these folders already populated with content posted by other users:

Click here to find out more about key benefits and instructions for contributing to the site.

POST CONTENT

Post any content you may have that features your expertise and offers valuable information to the international trade community.

The more informative content you post the more visible your will be, as your valuable content will link directly to your profile.

Check these sample pages for illustration: