Part 1: What is a Corporation?
Thinking of starting a business in the Philippines?
One way to do this is to organize and register a Philippine corporation.
What is a corporation?
Under Philippine law, a corporation is an artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence (Section 2, Corporation Code of the Philippines)
Corporations may be classified as either stock or non-stock corporations. Stock corporations have capital stock divided into shares of stock (called the “authorized capital stock”) which may be issued to the stockholders. Stock corporations are allowed to distribute to the stockholders dividends on the basis of the amount of shares of stock owned by them. All other corporations are non-stock corporations. (Section 3)
A stock corporation is the appropriate type of corporation for the purpose of operating a business. In general, corporations organized in accordance with Philippine law are registered with the Philippine Securities and Exchange Commission (SEC).
A corporation has a life of 50 years from the date of registration with the SEC, unless sooner dissolved or unless said period is extended. (Section 11)
The next blog posts will talk about the requirements for, steps in, and alternatives to organizing and registering a stock corporation
Originally published at foundersguide.com
