3 December, 2019
Pursuant to the enactment of Republic Act No. 11232, otherwise known as the Revised Corporation Code, the Securities and Exchange Commission (“SEC”) adopted SEC Memorandum Circular No. 16 dated 30 July 2019 (“Guidelines”) in order to expound the qualifications of persons, whether natural or juridical, seeking to form and organise a domestic corporation in the Philippines.
Implications for business in the Philippines
Unlike in the old Corporation Code where only natural persons can be incorporators, the Revised Corporation Code now allows natural persons, SEC-registered partnerships,[1] SEC-registered domestic corporations or association, foreign corporations, or a combination of any of the above, to establish a corporation.
The Guidelines aim to promote the efficient and proper implementation of this new provision by spelling out the qualification, documentary requirements, and other special rules that apply to at least two, but not more than 15, incorporators.[2] In turn, this would encourage more persons and entities to join the Philippine market, thereby creating a more robust business climate.
The full article can be found from Zicolaw's site here.
For more information, please contact:
Felix T Sy, Partner, Insights Abodago Philippines (a member of ZICO Law)
felix.sy@insights-law.com
