The Revised Corporation Code of the Philippines, which was enacted in 2018, made several changes to the previous corporation code, some of the most significant changes include:
- Increase in minimum authorized capital: The minimum authorized capital for stock corporations was increased from P5,000 to P50,000 for domestic corporations and from US$200 to US$2,000 for foreign corporations.
- Simplification of incorporation process: The incorporation process has been simplified by allowing a single person to act as incorporator for a corporation and the requirement of having at least five incorporators has been removed.
- One Person Corporation (OPC) : It allows a single individual to form a corporation, this type of corporation is similar to sole proprietorship and it’s intended for small-scale businesses.
- Corporate Rehabilitation: The Code introduced a new procedure for corporate rehabilitation, which is intended to help financially distressed companies recover and continue operations.
- Corporate Governance: The Code has introduced new provisions for corporate governance, including the creation of an independent director position and the requirement for a risk management committee.
- Merger and Consolidation: The Code has simplified the merger and consolidation process, making it easier for companies to combine or restructure.
- Foreign Investment: The Code has made it easier for foreign investors to invest in Philippine corporations by eliminating the need for a foreign investment committee and simplifying the process for securing licenses and permits.
- Electronic Transactions: The Code has recognized the use of electronic transactions and electronic signatures, which will make it easier to conduct business and comply with regulatory requirements.
These are some of the main changes under the Revised Corporation Code of the Philippines, however, it’s important to consult with a legal professional for the specific details and how the changes might affect your business
