We are a top accounting firm here in the Philippines that offers top quality results. Inquire Online Now
Sison Corillo Parone & Co.

SISON CORILLO PARONE & Co.

CPA's and Management Consultant

One of the Top Philippine Accounting Firm.

Contact Information

Phone No.: 687-6649
Email: nusison2@scp-ph.com
Address: 2005B 20th Fl. Tektite Building P.S.E. Centre Exchange Road Ortigas, Pasig City

Conducting Business in the Philippines: Understanding the Concept of a Corporation

When starting business in the Philippines it is advisable that you create a corporation. However, what is a corporation and why it is preferable to have one in doing business in the country is often the big question. Thus, I am giving here corporation basics and its advantages.

Definition

Section 2 of the Corporation Code defines corporation as 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.

Characteristics

Creating corporation in conducting business in the Philippines is preferable because corporation has the following characteristics, it:

  1. is an artificial person having juridical personality distinct and separate from the persons comprising the corporation. Thus, owners cannot be made liable against third persons for obligations incurred by the corporation. Hence, when conducting business in the Philippines, it is advisable that a corporation should be created.
  2. is created by operation of law. Mere agreement among the incorporators is not enough to form a corporation. Hence, when you start doing business in the Philippines by creating a corporation, it is necessary that you comply with all the requisites prescribed by law.
  3. has successional rights. Its existence cannot be dissolved simply because of changes in the composition of its members. Thereby ensuring the continued business in the Philippines.
  4. has powers directly allowed by the law creating the corporation Therefore, conducting business in the Philippines more manageable and accessible.

Advantages

Section 2 of the Corporation Code defines corporation as 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.

  • Separate juridical personality - Corporation has separate personality from its shareholders. They cannot be made liable for obligations incurred by the corporation. Thus, doing business in the Philippines by creating a corporation is way better.

  • Limited liability - shareholders cannot be made liable beyond to their contribution.
  • Transferability of shares - shares are personal properties of each stockholder. He has control over such property and can dispose such shares anytime. Thereby conducting business in the Philippines is made easy.
  • Centralized Management - management of a corporation is exercised by the board of directors. All corporate powers shall emanate from the board. Hence, when conducting business in the Philippines, it is highly recommended that you establish a corporation.
Directory
Share to Facebook
Online Inquiry
Contact SCP & Co. Philippine Accounting Firm
Name *
Company:
Telephone No.: *
Email: *
Select Services *
Message *
Sison Corillo Parone & Co. Logo
Copyright 2013 Sison Corillo Parone & Co. Philippines All rights reserved.

Sison Corillo Parone & Co. Philippines Terms and conditions, about, contact information, trainings, and services options subject to change without notice.