Full transcript
0:05So let's start. Good morning everyone. Welcome and thank you for joining us today. I hope you're all doing well and ready for an informative and productive session. So allow me to introduce myself. I am Miss Pen and I'll be your MC for our very first webinar for this year. And we're excited to kick things off with a session full of insights and
0:25time for questions. So uh today's webinar will focus on one person corporation and regular comparison highlighting their differences, advantages and requirements to help you decide which structures suits you business needs best. And our speaker for today's webinar is a former banker and public servant who transitioned into
0:47legal practice and is now a litigating lawyer with a strong focus on corporate law, tax law, and labor law. With a unique background in that bridge finance and law, he brings a practical and wellrounded perspective to today's discussion. So, please join me in welcoming attorney Jenara.
1:08Hello, good morning everyone. So good morning everyone. Thank you for joining us in this webinar. Our focus for today is um one person corporation and regular corporation. So this will be a quick discussion kasi basically this is an overview of the OPC or OnePerson corporation and the regular corporation
1:28and which would be best for our businesses. And um may mga ano din dito may comparison tayo. May konting financial perspective dito. This would be very beneficial not only for those wanting to start a business but also those who are in corporate right now. So at least may overview kayo. Meron kayong
1:49idea, general idea on what OPC or a corporation really is. This is um a part of our legal insight series. So all throughout the year, magkakaroon tayo ng we may or we can create and conduct legal insight series on different topics depending on the need ng mga participants. Ito iyung isa doon. So one
2:10person corporation versus regular corporation. Initially before we can start discussing the one person corporation and the regular corporation we have to understand and to know what a corporation is. Okay? Ano ba 'yung corporation? A corporation as defined under the revised corporation code to put it simply a juridical entity. It's
2:31an artificial being. Basically, we treat a corporation as a separate person. Okay? Artificial person siya. Artificial being siya. If we are natural persons tayo, natural persons tayo. A corporation is an artificial person or artificial being. That being said, anong ibig sabihin non? Ibig sabihin non para din siyang ah considered siyang separate
2:53na individual, separate na tao, separate from the uh shareholders, from the members and the light. Ano pang ibig sabihin non? Ibig sabihin a corporation as an artificial person or artificial being has the right of succession. As indicated here, powers, attributes and properties expressly granted or
3:13authorized by law or incidental to its existence. Simple terms, may karapatan siyang magmay-ari ng property. Meron siyang pwede siyang magmana ah pwede siyang magtuloy. Pwede siyang mag-receive ng donation at may legal right din siya. Pwede siyang magsampa ng kaso at makasuhan. That is the simple definition of a corporation. Basically
3:35artificial na tao siya. Generally kung anong pwedeng gawin ng isang natural person maaari ding gawin ng corporation with of course with limitations with exceptions. Merong limitation ng corporation. Ano ang limitation niya? Kailangan yung mga karapatan niya or yung mga pwede niyang gawin or pwede niyang ikilos. Limited ito sa isang
3:56bagay. It's limited on what is indicated on its purpose. Later po madadaanan natin yan. Kung ano lang 'yung nakalagay sa purpose ng corporation, don' lang siya pwedeng mag-engage. For instance, ang nakalagay sa purpose ng corporation, ginawa 'yung corporation para magserve as ng magbenta ng medicine. 'Yun lang
4:19ang pwede niyang gawin. Hindi siya pwedeng magbenta ng inventory ng mga lupa as a regular part of business. Yun yyung limitation ng corporation. Now, there are several classes of corporation to be exact, stock and nonstock. Basically, pag stock, iyung corporation na to nag-i-issue ng shares of stock. Ano po ba iyung shares of stock? Shares
4:39of stock is a proof of ownership. Proof of ownership ng corporation. The other one is um nonstock. Ibig sabihin hindi siya nag-i-issue ng shares. So paano ka magiging makakabilang sa nonstock? Ang tawag po doon membership. Stock corporation usually these are corporations or companies who are built
5:01for profit. stock corporation 'yan. 'Yung non-stock usually not for profit sila. Anong example ng nonstock? Rotary club that's nonstock. Ano pang example? 'Yung mga um mga clubs if they want to formalize for instance the Vespa Club of the Philippines or kung ano mang club ang gustong gawin, pwede nilang
5:22i-incorporate yun at gawing nonstock. Kasi not for profit yun. they are forming a corporation or a company na hindi para kumita para lang for a common purpose. Pwede iyun yun iyung mga non-stock ' ba si Rotary Club hindi naman siya nag ah nagpa-profit eh. Tumutulong siya sa mga nangangailangan generally. So nonstock siya. Sa stock
5:43ang proof of ownership is the shares. Meron siyang parang certificate na binibigay that shows how many shares a person has. One person may own multiple shares. So for instance, bumuo ng corporation si uh si Faith bumili siya ng 10 ah 1,000 shares. Pwede yun. Ibig
6:03sabihin meron siyang 1,000 shares proving her ownership of a corporation. On the other hand, sa nonstock naman, hindi pwedeng um multiple ownership ang isang person. Ang isang tao will equate to one membership. Um later madi-discuss natin kung bakit importante iyung ah percentage of ownership sa corporation.
6:24That being said, both classes of corporations are regulated by the government. Ah generally, this is the Securities and Exchange Commission. SEC ang nagre-regulate dito. Now, what is a One Person corporation naman? One person corporation as the name suggests, isa lang ang shareholder ng corporation. Pwede ba yun? Pwede. Kaya nga may OPC
6:47tayo eh. This was um introduced nung ni-revise yung corporation code last time. Hindi ko lang ma-recall yung exact year pero the last revision ininsert na nila itong one person corporation. So the key characteristics are as I've said may it's a single shareholder. Ah streamedlined governance kasi syempre
7:08isa lang yung nagde-decide. um limited liability pa din siya ang corporation kasi since na it's a again since it's juridical entity or an artificial being separate from the owners um any liability incurred by the corporation is limited only to the corporation's assets. Ito ding OPC ganun din ang
7:28kanyang characteristics. Limited liability pa din siya. mayro'n siyang success session planning through the nominee and uh of course 'yung tax regime niya corporate. This is as compared to of course ang isa sa dalawa actually 'yung malapit na form dito na nalilito 'yung ibang individuals. Um meron kasi tayong tinatawag na soul
7:49proprietorship. Isa lang yung may-ari and this one is one person corporation. Isa lang din yung may-ari. So may similarities don but only to the ownership. uh mas ano 'to mas um this one falls in the category of a corporation pa din. Okay? Isang may-ari lang siya but it enjoys the benefit of a
8:10corporation. However, itong one person corporation has certain limits. Ano yung limitation niya? Hindi lahat ng business types or ay pwedeng mag-form ng one personers corporation. Anong example ng negosyo na hindi pwedeng mag- one person corporation? Banks, financial institutions, ano tawag dito? Insurance.
8:32Pati yung if you are a professional say instance you're a certified public accountant or a lawyer or an engineer, a license engineer, license architect. You want to practice a profession, gusto m magtayo ng company, okay mago-OPC ako. That's not allowed. Iyan iyung industry limits ng OPC. On the other hand, a regular corporation is defined as again
8:55artificial being, but it has multiple owners. At the very least, dalawa which are called shareholders. So 'yun 'yung unang key characteristics niya. Then it has flexible capital in terms of purchasing shares. Scalability meaning if you want to have your business grow, gusto mong lumaki siya, ito yung
9:17advisable. Pwede siya sa regular corporation. It has a formal form of government kasi nga it needs a board of directors. It needs um complete set of corporate officers and the like it has a well it has a greater investor credibility as compared to OPC. currently ah mas fin-favor ang regular
9:37corporation pagdating sa investments from the point of view 'yan ng uh certain investors and then it has strict compliance or regulatory compliance and uh corporate compliance side by side natin sila key difference as mentioned ownership that's very basic straightforward isang tao lang ang may-ari ng OPC one single shareholder it
10:01the single shareholder of the NPC uh the OPC must always be a natural person or a trust. I know some of you might think, "Ah, pwede namang ang isang person pwedeng maging shareholder. Bakit hindi pwedeng maging shareholder sa OPC ang isang corporation? Kasi ang corporation is treated as an artificial person or artificial being. Hindi siya pwedeng
10:23maging single stock holder or shareholder sa OPC kasi prohibited siya by law." Um, the logic behind that is iniiwasan 'yung mga 'yung mga dubious uh dummy companies 'yung mga gann. That's that's for safety of the public din naman kasi. Then sa regular corporation as mentioned typically shareholders niya, shareholders niya ay at least two
10:44but it can go up to an infinite amount. Nakalagay dito 2 to five initially. Ibig sabihin niyan yyung incorporators lang. But the shareholders um it it can go as many as it as possible. so long as kaya siyang ma-accommodate. If you would see ang example ng regular corporation, 'yung mga San Miguel Corporation, BPI,
11:05Jollibee Holdings, 'yun nag-o-offer sila na shares sa public. So 'yun ang daming may-ari non. In terms of governance naman, kung paano patakbuhin yung company, yyung corporation. Sa OPC, since na isa lang ang may-ari, isa lang ang decision making, therefore, it is streamline. Okay? Self-manage siya. Kung anong gusto mong gawin, kung anong gusto
11:25mong i-implement, mai-implement mo yun as a single shareholder. Ikaw yung boss, ikaw na lahat. On the other hand, sa regular corporation, it needs formal structure. A regular corporation is governed by a board of directors. Okay? Yung board of directors na to, these are also shareholders. For instance, I'll give you an example. Si Josephine, si
11:47Angelo, si Roxan, si Mika, si Faith and si Michelle. Bumuo sila ng corporation. the six of them then tatlo sa kanila ay directors three of them are directors the three will govern generally they will govern the uh activities of the corporation so kailangan ng board approval kailangan ng uh board resolution eh paano kung hindi
12:09nagkakasundo yung tatlong board sa decision making so tatagal siya kailangan pang pagmeitingan, kailangan pang pag-usap etc. Unlike the one person corporation kung ano iyung desisyon ng isang shareholder that's it. So in terms of governance medyo mas complex mas may hierarchy dito sa regular corporation also corporate officers are required as
12:31well as other forms of officers are required sa regular corporation. Capital racing naman the third item uh since na ang OnePerson corporation is uh composed only of a single shareholder that means sa kanya lang nakasalalay generally sa kanya lang nakasalalay ang pag-raise ng capital. On the other hand regular
12:52corporation may raise its capital by selling shares of stock. Okay? Pag binenta nila yung shares of stock nila sa ibang tao for a price of course tinatawag doon ay power value. Usually value per share. So sa isang share, halimbawa sa isang share binenta mo ng Php1,000 isang share. So pag bumili ng ah certain number of shares pwede kang
13:12maka-raise ng 1 million, 2 million, 5 million depending doun sa share na ibebenta mo. Meaning pwede kang mag-raise ng capital through other people unlike the one person corporation. Next naman, in terms of liability, both of these are um protected. Liabilities are limited only to the corporate assets. Anong ibig
13:33sabihin non? Hindi siya magsi-spill over doun sa shareholders. That's one of the the perks or the benefits of uh establishing a corporation kasi limited yung liability mo. Unlike a soul proprietorship, pagka may liability na hindi nabayaran si business mo na soul prop, it can spill over dun sa personal
13:54assets n nung soul propritor. For continuity naman na OPC, generally it's initially it's dependent on the nominee and the alternative nominee. So pag OPC ka kasi kailangan mong mag-designate ng nominee and alternate nominee in case na maging incapacitated. Huwag naman sana iyung shareholder, iyung single shareholder. Incapacity could be in the
14:15form of temporary or permanent. So pag temporary, temporary lang hindi mo magagampanan yyung duties mo dahil incapacitated ka or permanent which either nagulay na or brain dead na siya or actual death of the single shareholder. Doun papasok yung nominee and alternate nominee. Sila yung papalit. Yun yung line of
14:36continuity nitong OPC. On the other hand, a regular corporation generally perpetual siya kasi ang life ng corporation ngayon is perpetual existence na. Kapagka nawala yung isang shareholder namatay, titigil ba yyung corporation? Of course not. There are other shareholders. So sila lang yung magtutuloy nung corporation unlike the
14:56OPC na lilipat yung ownership or yung management doun sa nominee and or alternate nominee pala. In terms of compliance, OPC is quite simple. Wala ng board meetings, walang secretary certificate and the like generally ha generally. But pwede naman magkaroon pala ng secretary certificate but it's more simpler yung pag-comply sa
15:17regulatory corporate compliance and regulatory compliance sa OPC. as compared sa regular corporations na kailangan ng board minutes of the meeting, magco-call pa ng meeting. Kasi nga as mentioned, a regular corporation is governed by the board. Hindi pwedeng mag-decide ang isang tao diyan. Kailangan pagmitingan ng board yan. Kailangan i-approve ng board yan. So
15:38lahat yun nakadependent sa multiple number of people. So mas ah mas stringent siya, mas heavier or mas technical if I may say yung requirement ni regular corporation. In terms of taxation, parehas silang corporate ang tax regime nila kasi parehas silang corporation. That's it. Next is um ownership and management structure. Ito
16:00as mentioned, ito naman ang focus nito more on um you as a manager or you as a corporate employee or corporate manager. Sa one person corporation since na single ownership it is streamlined. Lahat ng decision sa kanya agile ang management and um fast ang execution. In terms of decision making, mayro'ong
16:21nominee succession again mayroong nominee succession upon the incapacity of the one person corporation. On the other hand, the traditional corporation it's more of um it's more formal in a sense that it is comprised of several shareholders. There's a uh there must be an established board of directors. May uh mayro'n ding mga usually if
16:43malalaking mga corporation like banks for instance ah yang Metroank ah BPI, DB meron yangangyang mga board governance, risk governance, ah risk committee, um audit committee, etc. Mas formal sila. Yan yung um governance committees na kailangan din i-approve ng board. formal
17:04ang decision niya kasi centralized siya sa board. Board ang nagde-decide sa at least for operational and strategic matters pagdating sa traditional or regular corporation and perpetual existence. Continuous lang siya. Next is we go to pros and cons. Advantages and disadvantages. Of course ano naman iyan eh um very relative ito sa point of view
17:27natin but some of this may be treated as advantage applicable to both or disadvantage applicable to both. Now in OPC ang generally ang advantage niya again may limited liability just like the regular corporation may total control and then simplified simplified governance. That's that's um for me
17:48these are the advantages of an OPC. Kung tatanungin ako itong tatlo yun. On the other hand, a regular corporation anong advantage niya na wala sa OPC? O siya scalability. This means if you want to go big, kung gusto mong palakihin yung negosyo mo kasi laki ng Metroank, kasi laki ng ah
18:10ano tawag dito ng mga multinational companies, pwede 'yun. Okay? Pwede 'yun. scalability capital. Pwede kang mag maka-gain ng bigger capital. Generally talaga mas magiging stable kapagka regular corporation if meron kang board in place. Kasi hindi lang isang mind yung nag-iisip and nagde-decide 'di ba?
18:32Madami kayo. Multiple great unified ideas are better than single great idea. That's my personal opinion. Credibility. Itong credibility na 'to, what I mean here is from the point of view of investors and bank. Kasi when I was with a bank, when we check for loan applications, for instance, mag-a-apply sa amin yung yung isang applicant.
18:53Unang-unang titignan, sino ba 'yan? Tao ba or company? Pag company ano ba yan? Soul proprietorship, partnership, corporation. Of course, from the perspective of the bank or an investor, if a regular corporation borrows from them as compared to an OPC, mas uh credible ang regular corporation. Bakit? Kasi it's managed by several individual.
19:15Even if mawala yung isang shareholder, hindi siya magshe-shake, mas stable yyung structure niya. This is true especially if you want to procure a credit line sa mga banks. Kasi um by ito I'm I'm talking by experience pag ina-assess namin before yung mga corporate loans, isa sa some of my
19:35officers din or some of the officers assessing tinitignan nila bukod sa credit scoring minsan ah tinitignan din nila yung management na naghahawak the board. Investors also look at the board of directors. Kasi bakit? Mag-i-invest kami ng pera eh. Is our money in good hands? Maglalabas kami ng pera. Is our money in good hands? Between OPC and
19:57regular Corp, of course, ang point of view talaga masured and mas well managed ang regular corporation from the perspective of a investor or a bank. And lastly, flexibility. Ang ibig kong sabihin sa flexibility dito ay mas mabilis mag-issue ng shares sa regular corporation. Ah mas mabilis mag-change
20:19ng capital structure sa regular corporation. Disadvantages naman for OPC. Ang disadvantage as mentioned limitation sa equity or sa capital kasi naka-limit lang siya sa isang tao. Succession risk when it comes to the single shareholder being incapacitated. Kasi 'pag naging incapacitated siya, hindi automatically mapupunta 'yung corporation don'n sa tagapagmana niya.
20:41Mapupunta ito or mama-manage ito ng nominee niya. Pagka hindi kayang i-manage ng nominee, sabihin natin nawood namatay din 'yung nominee niya. Bababa siya sa alternate nominee niya. Then tsaka pa lang aayusin, papatakbuhin niya muna 'yun and then tsaka pa lang aayusin ng corporate secretary etc. Yung pag-transfer dun sa successor ni single
21:02shareholder. But during that that middle time before malipat talaga mamana iyung OPC madaming pwedeng mangyari sa OPC sa tenure ng nominee or alternate nominee. So yun iyung succession risk. And third market perception kasi kahit ngayon um again kahit sa banks ah and sa investors
21:23medyo parang may ano pa rin sila. Hindi naman may hesitation, may reservations yung iba when it comes to OPC. But then again, um siguro dahil bago pa lang siya. Ah disadvantage of regular corporation naman compliance burden kasi marami siyang kailangang i-comply. Board meeting, board reso, corpsec and other legalities. Sa SEC madami din siyang
21:43compliance. Slower decision making dahil nga as I've mentioned hindi lang isang tao ang magde-decide dito. Bard ang magde-decide. Eh kung nagka kung kung 15 yung board of directors niyo, nagco-conflict silang lahat. paano nyo mare-resolve 'yung isang issue or paano kayo magde-decide. So that's the slower decision making and complexity. Um complexity meaning there might be
22:04instances na magkaroon ng disputes sa shareholders or deadlock sa decision making. Next in terms of legal and uh compliance requirements, OPC, madali lang siyang i-form. Basically, madali lang well, relatively straight forward ba ang formation ng ng corporation ng OPC. Kailangan lang niyang mag-file sa
22:25SEC. Ang kailangan lang niya ay articles of incorporation specifying the name of the single shareholder, alternate ah nominee, alternate nominee and um treasurer if needed. Pero dito lang sa nominee, alternate nominee tsaka single shareholder. Ion wala siyang kailangan na buy loss kasi wala silang susundin na buy loss kasi mag-isa lang siya. Kailangan namang i-meeting niya yung
22:45sarili niya may sarili pa siyang by loss. That would be proposterous. Okay. So wala siyang by loss in terms of uh annual reporting, kailangan niya lang mag-file ng AFS sa SEC. There are other filing sa SEC like um mga reports, disclaimers ng ano ng single shareholders pagka may transaction siya
23:06doun sa individual transaction between the OPC and the person owning the OPC yon pwede yun pwedeng kailangan ng ng ano yan ng disclaimer reports and other reports but um very straightforward siya kasi ano lang siya AFS lang siya generally as compared to the regular corporation. Records keeping naman ng OPC, kailangan mo lang as a single
23:28shareholder, kailangan niya lang mag-maintain ng minutes book. So doun sa minutes book, doun niya na ilalagay lahat ng resolution niya, disclaimers niya, decisions na ginawa niya. Isusulat lang niya yun doun. Yun lang yung kailangan niyang i-keep. On the other hand, ang regular corporation mas complex ang formation niya kasi kailangan mong mag-designate ng mga
23:50incorporators na more than two or more shareholders. Um, kailangan kailangan din yan ng articles. Um, but more importantly kailangan din yan ng buys kasi yung by loss na yun yun yung susundin ng lahat ng shareholders ng corporation. mas rigid yyung governance niya as mentioned earlier kasi nga merong annual meeting
24:10required merong special meetings na kailangan and other it comes with with those meetings, those um acts of course it comes with it the need to comply with the requirements of the law such as filing reports. Ah ayan strict reporting. Kailangan niya ng AFS at the very least AFS and GIS. Ano pong
24:31mga ano po yung GIS? General information sheet. Ano po 'yung AFS? Annual financial statement. Kailangan pong i-file ito both sa SEC. Pag hindi kayo naka-file, penalty. Pag late kayo nag-file, penalty. Pag may mali doun sa GIS niyo, penalty. So napakadaming penalty. Okay? Um strict yung ah
24:51compliance requirement niya. And of course si uh what do you call this? Si regular corporation kailangan niya ng detailed records. More detailed than the one person corporation. si OPC. Okay, magme-maintain lang ako ng minutes book. That's okay. That's good enough. Na-comply mo na yung sinasabi requirement ng batas. However, sa
25:12regular corporation, it doesn't uh necessarily end with one book. Kailangan mong mag-maintain ng first stock and transfer book. Kung stock corporation ka, which what we are focusing right now. Nakalagay sa stock and transfer book, sino yung mga may share, kanino nalipat yung share, movements ng share, bentahan ng share. Nandun 'yun. Kailangan mong mag-maintain ng records
25:34ng board resolutions. Minutes of the meetings of the board, minutes of the meetings of the shareholders, shareholders resolution and everything else in between. So madami siyang madami siyang mas detailed yung records management and filing na kailangan pagdating sa regular corporation. Ito rin um for some od ah hindi naman for
25:55some odd reason. For this reason mased, mas regulated kaya mas tiwala 'yung banks and 'yung investors sa regular corporation in terms of 'yan din 'yung ano kung ano 'yung kina-regigid nito or 'yung complexities ng regular corporation. 'Yan yung nagiging basis ng investors and banks for assurance na yyung money nila is
26:17relatively safe pag naglabas sila. Now, ano ba yung para sa akin? Ano ba yung para sa kasi I there might be some of you who want to establish their own business soon. Merong iba sa inyo na may business na talaga. How would I choose kung anong magfi-fit sa akin? Ang sagot diyan, as every other uh law student,
26:36law professor or lawyer says, it depends. Depends on what? Depends on your goal, on your targets. It should align with your um business goals or yung mga gusto mong yung nakikinita mo na gusto mong maging in the future doon sa business mo. For instance, um currently okay ka ba na for for small
26:57relatively small to medium venture ka lang pwede kang mag-OPC. Bakit? Kasi ako lang may-ari nito. I make all the decisions. Gusto ko ayoko ng conflict. Gusto ko ako'y masusunod. OPC ka. Mabilis mag-decide. Streamlined operations. And may medyo may fund ka naman. Okay. Kaya mo naman since na small MSME or small to medium lang 'yung
27:20ano mo 'yung type of business mo, kaya mong i-fund yan. I would recommend OPC. recommend OPC. If nakikita mo na no um 'yung business ko this will this will grow this will uh ang target ko ay uh mag uh maging national then eventually maging international then I would recommend regular corporation for its um
27:41capacity to raise uh capital fundraising um team equity plan uh decision making which is um composed of several heads more than yourself and of course market credibility in terms of partnerships, investments and alik. Okay? Pwede rin kayong as mentioned here, pag malaki na kayo, pwede kayong mag-public listing.
28:03Ibig sabihin non yung ah mag-o-o-offer kayo sa public ng inyong shares. Okay? Like Jollibee, BPI, Metroank, yung mga yon nag-o-offer sila sa publicly listed company sila. Yun mga regular corporation yun. Pagka mag magiging gusto mong maging publicly listed, hindi ka pwedeng mag OPC. Now to conclude everything that we have discussed, both
28:25OPC and regular corporation has um universal protection sa liabilities. Kung may liability ka na na-incur due to the operation of your business, naka-OPC ka, nakarregular corp ka, it shall be limited to the um assets of the corporation. hindi siya mags-spill over sa personal assets mo. Strategic
28:45tradeoffs depending on which you choose, OPC or regular, um may mga may mga kailangan kang i-give up. Gusto mo ng autonomy, gusto mo ng streamline process, OPC. Gusto mo ng mabilis, OPC. However, solo ka doon ah unlike sa traditional or regular corporation. Another is gusto mo ng kaya mo ng own
29:06capital mo. Gusto mo ng independence at ikaw lang opis ka. Pero mahihirapan kang when the time comes na kailangan mo ng malaking kapital, maaring mahirapan kang mag-raise ng fund kasi hindi ka pwedeng mag-offer ng shares sa ibang tao. On the other hand, pag mag-regular corp ka, of course mas complex siya, mas matagal iyung decision making and the like
29:25jurisdiction dependent naman, um hindi lahat, ito pa isa ko na-mention kanina, hindi lahat ng companies ay lahat ng companies, lahat ng countries ay nire-recognize ang OPC but ideally iyung regular corporation is recognized to um sa mga iba-ibang bansa. Okay? Depende sa jurisdiction. Action
29:46plan for you for what to do. uh validate your requirements, map your growth strategy, and then prepare documentation. Kapag nakapili ka na kung OPC or regular Corp, ah ito na yung gagawin mo. Check mo yung requirements. Um tignan mo yung mag mag-strategize ka na growth strategy and prepare documentation. If you find this complex
30:06or if you find this tedious, um I suggest that you seek professional help. If you need professional guidance, of course, um, MCLM Global is here to assist you or anyone um with their needs. So, if you want advisory, nandiyan kami ah nandiyan si MCLM Global. If you want uh to form the corporation itself, of course, um
30:27mag-reach out lang kayo kay MCLM Global Services. Alright. So that concludes my webinar discussion or short webinar discussion for today. Short lang naman siya, 10 slides lang siya and less than an hour natapos na tayo. So relatively straightforward lang naman to. Overview lang naman siya. Other complexities uh
30:48sa ibang topic siguro siya pwedeng i-discuss sa tax, compliance and the likes. >> Ayun. Thank you attorney for your thoughtful insights. Um we hope everyone gained useful knowledge for this discussion. May question pa actually ako attorney meron po eh. Ah may possible situation ba na yung owner ng OPC ay
31:10magiging liable up to his personal assets po? >> Oh that's that's a good question. Actually, yes. Yes, may possibility yon. As I've mentioned, as a general rule, separate yung liability ng corporation doun sa personal ng single shareholder. However, there are instances na pwedeng
31:30maging liable personally yyung single shareholder. When does that happen? Kapagka hindi niya na-prove na yung transactions niya and yung ownership niya as a person and as an OPC are different. Basically para siyang ano, pini-pierce niya yyung veil ng corporate doctrine. So ibig sabihin sa mata ng
31:51batas, um, sa mata ng batas iisa lang kayo eh. Ginagamit mo lang yung OPC to circumvent the law or para par para par para for fraud parang ganon. when that happens or 'ag 'yun 'yung napatunayan ni SEC or ng court, magiging liable 'yung single shareholder sa liability ng OPC
32:11kasi mawawala na 'yung separate and distinct personality ni OPC and um si single shareholder. Magiging iisa na lang sila. Mayon tayong questions. Sapat na po ba ang bank deposit slip bilang patuloy ng contribution para sa pagtaas ng paid of capital na ire-reflect muna sa AFS? And mayroon po bang ibang
32:31document or requirement ang SEC bukod sa AFS para sa ganitong increase? For that, pagincrease ng paid up capital. Okay. 'Pag mag-i-increase ka ng paid up capital, kailangan mong i-reflect ito sa GIS or sa general information slit ah general information sheet. Um,
32:52requirement ito para updated 'yung records ni SEC at ma-view ng public yung accurate records ng regular corporation. I'm assuming ang pinag-uusapan natin dito or ang question mo Sena is for uh corporation kasi siya lang naman 'yung pwedeng siya lang 'yung may paid up capital eh. Ah tama ba? Pagtaas ng paid
33:14up reflect mo na sa EFS. Actually sa GIS kailangan i-file mo siya sa GIS. Not necessarily agad-agad. Dapat kasi ano eh nire-record din actually sa stock and transfer book yun eh. kung magkano na yung nabayaran doun sa sa capital sa shares 'di ba? Kasi pagka nag-increase yung paid up capital ibig sabihin either nag-purchase
33:37ng bagong shares na binayaran na or binayaran yung remaining subscribed shares na hindi pa nababayaran. Kung tama yung um yung ah ano ko recollection ko diyan. Ang effect non tataas yung paid up capital. Kailangan i-reflect mo siya sa GIS. Tama ba? Nasagot ko ba ng tama 'yung 'yun ba 'yung 'yung ano mo 'yung gusto mong i-point out? Oo. 'Yun
33:57'yun 'yung kailangan mong doun mo siya kailangan i-reflect for may second question siya Pin no para sa >> for her second question Attorney. Para sa isang OPC na walang GIS, tama po ba na EFS update muna ang kailangan bago mag-request ng certification mula lang sa OPC. Ah yung capital structure mo ay
34:18uh since nasao lang yun maganda kasi makita niyo yung ano noun eh. Wala kasi akong sample ng articles of incorporation pero yes usually sa AFS siya magre-reflect and then ino-notify mo lang si SEC. gann siya as far as I can recall. Um, Sena, I hope I hope nasagot ko 'yung 'yung question mo.
34:40>> Mayro'n tayong another question from Miss Rowa. For OPC, is foreigner allowed po and is practice of profession allowed in creating regular corporation? Si for for number one, wala naman siyang wala naman siyang ah sinabing limitations in terms of nationality for OPC. So ang sabi lang ng batas, kailangan lang daw
35:02ay natural person ka. Okay? So since na kailangan lang natural person ka, um, wala siyang wala siyang limitation sa ano tawag dito sa nationality. However, however, syempre merong exception diyan. Merong certain industries na may requirement sa ano tawag dito sa
35:24citizenship. For instance, um ano ba tawag dito? Manufacturing ng firearms and explosives. So um if I recall it correctly, kailangan ay 100% Filipino own siya. So kung kung ganun 'yon ay hindi pwedeng mag OPC ang foreigner on that certain industry. Pero
35:46as in terms of other industries for example retail uh construction and the life wala naman siyang ano wala naman siyang um citizenship requirement or restrictions. 'Yung mga ano lang ang nagre-restrict lang sa citizenship pagdating sa corporation for both regular and OPC ay um yung negative list
36:08na nilalabas ng government natin kasi nakalagay doun kung ano yung citizenship requirement for a certain industry. 50% ba? 100% ba? Syempre pag OPC ka ikaw 'yung 100%. So pag foreigner ka wala na agad Filipino ownership donqualified ka na agad for on certain industries. So ganon. For ah your second question naman, ROA, ah practice of profession is
36:30not allowed sa corporation in any form of corporation. May it be OPC or regular corporation. So pag practice of corporation, ay sorry practice of profession pala. Hindi ka dapat mag-corporation. Dapat ay uh either partnership ka or magsolo practice ka. So gann siya. So that's all. See you on
36:51uh at our upcoming events. Stay safe and have a great day. Thank you, Aney