ENTITIES with only one stockholder may start applying for company registration starting May 6, after the issuance of guidelines by the Securities and Exchange Commission (SEC).
The SEC en banc approved on April 25 Memorandum Circular No. 7, which contains the Guidelines for the Establishment of a One Person Corporation (OPC).
The guidelines will allow a natural person, trust, or estate to form an OPC, so long as the incorporator is a natural person of legal age.
Foreign natural persons may also establish an OPC, provided that they will still follow the constitutional and statutory restrictions on foreign participation in certain investment areas or activities.
SEC Chairperson Emilio B. Aquino said the establishment of an OPC will make doing business in the country easier.
“An OPC offers the agility and complete dominion of a sole proprietorship and the limited liability of a corporation. We encourage everyone to take advantage of this provision to pursue their entrepreneurial aspirations,” Mr. Aquino said in a statement.
However, banks, nonbank financial institutions, quasi-banks, pre-need, trust, and insurance companies, publicly listed firms, and non-chartered government-owned and/or controlled corporations are not allowed to incorporate as an OPC.
A natural person licensed to exercise a profession is also prohibited to organize as an OPC if the purpose is to exercise such profession, unless special laws allow it.
Applicants may submit their documents manually to the SEC Company Registration and Monitoring Department at the SEC head office at the Philippine International Convention Center, Pasay City. — Arra B. Francia
