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Q:
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What is Domestic Corporation (DC) in Philippines?
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A:
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DC is a business entity under Philippines Law. It is very similar to a limited liability company which the liability of the shareholders is limited to amounts remaining unpaid on shares.
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Q:
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What are the types of DC in Philippines?
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A:
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According to Foreign Investments Act of 1991, domestic corporations can be classified as below:
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1.
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Domestic Corporation with 0% Foreign Equity;
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2.
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Domestic Corporation with 0.01% to 40% Foreign Equity; and
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3.
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Foreign-Owned Domestic Corporation with more than 40% Foreign Equity.
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Q:
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Are there restrictions on the Foreign-Owned Domestic Corporation in Philippines?
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A:
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Yes, the Foreign Investment Negative List (FINL) set out the activities which foreign stockholders are restricted to participate.
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Q:
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What are the minimum capital requirements to set up a Foreign-Owned Domestic Corporation in Philippines?
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A:
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The minimum capital requirement of setting up a Foreign-Owned Domestic Corporation is USD 200,000.
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Q:
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When does the company need to inject the capital?
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A:
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The company should inject the capital before submitting the first audited financial statement.
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Q:
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How long does it take to register a DC in Philippines?
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A:
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It mainly depends on corporate structure and proposed business activities. In general, it takes around 7-9 working weeks.
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Q:
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What is the basic structure of a DC in Philippines?
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A:
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The basic structure should be as follows:
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1.
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One President;
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2.
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One Director;
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3.
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Two Shareholders;
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4.
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One Treasure; and
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5.
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One Company Secretary.
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Q:
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Are there any restrictions on shareholder?
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A:
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No, shareholder can be natural person or corporate. No nationality restriction.
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Q:
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Are there any restrictions on director?
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A:
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Yes, the director must own at least 1 share.
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Q:
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Are there any restrictions on the president?
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A:
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Yes, company must have a president who must be a Director of the company. A foreigner can be a president if the industry is not secured only for the Filipinos.
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Q:
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Are there any restrictions on the company secretary?
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A:
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The company secretary must be a Filipino citizen who shall handle all the corporation’s administrative and informative work, safekeeping and preserve records, documents, and minutes of all meetings. A person cannot be the president and the Corporate Secretary at the same time.
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Q:
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Is it mandatory for a DC to have a bank account?
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A:
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There is no such requirement in Philippines.
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FAQ
