Corporate & Business Law In Cebu

The following are the business entities in the Philippines:
  1. Sole Proprietorship – this is owned by a single individual who has full control over the entity and has unlimited liability that reaches to his / her personal property.
  2. Partnership – a business owned by two or more persons who share profits, liabilities and responsibilities depending on the type of partnership formed.
  3. Corporation – it is an artificial being created by operation of law consisting of one or more persons, natural or juridical, that has a right of succession and can execute certain powers. The corporation may be a stock corporation or a non-stock.
  4. One Person Corporation (OPC) – this is a type of corporation with only a single stockholder who holds the position of both director and president thereof.

A stock corporation is a for profit entity with capital stock divided into shares. These shares are owned by shareholders who receive dividends. A non-stock corporation, on the other hand, does not issue shares of stock. It is usually organized for charitable, educational, cultural, or other similar purposes.

Shareholders can protect their interests by, among others, exercising their voting rights at stockholders’ meeting and inspecting corporate books and records. Shareholders may also exercise their pre-emptive rights to purchase new shares before the corporation offers them to persons who are not stockholders of the corporation.

Corporate officers are generally the president, treasurer, corporate secretary and other officers defined in the by-laws. The specific duties and powers of each officers are outlined in the corporation’s by-laws.

Yes. However, there are restrictions under the law. Depending on the type of business, foreigners can either own 100% of the business’ foreign equity or have limited foreign ownership.