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One Person Corporations in the Philippines

A One Person Corporation is a corporation with a single stockholder, who must be a natural person, trust, or an estate. It must not be confused with a corporation sole. The creation of a One Person Corporation or OPC is provided in Title XIII (Special Corporations) of Republic Act No. 11232, also known as the “Revised Corporation Code”. The guidelines, as provided in SEC Memorandum Circular No. 7, series of 2019, are discussed below. 

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Modified Number Coding Scheme to Take Effect Monday, 8 June 2020, in Metro Manila

[The Metro Manila Development Authority (MMDA) has announced that the Modified Unified Vehicular Volume Reduction Program (UVVRP) or “Number Coding Scheme” for Metro Manila will take effect on 8 June 2020. It is basically the old Number Coding Scheme, with the following EXCEPTIONS: (a) Owner-driven or self-driven private motor vehicles of doctors, nurses, and other medical personnel, even if the driver is the only occupant of the vehicle; (b) Private motor vehicles of Authorized Persons Outside Residence or APOR, provided that there are two or more passengers including the driver, physical distancing or one-meter distance between passengers is strictly observed, and all occupants wear face mask. The full text of MMDA Regulation No. 2020-001 is reproduced below.]

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Twin-Notice Rule and Procedural Requirements in Employment Termination Proceedings

Due process, in relation to employment termination proceedings, is composed of two aspects. One, there must be a just or authorized cause for the dismissal or any administrative disciplinary acton (substantive due process). Two, the requirements of procedural due process must be complied with. The separate procedural due process requirements for just causes and authorized causes for employment termination are discussed below.

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Doing Business in the Philippines: Registration Regulatory Framework for Foreign Companies

Foreign corporations can secure a license to transact business in the Philippines. As defined under the Revised Corporation Code, a foreign corporation is one formed, organized or existing under laws other than those of the Philippines. Based on the principle of reciprocity, a foreign corporation cannot secure a license if its country/state of registration does not allow Filipino citizens/corporations to do business in said country/state. 

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Introduction to Insolvency in the Philippines: Suspension of Payments, Financial Rehabilitation and Liquidation

Insolvency is defined as the financial incapacity of debtors to pay their liabilities as they fall due in the ordinary course of business, or whenever their liabilities are greater than their assets. A debtor may refer to an individual debtor (natural persons) or juridical persons. The Philippines has specific rules for different proceedings affecting insolvent debtors and their creditors. 

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Refund of Payments for Events Affected by the Community Quarantine: Force Majeure and DTI Guidelines

The provisions on force majeure affects contracts and obligations during the community quarantine, as discussed in a previous post. In a welcome move, the Department of Trade and Industry (DTI) issued the guidelines on refund of payments made for events affected by the State of public health emergency. The salient points of DTI Memorandum Circular No. 20-30 are as follows:

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Rules Governing Persons Below 21 Years Old, 60 and Above, and other “Most at Risk” Employees during GCQ and MGCQ

The community quarantine classification for all areas in the Philippines has been relaxed, effective 1 June 2020, to either General Community Quarantine (GCQ) or Modified General Community Quarantine (MGCQ). The recent pronouncements by authorities include the rule that persons below 21, those 60 years old and above, and those with immunodeficiency, comorbidities, or other health risks, and pregnant women are prohibited from going outside their respective residences. 

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