Category Archives: Corporate & Investments

30-Day Grace Period No Longer Available for Loans with Due Dates Falling on 1 June 2020 and Thereafter (BSP FAQ)

[The Department of Finance (DOF) and the Bangko Sentral ng Pilipinas (BSP) did not issue any new guidelines, which means that the original Implementing Rules and Regulations covering the 30-day grace period for loans remain the same. The rule is different for rents. Loans with due dates falling before 1 June 2020 still enjoy the 30-day grace period, but loans with due dates falling on 1 June 2020 and thereafter do not enjoy such benefit. This is clear in the latest Frequent Asked Questions (FAQ) of the BSP, reproduced below for the purpose of disseminating the information.]

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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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Guidelines for Dine-in Restaurants and Fastfood Establishments: DTI-Mandated Minimum Health Protocol

[No more buffet or self-service when you visit your favorite restaurant or fastfood chain. And you are required to fill up a medical checklist. On 31 May 2020, the Department of Trade and Industry (DTI) released the Guidelines on Minimum Health Protocol for Dine-in Restaurants and Fastfood Establishments. Dine-in is allowed at 50% capacity during the Modified General Community Quarantine (MGCQ) period. The full text of the guidelines is reproduced below.]

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Cross-Border Rehabilitation and Insolvency: Actions of Foreign Creditors and Enforcement Framework of Foreign Proceedings in the Philippines

The Financial Rehabilitation Rules of Procedure (2013), referred to as the “FR Rules,” covers cross-border insolvency proceedings pursuant to the Financial Rehabilitation and Insolvency Act (FRIA) of 2010. These provisions are likewise made applicable in proceedings under the Financial Liquidation and Suspension of Payments Rules of Procedure for Insolvent Debtors (2015), referred to as the “FLSP Rules”.

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DTI Guidelines to Follow on Minimum Health Protocols for Barbershops and Salons

[On 29 May 2020, the Department of Trade and Industry (DTI) issued the Guidelines to Follow on Minimum Health Protocols for Barbershops and Salons. This has been approved under IATF Resolution No. 41, series of 2020, for areas under General Community Quarantine (GCQ) starting 7 June 2020 at 30% operating capacity, and Modified General Community Quarantine (MGCQ) at 50% capacity. See Section 4(6)(c) of the revised Omnibus Guidelines. The full text of the guidelines is reproduced below.]

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Real Estate Investment Trust (REIT) in the Philippines: Introduction and Salient Points

A Real Estate Investment Trust (“REIT”) is a stock corporation established principally for the purpose of owning income-generating real estate assets. For purposes of clarity, a REIT, although designated as a “trust”, does not have the same technical meaning as “trust” under existing laws and regulations but is used for the sole purpose of adopting the internationally accepted description of the company in accordance with global best practices. 

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New Normal for Owners and Operators of Hotels and other Accommodation Establishments in the Philippines

When the lockdown is lifted and areas are no longer under any community quarantine, Accommodation Establishments will have to face the challenges of a New Normal. “New Normal” refers to the emerging behaviors, situations, and minimum public health standards that will be institutionalized in common or routine practices and remain even after the pandemic while the disease is not totally eradicated through means such as widespread immunization. In plain terms, New Normal means things will never be the same, and it is going to be extra challenging for owners or operators of Accommodation Establishments.

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Work Schedules: Options for Employers/Companies During or After the Community Quarantine Period

The coronavirus disease 2019 (Covid-19) pandemic poses a very serious threat to lives and businesses alike. The lockdown or community quarantine, particularly the enhanced community quarantine (ECQ) and modified enhanced community quarantine (MECQ), closed down many establishments. Here are some of the options for employers/establishments:

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5-Step Guide for Employers Operating During Community Quarantine

Existing community quarantine classifications are: Enhanced Community Quarantine (ECQ), Modified Enhanced Community Quarantine (MECQ), General Community Quarantine (GCQ), and Modified General Community Quarantine (MGCQ). The reclassification of many areas to MECQ and GCQ means more establishments are allowed to operate. Here is a quick guide for employers to determine if the company is allowed to operate and, in the affirmative, the requirements for such operation.

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