One-person businesses: What do they mean?
A One-Person Corporation combines the benefits of a sole proprietorship with the corporation’s limited liability. One stakeholder owns, operates, and serves as president and director of an OPC. If the nominee is unable to carry out their responsibilities, the stakeholder chooses an alternate. Archbishops or presiding elders of religious organizations were the sole shareholders of one-person companies in the past. Entrepreneurs can now run their own businesses independently thanks to the changes for the OPC company registration.
Who is eligible to become an OPC?
Thanks to the OPC, small and medium-sized businesses can now run corporations without having to deal with partners.The following requirements must be satisfied before an OPC can be filed:
Any natural person who is over the age of majority, whether they are domestic or international.Owners of foreign businesses are free to register OPCs without restriction.Despite this, there are still restrictions on foreign investment.
Who can’t form Trust Estate OPCs?
The Philippines has become more welcoming to both domestic and international investors as a result of allowing businesses to register as OPCs.However, this option might not be appealing to everyone.
Natural person is the licensee.There are others in addition to lawyers and doctors.A professional incorporator cannot become an OPC by becoming registered.
Insurance companies, quasi-banks, and banks that are publicly traded Insurance companies that are controlled by the government How to Register as a One-Person Corporation All OPC applications are processed by the Securities and Exchange Commission (SEC).Applications are manually received by the Department of Company Registration and Monitoring.
Loft offers the One-Person Corporation Business Registration service.
Step 1: Before you apply, research business names. Choose three names for your company.Check the SEC website to make sure your proposed name is one of a kind.After choosing a name for your company, you will also automatically receive the suffix OPC (for example, The Company Corporation, OPC).
You can skip this step if you want to.Your application may be rejected if the name of your company appears in the SEC database.Before you sign up, check to see that your name is correct.
Step 2: Complete the Online Application Form The SEC’s official website contains an online application form.Within three days of submitting your application, you will receive an email with your status.After you have submitted your application, a reference number will be assigned to it.Here, you can check your email and see where you stand with your registration.Step 3:Calculate and Pay for Fees After your application has been accepted, you must pay for registration.You are going to be billed in accordance with this breakdown.
- For $100, you can get a name for your business or a trade name.
- The incorporation documents:15 of 1%.In this instance, there shouldn’t be a fee less than $2,000.
- Fee for registration and 1 percent for legal research.The sum must contain at least $20.
- A single foreign stakeholder must pay 3,000 yen in addition to an additional 30 yen for the documentary stamp.
- Stamp for Documents:₱30 pesos.
Step 4: Notarize Your Documents and Proof of Payment In order for one-person corporations to register with the SEC, several documents must be filed.Some of them are as follows:
Natural Persons, Trusts, and Estates: Cover SheetArticles of Incorporation Written Consents of the Nominated and Alternate Nominees The circumstance may necessitate additional documents.Foreign nationals must submit FIA Application Forms and Tax Identification Numbers.
These requirements must be submitted manually to the SEC and notarized.Each document must be accompanied by a notarized payment proof.A 30-day deadline applies to the submission of documents and payment.Step 5: Claim Your Registration Certificate The SEC may also request additional supporting documents in addition to the registration form.The SEC issues certificates following approval.
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The Documents Required for OPC Registration