The corporation’s primary benefit is the protection of its shareholders’ assets from the company’s liabilities. Upon registration with the Securities and Exchange Commission, a separate juridical personality for the corporation is immediately formed. Although the corporation is primarily governed by the Philippine Corporation Code, shareholders can sign a shareholder agreement to establish their rights and obligations among each other.
A Philippine corporation can be 100% foreign owned, for as long as its business purpose is not restricted under the constitution, the law, or the Foreign Investment Negative List. A Philippine-registered corporation that is 60% owned by Filipinos is considered a Filipino corporation. As a Filipino corporation, it can engage in a number of businesses that are not restricted, such as land ownership in the Philippines.
We can help you register a corporation in the Philippines in three weeks. As your lawyer, we can prepare pre-incorporation agreements, shareholder agreements, loans, pledges, special powers of attorney, and deeds of assignment that can protect you, should a foreign investor decide to engage in a restricted business in the Philippines.