Everything You Need to Know About One Person Corporation
All the details that you need to consider in registering a One Person Corporation
What is One Person Corporation?
For years, there is no available entity in the Philippines that allows sole ownership either for locals or foreigners. Last 2019, One Person Corporation was finally implemented and the good news is it is available for all nationalities.
One Person Corporation or OPC is an entity suitable for individuals who do not have a business partner to start their corporation with. This is the only entity that only allows one natural person for a corporation.
What are the Basic Requirements in Setting up a one person corporation?
1. Single Stockholder
- Natural Person
- This individual will act as the Shareholder, President, and Director of the corporation.
2. Business Address
- For most business activities, virtual office addresses are allowed to be registered. The nature of the business must be checked first if physical location is not a prerequisite.
What is the Capital Requirement for a one person corporation?
Capital requirement for One Person Corporation depends on the business activity of the company. If it is not included in the Foreign Negative List, the capitalization is below.
If the company is going to generate revenue in the Philippines. Meaning if the corporation will conduct business in the Philippine market.
At least 5,000 to 10,000 USD for Export Companies
According to the law, if at least 70% of the companies’ revenue will be coming from abroad, the capital can be minimized to at least 5,000 PHP or 200 USD. But it is always advised to put down at least 5,000 USD for more feasible reasoning with the SEC.
At least 5,000 PHP for Local Ownership
For local citizens who will register for OPC, the capital requirement is only 5,000 PHP.
What are the corporate officers needed for OPC?
1. Natural Person
This individual will act as the Shareholder, President, and Director of the corporation.
2. Local Corporate Secretary
This is part of the officer requirement of this entity. The main task of the corporate secretary is to draft legal documents that are needed for the incorporation.
Non-Filipino citizens can be assigned as the Treasurer of the company as long as the individual is a resident in the Philippines.
4. Nominee and Alternate Nominee
In case the single stockholder become incapacitated, the nominee or alternate nominee can take over the management of the OPC as a director or president. At the end of the incapacity, the single stockholder can resume the management of the OPC.
Do you think opc is the best option for you?
Reach out to us and we will schedule a consultation to determine if your business activity is suitable for One Person Corporation registration.