There are several types of companies foreign investors can use to start doing business in the Philippines. From the sole proprietorship which is the simplest structure covered by the Philippines Company Law to the stock corporation which is the most popular business form employed by foreign enterprisers who come to start companies in this country.
Most of the investors set up small businesses which they later expand. In order to do that they must change company types in Philippines. If you want to start a company and need assistance, our Philippines company registration consultants can offer more information on how to change business forms.
What companies can change forms in the Philippines?
The most usual situations in which an enterpriser changes company type in the Philippines is when the sole trader has achieved a certain level a success and can no longer function in the current form. The sole trader is usually transformed into a limited liability company in the Philippines.
The sole trader can also be changed into a partnership, however, this is not such a common change in a Philippines company structure.
Then, the private limited liability company can be changed into joint stock corporation, however this procedure can be completed by increasing the share capital of the private company and listing it on the Stock Exchange in the Philippines.
Our Philippines company formation specialists can assist those who want to change company types in this country.
How can one change business forms in the Philippines?
The most important aspect to be considered when changing company types in the Philippines is that there is no direct way of doing that.
The steps related to changing the form of a business in the Philippines are:
– de-registering the existing company;
– registering a new company with the Business Registrar.
The process also implies preparing a new set of incorporation documents, depositing the share capital as requested by the law (where applicable) and even choosing a trade name in certain cases.
Even if it may seem difficult, with the help of our company formation advisors in the Philippines you can change the type of company if you want. You can also contact us if you are interested in setting up a new business in the Philippines.