Opening a company in the Philippines implies several steps. From choosing the business form to having the incorporation documents drafted and filed with the Trade Registrar, there are various requirements to comply with. One of the most important is appointing the managers or directors of the future Philippines company. Forming the company management must be done in accordance with the impositions of the Company Act.
Our Philippines company formation consultants can offer information on the legal requirements related to company management in this country.
Company management requirements in the Philippines
The Philippines is not a strict country when it comes to the directors in a company. The Commercial Code requires a company to have a minimum number of 5 directors who must be at least 18 years old and natural persons. Also, the majority of directors must be Filipino residents.
Company directors in the Philippines must also own at least one share in the company they are running.
There are several types of individuals who can be part of a Philippines company’s management. These are:
– the directors;
– the trustees;
These can be organized as the board of directors of the company.
You can rely on our company registration agents in the Philippines if you want to set up a company here.
Observing the accounting principles and following the requirements for the submission of the audited annual financial statements, along with making the needed tax filings and payments is essential for good company management. Our accountants in Philippines offer complete solutions for companies, including bookkeeping, auditing, tax filing, tax planning and preparation, among others.
Duties of company directors in the Philippines
Even if there are no special requirements or qualifications to be part of the company management in a Philippines-based business, a director will have various duties and responsibilities towards the company. The most important ones are the duty of care and loyalty. Also, it is the company’s management duty to:
– act on behalf of the company upon negotiations and entering contracts with third parties;
– organizing the annual meetings of the shareholders;
– reporting to the authorities;
– reporting to the shareholders.
Other duties and responsibilities will be found in the company’s Articles of Association and bylaws. The same documents will specify how the managers or directors will be compensated for their work.
For full information on the company management requirements and assistance in registering a company in the Philippines, please feel free to contact our local representatives.