One of the most important requirements when starting a business in the Philippines related to the share capital of the company. The Filipino Company Act contain specific provisions related to the amount of money which must be deposited by the shareholders in a bank account upon the registration of a company with the authorities. However, there are also other laws which provide for the share capital requirements in certain cases.
Our Philippines company formation agents can offer information on the legal provisions related to the share capital of companies registered in this country.
Share capital requirements in the Philippines
It should be noted that compared to other countries, the Philippines provides for several requirements related to the share capital, among which:
– companies must have a paid-up capital, which is the direct amount of money injected by the investors in the business;
– companies can have an authorized share capital which is the maximum amount of money which can be injected in a business, as prescribed by the law;
– companies can have a subscribed capital which is represented by the number of shares allotted to each shareholder.
It should be noted that the share capital of a company in the Philippines depends on the industry it operates in.
Our company formation consultants in the Philippines can explain the concepts related to the share capital mentioned above.
The minimum share capital requisites acknowledged in the Philippines
The Company Act does not require stock corporations registered in the Philippines to have a minimum share capital, however the shareholders must deposit at least 25% of the capital they decided upon during the company registration procedure. The minimum amount of money accepted is 5,000 PHP.
As mentioned earlier there are companies operating in certain industries in the Philippines which must follow specific share capital regulations. Among these industries are:
– the insurance sector;
– the financial sector;
– the investment services sector;
– the mining sector;
– the recruitment sector;
– the transportation sector.
For full information on the share capital requirements, please contact our Philippines company registration specialists. We can also assist those who want to open companies in the Philippines.