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    Purpose of Requiring License

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    ANGELICA FLORES
    This document outlines the requirements for foreign corporations to obtain a license to conduct business in the Philippines. It discusses that a foreign corporation must submit documents like articles of incorporation and bylaws certified by its home jurisdiction. It also requires a deposit of securities with the Securities and Exchange Commission for the benefit of present and future creditors. Obtaining a license subjects the foreign corporation to Philippine court jurisdiction and regulations. The purpose is to allow foreign corporations to transact business legally while protecting domestic interests.

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    Purpose of Requiring License

    Uploaded by

    ANGELICA FLORES
    18 views1 page
    This document outlines the requirements for foreign corporations to obtain a license to conduct business in the Philippines. It discusses that a foreign corporation must submit documents like articles of incorporation and bylaws certified by its home jurisdiction. It also requires a deposit of securities with the Securities and Exchange Commission for the benefit of present and future creditors. Obtaining a license subjects the foreign corporation to Philippine court jurisdiction and regulations. The purpose is to allow foreign corporations to transact business legally while protecting domestic interests.

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    This document outlines the requirements for foreign corporations to obtain a license to conduct business in the Philippines. It discusses that a foreign corporation must submit documents like articles of incorporation and bylaws certified by its home jurisdiction. It also requires a deposit of securities with the Securities and Exchange Commission for the benefit of present and future creditors. Obtaining a license subjects the foreign corporation to Philippine court jurisdiction and regulations. The purpose is to allow foreign corporations to transact business legally while protecting domestic interests.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    18 views1 page

    Purpose of Requiring License

    Uploaded by

    ANGELICA FLORES
    This document outlines the requirements for foreign corporations to obtain a license to conduct business in the Philippines. It discusses that a foreign corporation must submit documents like articles of incorporation and bylaws certified by its home jurisdiction. It also requires a deposit of securities with the Securities and Exchange Commission for the benefit of present and future creditors. Obtaining a license subjects the foreign corporation to Philippine court jurisdiction and regulations. The purpose is to allow foreign corporations to transact business legally while protecting domestic interests.

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    © All Rights Reserved
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    of 1

    .

    TITLE XV

    Foreign Corporation

    Sec. 140

    -A foreign corporation is one formed, organized or existing under any laws apart from those of the Philippines
    and whose laws allows Filipino citizens and corporation to do business in its own country or state

    -Rights to transact business in the Philippines- After It obtained a license to transact business in this country in
    accordance with this Code and certificate of authority from appropriate government agency. (SEC)

    Sec. 141 Application to existing foreign corporations

    -Every corporation is authorized to do business in the Philippines under a license, theretofore issued to it.
    example theretofore, before the time

    Shall continue to have such authority under the terms and condition of the license, subject to the provisions of
    this Code and other special laws

    Sec. 142 Application for the license

    -A foreign corporation shall submit to the SEC a copy of its articles of incorporation and by- laws, certified in
    accordance with the law. And their translation to an official language if necessary.

    - Requirement to acquire a license: Copy of its articles of incorporation and by- laws, certified in accordance with
    the law.

    -Duly executed certificate under oath by the authorized official/s of the jurisdiction of its incorporation Attesting
    to the fact that allows Filipino citizen and corporation to do business there in The applicant is an existing corporation and
    in good standing Statement under oath of the president or any other person authorized by the corporation Foreign
    banking, financial and insurance corporation shall, in addition to the above requirements, comply with the provisions of
    existing laws applicable to them

    Sec 143 Issuance of a license

    -Where SEC is satisfied that the applicant has complied with all the requirement of this Code and other special
    laws, rules and regulation ◦ The SEC shall issue a license to the applicant to transact business in the Philippines. Within
    60 days after issuance of the licensee, except a foreign banking or insurance corporation the applicant is required to:
    A. Deposit with the SEC for the benefit of the present of future creditors licensee in the Philippines, securities
    satisfactory to the SEC, consisting of bonds or other evidence of indebtedness of the Government of the Philippines.
    B. Deposit at least 100 000 pesos.

    -Provided however, that within 6 months after each fiscal year of the licensee, the SEC shall require the licensee
    to deposit additional 2% of the amount by which the licensee’s gross income for that fiscal year exceeds 5 million pesos.
    The securities and exchange commission shall also require deposit of additional securities if the actual market value of
    the securities decrease by at least 10% The SEC may allow the licensee to substitute other securities for those already on
    deposit as long as the licensee is Solvent. In the event the licensee ceases to do business in the Philippines, the
    securities shall be returned.

    Purpose of requiring license

    1. To subject foreign corporation doing business in the Philippines to the jurisdiction of its courts. Transacting
    Business
    2. Carrying on the operation of the corporation for profit
    3. Doing business. Soliciting orders, purchases, service contracts, opening office whether called liaison offices
    or branches

    Licensing of foreign corporations under BOI (Board of Investments) Rules

    A. Requires license of corporation organize abroad


    B. License of domestic corporation -If more than 40% of its voting shares are owned and held by aliens or
    more than 30% of its total capitalization is in the hands of the aliens.
    C. The law considers the nationality of stockholders as well

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