With the introduction of the concept of a One Person Corporation in the Philippines, a question is raised for persons who want to set up a business on their own – is it better to set up an OPC or a sole proprietorship? We present five points for consideration.
Guidelines on Setting Up a One Person Corporation
The concept of a One Person Corporation (OPC) was introduced to the Philippines through the recent enactment of the Revised Corporation Code. The introduction of the OPC eases up the requirements for setting up a corporation for many businesses and start-ups in the Philippines. A single stockholder can now set up a corporation, dispensing of the need to appoint nominee directors just to satisfy the previous five-director requirement. Continuing from our Primer on the Revised Corporation Code, we discuss the guidelines on how to set up a One Person Corporation.