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Here are the usual business structures organized under Philippine laws.
1. Sole proprietorship
- owned and run by one person and there is no legal distinction between the owner and the business entity. The owner is in direct control of all elements and is legally accountable for all aspects of the business. Sole proprietorship may either be entrepreneurs or professionals like doctors, brokers, freelancers and the like.
- Under the Civil Code of the Philippines, a partnership is treated as juridical person, having a separate legal personality from that of its members. It consists of two or more partners. Partnerships may either be general partnerships, where the partners have unlimited liability for the debts and obligation of the partnership, or limited partnerships, where one or more general partners have unlimited liability and the limited partners have liability only up to the amount of their capital contributions. A partnership with more than P3,000 capital must register with the Securities and Exchange Commission (SEC).
- Corporation requires a minimum of 5 incorporators and a maximum of 15. They should hold at least a single share in the company. Majority of the incorporators must be Filipino citizens. A Corporation may have between 5 and 15 directors (or trustees if a non-stock corporation), each of whom must hold at least one share of stock. Majority of the directors (or trustees) must be Philippine residents. All Domestic Corporations (those incorporated in the Philippines) obtain their license from and are registered with the Securities and Exchange Commission.
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