Philippines One Person Corporation (OPC) in 2023
Since 2019, foreign entrepreneurs have been able to register a company in the Philippines as the sole shareholder. The Philippines OPC is an excellent vehicle for entry into the Philippines market, with simple legal and regulatory considerations, and is ideal for start ups and SMEs. Healy Consultants assists our Clients with i) incorporating an OPC ii) opening a Philippines corporate bank account iii) employee recruitment iv) visa strategies v) office rental solutions in the Philippines and vi) ongoing accounting and tax services.
Advantages of an OPC
- An OPC requires just one shareholder. A sole shareholder is also the sole director and president of the OPC;
- The sole shareholder can be foreign, and need not be a Philippines resident. However, foreign entrepreneurs should note the government’s Foreign Investment Negative List, which identifies industries which forbid foreign ownership;
- An OPC carries less risk than a Philippines sole proprietorship, as with an OPC the foreign investor can claim limited liability;
- An OPC is an excellent entry point into the Philippines’ vibrant start-up ecosystem. The country’s entrepreneurial revolution is supported by legislation such as the Philippines Innovation Act and the Innovative Startup Act, which was signed into law in 2019;
Disadvantages of an OPC
- The minimum capitalization of a foreign-owned OPC varies depending on the type of business activity. In general, a paid up share capital of US$200,000 is required and must be deposited to a Philippines corporate bank account before OPC incorporation is complete;
- An OPC must appoint a company secretary (who must be a Philippines citizen), a treasurer (any nationality but must be resident in the Philippines) and other officers. Officers must be appointed within 15 days establishing the OPC, and the Securities and Exchange Commission (SEC) must also be notified within five days of their appointment;
- A self-appointed treasurer must submit a bond, the amount of which is calculated based on the authorised share capital of the OPC. For an authorised share capital of between one and one million pesos, the bond is one million pesos (US$19,765). The bond must be renewed every two years;
- An OPC must submit an annual audited financial statement (see here for more information on Philippines Accounting and Tax considerations);
- The Philippines keeps a public record of shareholders and directors.
- The conversion of an OPC to an ordinary joint stock corporation is a lengthy process, which takes approximately 2 months.
Best uses of an OPC
- An OPC is ideal for a foreign investor/entrepreneur who wishes to set up a small/ medium-sized enterprise (SME);
- The Philippines has a vibrant, and growing, entrepreneurial culture.
Setting up a Philippines OPC
Healy Consultants will assist our Client to register the OPC with the Philippines Securities and Exchange Commission. Our service includes:
- Securing the company name;
- Submitting OPC registration documents (including arranging for notarisation, if applicable);
- Settling filing fees;
- Obtaining a certificate of registration.
Please visit this page for more information on the Philippines company incorporation process.
Healy Consultants Group’s fee for OPC is US$24,473.
Refer to embedded PDF file to view an example of a Philippines OPC invoice.