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BPO firm first regular corporation with less than 5 incorporators —SEC

The first corporation formed under recently issued Guidelines on the Number and Qualifications of Incorporators under the Revised Corporation Code has been approved by the Securities and Exchange Commission (SEC).

The commission issued the certificate of incorporation to Markable Solutions Phils Inc. on August 8, becoming the first ordinary corporation with less than five incorporators under Republic Act No. 11232, or the Revised Corporation Code of the Philippines, the SEC said Friday.

“Markable Solutions was incorporated by American nationals Reshma Sinha Nigam, and Anil Kumar Nigam, and Indian national Radhika Melethil Vivekanandan for the primary purpose of providing general business process outsourcing services and information products and services,” the commission noted.

"When I was looking to expand, I wanted to move to a country that would welcome foreigners, where English would be widely spoken and the workforce would be educated, motivated, and quality conscious,” company founder and president Nigam, said in a statement.

“The Philippines met my criteria but what surprised me was how easy it was to do business here. The entire process from filing the application to receiving the certification was completed within seven days,” Nigam added.

Batas Pambansa Blg. 68, or the Corporation Code of the Philippines, previously required “any number of natural persons not less than five but not more than fifteen (15)” to come together and form a corporation.

“I think this new law will see a spurt of new foreign investments in the country which will be excellent for the Philippine economy,” Nigam noted.

On July 31, the commission issued Memorandum Circular No. 16, Series of 2019, to provide the Guidelines on the Number and Qualifications of Incorporators under the Revised Corporation Code. The circular took effect when it was published on August 1.

“The Guidelines strengthens the Revised Corporation Code’s provisions aimed at improving the ease of doing business and thereby encouraging entrepreneurship and investment in the country,” SEC Chairperson Emilio B. Aquino said.

“Among others, the Guidelines allows for the creation of ordinary corporations by only two incorporators, which may now be composed of partnerships, corporations or associations aside from natural persons,” he added.

Two or more persons, but not more than 15, may now form a corporation.

The SEC earlier issued guidelines on the establishment of a One Person Corporation, which is a special corporation.

Incorporators may be any combination of natural persons, SEC-registered partnerships, SEC-registered domestic corporations or associations in good standing as well as foreign corporations.

Partnerships, corporations or associations, however, will have to appoint natural persons to sign the company’s articles of incorporation. —VDS, GMA News