Introduction

INTRODUCTION
LAW ON
BUSINESS ORGANIZATION
DIFFERENT TYPES
OF
BUSINESS ORGANIZATION
1. Sole Proprietorship;
2. Partnership;
3. Corporation;
SOLE PROPRIETORSHIP OR SINGLE
PROPRIETORSHIP
It is a form of business
organization which is owned
by one person.
The owner personally manages
his business.
ADVANTAGES AND DISADVANTAGES
ADVANTAGES DISADVANTAGES
1. Easy to form 1. Difficult to
2. Not expensive
3. Low government
raise capital
regulation 2. Unlimited
4. No corporate taxation liability
on the business.
3. Limited life of
the firm
PARTNERSHIP
It is a form of business organization in
which two or persons bind themselves
to contribute money, property, or
industry to a common fund, with the
intention of dividing the profits among
themselves.
1. Easy to form 1. Difficult to raise

2. Less expensive capital
2. Limited life
3. Moderate
3. Unlimited liability in
government
general partnership
regulation
CORPORATION
A corporation is an artificial being
created by operation of law, having
the right of succession and the
powers, attributes, and properties
expressly authorized by law or
incidental to its existence.
1. Unlimited life 1. Double taxation

2. Easy 2. Complex and
transferability time-taking
3. Limited liability charter filing
4. Easy to raise process.
capital
FORMATION REQUIREMENTS
FORMATION REQUIREMENT
SOLE PROPRIETORSHIP
Since it is the simplest form of business
it is the easiest to register. It is registered
through the Bureau of Trade Regulation
and Consumer Protection (BTRCP) of
the Department of Trade and Industry
(DTI).
Registering a sole proprietorship with the DTI is simple. The
required information are as follows:
1. Proposed Business Name
(List 3 names in order of priority)
2. Business Address (Street Number, Name,
Barangay, Zip Code, City, Region)
3. Business Activities
4. Territorial Scope of business
(Barangay, city, regional or national)
5. Owner’s Full Name
6. Owner’s Address
7. Owner’s Date of Birth
8. Owner’s citizenship
9. Tax Identification Number or TIN of
the Owner
The DTI also requires any two (2) of the

following valid identification cards, the
original of which must be presented for
verification.
A sole proprietor must register with the DTI and secure a
Certificate of Registration. DTI Registration is valid for
5 years.
At present, the owner is given the option to choose his

scope of business whether it be barangay, city, regional or
national.
If the scope of business is national there is no need to

apply for another registration for new branch. If scope is
barangay, the owner registration is applicable to such
barangay only.
PARTNERSHIP
Partnerships are recorded with the Securities &
Exchange Commission (SEC). The following
requirements must be submitted with the SEC:
1. Name Verification Slip with the reservation of
the partnership name
2. Articles of Partnership
3. Registration Data Sheet
4. Affidavit of a partner undertaking to change
partnership name
5. Certificate of Bank Deposit
PARTNERSHIP
If a partnership has foreign partners, the
following additional requirements must be
filed:
1. SEC Form No. F-105
2. Bank certificate on the capital contribution
of the partners
3. For foreign partners who want to register
their investments with the Bangko Sentral ng
Pilipinas, proof of the remittance
REQUIREMENT OF FORMATION
CORPORATION
In order to set up a corporation in the Philippines, the incorporation
process is lodged with the Securities & Exchange Commission
(SEC).
The following documents must be submitted with the SEC:
1. Name Reservation/Verification Slip
2. Cover Sheet
3. Articles of Incorporation
4. Corporate By-laws
5. Registration Data Sheet
6. Registration Data Sheet (CAPITAL STOCK /
INCORPORATORS /DIRECTORS / OFFICERS INFORMATION)
REQUIREMENT OF FORMATION
CORPORATION
7. Affidavit of Undertaking to Change Corporate Name
8. Treasurer’s Affidavit stating the amount of the shares of stock
subscribed and the amount of the subscription price which has been paid-
in to him as Treasurer-in-Trust of the proposed corporation. He should
likewise certify that at least twenty-five percent (25%) of the authorized
capital stock has been subscribed, and at least twenty-five percent (25%)
of the amount subscribed has been paid-in to him for the benefit and to
the credit of the corporation.
9. Bank Certificate
The documents in Items 1 to 8 can be procured from the SEC. The Bank
Certificate will come from the bank where the corporate funds are
deposited.
APPLICABLE LAW
1. Sole proprietorship
Republic Act No. 9178 Barangay Micro Business Enterprises
(BMBEs) Act of 2002
Effective February 2003
2. Partnership
Republic Act 386 Civil Code of the Philippines Art. 1767
to 1842
Effective August 30, 1950
3. Corporation
Republic Act No. 11232 Revised Corporation Code of the
Philippines
Effective February 23, 2019
tenor.com
Salamat po
Thank You
ありがとうございました -
Arigatōgozaimashita (Japanese)
감사합니다 – gamsahabnida (korean)
Merci (french)
grazie (Italian)
Спасибо – Spasibo (Russian)
REFERENCES
R.A. No. 9178
R.A. No. 386
R.A. No. 11232
www.chegg.com
www.economicsdiscussion.net
www.coursehero.com
legal.ph
ndvlaw.com
google.com

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INTRODUCTION

1. Easy to form 1. Difficult to raise

1. Unlimited life 1. Double taxation

The DTI also requires any two (2) of the

At present, the owner is given the option to choose his

If the scope of business is national there is no need to

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